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Royal Agricultural College
Building & Implementing Quality
Systems
Dr. Richard Baines
Principal Lecturer - Management Systems for Food Safety & the
Environment
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Kansas June 2003
Royal Agricultural College
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Outcomes …...
Royal Agricultural College
By the end of this presentation you will:
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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.
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Trends in the Global Food System
Royal Agricultural College
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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
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Increased vertical integration and discrete chains
Fewer, bigger customers
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More food & Agric products bought unseen
Requiring
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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.
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Global Consumer Expectations..
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1) That Food is Safe !
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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)!
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Market technical specifications for product or
intrinsic quality
Market specifications for systems of production &
processing or extrinsic quality
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EU Consumer Expectations...
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All
Consumers
Food Safety - Trust Retailers, Not Gov’ts & Industry
Product Quality - Believe Retailers give choice
Some
Consumers
Animal
Welfare
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People
Welfare
Process/Production Quality
Organic
Ethical and
Fair Trade
G.M.Free
Independent Endorsements
Environment
• Protection,
• Biodiversity
• Wild Sourcing
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Characterising Global Markets
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EU
USA
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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
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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)
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>50% own label
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Improving EU Access Regulations
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Food Hygiene
 EU Inspections - OK but process orientated
 Equivalent to US inspections
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Origin, Traceability & Provenance 1760/2000/EC
 Beef labelling linking animal ID to product
 Including where born, slaughtered and cutting by country
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G.M. Feeds and Food
 GM Maize & Soya 49/2000/EC
 Additives & Flavourings 50/2000/EC
 Demonstrating Identity Preservation & Segregation is issue
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The Current EU Market
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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 ( >$25,000 sq.ft.yr)
Retailers are principal gatekeepers
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Global Retailers Net Food Sales
AUS$bn
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40.0
UK Agriculture Gross Output
35.0
AUS$bn
30.0
25.0
20.0
15.0
10.0
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Safeway
Carrefour
Asda
E Leclerc
Sainsbury's
Edeka
Intermarche
Aldi
Tesco
0.0
Spar
5.0
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The Market Place - Driver of QA ….
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Food safety legislation and regulation
‘due diligence’ or ‘strict liability’ - Operates at chain:Consumer interface
E.g. Retailer
Own QA system
Consumer
Concerns
Marketing
Opportunities
Quality Attributes
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Supplier
‘due diligence’ to satisfy Retailer
Retailer Quality Specifications
Length of Supply Chain
Producer Assurance
‘due diligence’ for Retailer through GAP
additional consumer/market conditions
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QA Linkage in Supply Chains
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Consumers
Retail & Food
Service
Processing
Slaughter 1 st Cutting
Packhouse etc
G
G
G
G
G
GD
Producers
• Regulatory
• Internal Audit
• HACCP
• Technical Specs
• HACCP Based QA
• Industry G & S
• Credence
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Assume you know HACCP...
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Hazard Analysis Critical Control Points
Hire A Consultant, Confuse People
Half A Chicken, Chips and Pepsi
Have A Coffee, Consider Problem
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Producer Responses - Safety
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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
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Food Safety not managed at business level
Relies on HACCP further up chain
Poor legal defence
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Industry Responses - Safety
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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
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Legal Defence if there is a Food Safety
Breakdown
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Building Quality into HACCP
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Safety - CCP’s
Physical
Biological
Chemical
Quality - CQP’s
Product
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Processes
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Market Access Core Safety Options
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Primary Production
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HACCP based Codes OK,
 Act as pre-requisite programmes
 But HACCP required further up supply chain
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Full HACCP Systems go further
 Integrate with HACCP further up chain
 Can provide traceability, product recall, legal defence
Food Packing, Processing
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HACCP required
Distribution
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Codes OK but HACCP leads to chain integration
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Market Access Core Quality Options
Royal Agricultural College
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Primary Production
 Sector Grades & Standards OK - minimum prices
 Market Technical Specifications - discrete supply
chain Access and potential added value
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Processing
 Market Technical Specifications required
 Supposed to also source assured products?
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Distribution
 Codes OK as long as quality not compromised
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Retail & Food Service
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Building Quality Systems
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Avoid Regulations
Why Build a QA
Demonstrate
Compliance
System?
Promote Business,
Products & Services
Improve Business
Efficiency
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Regulation vs Private Schemes
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Regulation
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Minimum legal
compliance
Private Schemes
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Legal Compliance plus
other factors
Infrequent or
 Inspection
incomplete inspections proportionate to risks
Slow response to
market or society
concerns
Blunt instrument
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Rapid response to
market or society and
owned by Associations
Refined instrument
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Certification Structures
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Accreditation
Body
Int’ Quality Control
e.g. UKAS
Inspection/Certification to ISO62/65
Appoint
e.g. S.G.S., Cmi, EFSIS
Audit
Industry Sector/Association
QA Codes, Protocols &
Audit points
Member
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Member
e.g. producers, packers, retail, food service
Develop
Member
Fee
Member
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Improving Safety & Quality
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Full HACCP System
Market Quality Spec’
> Safety by HACCP
• SQF System
• APIQC
Generic HACCP
Sector Quality
• Cattle
Care, Flock Care
• Fresh Care, NZ VegFed
Compliant With:
• CIES GFSI
• BRC Standard
• Brand Name
Manufacturers
• Further QA
• Safety
• Market Quality Spec
HACCP Based Codes
• EUREP-GAP etc
• UK BFS (Red Tractor)
• Cert’ Comformite
Vendor Self Assessment
• UFFV
•Further QA
• Safety
• Sector Q Standards
• Requires QA
• Safety & Quality
> Quality Management
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