APEC PTIN Food Safety Activities January 27, 2011

APEC Food Safety Activities An Industry Perspective Peggy Rochette, Sr. Director International Affairs

Who is the Grocery Manufacturers Association? GMA represents the world’s leading food, beverage and consumer products companies involved in global sourcing GMA provides leadership to the industry in food safety through promotion of scientific excellence. –State-of-art research and analytical laboratory –Training in regulatory and food safety issues –Collaboration with U.S. government on food issues GMA is a member of the PTIN steering committee

Global Food Trade 40% of all trade in agriculture, fisheries & forestry occurs between developing & developed countries. More than 20% of all US imports are food products (more than 8 million shipments a year).

Global Food Trade A vast increase in the amount of food imported from overseas 13% of the U.S. food supply is imported from over 150 countries around the globe 80% Seafood; 40% Fruits and Vegetables Sweeping changes in consumer demands – increasingly stringent and complex demands from buyers Average grocery store carries 15,000 items Lack of Resources to inspect

APEC Trade U.S. Agriculture Exports –60% to APEC Economies –Leading 8 Export Markets – APEC Consumer Oriented Products – Exports Leading 8 Export Markets – All APEC –Canada, Mexico, Japan, Hong Kong, Korea, Russia, China & Taiwan

APEC Trade U.S. Agriculture Imports -Top 5 Source Countries Are APEC: -Canada, China, Mexico, Japan, Korea, Taiwan, Hong Kong -Among the top 35 / 15 are APEC countries -Many of those economies have limited infrastructure and a need for capacity building APEC is a major supply area for GMA companies

APEC Trade APEC is a region where the buyers from the developed countries need raw materials for the less developed countries. Those LDC source countries are interested in meeting the demand expectations.

The 2007 Food Trade Challenge Food Recalls with a huge financial impact:  Peanut Butter (Salmonella): $66 billion  Spinach (e.coli): $25-$50 million  Pet Food (melamine): $40+ million  Chili Sauce (botulism): $35 million  Beef (e.coli) $31 million

The Food Trade Challenge In 2007 a Food Marketing Institute survey found that consumer confidence in the food supply dropped from 82% to 66% in 12 months – imports particularly suspect.

Industry Response GMA Companies Recognized: Critical need to restore consumer confidence in food products – (trust in food safety and BRANDS) The need for increased vigilance by food companies “from farm to fork,” both domestically and overseas – Supply Chain Management The Private Sector has significant scientific and technical expertise Private Sector understands international best practices and trade practice Multinationals have establishments in virtually every country Capacity building is critical and governments do not have the resources to do it alone.

Industry Response The supply chain is global and economies are interdependent but there is a need for capacity building and all stakeholders have a responsibility. Food companies are ultimately responsible for the safety of food.

Industry Response Training & Capacity Building Significant investment in training by multinational companies – company specific programs No consistency in messaging to suppliers Forums for regulators often focus only national requirements Need for a more consistent global approach focused on International Best Practices Industry has experience with every element of the supply chain Industry is Buying with Specifications To Be Met

APEC PTIN Opportunity 2007 Mandate from APEC Economic Leaders: “the need to develop a more robust approach to strengthening food and consumer product safety standards using scientific risk based approaches and without creating unnecessary impediments to trade” 2008 APEC Ministers “Endorsed the establishment of the FSCF’s Partnership Training Institute Network (PTIN ”) PTIN Challenge : Improve the understanding and application of best practices in a way that ensures long term sustainability ” through a public/private partnership

Opportunities for Industry PTIN Provides Opportunities to: Work cooperatively with APEC regulators and academia Share best practices; promote science based decision making Assist supplying countries to meet manufacturer expectations Work together on consistent messaging Utilize generic PTIN training programs Create sustainable accessible training modules going forward

Opportunities Final Deliverables Through the PTIN: Build the skill sets of suppliers and improve global understanding and use of international best practices in food safety management Enhance the efficiency, transparency and harmonization of rules to facilitate global commerce Restore consumer confidence in food safety

PTIN: Going Forward 2011 – US Host of APEC May 2011, Big Skye, MT – Ministerial and launch –Working with Australia: Managing Food Safety Incidents – Australia leadership Industry speakers and sponsors still needed –High level Public Private Dialogue on Food Security Laboratory Capacity Workshop Seeking Broader Industry Participation