1. SGF INTERNATIONAL E.V. More Safety, Quality and Fair Competition in the Fruit Juice Sector through Industrial Self Control Martin Greeve Project Manager - SGF/QUISEE Vice President - EQCS Vice President - EQCS SGF/IRMA Regional Conference Poland Tuesday, December 12, 2006 Warsaw Marriott Hotel

2. SGF INTERNATIONAL E.V.2 5 main Quality Assurance and Control Pillars Producers’ Quality Managements (QM) Distributors / Retailers Purchasers and QM Industrial Auto- or Self Control of Sector State Food Controls Consumer Organisations / Consumer Magazines Shared Responsibility for Ensuring Quality and Safety for Consumers

3. SGF INTERNATIONAL E.V. 3 Sure – Global - FairSure – Global - Fair Biggest and one of main players of EQCSBiggest and one of main players of EQCS Non governmental organisation (NGO)Non governmental organisation (NGO) Non profit organisationNon profit organisation International industry association with direct company membershipsInternational industry association with direct company memberships Registered in Eurocity Frankfurt/Main / District CourtRegistered in Eurocity Frankfurt/Main / District Court Budget covered by member contributionsBudget covered by member contributions Democratic structures and decision proceduresDemocratic structures and decision procedures Quality control body of industry - no normative functionQuality control body of industry - no normative function Who is SGF INTERNATIONAL E. V. ?

4. SGF INTERNATIONAL E.V. 4 Foundation1974 Market & Packer Controls in 14 countries of EU Raw material & Supplier Controlsin > 50 countries Companies to be audited p.a. - packers, bottlers(31.12.2005)117 - traders, brokers(31.12.2005)36 - RM suppliers(31.12.2005)393 Number of audits/plant inspections612 Sample Through Put5733 Number of co-workers26 Number of corrective actions - internal670 - external0 Budget / regular control work 20052.6 Mio € Extra budget / QUISEE 20050,3 Mio € Facts and Figures

5. SGF INTERNATIONAL E.V. SGF-Structure Pillars of SGF- Control Work SGF INTERNATIONAL E. V. Sure - Global - Fair Voluntary Control System (VCS) Bottler and Market Controls in Baltic States, Czech Republic, Denmark, Germany, Austria, Hungary, Ireland and Sweden Raw Material- Producer and RM- Supplier Controls in about 52 countries world-wide RQCSIRMA 5

6. SGF INTERNATIONAL E.V. 6 Where is industrial Self Control in Europe Market and Packer Controls SGF/RQCS Countries SGF/QUISEE Countries (only market controls) NQCS Countries EQCS Countries with QUISEE support

7. SGF INTERNATIONAL E.V. European Quality Control System (EQCS) International Market and packer controls in 14 countries on behalf of 10 national Associations Austria, Czech Republic, Denmark, Estonia, Germany, Hungary, Ireland, Latvia, Lithunia, Sweden Market controls in 11 non EQCS countries / support for Spanish and Polish control schemes Belgium, Bulgaria, Cyprus, Finland, Greece, Italy, Malta, Portugal, Romania, Slovakia Slovenia Raw Material and supplier controls in > 50 countries world wide 5 national control schemes in France, Netherlands, Poland, Spain and United Kingdom Who is Industrial Self Control in the European Fruit Juice Industry ? SGF/RQCSSGF/QUISEESGF/IRMA NQCS 7

8. SGF INTERNATIONAL E.V. SGF/IRMA Raw Material Assurance and Supplier Control Argentina Austria Belgium Belize Brazil Chile China Columbia Costa Rica Cuba Cyprus Czech Republic Denmark Ecuador Finland France Germany Great Britain Greece Guatemala Honduras Hungary India Indonesia Ireland Israel Italy Ivory Coast Kenya Malaysia Mexico Paraguay Pakistan Peru Philippines Poland Romania Slovenia South Africa Spain Sweden Switzerland Thailand The Netherlands Turkey Ukraine United States Uruguay 8

9. SGF INTERNATIONAL E.V. 9 Working Principles and Basis of Success  Independence (finances, politics) from individual companies and other sector associations  High reputation and credibility at experts from science, authorities, retailers, industry and consumer organisations  Strict confidentiality for all company related information  Equal treatment of all market players in complaint cases  Contribution to legal security – to clear what is right or wrong  Corrective actions in case of quality deviations and unfair competition  Provision of useful services for member companies / added values for membership fee  Partnership instead of policing industry  To be close to market developments and member problems

10. SGF INTERNATIONAL E.V. 10 SGF Industry Services - Hotline - Info / Early Warning - Contributions to tech. Association Work Market Surveys Packer/Bottler audits & Controls Raw Material / Supplier audits & Controls Ok-Feedbacks & Corrective Actions Research and Development of New Analytical Methods Databases - Authenticity - Pesticides - GMO SGF Scope of Activities

11. SGF INTERNATIONAL E.V. 11 Analytical Research and Development of New Technical Working Tools and Projects  Pure Juice, FLAIR, BCR, ENEA and Research  Coordination international EU-Projects  Code of Labelling Raw Materials (IRMA/CoL)  Code of Conduct Suppliers (IRMA/CoC)  Database Pesticides (FRAPP)  Quality Initiative South and East Europe (SGF/QUISEE)  Hygiene Audits IRMA-Supplier  Regional Specific Database authentic juices  Info Services (Hotline, Newsletters, Early Warnings)  Standard Questionnaire for Supplier Selection / combined audits for different standards (IRMA, BRC, IFS etc.)

