October 20 th, 2009 Guadalajara, Mexico October 20 th, 2009 Guadalajara, Mexico Asia / Pacific Technical Advisory Council

SQF TAC Agenda  SQF program updates  Future projects  Threats to the program  Weakness of the program  Solutions for program issues  Q & A Feedback session

Recent Updates to SQF  Strong Growth in First Half 2009 Growth of certifications in North America has grown by over 400% in 2009 to over 1500 certificates Australia growth at over 20% to over 1800 registrations Overall growth at 130% globally SQF certificates now in 29 countries SQF has now registered 357 auditors  Improvements in Audit Reports Timelines – audit reports now due to supplier in 5 days, certificates in 45 days Comments – every question must have justification of rating given

SQF Program Updates (cont)  SQF th edition posted August, 2009 Category 4 available for both 1000 and 2000  Final Criteria Document for Certification Bodies posted August, 2009 Working with both ABs on uniform assessment tool  ICIX Interface – executive summary January 2010

SQF Program Updates (cont)  On-line Training / Exams Implementing SQF 2000 Systems available the middle of September  Electronic application submission September 1 st launched for all individual registrations and re-registrations

SQF Registrations – January 09  Total of 1963 registrations  Aus / NZ – 1385  N.A. – 322  A / P – 215  S.A. - 15

SQF Registrations – July 09  Total of 3273 registrations  Aus / NZ – 1779  N.A. – 1175  A / P – 250  S.A. – 35  UK - 8

SQF Registrations – October 09  Total of 3822 registrations  Aus / NZ – 1896  N.A. – 1591  A / P – 268  Latin Am. – 48  Europe – 14  Other - 17

SQF – Site Survey Results – August 09  Auditor showed professionalism – 95%  Auditor demonstrated expertise – 89%  Value in SQF support documents free download – 89%  Value in SQF standard free download – 86%  SQF audit is recognized by my customer – 83%  SQF report is a valuable resource – 81% Results are percent who agree and strongly agree

SQF – Site Survey Results – August 09 (cont)  SQF audit captures food safety issues – 78%  Pre-assessment tool was a great value – 75%  CB was responsive to my needs – 73%  SQF was responsive to my needs – 44%  SQF audit requires me to only need 1 audit – 44%  Quickfire makes certification easier – 24%  Quickfire is a great value for my company – 24%  Quickfire is easy to use – 21% Results are percent who agree and strongly agree

On-line Training Update  Participants - exams 1730 Implementing SQF SQF Auditor exams  Survey results Course met expectations – 90% Content was appropriate – 93% Instructor was effective – 88% Course prepared me to effectively development and implement SQF Systems within my facility – 82%

SQF Quickfire Updates  Buyer Module for SQF Quickfire Buyer profile in Quickfire Buyer access to supplier data once supplier chooses buyer Buyer automatic notification of supplier certification status change  ICIX interface project scoped, targeted end of 2009  SQF 2000 audit checklists available in Spanish

SQF Buyer Module - Reports  SQFI Audit Report Scored audit report (document review or facility assessment) Ability to filter audit reports  Show entire report  Show only non-conformances  Audit Response Details Raw data of the audit report Exportable to excel for data management

Buyer Report – SQFI Audit Report

SQF Buyer Module – Reports (cont)  Corrective action plan Access all corrective action responses from supplier Track status of all correction actions Exportable to excel for data management

Buyer Report – Corrective Action Plan

Marketing / PR Project  Partnering with a Marketing PR firm – Merrell and Associates Initial business / marketing plan formulation presented to FMI leadership mid-November Implementation late 2009 – 2010 Key areas of marketing plan  Communication to stakeholders – Newsletter, social media  Building of SQF brand  Analysis of Client interface – Quickfire / webpage  Market research – competitors, new products  Printed materials

SQF Australia Representation  SQFI has entered into an agreement with Advancing Food Safety Pty Ltd (AFS) to represent the SQF program in Australia and Asia Contract starts August 15 th, 2009  Main objectives of Regional Representative Support Australian SQF Stakeholders Grow SQF in new Asia / Pacific markets (China, Japan)  The SQF Representative role will be independent of AFS’s other training and conference activities.

SQF Asia Pacific Representative Role  Conduct roadshows and stakeholder meetings in Australia and New Zealand  Market the SQF programs in selected regions of Asia  Represent SQFI at conferences within the territory  Record and respond to enquiries  Conduct CB compliance audits  Convene CB/TP meetings

GFSI Benchmarking Feedback  New GFSI Benchmarking document will be available January 2011 – 6 th edition No conflict of interest, no specific accreditation, more maintenance on standard owners, mature scheme  Board meeting this week to consider inclusion of ISO in addition to Guide 65 for accreditation  At least 7 standards in the pipeline for recognition Primus, Canada Hort, another 22000, etc.

Future Projects  Ethical Sourcing Combine social and environmental modules  SQF  Pest control guidance  Level 1 vs. emerging suppliers  Animal welfare module  SQF Update for 2010  Other priorities

Feedback on the Program  Threats to the Program Competitors Internal challenges (communication, support, service) Addendums Other

Feedback on the Program  Weaknesses of the program Report scoring Communication with suppliers Quickfire and customer support Quickfire communication and operations CB activity Concerns over notification of CBs by suppliers in the event of a food safety incident Other

Working Group on Scoring  Greater than >95% of audit scores >95% and E rating  Not reflective of true findings of the audit  Example: One report showed 3 major non-conformances and 18 minors - score 95.3% Surveillance audit required  Reason : Non-conformances not properly weighed against number of audit questions in report

Potential Solutions  Potential Solutions to program issues Quickfire webinars Communication strategies Scoring working group Other