Dealing with an Expanding Global Food Supply
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- Everett Simmons
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1 1133 Journal of Food Protection, Vol. 59, No. 10, 1996, Pages Copyright, International Association of Milk, Food and Environmental Sanitarians Dealing with an Expanding Global Food Supply ZAHARA MERICAN* Malaysian Agricultural Research and Development Institute, P.O. Box G.P. 0., Kuala Lumpur, Malaysia (MS# : Received 20 December 1995/Accepted 27 May 1996) ABSTRACT We have a competitive world economy and cannot exist in isolation. Migration, overseas education, and travel have resulted in tremendous demands for foods from other parts of the world. With advances in communication systems, products can be moved rapidly throughout the world at competitive prices. There is a two-way concern regarding safety and quality in importing and exporting : the microbiological risks from products and/or ingredients from which have varying microbiological standards and the dumping of substandard products in with insufficient monitoring systems. HACCP (hazard analysis critical control points) programs based on hazards and risks specific to a particular product are being increasingly recommended as a quality assurance tool to meet the current and future safety demands of the world's food supply. The scope of these developments implies an urgent need for a thorough understanding of the dynamics of food production, including the available infrastructure, trained human resources, and cultural factors, as well as food needs and wants. Quality assurance activities should not only depend on government's regulatory machinery, but also on self-regulation by industry groups, exporters, and importers. Enough has been said on these principles. It is left to and industries to exercise adherence to ensure safety and quality. Assistance from the developed world and international organizations to train resources in developing on the standard safety procedures is urgently needed. Government-industry partnership and mutual recognition (of certification bodies) based on HACCP plans and designed after ISO (International Standards Association) guidelines are some of the means by which importing can monitor and address the expanding global food supply. A network of these certification bodies worldwide should be considered. The basic provisions of the GATT (General Agreement on Tariffs and Trade) on Sanitary and Phytosanitary Measures signed on 15 April 1994, when fully implemented, should be able to address these concerns. Key words: Global food supply, quality assurance, expanded food trade, safety concerns Food processing is a significant manufacturing industry in most developing, built upon abundant natural * Author for correspondence. Tel: (60-3) ; Fax: (60-3) resources, suitable climate, and relatively cheap labor. In most of these agriculture is still an indispensable currency of exchange. As food markets become increasingly internationalized, the focus of the export market has shifted from primary, relatively nonperishable commodities to fresh and processed products. The growth of the GDP (gross domestic producer) in large parts of the developing world, the expanding middle class and urban population, and the globalization of communications offer considerable scope for growth of processed foods. This is particularly true for Asia, which not only produces food, but also imports and exports foods. The strong economic growth from a low per capita income base will drive an unprecedented increase in the demand for foods in Asia. The expected growth in the burgeoning Asian food market was said to be unmatched by any other region in the world (12). It should also be noted that Asia is not just one market, but several with different needs which offer opportunities for food companies worldwide. A conservative estimate in a recent Australian government report forecast that the Asian food market would grow from US$525 billion in 1990 to US$685 billion by the year 2000 (8). GLOBAL SCENARIO Trend The food industry's future is very much related to its ability to be internationally competitive and to be international in business. We have a competitive world economy, and cannot exist in isolation. Past colonization, migration, overseas education, travel, and cross cultures have resulted in tremendous demands for foods from other parts of the world. Food products are produced by fewer food producers and are more widely distributed than years ago. The food-handling chain is longer, involving more people, thereby increasing the risk, especially when consumers demand "fresher" food with less preservatives. The consumer is farther than ever removed from the source of the foods bought, either by time or distance. The elderly and immunocompromised individuals constitute a larger proportion of the population than ever before. Furthermore, the
2 1134 MERICAN occurrence of foodborne pathogens--established, emerging, and reemerging-worldwide has necessitated control measures to ensure prevention. The global trend points to changing consumer expectations, more demanding legislation, stiffer competition, more variety of imports from all over the world, new markets with different habits and changing demography with a larger population at risk and a larger greying population (13). Therefore, it is more important to get assurance that the products, produced and processed away from the consumers, are safe and of good quality. The world is being accessed by good communication. With the removal of boundaries and barriers, processed foods are now distributed unimpeded throughout the world. Reduction in tariffs and barriers to trade worldwide or regionally, through the ASEAN (Association of Southeast Asian Nations) Free Trade Agreement (AFTA), the North American Free Trade Agreement (NAFTA), etc., has opened up markets, which means more intense competition, and with it, the growing concerns for quality and safety, and the needs for assurance. The availability of bulk air transport has opened up many new markets for fresh produce and products that were never previously imported. Food inspection at ports of