MANAGING FOOD SAFETY & QUALITY IN THE NEW GLOBAL TRADE ENVIRONMENT
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1 MANAGING FOOD SAFETY & QUALITY IN THE NEW GLOBAL TRADE ENVIRONMENT By Pitak Supanantakarn, Regional Director, Food Services Asia Pacific Intertek Testing Services HOW TO MANAGE THE PRODUCTS TO EXPORT PROMOTION, PHNOM PENH, CAMBODIA 17 th December,
2 THE FOOD SAFETY CHALLENGES Complexity of agri-food supply chain no. of suppliers, processes, ingredients, etc. Food trade globally global sourcing & geographical coverage. Rapid globalization of food production increased potential likelihood of food contamination Gaps in product safety implementation Additional and more specific laws and regulations Product liability Brand Protection.. Consumers are better educated and well informed about food & food related issues. Customer demands and preferences constantly changing. 2
3 NEW CONSUMER MENTALITY & EXPECTATIONS Consumers are more educated and better informed about food and food related issues. Appetites for conformation where it grow, how it was produced,.. Life style changes convenient, ready to service.. Quality and safety concerns product and services Focus on Quality rather than Quantity Seeking better values Less for more.. Ecological concerns, global warming, Social concerns - ethical issues, social responsibility, occupational health and safety Others animal welfare, sustainability approach, IT IS, THE MARKET CHANGES!!! 3
4 GLOBAL FOOD CRISIS HYGIENE, DISEASE AND CONTAMINATION To date, the world has faced with food crisis of variable nature, for example: Mad Cow disease Sudan Red Dioxin Melamine Causes have been traced to various possibilities such as negligence in causing contaminated animal feed and chemical residue but also to the extent of deliberate adulteration ANIMAL WELFARE Compromised welfare of animals and livestock 4
5 GLOBAL FOOD CRISIS FRAUD Other deliberate attempts affecting global food supply include product counterfeit, illegal sourcing and mislabeling of products. Cases have involved : Fish products African coffee Belgian chocolate ENVIRONMENTAL Pollution Over-harvesting Ecological imbalance 5
6 21st Century FOOD ISSUES Private Label Foods flood the Marketplace Health & nutrition greatly influencing Product Development Global Financial Crunch, Cheaper Price Production Costs, Cuts on food spending Decreasing Consumer Confidence Clamor for Foods that meet Health, Safety & Environmental Needs Changes in Preferences and Sourcing Patterns Problems on Traceability - Supplier Food Safety Controls Product Mislabeling & Misinformation (Allergens, GMO s, etc) Risk & Recall Communication Migration of Hazardous Substances Concerns on Food Bio-security Consequences of Climate Change Environmental Degradation World population 6.7B (2010) 9B (2040) 6
7 WHY MANAGE FOR FOOD SAFETY Doing nothing is no defense! Customer demand it Failure to manage risk: - Always costs money! Always damages a reputation..! Public recalls..! It s good for business Potential product liability Regulators requirement Nothing remains the same.. Your past experiences guarantee nothing..!!! Playing the media 7
8 MANAGING FUTURE RISKS.. THE NEED Why Managing Risk? Change in technology Change in the law # Change in consumer attitude toward risk Change in customer requirement & expectations Change in business environment....never be the same..!! 8
9 THE BUSINESS PROCESS Increasing Time Investment Increasing Monetary Investment Increasing Emotional Investment 9
10 Example: AGRI-FOOD SUPPLY CHAIN Seed, Pesticides Ingredients & Medicines Breeding Stock Soya / Maize Animal Feed Live Animal Raw Meat Primary Agriculture Animal Feed Production Animal Production Animal Slaughter & Processing Ingredients & Packaging Cooked Meat Further Processing & Cooking Storage & Distribution 10
11 CHAIN TRACEABILITY Complexity & Multiplication of Impact Ingredients Raw materials Packaging Storage Man. Process Storage & Transport Retail Reduction of Risk (Risk = Hazard x Exposure) 11
12 Agri-food Supply Chain Integrated Quality Program From Farm Growers/ Farmers Collector/ Primary producer Processors/ Packers/ Manufacturers Distributors/ Wholesales/ Retailers To Fork Consumer GlobalGAP, Organic, Non- GMO BRC-Packaging Halal, GMP/ HACCP BRC-Packaging BRC-Food IFS, Halal GMP/ HACCP one brand Certification one brand certification Supply chain inspections From Farm Management standards: ISO 9001, 14001, 22000, OHAS 18001, SA 8000, HACCP, Product standards: Organic, non-gmo, Halal, Q&S, etc. Traceability and Testing Product liability insurance, Training, Risk management, Consulting, etc To Fork 12
