food safety export assurance system requirements for dairy products confidential to fonterra...
TRANSCRIPT
Food Safety Export Assurance System Requirements forDairy Products
Confidential to Fonterra Co-operative Group
September 2014
Malcolm Bailey – Fonterra Director
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1. Growth rates represent forecast compound annual growth rates. Current volumes are represented by the area of the circles displayed2. Although strong growth in demand is expected in India, it is expected that the ability to supply into India will continue to be constrained by relatively high barriers to trade for dairy products
Source: Fonterra estimates
MENA
2%
4%
10%
India2
7%
7%
China
4%
2%
LATAM
2%2%
ANZ
1%
1%
Nth America
<1%
1%
Europe
<1%
Outlook to 20201
ASEAN
2-3%
4%
Demand Growth Supply GrowthDemand Volume Supply Volume
Outlook to 2020
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Dairy farming in New Zealand
• 4.8 million cows producing 20 billion litres of milk per year
• Pasture grazing farm model
• Fertile soils, high rainfall and moderate temperatures
• Less than 3% of global milk production
• No Government subsidies
• Around 90 processing plants in NZ
• Export to over 100+ countries
• Sales based on safety and quality
• Positive regulatory industry relationship
• Meets the world toughest regulatory and private standards
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Consumer
The Ministry for Primary Industries
Sets standards
Provides assurances
Enforces
Recognised Agencies
Independent Audits
Ensures compliance
Dairy Manufacturers & Exporters
Risk–based management plans for domestic and export product
Adherence to standards
The foundation for a successful dairy manufacturing and exporting industry is a regulatory framework that importing countries can trust
New Zealand dairy exports are supported by the NZ governments’ commitment to a risk-based regulatory system and standards development programme,
underpinned by sound science
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The regulatory framework needs to ensure awareness of roles and responsibility across the food chain
Bio security Act 1993
Ag Compounds and Vet
Medicines Act 1997
Animal Products Act
1999
Animal Products (Dairy)
Regulations 2005
MPI registered Risk
Management Programme
Verification and Audits drives compliance
Design, construction & equipment
specifications
Milk harvesting activities
Animal health management
Control of chemicals
Monitoring of milk quality
(including milk cooling)
Milk & animal traceability
… outlining the legal obligations and duties of farm owners, farm operators, and dairy manufacturers across the food chain.
A strong regulatory framework is required…
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REGULATORY COMPLIANCE
Fully comply with exporting and importing country requirements
Customer Expectations
Regulatory Requirements
Industry Systems
Food safety and quality has to be owned by and built in at every step by the Industry
Meeting domestic and international regulatory requirements is really just the qualifying criteria- Importance of international harmonisation
Sustainable business models are all about consistently meeting and exceeding customer / consumer expectations
The Quality Pyramid
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.
Milk processing and collection: You are only as good as your raw material – quality starts on the farm
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Ensuring the quality of our Milk Supply in New Zealand
Processors test all loads on arrival against stringent acceptance criteria
Farms are contracted to a single processing company
All Farms have government approved RMPs - processing companies required to ensure day to day
compliance- government audits system compliance
Tankers sample and confirm acceptable temperatures
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Manufacturing control (including storage) is required to produce food acceptable for international consumption
HACCP plans are used to identify, evaluate and control risks from hazards to animal or human health of dairy materials or dairy products during the manufacture, transport or storage of the dairy materials or dairy products in NZ
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Product sampling, testing and release best practice
• Use of accredited laboratories
• Milk quality tested on farm, on arrival and at time of manufacture
• Only quality verified ingredients are added
• Product is released following microbiological, chemical, functional and sensory testing
• Nutritionals products may include additional customer, regulatory requirements including tighter limits for food safety tests
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Exporters must comply with all relevant food laws and regulations of countries you manufacture in, export to, and where products are sold domestically
• Meet domestic regulatory requirements for export
• Comply with Overseas Market Access Requirements
• Gain any required certificates of assurance from the relevant regulatory authority
o These generally relate to animal health, heat treatment, chemical residues, micro and truth of labelling
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Farm Transportation and Storage
Manufacturing Export
Traceability across Supply Chain
Monitoring, testing and traceability across the supply chain are key elements in providing food safety and quality assurances
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Summary
• Dairy demand is predicted to outstrip supply by 2020
• To successfully export dairy you need:
– Quality from the start
– Food safety standards
– An effective industry / regulatory framework
– Open marketplace
– Quality assurance and traceability
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