entries, therefore, becomes more challenging to ensure speed and efficiency. GAIT (General Agreement on Tariffs and Trade) The General Agreement on Tariffs and Trade (GATT), signed in April 1994, brings about a monumental change in the world's trading patterns. One of the most publicized GATT agreements is the basic provisions of the Sanitary and Phytosanitary Measures (SPM), which state that "any measures which may affect international trade must not be stricter than necessary for the protection of human, animal or plant health, must be based on scientific principles, and must not be maintained without sufficient scientific evidence" (14). This agreement emphasizes the desirability of harmon i- zation of standards and the importance of sound scientific principles as the basis for SPM and encourages the development and adoption of one set of international standards (15). Special consideration is given to developing (Table 1) (11). AFTA (ASEAN Free Trade Agreement) Within ASEAN, the formal signing of the ASEAN Free Trade Agreement (AFTA) in 1992 has assumed a new significance and increased importance with regard to economic cooperation among ASEAN member. Although the implementation of AFTA was originally set for 2008, the date has been moved forward to 2003, in line with GATT. Through the Common Effective Preferential Tariff (CEPT) Scheme, AFTA will provide the basis for the creation of a single ASEAN market of more than 360 million people with a common internal tariff range of 0 to 5%. The realization of CEPT is expected to substantially increase the level of ASEAN trade, particularly intra-asean trade, which has been rising steadily (5). TABLE 1. Key agricultural provisions of the Uruguay Round of the GAIT 1. Timing Provisions 2. Market access 3. Export subsidies 4. Internal supports 5. Sanitary and phytosanitary measures 6. Special and differential treatment for developing Source: Swanberg, Steps to implement Implement in 6 years for developed Implement in 10 years for developing Convert nontariff barriers to tariff equivalents Reduce tariffs an average of 36% overall, with a 15% minimum reduction for each commodity Establish minimum import levels for products with nontariff barriers at 3% of total imports, later rising to 5%. Reduce volumes of subsidized exports, including processed goods, by 21 % Reduce budgetary outlays for export subsidies by 36% Ban export subsidies for products not currently subsidized Reduce total aggregate measurement of support by 20% Establish exceptions and credits Base sanitary and phytosanitary measures on scientific determination, eliminating use of artificial non tariff barriers Require international standards and transparency on all sanitary and phytosanitary measures Set tariff reductions for developing at two-thirds the levels of that of developed ; schedule it over 10 years for developing and 6 years for developed Exempt the least -developed International food market Trade is fundamental for development and is for everybody. The food trade is very much internationalized. To succeed, trading partners must be nonexploitative, mutually beneficial to all parties, and maximizing the win-win situation. International food markets are increasingly demanding rigorous quality standards of their suppliers, forcing producers to better understand customer preferences, to meet ever-reducing tolerances in health and safety, to reconcile production and packaging with environmental sensitivity, and to assure quality across this range of attributes through built-in assurance. There is a two-way concern regarding safety and quality in importing and exporting : the microbiological (chemical and other undesirable safety) risks of products and ingredients from which have varying microbiological (and other) standards, and the dumping of substandard products in with insufficient monitoring systems. Concerns as exporters. Under the current bilateral trade system, manufacturers, exporters, and their supporting service operators have to meet the different standards de-
3 DEALING WITH AN EXPANDING GLOBAL FOOD SUPPLY 1135 manded by importers for both safety and quality, and some parameters, such as microbiological counts imposed, have no scientific basis. The consignments are subjected to varying degrees of inspection and enforcement due to nonuniform regulations, most often at different ports of entry within the same country. An area of concern is the considerable difference in competence between disciplines, such as between the inspection of meat versus other foods. Retesting of products by importing has proven to be wasteful in time and resources. Asian exporters are looking forward to the implementation of GATT agreements by its successor, the World Trade Organization (WTO), which they believe will render them less vulnerable to unilateral actions of importers. Some Asian consider the successful conclusion of GATT as a victory for internationalism (15). Another concern is the poor understanding of food safety by consumers: they may mishandle food, thereby making it unsafe. Concerns as importers. As consumers and importers, the main concern in the present scenario in international food trade relates to food safety. There has to be an assurance system to prevent the production of unsafe food. FOOD SAFETY ISSUES Food safety is becoming more and more an issue in food trade. S. A. Miller (6), the former director of the U.S. Food and Drug Administration's Bureau of Foods, once said that "there is no issue of greater importance to the well-being of the people of the world than the assurance of an adequate and safe food supply." To address differences in the consumers' and scientists' perceptions of the various food-related risks, he further summarized safety as "an intellectual concept, not an inherent biological property. It is a point on a continuum somewhere between complete lack of safety and 100% safety. The interplay of society, culture, politics, law, and economics are all factored into the exact location of safety on the continuum" (7). Standards of safety should be the same throughout the world, be it developing or developed. There is general agreement that foodborne illness is increasing worldwide. In most