13 What Should the Industry Expect? Security Social Accountability Environmental One stop shop Program Manageme nt 13
14 ENHANCING FOOD QUALITY & SAFETY Efficiency Integrated Food Quality and Safety Systems Profitable Market and Legal compliance 14
15 CIES TOP MIND SURVEY Ranking 2009 Ranking 2008 Ranking 2007 Economy and Consumer Demand Food Safety Corporate Responsibility Competitive Landscape Retailer Supplier Relations Source: CIES France
16 GLOBAL FOOD SAFETY INITIATIVE GFSI launched at the CIES Annual Congress in 2000, following a directive from the food business CEOs. Food Safety was then, and is still, top of mind with consumers. Consumer trust needs to be strengthened and maintained, while making the supply chain safer. Managed by CIES The Food Business Forum GFSI Mission: Continuous improvement in food safety management systems to ensure confidence in the delivery of safe food to consumers 16 Source: CIES France
17 GFSI TECHNICAL WORKING GROUPS 17 Source: CIES France
18 FOUNDATION IN SCIENCE Codes Of Practice GFSI Recognised Schemes Supplementary Codes Schemes ISO Standards ISO Codex Alimentarius Standards Standards Principles HACCP Principles Legislation Requirements Source: CIES France 18
19 BENCHMARKING WHAT DOES IT MEAN? «Once certified, accepted everywhere 19 Source: CIES France
20 SOME COMPANIES NOW ACCEPTING GFSI RECOGNISED SCHEMES 20 Source: CIES France
21 MAIN CHALLENGES IDENTIFIED BY SUPPLIERS No management systems in place at the production unit Limited information of expectations and needs Reduced support of implementation stage from some buyers Short term relation or view Very competitive market Reduction in prices and margin Increase of global production Standards developed in buyer markets for implementation at sourcing markets 21
22 HOW AND WHAT TO IMPLEMENT BY SUPPLIERS? Management systems programs Systematic and proactive approach, rather than reactive with costly actions Consult your clients, understand their needs Identify best fitting alternative of recognized programs Ensure top management endorsement Develop reasonable, timely and cost-effective action plan Monitor program implementation and efficiency periodically Select qualified and experienced service provider for consultancy or external verification 22
23 INDEPENDENT VERIFICATION WHY USE IT? Increasing consumer demand for product differentiation in global markets Buyers are increasingly using Assurance Schemes to verify quality Excellent tool for the operator to: Validate their quality and/or traceability system against international standards To communicate to customers and suppliers the quality standard they have achieved Increases producer s credibility Verify label claims Halal, Non-GMO, organic, Kosher, fair trade, etc Certification an increasingly valuable ticket to trade 23
24 CHALLENGE TO THE SUPPLY CHAIN MANAGEMENT Customer requirement is constantly changing.. Endless.! Language Culture Local legislation Time and distance Individual interpretation International legislation Lack of resource and support Using quality system in the wrong reason.. 24
25 OUR FOCUS Food service industry: Intertek - Testing (all levels) - Inspection (all levels) - Certification (3rd party) - ISO ISO Food Safety (BRC, IFS, SQF, etc.) - Consulting Food Services? Quality assurance Certification Fire wall Advisory - Training - Preassessment System Process Product Food Services 25
26 INTERTEK INTELIGENCE Countries 110 Laboratories 440 Offices 630 Employees Floated May 2002 FTSE 100, Support Services Sector Market capitalization 1.6bn Intertek do assess, identify and predict any potential hazards and quality promises from concept to distribution. This is carried out with out with combined testing and auditing services by our global network of laboratories and industry experts. AMERICA 1/3 Turnover, People EAME 1/3 Turnover, People ASIA 1/3 Turnover, People 26
27 Thank you for your attention For more information: Pitak Supanantakarn Regional Director Food Services Asia Pacific Mobile:
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