Global Food Safety Initiative Joint UNCTAD/WTO Informal Information Session on Private Standards

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Global Food Safety InitiativeJoint UNCTAD/WTO
Informal Information Session on Private Standards

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Background

• GFSI launched at the CIES Annual Congress
• (May 2000)
• Established as a non-profit making Foundation
  (June 2005)
• Managed by CIES The Food Business Forum
• Food Safety is top of mind with consumers and
  CEOs
• Consumer trust needs to be strengthened and
  maintained

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GFSI Mission

• Continuous improvement in food safety management
  systems to ensure confidence in the delivery of
  safe food to consumers  

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GFSI Objectives
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What Does GFSI Do ?

• benchmarks existing retailer driven food safety
  management systems against the GFSI Guidance
  Document
• communicates to stakeholders about system
  equivalence
• provides a forum for debate with international
  Standards organisations and interested parties
• helps and encourages retailers and other
  stakeholders to share knowledge and strategy for
  food safety through different projects

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What is the GFSI Guidance Document ?

• the Guidance Document 5th Edition represents food
  safety management best practice in the form of
  key elements for food production
• Requirements for Food Safety Management Systems
• Requirements for HACCP and Good Practice (GAP,
  GMP or GDP)
• Requirements for the delivery of food safety
  management systems
• provides guidance on how to seek compliance for
  existing systems owners
• provides a framework for benchmarking
• provides guidance on the operation of
  certification processes
• it is NOT a new standard !

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GFSI Benchmarking

• systems officially benchmarked and recognised by
  GFSI are
• BRC Technical Standard Version 4
• IFS Version 4
• SQF
• Dutch HACCP (scheme Option B)
• NZ GAP

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What GFSI Does NOT Do

• make policy for retailers
• make policy for system owners
• undertake any accreditation or certification
  activities

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The GFSI Road To Harmonisation
Goal
Safe Food Cost Effectiveness

• What has been achieved
• Quality
• Quantity
• Confidence
• Retailers / Authorities

Guidance Document
IFS
Guidance Document
SQF
BRC
Dutch HACCP
Manufacturers / Retailers
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The Effects of GFSI Benchmarking

• a number of major retailers are now formally
  recognising all GFSI recognised systems
• more and more suppliers are now using GFSI
  recognised systems, using third party
  certification, making buying simpler and
  improving the level of food safety
• reduction in the number of audits carried out by
  retailers
• nearly 19000 GFSI-recognised system certificates
  issued in 2006 - compared to 9000 in 2005
• continual improvement of food management systems
• there is a direct influence on audit consistency,
  customer confidence and cost

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GFSI Benefits
FOR RETAILERS Improved production
standards Improved information on food safety
schemes Exchange of best practice Simplified
purchasing procedures
FOR STANDARD OWNERS Exchange of best
practice Greater transparency in the food
industry Continuous improvement Market
opportunities
FOR MANUFACTURERS Improved cost
efficiency Reduced numbers of audits Clarity of
Food Safety Scheme requirements Time and
resources to reinvest in quality and safety
FOR ACCREDITATION BODIES Exchange of best
practice Knowledge sharing Opportunities to work
with the food industry on auditing standards
FOR CERTIFICATION BODIES Exchange of best
practice Improved auditor competence
quality New market opportunities
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Key Factors Driving The Development Private Food
Safety Management Systems

• to provide assurance of product safety
• to promote consumer confidence
• to promote best practice
• to promote business improvement and efficiency in
  the supply chain in a global context
• to meet legislative requirements and to ensure a
  margin of defence
• to provide brand protection and reputation

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European Retailer Own Brand Market ShareSource
AC Nielsen and Citigroup Investment Research 2005
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Global Retailer Own Brand Market ShareSource
The Nielsen Company 2005
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Meeting Legislative Requirements

• Safety
• Operators shall not place on the market unsafe
  food or feed
• Responsibility
• Operators are responsible for the safety of the
  food and feed which they produce, transport,
  store or sell
• Traceability
• Operators shall be able to rapidly identify any
  supplier or consignee
• Transparency
• Operators shall immediately inform the competent
  authorities if they have reason to believe that
  their food or feed is unsafe
• Key Obligations of Food and Feed Business
  Operators Issued by The Health Consumer
  Protection Directorate- General of the European
  Commission

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Meeting Legislative Requirements

