for achieving Excellence in Food Safety and Quality in Food Exports - - PowerPoint PPT Presentation

Voluntary Standards for achieving Excellence in Food Safety and Quality in Food Exports

• PC. Anil Kumar

Head Food Safety & Hygiene (SAARC) Sealed Air India Pvt Ltd Mumbai

9th CII National Food Safety and Quality Summit

 Private Label Foods flood the Marketplace  Health & Nutrition - influencing Product Development  Global Financial Crunch, Cheaper Price  Production Costs, Cuts

• n 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

21st Century Challenges

 Product Mislabeling & Misinformation (Allergens, GMO’s)  Risk & Recall Communication  Migration of Hazardous Substances  Concerns on Food Bio-security  Consequences of Climate Change  Environmental Degradation  World population 7B (2014)  9B (2040)

21st Century Challenges

• Documented Agreements
• Containing Specification
• Consistently used as Rules, Guidelines or Definitions of characteristics
• Ensure that Material, Products, Processes & Services are Fit for their

Purpose

What are Standards?

4

Drivers

• Governments “Name and Shame” policy in some countries.
• Retailers legal responsibility (due diligence legislation in some countries)

and increasing retailer own labels.

• Retailers do not want to compete on the basis of “who’s food is safer”.
• Shuffling off certain risk management costs to producers.
• Globalisation of retailing and production (i.e. global sourcing) requires

rigorous quality assurance system.

• New food-safety, health and environmental requirements are being used as

value-chain governance tools. 5

Why Voluntary Standards?

Voluntary and mandatory standards traditionally serve different

• bjectives:

Foster trade and economic growth Encourage competition Protect consumers against unsafe or substandard products

Mandatory standards

Develop markets for socially or environmentally responsible products Promote other environmental social and environmental

• bjectives

Compensate for the lack of local or national regulatory capacity

Voluntary standards

But as we shall see, objectives are beginning to overlap. . .

Why should Indian FBO care about Voluntary Standards?

• Consider. . .

– The number and market power

• f voluntary standards

concerning the environmental and social aspects of production is growing dramatically – Some voluntary standards are effectively becoming required in certain markets.

The best example of this trend is GLOBALGAP. “Market power” means that in developed-country markets, goods and producers conforming to these voluntary standards enjoy an advantage.

Why?

Why should Indian FBO care about Voluntary Standards?

Consumer demand in developed countries (and increasingly in developing countries) is starting to reflect non- economic values & preferences In addition, these consumers are increasingly concerned about food and product safety

Changes in CONSUMER VALUES.

Such as concern for child labor practices, fair payment to farmers, and the environmental impacts caused by the production of goods.

1 As a result. . . 2

Why should Indian FBO’s care about Voluntary Standards?

An increasing number of consumers are willing to pay more for “Quality goods” Increasingly, consumers put pressure on the private sector to provide “safe goods” above and beyond regulations.

1 2

Imposed environmental, social, and product- safety requirements on their suppliers. Developed “Quality product lines” and selected suppliers who can conform to their requirements (These requirements are sometimes existing voluntary standards; sometimes a new voluntary standard is developed.)

In response, the private sector has. . .

Why should FBO care about Voluntary Standards?

As a result. . .

Both primary producers and manufacturers in the developing world increasingly find that compliance with voluntary standards is essential in order to:

Increase the value-added of their products/become less of a commodity supplier. Gain access to new markets. Enhance their ability to act as suppliers to developed-country companies. Maintain access to/share in old markets and with old customers.

10

Sources of Standards

Many Standards – Many Sources

Standards are set and administered by. . .

National, Regional and International Organizations Which may be. . .

• Governmental
• Multilateral
• Non-profit

Standards – Which One ?

My head hurts.

key consideration for adopting any standard

Remember, the business case for adopting a standard examines:

• “costs of adoption”

(internal costs of change and

• perating costs under the

standard)

• revenue potential after the

standard is adopted. Revenue potential depends

• n how important a

“certified” product is to the target consumer, AND on how well-known and reputable the standard is.

!

Reputability: a key consideration

We cannot endorse any standard However, we can identify the characteristics of standards which have:

– Tended to be most successful in the marketplace – Been most-endorsed and promoted

Developed by a diverse group of stakeholders and not only by “industry insiders” Requires certification by an accredited, independent 3rd party A clear, memorable label on the product at retail “Chain of custody” requirements track the product from source to retail

• utlet*

Standard requires real changes from “business as usual” * For product standards

GLOBAL FOOD SAFETY INITIATIVE

• GFSI launched in year 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”

15

What is GFSI? GFSI: an international collaborative platform

Retailers Suppliers Food Service Certification Bodies Accreditation Bodies International Organisations Academia Government Scheme Owners Service Providers

16

GFSI - Technical Working Groups

Foundation in Science

Codes Of Practice

GFSI Recognised Schemes

ISO Standards

ISO 22000

Codex Alimentarius Standards

HACCP Principles

Legislation

Requirements Principles Standards Schemes Supplementary Codes

BENCHMARKING Once certified, accepted everywhere

Key Features – Voluntary Standards

• Management Commitment
• Pre Requisite Programmes
• Quality Management System
• Food Safety System – HACCP
• Sustainability Model
• Sector Specific and Levels
• Rules for certain activities / processes and procedures
• Few Requirements identified as CRITICAL
• Fundamental – Knock Outs

20

Key Features – Voluntary Standards

• Scoring System
• Performance Levels % / Grades
• Audits based on performance –
• Surveillance – Announced / Unannounced
• Requirements for CB
• Requirements for Auditors
• Requirements for Consultants
• Requirements for AB
• Systematic Monitoring Process

21

Wide Acceptance - GFSI Recognised Schemes

Benefits - Voluntary Standard

• Demonstration of due diligence - Commitment
• Effective documentation and record keeping
• Traceability is one area where VS exceed Codex recommendations
• Requirements for staff training
• Impact on public health
• Impact on Market access – Recognized Around the World
• Continual improvement in processes for quality and safety
• Minimise product risks and recall
• Ensure to meet legal and regulatory obligations

22

Benefits - Voluntary Standard

• Prescriptive rather than outcome focused requirements
• Prescription presents a number of advantages:
• Producers/ processors can clearly understand what is required of them
• Auditors can readily judge with relative uniformity whether the required

provisions are being met

• Standard

implementers have reasonable assurance that their requirements are met by their suppliers

24

How To Implement ?

• Management Commitment
• Consult your customer, understand their needs
• Identify the suitable management system standard for

implementation

• Understanding the Requirements – Training
• Systematic and proactive approach, rather than reactive with

costly actions

• 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

25

Independent Verification – Why?

• 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”

the “customer demand” in developed markets Growth in voluntary standards that increasingly link export success (and even market access) to environmental performance, particularly for India’s key goods.

Summing up.

Summing up.

• Implementation of these standards will

become even more widespread

• Opportunities for more harmonised

approach

• These standards create challenges for

Indian FBO

• They also create opportunities.

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THANK YOU

I am available at pc.anil@sealedair.com M- 9920110176