MANAGING FOOD SAFETY

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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 17th December, 2009
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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.

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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
  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!!!

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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

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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

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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,
  GMOs, 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)

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WHY MANAGE FOR FOOD SAFETY

• Customer demand it
• Its good for business
• Potential product liability
• Regulators requirement
• Nothing remains the same.. Your past
  experiences guarantee nothing..!!!
• Playing the media

• Failure to manage risk -
• Always costs money!
• Always damages a reputation.. !
• Public recalls..!

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MANAGING FUTURE RISKS.. THE NEED
Why Managing Risk?

• 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..!!

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THE BUSINESS PROCESS
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Example AGRI-FOOD SUPPLY CHAIN
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CHAIN TRACEABILITY
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Agri-food Supply Chain Integrated Quality
Program
To Fork
From Farm
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
From Farm
Management standards ISO 9001, 14001, 22000,
OHAS 18001, SA 8000, HACCP,
To Fork
Product standards Organic, non-GMO, Halal, QS,
etc.
Traceability and Testing
Product liability insurance, Training, Risk
management, Consulting, etc
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What Should the Industry Expect?
Inspection
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ENHANCING FOOD QUALITY SAFETY
Market and Legal compliance
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CIES TOP MIND SURVEY
Ranking 2009 Ranking 2008 Ranking 2007
Economy and Consumer Demand 1 4 11
Food Safety 2 2 8
Corporate Responsibility 3 1 5
Competitive Landscape 4 9 6
Retailer Supplier Relations 5 5 2
Source CIES France
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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
• GFSI Mission
• Continuous improvement in food safety management
  systems to ensure confidence in the delivery of
  safe food to consumers  

Source CIES France
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GFSI TECHNICAL WORKING GROUPS
Source CIES France
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FOUNDATION IN SCIENCE
Supplementary Codes
Schemes
Standards
Principles
Requirements
Source CIES France
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BENCHMARKING WHAT DOES IT MEAN?  Once
certified, accepted everywhere
Source CIES France
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SOME COMPANIES NOW ACCEPTING GFSI RECOGNISED
SCHEMES
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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

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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

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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 producers credibility
• Verify label claims Halal, Non-GMO, organic,
  Kosher, fair trade, etc
• Certification an increasingly valuable ticket
  to trade

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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..

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OUR FOCUS
Intertek

• Food service industry
• Testing (all levels)
• Inspection (all levels)
• Certification (3rd party)
• ISO 9000
• ISO 22000
• Food Safety
• (BRC, IFS, SQF, etc.)
• Consulting
• Training
• Preassessment

Asia
EAME
America
Quality assurance
Food Services?
Certification
Fire wall
Advisory
System
Process
Product
Food Services
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INTERTEK INTELIGENCE
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.

• - Countries 110
• - Laboratories 440
• - Offices 630
• - Employees 24.000
• Floated May 2002
• FTSE 100, Support Services Sector
• Market capitalization 1.6bn

ASIA 1/3 Turnover, People
AMERICA 1/3 Turnover, People
EAME 1/3 Turnover, People
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Thank you for your attention
For more information www.intertek.com

• Pitak Supanantakarn
• Regional Director Food Services Asia Pacific
• Mobile [phone]
• E-mail pitak.sup_at_intertek.com