• Emergency
• Operators shall immediately withdraw food or feed
  from the market if they have a reason to believe
  that it is not safe
• Prevention
• Operators shall identify and regularly review the
  critical points in their processes and ensure
  that controls are applied at these points
• Co-operation
• Operators shall co-operate with the competent
  authorities in actions taken to reduce risks
• Key Obligations of Food and Feed Business
  Operators Issued by The Health Consumer
  Protection Directorate- General of the European
  Commission

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Meeting Legislative Requirements

• Responsibility of the Food Business Operator
  under the EU General Food Law Regulation 178/2002
  Article 17
• Food and feed business operators at all
  stages of production, processing and distribution
  within the businesses under their control shall
  ensure that foods or feeds satisfy the
  requirements of food law which are relevant to
  their activities and shall verify that such
  requirements are met.

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Meeting Legislative Requirements

• Regulation EC 852/2004 The Hygiene of Foodstuffs
  Article 1
• Lays down the general rules for food business
  operators on the hygiene of foodstuffs, taking
  particular account of the following principles
• primary responsibility for food safety rests with
  the food business operator
• it is necessary to ensure food safety throughout
  the food chain, starting with primary production
• general implementation of procedures based on the
  HACCP principles, together with the application
  of good hygiene practice, should reinforce food
  business operators responsibility
• it is necessary to ensure that imported foods are
  of at least the same hygiene standard as food
  produced in the Community, or are of an
  equivalent standard.

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Meeting Legislative Requirements

• Imports - Responsibility of the Food Business
  Operator under the General Food Law Regulation
  178/2002 Article 11
• Food and feed imported to the Community for
  placing on the market within the Community shall
  comply with the relevant requirements of food
  law

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Principles of Private Food Safety Management
Systems

• established to minimise duplication of evaluation
• encourage local evaluation
• promote best practice
• be open, transparent and compliant with fair
  trading legislation
• control and maintenance is reliant on an
  internationally recognised accreditation process
• direct stakeholder participation during
  development, continuous review and improvement of
  systems

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Private Food Safety Management Systems

• provide a benchmark requirement for all suppliers
  ensuring a level playing field globally
• compliant with legislative requirements
• provide compliant suppliers with access to new
  markets and customers
• used to promote and enhance food safety using the
  principles of self regulation
• suppliers recognise the advantages to their
  operation of gaining certification
• a strong move towards harmonisation, reducing
  multiple and divergent standards and audits from
  individual retailers
• the certification process proactively improves
  food safety and knowledge of legislative
  requirements

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The Relationship Between Private Food Safety
Management Systems and Regulation

• do not conflict with,but complement regulatory
  requirements
• provides demonstrable assurance of compliance
• translate regulatory requirements into concrete
  means/measures
• enhance the understanding of legislative
  requirements for markets where the product is
  sold
• promote uniform interpretation of legal
  requirements and any specific requirements of the
  System
• are regularly updated to reflect legislative
  change, define best practice, such as technology
  and knowledge advance and to meet consumer
  expectation
• are well established and understood by suppliers
• driven by consumer demand
• governance of Systems and associated protocols
  are in line with Corporate Governance principles
• established case law dictates that a food
  business operator cannot rely on competent
  authority control measures or official control
  measures to satisfy their legal obligations

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Opening Markets
The picture for developing countries as a whole
is not necessarily problematic and certainly less
pessimistic than the mainstream
standards-as-barriers perspective. Indeed,
rising standards serve to accentuate underlying
supply chain strengths and weaknesses and thus
impact differently on the competitive position of
individual countries and distinct market
participants. Some countries and industries are
even using high quality and safety standards to
successfully (re-)position themselves in
competitive global markets. Jaffe Henson
Standards and Agro-Food Exports from Developing
Countries Rebalancing the Debate (June 2004)
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Future Debate

• "The fact that more and more producers and
  retailers are using certification schemes must
  prove something. And I'm glad we're beginning to
  see the results of detailed work which reveals
  where, when and how the schemes add value and how
  much benefit farmers, retailers and consumers
  get....... Schemes should aim to enable producers
  and retailers to obtain higher returns for
  qualities which consumers genuinely want."
• Commissioner Mariann Fischer Boel
• (5-6 Feb 2007- Food Quality Certification
  Conference in Brussels - Adding Value to Farm
  Produce)