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USA Peanut Congress June 22, 2009

• Craig W. Henry Ph.D.
• Senior Vice President and Chief Operating
  Officer, Scientific and Regulatory Affairs
• Grocery Manufacturers Association
• Washington, D.C.

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Key Topics

• Supply Chain Management
• Third Party Audits and Facility Certification
• Summary/Next Steps

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Supply Chain ManagementThrough Industry
Stewardship
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Supplier Management Practices

• Consider developing a manual for suppliers
  outlining your expectations.
• Incorporate the expectations in your manual (by
  reference) into contracts.
• This should include your expectations for how
  your supplier should ensure the safety of
  ingredients from another supplier.
• Require written acknowledgement of the suppliers
  intent to comply with your requirements.

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• GMA Food Supply Chain Handbook

http//www.gmabrands.com/publications/GMA_SupplyCh
ain2.pdf
Electronically available at no charge
in, English, Spanish, French, Russian and
Mandarin Chinese
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Supplier Management

• Build in prevention via close interaction with
  suppliers
• Establish supplier approval protocols
• Source only from approved suppliers whenever
  possible
• Implement a more stringent oversight process when
  sourcing from a new supplier or an unapproved
  supplier

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Supplier Approval Process

• Surveys (Supplier pre-assessment survey)
• Testing (the suppliers programs and your own
  verification testing)
• Audits (2nd and 3rd party)

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Supplier Approval Process

• Surveys
• Processes in place
• document review (may also be done on-site)
• Regulatory compliance
• Specifications
• Certifications (e.g., ISO 22000, GlobalGAP)
• Questions specific to concerns
• Allergens used
• Environmental monitoring programs
• Training

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Supplier Approval Process

• Testing review programs in place
• Environmental monitoring
• Suppliers incoming ingredients
• Suppliers outgoing products
• Conduct verification testing as appropriate to
  the items being purchased from this supplier.
• Testing for new supplier approval is usually more
  extensive than for maintenance of approved
  supplier status.

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Supplier Approval Process

• Audits
• On-site assessments/audits should be conducted
  for approval of suppliers of high-risk
  ingredients.
• Define an audit frequency for approved suppliers
  based on ingredient risk and performance.
• Increase the frequency for adverse findings

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Supplier Audits

• May be second or third party audits or both,
  depending on risk of ingredient.
• Consider announced and unannounced audits
• Conduct audit (2nd or 3rd party) when testing
  indicates there may be deficiencies in the
  suppliers control programs.
• Ensure auditor is knowledgeable about the
  ingredient being provided by the supplier.

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Supplier audits

• Determine whether non-conformances warrant a
  follow up audit to confirm corrective actions
  have been implemented.
• Be prepared to stop buying products from a
  supplier when major deficiencies are found.

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Improving Global Food Safety Through Third Party
Audits
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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

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GFSI Objectives

• Convergence between food safety standards through
  maintaining a benchmarking process for food
  safety management schemes
• Improve cost efficiency throughout the food
  supply chain through the common acceptance of
  GFSI recognised standards by retailers around the
  world
• Provide a unique international stakeholder
  platform for networking, knowledge exchange and
  sharing of best food safety practice and
  information

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GFSI Foundation Board of Directors

• Terry Babbs, Tesco, UK
• Hugo Byrnes, Royal Ahold, The Netherlands
• Marcos Campos, Bertin SA, Brazil
• Kevin Chen, China Resources Vanguard, P.R. China
• D.V. Darshane, Coca-Cola, USA
• Bryan Farnsworth, Hormel Foods, USA
• Hervé Gomichon, Carrefour, France
• Cenk Gurol, Aeon Global, Japan
• Cory Hedman, Hannaford, USA
• Cindy Jiang, McDonalds, USA
• Hans-Jürgen Matern, Metro, Germany
• Payton Pruett, Kroger, USA
• Yves Rey, Danone, France
• Michael Robach, Cargill, USA
• Rick Roop, Tyson Foods, USA
• JP Suarez, Wal-Mart, USA
• Johann Züblin, Migros, Switzerland

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GFSI Technical Committee

• An international multi-stakeholder group
• Over 50 food safety experts
• Open to key experts by invitation.
• Works on common-interest projects to ensure
  continuous improvement in food safety

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Technical Committee Priorities 2008/9
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Convergence means confidence

• Benchmarking work on four key food safety schemes
  (BRC, IFS, Dutch HACCP and SQF) reached a point
  of convergence.
• All schemes were completely aligned with the GFSI
  Guidance Document Version 5 requirements.
• This meant increased confidence in the schemes
  and comparable audit results.

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Auditor Competence

• Engagement with the International Accreditation
  Forum and European Accreditation and their
  members to solicit acknowledgement and
  implementation worldwide of GFSI requirements
• To ensure a consistent and optimal approach by
  accreditation bodies in their surveillance of
  certification bodies to satisfy the needs of all
  end users of accreditation.
• Creation of a GFSI Accreditation Task Force with
  involvement of all GFSI recognized schemes. This
  group is working on the continuous improvement of
  accreditation with accreditation bodies in order
  to build a common foundation and harmonise
  accreditation requirements, ensuring greater
  consistency in auditor competency across GFSI
  recognized schemes.

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Accredited Certification
Peer Review by Sister Accreditation Body
Accredits the Certification Body (CB)
Including Witness Audits of Auditor Activity
SQF Codes Standards (Recognized by GFSI)
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GFSI Recognized Schemes

• Current GFSI recognized schemes are
• BRC - British Retail Consortium Global Food
  Standard Version 5
• Dutch HACCP Option B
• IFS - International Food Standard Version 5
• SQF - Safe Quality Food 2000 Level 2
• SQF - Safe Quality Food 1000

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GFSI Breakthrough

• The following companies have come to a common
  acceptance of GFSI benchmarked standards

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GFSI Update on FSSC 22000 May 27, 2009

• GGSI has benchmarked FSSC 22000.
• At the May 2008 meeting the GFSI Board of
  Directors reviewed the report from the
  benchmarking committee and concluded,
• The GFSI Board of Directors has granted
  conditional recognition of this scheme, based on
• the content of the scheme meeting the Guidance
  Document requirements.
• The Board is now encouraging the Foundation for
  Food Safety Certification to move the new scheme
  to full implementation.
• Certification bodies around the world will be
  given the opportunity to apply for accreditation
  against the scope of the scheme, before the
  operational aspects of the scheme are benchmarked
  and fully recognized by the Global Food Safety
  Initiative Board of Directors.

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Structure
The content of the FSSC 22000 scheme
FSSC 22000 certification
scheme
Accreditation body
ISO Guide 65
Certification body
Food Manufacturer
Accredited
Certified
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Summary

• International trade in foods and agricultural
  products will continue to increase and
  traceability is critical
• Managing the supply chain at every point will be
  essential to assuring safe products and consumer
  confidence
• Both government and private sector entities must
  possess adequate infrastructure to properly
  manage supply chain and traceability may be
  mandated
• Commitment to training and adoption of new
  technologies will be essential

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Next Steps

• Suppliers must take responsibility for what they
  buy and sell in the marketplace.
• The clout of the commercial process must be
  leveraged immediately to eliminate producers of
  high risk products leading to recalls and reduced
  consumer and Congressional confidence.
• GMA will continue to promote a science based
  approach to legislative and regulatory
  initiatives that improves consumer confidence.