epidemiological assessment is not possible due to insufficient data. Nevertheless, the occurrence of outbreaks and sporadic cases is of concern. Furthermore, varying degrees of food-hygiene and microbial-safety awareness among of the world may result in the spread of foodborne diseases from one area to another. Perception of quality Cultural perception of food quality differs significantly between the East and West and among the various regions of the world. Thus, an absolute definition of product quality is impossible and the market will be the decisive factor. Brand image and reputation play major roles, with quality often being closely linked to the reputation of the producer. Standards for identity and quality can, if necessary, be established in the form of voluntary agreements and codes of practice. Quality assurance A product cannot have quality if it is not safe. However, a safety standard alone without quality assurance does not distinguish the processor. Quality assurance activities should not only depend on government's regulatory machinery, but also on self-regulation by industry groups, exporters, and importers. Quality assurance, as the name implies, compels manufacturers to ensure quality. Many jargons exist for quality: the current buzz words are the ISO 9000 quality system and the hazard analysis critical control points (HACCP) concept. Third-party certification of quality systems used by industry is being sought by many agencies, especially bulk purchasers and suppliers. HACCPl1S quality system Recent developments indicate that the HACCP concept will be increasingly applied by governments to ensure safety. Those within the food industry will also rely on ISO 9000 certification to ensure quality. It is noted that efforts are being made to incooperate safety in the ISO 9000 quality certification, as it is meaningless for quality parameters not to include safety. A company subscribing to the ISO 9000 quality system has shown commitment to quality and will have the mechanism in place to accomodate HACCP programs, good manufacturing practices (GMP), and good hygiene practices (GHP). The West Australian Department of Agriculture launched the first third-party certification quality management standard, Safe Quality Food (SQF 2000), specifically based on HACCP principles (10). Second party accredited HACCP based programs are available in many. Although the HACCP concept is being increasingly recommended as a safety-assurance tool to meet the current and future safety demands of the food supply, its implementation in many is far from satisfactory. The status of HACCP usage in most, developed and developing, varies (14). It is a known fact that many organizations in developing and developed are confused about the correct delivery of HACCP within their operations. Many implementors omitted the first (identifying hazard/and assessing the likelihood of occurrence) and the sixth (verification procedures) principles (3), or were very selective in its application, choosing to ignore many critical control points such as ingredients and packaging (10) because of insufficient resources and understanding of the HACCP concept. Although the principles of HACCP management have been made mandatory for food imports into the European Union and internationalized through the Codex, the methodology to assess correctly the actual and potential hazards and the subsequent principles is in many instances poorly developed. Unfortunately, evaluation systems developed by private companies are copyrighted and only available under licence. This is not only unaffordable to SMEs, but also requires knowledgeable personnel to implement it. Many developing face other problems in implementing HACCP programs. For example there is no accurate translation of HACCP in many local languages; therefore, many are considering principles of HACCP rather than HACCP per se (14). Instead, sufficient
4 1136 MERICAN flexibility should be built into the law so as to allow, according to the scale of operation, differing but equally effective approaches to securing good hygiene practices. The essential feature is that food-safety risks must be effectively managed by the operation, whatever the size of the business, in the most appropriate and cost-effective way, without sacrificing the high level of food safety protection to which consumers are entitled, and having an industry committed to delivering. Hazard management must be made part of all food-safety directives. Food businesses should be made responsible for the design and operation of the hazard management systems. To fully implement HACCP, a thorough understanding of the dynamics of food production in individual, including the available infrastructure, hazards associated with the particular processing establishment, and trained human resources, as well as cultural differences, is important. Some are finding the task of examining each input and the steps to assess risk very difficult. There have been many changes in food distribution and consumption patterns worldwide which may increase potential risk. Therefore, regulatory approaches must take into account these changes in lifestyle and technology, and should be flexible enough to cope with future changes. Countries have incorporated the HACCP concept into their hygiene regulations in many different ways (14). The question is how far legislation should go in requiring that food operators implement HACCP plans, and how much involvement the government should have in controlling the system. Concerns have been expressed with regard to voluntary compliance with HACCP principles in that foods destined for export are protected by HACCP programs for economic reasons while those for local consumption are not. Enough has been said on HACCP principles. It is left to and industries to exercise adherence to ensure safety and quality. HACCP programs should be implemented from the farms to the refrigerators. It makes consumer protection a priority, placing the responsibility squarely on the shoulders of food manufacturers, i.e., applying the principle of due diligence where the food operator has a duty to show that all reasonable precautions are taken to avoid any outbreaks of