Presentation on theme: "MANAGING FOOD SAFETY & QUALITY IN THE NEW GLOBAL TRADE ENVIRONMENT"— Presentation transcript:
1 MANAGING FOOD SAFETY & QUALITY IN THE NEW GLOBAL TRADE ENVIRONMENT By Pitak Supanantakarn,Regional Director, Food Services Asia PacificIntertek Testing ServicesHOW TO MANAGE THE PRODUCTS TO EXPORT PROMOTION, PHNOM PENH, CAMBODIA17th December, 2009
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 contaminationGaps in product safety implementationAdditional and more specific laws and regulationsProduct liability – Brand Protection…..Consumers are better educated and well informed about food & food related issues.Customer demands and preferences constantly changing….
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 servicesFocus 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…!!!Intertek is a global leader in testing, inspection and certification of products, commodities and systems. We offer customers an unparalleled advantage through applying our broad technical expertise to fulfil their individual needs.Our range of services for quality helps customers, such as manufacturers, retailers, governments and traders advance their reputation and master the complexities of the global marketplace. Our advisory services help customers deal with increasingly complex regulation and social issues
4 GLOBAL FOOD CRISIS HYGIENE, DISEASE AND CONTAMINATION To date, the world has faced with food crisis of variable nature, for example:Mad Cow diseaseSudan RedDioxinMelamineCauses have been traced to various possibilities such as negligence in causing contaminated animal feed and chemical residue but also to the extent of deliberate adulterationANIMAL WELFARECompromised welfare of animals and livestock
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 productsAfrican coffeeBelgian chocolateENVIRONMENTALPollutionOver-harvestingEcological imbalance
6 21st Century FOOD ISSUES Private Label Foods flood the Marketplace Health & nutrition greatly influencing Product DevelopmentGlobal Financial Crunch, Cheaper Price Production Costs, Cuts on food spendingDecreasing Consumer ConfidenceClamor for Foods that meet Health, Safety & Environmental NeedsChanges in Preferences and Sourcing PatternsProblems on Traceability - Supplier Food Safety ControlsProduct Mislabeling & Misinformation (Allergens, GMO’s, etc)Risk & Recall CommunicationMigration of Hazardous SubstancesConcerns on Food Bio-securityConsequences of Climate ChangeEnvironmental DegradationWorld population 6.7B (2010) 9B (2040)
7 Doing nothing is no defense! WHY MANAGE FOR FOOD SAFETYDoing nothing is no defense!Customer demand itIt’s good for businessPotential product liabilityRegulators requirementNothing remains the same Your past experiences guarantee nothing..!!!Playing the mediaFailure to manage risk: -Always costs money…!Always damages a reputation.. !Public recalls..!
8 MANAGING FUTURE RISKS.. THE NEED Why Managing Risk?Change in technologyChange in the law #Change in consumer attitude toward riskChange in customer requirement & expectationsChange in business environment…..…..never be the same..!!
