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Www.intertek.com Pitak Supanantakarn 1 MANAGING FOOD SAFETY & QUALITY IN THE NEW GLOBAL TRADE ENVIRONMENT By Pitak Supanantakarn, Regional Director, Food.

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Presentation on theme: "Www.intertek.com Pitak Supanantakarn 1 MANAGING FOOD SAFETY & QUALITY IN THE NEW GLOBAL TRADE ENVIRONMENT By Pitak Supanantakarn, Regional Director, Food."— Presentation transcript:

1 Pitak Supanantakarn 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, 2009

2 Pitak Supanantakarn 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….

3 Pitak Supanantakarn 3 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…!!! NEW CONSUMER MENTALITY & EXPECTATIONS

4 Pitak Supanantakarn 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

5 Pitak Supanantakarn 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

6 Pitak Supanantakarn 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)

7 Pitak Supanantakarn 7 Customer demand it It’s good for business Potential product liability Regulators requirement Nothing remains the same.. Your past experiences guarantee nothing..!!! Playing the media WHY MANAGE FOR FOOD SAFETY Failure to manage risk: - Always costs money…! Always damages a reputation.. ! Public recalls..! Doing nothing is no defense!

8 Pitak Supanantakarn 8 MANAGING FUTURE RISKS.. THE NEED 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..!! Why Managing Risk?

9 Pitak Supanantakarn 9 THE BUSINESS PROCESS Increasing Time Investment Increasing Monetary Investment Increasing Emotional Investment

10 Pitak Supanantakarn 10 Example: AGRI-FOOD SUPPLY CHAIN Soya / Maize Animal Feed Live Animal Raw Meat Primary Agriculture Animal Feed Production Animal Production Animal Slaughter & Processing Cooked Meat Further Processing & Cooking Breeding Stock Ingredients & Packaging Ingredients & Medicines Seed, Pesticides Primary Agriculture Animal Feed Production Animal Production Animal Slaughter & Processing Further Processing & Cooking Storage & Distribution Breeding Stock Ingredients & Packaging Ingredients & Medicines

11 Pitak Supanantakarn 11 CHAIN TRACEABILITY Ingredients Raw materials Packaging StorageMan. Process Storage & Transport Retail Complexity & Multiplication of Impact Reduction of Risk (Risk = Hazard x Exposure)

12 Pitak Supanantakarn 12 Agri-food Supply Chain – Integrated Quality Program To Fork From Farm Growers/ Farmers Collector/ Primary producer Processors/ Packers/ Manufacturers Distributors/ Wholesales/ Retailers 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 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 From Farm

13 Pitak Supanantakarn 13 What Should the Industry Expect? Inspection ”One stop shop” BRC Testing ISO 9000 HACCP IFS ISO NON-GMO GlobalGAP Program Manageme nt Security Social Accountability Environmental HALAL ORGANIC

14 Pitak Supanantakarn 14 Market and Legal compliance Efficiency Profitable Integrated Food Quality and Safety Systems ENHANCING FOOD QUALITY & SAFETY

15 Pitak Supanantakarn 15 CIES TOP MIND SURVEY Ranking 2009Ranking 2008Ranking 2007 Economy and Consumer Demand 1411 Food Safety228 Corporate Responsibility315 Competitive Landscape496 Retailer Supplier Relations552 Source: CIES France

16 Pitak Supanantakarn 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” Source: CIES France

17 Pitak Supanantakarn 17 GFSI TECHNICAL WORKING GROUPS Source: CIES France

18 Pitak Supanantakarn 18 FOUNDATION IN SCIENCE Codes Of Practice GFSI Recognised Schemes ISO Standards ISO Codex Alimentarius Standards HACCP Principles Legislation Requirements Principles Standards Schemes Supplementary Codes Source: CIES France

19 Pitak Supanantakarn 19 BENCHMARKING – WHAT DOES IT MEAN? « Once certified, accepted everywhere Source: CIES France

20 Pitak Supanantakarn 20 SOME COMPANIES NOW ACCEPTING GFSI RECOGNISED SCHEMES Source: CIES France

21 Pitak Supanantakarn 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

22 Pitak Supanantakarn 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

23 Pitak Supanantakarn 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”

24 Pitak Supanantakarn 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..

25 Pitak Supanantakarn 25 Food Services OUR FOCUS Food service industry: - Testing (all levels) - Inspection (all levels) - Certification (3rd party) - ISO ISO Food Safety (BRC, IFS, SQF, etc.) - Consulting - Training - Preassessment Food Services? Quality assurance Certification Advisory SystemProcessProduct America EAME Asia Intertek Fire wall

26 Pitak Supanantakarn 26 ─ Countries 110 ─ Laboratories 440 ─ Offices 630 ─ Employees Floated May 2002 FTSE 100, Support Services Sector Market capitalization £1.6bn AMERICA 1/3 Turnover, People EAME 1/3 Turnover, People ASIA 1/3 Turnover, People 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. INTERTEK INTELIGENCE

27 Pitak Supanantakarn 27 Pitak Supanantakarn Regional Director – Food Services Asia Pacific Mobile: Thank you for your attention For more information:


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