food poisoning, and giving business greater responsibility for its action (2). Industry-led codes of practice open up opportunities for food operators to implement food safety in a manner that suits their individual businesses. ACTION BY DEVELOPING COUNTRIES Both industries and government in developing have long realized that quality assurance must be in place, especially for the export markets. Currently, economic activities take priority in HACCP implementation over the local food supplies. However, enforcement agencies in these regions are helping to increase awareness of the value of HACCP programs as a quality-assurance tool (1). An important component of quality assurance is trained human resources (9). Human resource development in developing economies For to prosper and industries to flourish, there must be knowledgeable people at all times and all levels. Thus, human resource development has become a priority in many developing economies. This is an essential continuous effort to upgrade efficiency and competitiveness. Although the HACCP concept was introduced almost 30 years ago, the number of trained personnel, especially in developing, is limited. To enable a meaningful implementation of HACCP programs, all levels of personnel must be trained in this concept and there must be a pool of trainers to implement this mammoth job. Many, for example, Singapore and Malaysia, are making it mandatory for all levels of food handlers to undergo formal training in food hygiene and preventive food handling, not only for food industries but also restaurants and street food operators and handlers. In the pipeline in Malaysia is the "School for Food Handlers" which will be required under the Food Hygiene Regulations (4). Training in HACCP implementation will also be undertaken at the regional level in ASEAN. A program initiated by the ASEAN Subcommittee on Food Science and Technology involving Australian expertise is in the pipeline. Similarly, the Food and Agricultural Organization of the United Nations is undertaking a Course on HACCP programs for developing using Thailand as the model. Assistance from the developed world and international organizations to train resources in developing on the standard safety procedures is urgently needed. Cert(fication and mutual recognition Quality certification provides a company with an internationally recognized standard that attests to the fact that it is a quality organization. This is fast becoming a precondition for doing business. A third-party certification of quality systems indicates the company's ongoing commitment to achieving excellence. Mutual recognition of registration bodies should be extended through networking. In addition, the same recognition should be given to certified laboratories. The future will see a greater emphasis on the use of contract laboratories which are integrated into the quality systems of their customers. Government-industry partnership Citing the "Malaysia Incorporated Concept" as an example, where the government provides the services required for the orderly development of industries, it has been shown that an effective and strong working relationship between the government and the private sector is able to address many concerns, including verifying HACCP systems. Exchange of information and cooperation The future will see more networking and exchange of information among within the region and linkages with similar organizations throughout the world.
5 DEALING WITH AN EXPANDING GLOBAL FOOD SUPPLY 1137 CONCLUSION There is a realization that our future is very much related to our ability to be internationally competitive and conduct our business internationally. There are growing concerns that a competitive and self-responsible approach to quality (including safety) is necessary for food industries to maintain their competitive advantage and achieve export targets. This will in tum compel industries to adopt quality as a marketing tool and as a means of improved efficiency. Quality is the central element in providing security and predictability to the multilateral trading system. Governmentindustry partnership and mutual recognition (of certification bodies) based on the HACCP concept and designed after ISO guidelines are some of the means by which importing can monitor and address expanding global food supplies. The establishment of a worldwide network of these certification bodies should be considered. The trend in quality systems is towards evolving greater focus on efficiency, technical competency, and productivity. In the long run, quality will become the discriminating factor of the successful product or service. REFERENCES 1. Anonymous Quality assurance is a must for export markets. Asia Pacific Food Ind. Nov.: Bushby, R Hygiene: where the EC buck stops. Food Manufact. Feb.: Codex Alimentarius Commission Alinorm 95/13, annex to appendix III. 4. Food Hygiene Regulation, Draft Ministry of Health, Malaysia. 5. Jetro News ASEAN round table panel discussion on supporting industries (2). Japan external trade organization. Tradescope Jan.: Miller, S. A Health, safety, and standards: do we need an international food regulatory institution? Food Tech. March: Newsome, R Of food safety, pineapple and HACCP. Science Comm. Food Tech. May: NST Strategy of western food firms is 'flawed'. New Straits Times, Malaysia, Wednesday, July 19, p Pedraja, R. R Role of quality assurance in the food industry: new concepts. Dec.: Peters, R HACCP: planned commitment or casuallipservice? Food Aust. 47(6):266. II. Swanberg, K GATT watch. Market Asia Food Hort. Ind. 1(4): Taylor, G The Australian approach to value adding in the agri-food sector. Agri-Food Industry Branch, Dept. of Industry, Science and Technology, Australia. 13. van Schothorst, M Microbial safety of foods in Europe of the nineties: what does that imply? Microbial Concerns of the International Community Symposium, Atlanta, Georgia, USA, August WHO WHO Consultation Meeting on Hazard Analysis Critical Control Point System May, Geneva, Switzerland. 15. Winarno, F. G Food technology and future trends in its development in the Asia-Pacific. Food Aust. 47(7):
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