2. Royal Agricultural College Kansas June 2003Slide 1 Building & Implementing Quality Systems Dr. Richard Baines Principal Lecturer - Management Systems for Food Safety & the Environment

3. Royal Agricultural College Kansas June 2003Slide 2

4. Royal Agricultural College Kansas June 2003Slide 3 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.

5. Royal Agricultural College Kansas June 2003Slide 4 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.

6. Royal Agricultural College Kansas June 2003Slide 5 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

7. Royal Agricultural College Kansas June 2003Slide 6 EU Consumer Expectations... Food Safety - Trust Retailers, Not Gov’ts & Industry All Consumers Product Quality - Believe Retailers give choice Some Consumers Process/Production Quality Animal Welfare Environment Protection, Biodiversity Wild Sourcing People Welfare Organic G.M.Free Ethical and Fair Trade Independent Endorsements

8. Royal Agricultural College Kansas June 2003Slide 7 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

9. Royal Agricultural College Kansas June 2003Slide 8 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

10. Royal Agricultural College Kansas June 2003Slide 9 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

11. Royal Agricultural College Kansas June 2003Slide 10 Global Retailers Net Food Sales UK Agriculture Gross Output

12. Royal Agricultural College Kansas June 2003Slide 11 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. Retailer Own QA system E.g. Retailer Own QA system Supplier ‘due diligence’ to satisfy Retailer Retailer Quality Specifications Supplier ‘due diligence’ to satisfy Retailer Retailer Quality Specifications Producer Assurance ‘due diligence’ for Retailer through GAP additional consumer/market conditions Producer Assurance ‘due diligence’ for Retailer through GAP additional consumer/market conditions Consumer Concerns Marketing Opportunities Length of Supply Chain Quality Attributes

13. Royal Agricultural College Kansas June 2003Slide 12 QA Linkage in Supply Chains HACCP Based QA Industry G & S Credence HACCP Technical Specs Regulatory Internal Audit

14. Royal Agricultural College Kansas June 2003Slide 13 Assume you know HACCP... Hazard Analysis Critical Control Points Hire A Consultant, Confuse People Half A Chicken, Chips and Pepsi Have A Coffee, Consider Problem

15. Royal Agricultural College Kansas June 2003Slide 14 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

16. Royal Agricultural College Kansas June 2003Slide 15 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

17. Royal Agricultural College Kansas June 2003Slide 16 Building Quality into HACCP Safety - CCP’s Physical Biological Chemical Quality - CQP’s ProductProcesses

18. Royal Agricultural College Kansas June 2003Slide 17 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

19. Royal Agricultural College Kansas June 2003Slide 18 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

20. Royal Agricultural College Kansas June 2003Slide 19 Building Quality Systems Why Build a QA System? Avoid Regulations DemonstrateCompliance Improve Business Efficiency Promote Business, Products & Services

21. Royal Agricultural College Kansas June 2003Slide 20 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

22. Royal Agricultural College Kansas June 2003Slide 21 Certification Structures Accreditation Body e.g. UKAS Inspection/Certification to ISO62/65 e.g. S.G.S., Cmi, EFSIS Industry Sector/Association e.g. producers, packers, retail, food service QA Codes, Protocols & Audit points Appoint Develop Member Fee Audit Int’ Quality Control

23. Royal Agricultural College Kansas June 2003Slide 22 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 HACCP Sector Quality Cattle Care, Flock Care Fresh Care, NZ VegFed Full HACCP System Market Quality Spec’ SQF System APIQC