12. SGF INTERNATIONAL E.V. 12 SGF Ethical Business AttitudeSafety and Hygiene Authenticity Traceability/Mass balances Labelling Fair Competition SGF Scope of Controls

13. SGF INTERNATIONAL E.V. 13 Chain of SGF-Control / Audit Points Farmers/Eurepgap Fruit Processors Traders/Brokers Blending Stations/Cool Stores Transport Companies Packers/Bottlers Retailer Shelves

14. SGF INTERNATIONAL E.V. 14 Chain of SGF-Control / Audit Points EUREPGAP Farmer level IRMA Fruit Processor level EQCS Bottlers Packer level RETAILERS Consumers

15. SGF INTERNATIONAL E.V. 15 Central Services  IRMA raw material and supplier control  Market controls in non EQCS countries (QUISEE)  Development of new analytical methods  Expert committee for evaluation  EU wide market campaigns  Control chain from the tree to the bottle (EUREPGAP – IRMA – EQCS)

16. SGF INTERNATIONAL E.V. 16 SGF-Working Procedure Product Controls Sample Taking in Markets & Plant Inspections Laboratory 1 Analysis Analysis OK Feedback Producer Laboratory 2 Analysis Analysis Laboratory 3 Analysis Analysis OK Feedback Producer Producer Expert Committee for Analyses Neutral Evaluation Post Control OK Feedback Producer SecretariatInternal Corrective Action Post Control OK Feedback Producer IRMA/RQCS Board External Corrective Action Post Control OK Feedback Producer O.K.Not O.K.Legend:

17. SGF INTERNATIONAL E.V. 0 Clearing Function in the Markets for Quality Problems and unfair Competition Issues First step, if Quality Defect detected Depending on the Seriousness of Infringement Next Step Corrective Action only, if No Co-operation Case of Repetition Ac- tion Detection Quality Defect Info Letter / Warning Letter Quality Commitment / Acknowledgement of Obligation Negative Covenant of Producer Involved Info Retailer / Authority and Exclusion Formal EU-Infringement Proceeding / Court Cases Info Consumer Organisation / Public 1 2 3 4 5 6 Corrective Steps OK Not OK Post control ? ? ? ? ? ? !! OK XXXX EXTERNEXTERN INTERNINTERN 17

18. SGF INTERNATIONAL E.V. 18 Internal Corrective Action

19. SGF INTERNATIONAL E.V. 19 Protection against unjustified Attacks and Allegations  EU rapid alert 1999, - Allegation Methomyl in Orange Juice / Spain  EU rapid alert 2000 - Allegation staph aureus in Orange Juice / Greece  Anonymus letter to Industry, media and Authorities 2004 - Allegation Water dilution NfC orange juice / Brazil  EU rapid alert 2005 - Allegation 500 ppb Patulin in Apple Nectar / Greece  EU rapid alert 2005 - Allegation Patulin in grapefruit juice / Lithuania  Retailer Internet Auction 2005 - Product specification deviating from standard excludes serious bids

20. SGF INTERNATIONAL E.V. 20 Role of Industrial Self Control Summary Contributions to Consumers‘ Health and Safety  Basic control of standard compliance for producers and trade on all production and trade levels: intersectorial chain control (safety, hygiene, authenticity, labelling)  Up-stream traceability on basis of documentation and counter sample system  Stop quality problems and unfair competition issues at its source to block danger of repetition and further profileration  Protection against unjustified attacks and allegations  Development new analytical approaches and techniques to fight new, high sophisticated adulteration recipes  Cost reduction for member companies using control and audit results as a reference means more flexibility to focus on e.g. safety issues  Safe guarding equal implementation of EU legislation and industry standards  Legal security for all players in the market (producers, traders, retailers)  Involvement of retailers in quality commitments and corrective actions

21. SGF INTERNATIONAL E.V. 21 Outlook for Industrial Self Control  Offer of central operational services for local control schemes  Development of central market and packer controls in Europe  Set-up and support of the development of packer and market control schemes in countries outside of Europe (China, Russia, Australia, New Zealand etc.)  Offer and use of SGF/IRMA – services by countries outside of Europe  Use IRMA synergies for neighbouring industries (fruit preparation~, jam ~, fresh and canned fruit industry etc.)  Acknowledgement of industry standards (CoP etc.) as binding rules for all players in the market  Recognition of AIJN/CoP and industry standards by authorities, retailers, consumer organisations etc.  Closer co-operation with State Food Control Authorities, consumer organisations and retailers to stop any image risks for fruit juice products  Subsequent development of concepts of industrial self control to keep pace with changing markets and member needs

22. SGF INTERNATIONAL E.V. 22 Contributes to 2 sides of the same Coin Industrial Self Control Consumer Satisfaction by safe, healthy natural and authentic products

23. SGF INTERNATIONAL E.V. 23 Fair Competition in the Markets By authenticity and correct labelling Contributes to 2 sides of the same Coin Industrial Self Control

24. SGF INTERNATIONAL E.V. 24 Consumer Satisfaction by safe, healthy natural and authentic products Contributes to 2 sides of the same Coin Industrial Self Control

25. SGF INTERNATIONAL E.V. 25 Fair Competition in the Markets By authenticity and correct labelling Contributes to 2 sides of the same Coin Industrial Self Control

26. SGF INTERNATIONAL E.V. 26 Consumer Satisfaction by safe, healthy natural and authentic products Contributes to 2 sides of the same Coin Industrial Self Control

27. SGF INTERNATIONAL E.V. 27 Fair Competition in the Markets By authenticity and correct labelling Contributes to 2 sides of the same Coin Industrial Self Control

28. SGF INTERNATIONAL E.V. 28 For more Information Please visit our Websites www.sgf.org or www.eqcs.org Thank you for your attention