royal agricultural college kansas june 2003slide 1 building & implementing quality systems dr....

Royal Agricultural College

Kansas June 2003Slide 1

Building & Implementing Quality Systems

Dr. Richard BainesPrincipal Lecturer - Management Systems for Food Safety & the

Environment



Outcomes …...

By the end of this presentation you will: Understand the nature of the European food

system and how it compares to the US.

Recognise the driving forces for Quality Assurance Systems and Standards

Appreciate the issues to be addressed in developing Quality Systems in the US.



Trends in the Global Food System

Increased cross border trade -> international grades and standards WTO & CODEX, TBT & SPS, Arbitration etc

Food-chain captains dominating global trade Setting safety and quality standards above regulatory levels

Increased vertical integration and discrete chains Fewer, bigger customers

More food & Agric products bought unseen Requiring

QA systems (HACCP from processing) backed up by Inspection & certification ISO62/65 or equivalent

But consumers are concerned over safety while expecting more choice and more information.



Global Consumer Expectations..

1) That Food is Safe ! Regulatory hygienic controls & inspection Industry safety management (assurance v liability)

Food Hazard x Probability x Consequence

2) That the Quality is right (for the price)! Market technical specifications for product or

intrinsic quality Market specifications for systems of production &

processing or extrinsic quality



EU Consumer Expectations...

Food Safety - Trust Retailers, Not Gov’ts & IndustryAllConsumers

Product Quality - Believe Retailers give choice

SomeConsumers

Process/Production Quality

AnimalWelfare

Environment• Protection,• Biodiversity• Wild Sourcing

PeopleWelfare

Organic

G.M.FreeEthical andFair Trade

Independent Endorsements



Characterising Global Markets

USA Strong Federal Gov’t

backed up by States Food Safety - Strict and

unlimited liability Regulatory inspections

(USDA, FDA, EPA) Commodity markets -

Track back problems Agri-food Corporation

dominance (brand names)

<3% retail own label

EU Weaker Comission, strong

Member States Food safety - Due diligence,

limited liability + revisions Regulatory inspections and

market driven QA Quality differentiation and

traceability Multiple Retail dominance

(Retail brand names)

>50% own label



Improving EU Access - Regulations

Food Hygiene EU Inspections - OK but process orientated

Equivalent to US inspections

Origin, Traceability & Provenance 1760/2000/EC

Beef labelling linking animal ID to product Including where born, slaughtered and cutting by country

G.M. Feeds and Food GM Maize & Soya 49/2000/EC Additives & Flavourings 50/2000/EC Demonstrating Identity Preservation & Segregation is issue



The Current EU Market

Agri-Food Industry is largest in the world with a value > $6,500 billion

> 70% of all food is bought from Multiple Retailers

Top 50 Retailers have 45% of market value Top 10 have > 20% of value UK based Tesco is the largest based on

food sales ( >$25,000 sq.ft.yr) Retailers are principal gatekeepers



Global Retailers Net Food Sales

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35.0

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AUS$bn

AUS$bnUK Agriculture Gross Output



The Market Place - Driver of QA ….

Food safety legislation and regulation ‘due diligence’ or ‘strict liability’ - Operates at chain:Consumer interface

Food safety legislation and regulation ‘due diligence’ or ‘strict liability’ - Operates at chain:Consumer interface

E.g. RetailerOwn QA system

E.g. RetailerOwn QA system Supplier

‘due diligence’ to satisfy RetailerRetailer Quality Specifications

Supplier‘due diligence’ to satisfy Retailer

Retailer Quality Specifications

Producer Assurance‘due diligence’ for Retailer through GAPadditional consumer/market conditions

Producer Assurance‘due diligence’ for Retailer through GAPadditional consumer/market conditions

Consumer Concerns

MarketingOpportunities

Length of Supply Chain

Quality AttributesQuality Attributes



QA Linkage in Supply Chains

G

G G

GD

Processing

Retail & FoodService

Slaughter 1st CuttingPackhouse etc

Producers

Consumers

G G • HACCP Based QA

• Industry G & S

• Credence

• HACCP• Technical Specs

• Regulatory• Internal Audit



Assume you know HACCP...

Hazard Analysis Critical Control PointsHazard Analysis Critical Control Points

Hire A Consultant, Confuse PeopleHire A Consultant, Confuse People

Half A Chicken, Chips and PepsiHalf A Chicken, Chips and Pepsi

Have A Coffee, Consider ProblemHave A Coffee, Consider Problem



Producer Responses - Safety

HACCP Based Codes of Practice Implement GAP, GHP, GMP etc Developed by sector to deliver what is important

- ownership depends on stakeholders Benchmark for best practice ? Leads to minimum sector standards

Food Safety not managed at business level Relies on HACCP further up chain Poor legal defence



Industry Responses - Safety

Full HACCP Systems Individual business responsibility for Safety

and Legal compliance Compliant with Schemes higher up Chain If Quality included then more product reaches

specifications Improved business efficiency and trading

relationships Legal Defence if there is a Food Safety

Breakdown



Building Quality into HACCP

Safety - CCP’s

PhysicalBiological

Chemical

Quality - CQP’s

Product Processes



Market Access - Core Safety Options

Primary Production HACCP based Codes OK,

Act as pre-requisite programmes But HACCP required further up supply chain

Full HACCP Systems go further Integrate with HACCP further up chain Can provide traceability, product recall, legal defence

Food Packing, Processing HACCP required

Distribution Codes OK but HACCP leads to chain integration



Market Access - Core Quality Options

Primary Production Sector Grades & Standards OK - minimum prices Market Technical Specifications - discrete supply

chain Access and potential added value Processing

Market Technical Specifications required Supposed to also source assured products?

Distribution Codes OK as long as quality not compromised

Retail & Food Service



Building Quality Systems

Why Build a QA Why Build a QA

System?System?

Avoid RegulationsAvoid Regulations

Demonstrate Demonstrate ComplianceCompliance

Improve BusinessImprove BusinessEfficiencyEfficiency

Promote Business,Promote Business,Products & ServicesProducts & Services



Regulation vs Private Schemes

Regulation Minimum legal

compliance Infrequent or

incomplete inspections Slow response to

market or society concerns

Blunt instrument

Private Schemes Legal Compliance plus

other factors Inspection

proportionate to risks Rapid response to

market or society and owned by Associations

Refined instrument



Certification Structures

Accreditation Body

e.g. UKAS

Inspection/Certification to ISO62/65e.g. S.G.S., Cmi, EFSIS

Industry Sector/Associatione.g. producers, packers, retail, food serviceQA Codes, Protocols &

Audit points

Appoint

Develop

Member MemberMemb

erMember

Fee

Audit

Int’ Quality Control



Improving Safety & Quality

> Safety by HACCP

> Quality Management

Compliant With:• CIES GFSI• BRC Standard• Brand Name Manufacturers

• Further QA• Safety• Market Quality Spec •Further QA• Safety• Sector Q Standards

• Requires QA• Safety & Quality

Vendor Self Assessment • UFFV

HACCP Based Codes • EUREP-GAP etc• UK BFS (Red Tractor)

• Cert’ Comformite

Generic HACCPSector Quality

• Cattle Care, Flock Care• Fresh Care, NZ VegFed

Full HACCP SystemMarket Quality Spec’

• SQF System• APIQC

royal agricultural college kansas june 2003slide 1 building & implementing quality systems dr....

Documents

environment slide

label slide

extrinsic quality slide

food sales

global food system

food safety trust retailers

quality standards

european food system