9 THE BUSINESS PROCESSIncreasingTimeInvestmentMonetaryEmotional9
11 Complexity & Multiplication of Impact CHAIN TRACEABILITYIngredientsRaw materialsPackagingStorageMan. ProcessStorage & TransportRetailComplexity & Multiplication of ImpactReduction of Risk (Risk = Hazard x Exposure)
12 Agri-food Supply Chain – Integrated Quality Program From FarmTo ForkGrowers/FarmersCollector/PrimaryproducerProcessors/Packers/ManufacturersDistributors/Wholesales/RetailersConsumerGlobalGAP,Organic, Non-GMOBRC-PackagingHalal, GMP/ HACCPBRC-PackagingBRC-FoodIFS, HalalGMP/ HACCP“one brand”Certification“one brand”certificationSupply chaininspectionsFrom FarmManagement standards: ISO 9001, 14001, 22000, OHAS 18001, SA 8000, HACCP,To ForkProduct standards: Organic, non-GMO, Halal, Q&S, etc.Traceability and TestingProduct liability insurance, Training, Risk management, Consulting, etc
13 What Should the Industry Expect? Inspection”One stop shop”BRCTestingISO 9000HACCPIFSISO 22000NON-GMOGlobalGAPProgram ManagementSecuritySocial AccountabilityEnvironmentalHALALORGANIC
14 Integrated Food Quality and Safety Systems ENHANCING FOOD QUALITY & SAFETYEfficiencyProfitableIntegrated Food Quality and Safety SystemsMarket andLegal compliance
15 CIES TOP MIND SURVEY Ranking 2009 Ranking 2008 Ranking 2007 Economy and Consumer Demand1411Food Safety28Corporate Responsibility35Competitive Landscape96Retailer Supplier RelationsA CIES survey conducted in January 2008 across approximately 400 retailers and manufacturing CEOs indicates that food safety remains a high priority among this leadership group.The issue of food safety jumped 6 places this year to second place in the survey. There were a number of alerts, recalls, and illness outbreaks in the United States, Europe, and Asia in 2007 that once again shifted consumer perception about food safety. The amount of media scrutiny over these events only heightened their concern.Where ever the threat to food safety originates, a wider-reaching global supply chain exposes our food supply to enhanced risk and much of the responsibility falls to those who ultimately produce and sell the food. As the distance from farm to fork grows wider, it becomes harder for retailers to control every point in the supply chain.Source: CIES France15
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 ForumGFSI Mission:“Continuous improvement in food safety management systems to ensure confidence in the delivery of safe food to consumers” At this time, food safety was top of mind with consumers due to several high-profile recalls, quarantines, and negative publicity about our industry.The retailers and manufacturing CEOs agreed that consumer trust needed to be strengthened and maintained, while making the supply chain safer.Source: CIES France16
17 GFSI TECHNICAL WORKING GROUPS Source: CIES France1717
18 Codex Alimentarius Standards FOUNDATION IN SCIENCECodesOfPracticeGFSI RecognisedSchemesISO StandardsISO 22000Codex Alimentarius StandardsHACCP PrinciplesLegislationSupplementary CodesSchemesStandardsPrinciplesRequirementsSource: CIES France
19 BENCHMARKING – WHAT DOES IT MEAN? « Once certified, accepted everywhere Source: CIES France
20 SOME COMPANIES NOW ACCEPTING GFSI RECOGNISED SCHEMES Source: CIES France2020
21 MAIN CHALLENGES IDENTIFIED BY SUPPLIERS No management systems in place at the production unitLimited information of expectations and needsReduced support of implementation stage from some buyersShort term relation or viewVery competitive marketReduction in prices and marginIncrease of global productionStandards developed in buyer markets for implementation at sourcing markets
22 HOW AND WHAT TO IMPLEMENT BY SUPPLIERS? Management systems programsSystematic and proactive approach, rather than reactive with costly actionsConsult your clients, understand their needsIdentify best fitting alternative of recognized programsEnsure top management endorsementDevelop reasonable, timely and cost-effective action planMonitor program implementation and efficiency periodicallySelect qualified and experienced service provider for consultancy or external verification
23 INDEPENDENT VERIFICATION – WHY USE IT? Increasing consumer demand for product differentiation in global marketsBuyers are increasingly using Assurance Schemes to verify qualityExcellent tool for the operator to:Validate their quality and/or traceability system against international standardsTo communicate to customers and suppliers the quality standard they have achievedIncreases producer’s credibilityVerify label claims – Halal, Non-GMO, organic, Kosher, fair trade, etcCertification an increasingly valuable “ticket to trade”
24 CHALLENGE TO THE SUPPLY CHAIN MANAGEMENT Customer requirement is constantly changing.. Endless.!LanguageCultureLocal legislationTime and distanceIndividual interpretationInternational legislationLack of resource and supportUsing quality system in the wrong reason..
26 INTERTEK INTELIGENCE─ Countries─ Laboratories 440─ Offices─ EmployeesFloated May 2002FTSE 100, Support Services SectorMarket capitalization £1.6bnIntertek 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.AMERICA1/3Turnover,PeopleEAME1/3Turnover,PeopleASIA1/3Turnover,People
27 Thank you for your attention For more information:Pitak SupanantakarnRegional Director – Food Services Asia PacificMobile: