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Building & Implementing Quality Systems

Building & Implementing Quality Systems. Dr. Richard Baines Principal 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.

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Building & Implementing Quality Systems

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  1. Building & Implementing Quality Systems Dr. Richard Baines Principal Lecturer - Management Systems for Food Safety & the Environment

  2. 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.

  3. 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.

  4. 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

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

  6. 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 Characterising Global Markets

  7. 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

  8. 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

  9. Global Retailers Net Food Sales UK Agriculture Gross Output

  10. The Market Place - Driver of QA …. Food safety legislation and regulation ‘due diligence’ or ‘strict liability’ - Operates at chain:Consumer interface E.g. Retailer Own QA system Supplier ‘due diligence’ to satisfy Retailer Retailer Quality Specifications Length of Supply Chain Consumer Concerns Marketing Opportunities Producer Assurance ‘due diligence’ for Retailer through GAP additional consumer/market conditions Quality Attributes

  11. QA Linkage in Supply Chains • Regulatory • Internal Audit • HACCP • Technical Specs • HACCP Based QA • Industry G & S • Credence

  12. 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

  13. 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

  14. 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

  15. Building Quality into HACCP Safety - CCP’s Chemical Physical Biological Quality - CQP’s Product Processes

  16. 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

  17. 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

  18. Building Quality Systems Avoid Regulations Why Build a QA System? Demonstrate Compliance Promote Business, Products & Services Improve Business Efficiency

  19. 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 Regulation vs Private Schemes

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

  21. Improving Safety & Quality • Full HACCP System • Market Quality Spec’ • SQF System • APIQC • 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 > Safety by HACCP • Generic HACCP • Sector Quality • Cattle Care, Flock Care • Fresh Care, NZ VegFed • HACCP Based Codes • EUREP-GAP etc • UK BFS (Red Tractor) • Cert’ Comformite • Vendor Self Assessment • UFFV > Quality Management

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