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Preventing Food Safety Problems Along the Food Chain

An Industry Perspective

Food Regulatory Summit – New Delhi, IndiaOctober 17, 2008

Peggy S. RochetteSr. Director International Affairs

Grocery Manufacturers Association

An era of Globalization at a time of profound societal changes

Introduction

• Globalization: Marketplace is changing – new foods, new sources

• Consumer Expectations: Food safety bar is raised

• Implications for food safety are significant - concerns remain for all stakeholders

Global Food Trade

Already 40% of all trade in agriculture, fisheries & forestry occurs between developing & developed countries.

More than 20% of all US imports are food products (more than 8 million shipments a year).

Source: Sara Lee

A Multinational LoafAmy Schoenfeld: New York Times, June 15, 2007

• Wheat gluten – France, Poland, Russia, Netherlands, Australia• Honey – China, Vietnam, Brazil, Uruguay, India, Canada,

Mexico, Argentina• Calcium proprionate – Netherlands• Guar gum – India• Flour enrichments – China• Beta-carotene – Switzerland• Vitamin D3 – China

“Globalization of the food supply means that we all must share responsibility for food safety

throughout the entire food supply chain from producers to

consumers.”

Consumer Confidence in Food Safety is Down

• The number of U.S. consumers "completely" or "somewhat confident" in the safety of supermarket food declined – 82 percent in 2006– 66 percent in 2007

FMI Consumer Trends 2007, January 2007 survey

Consumer Confidence

• 52% of U.S. Consumers indicate they are MORE CONCERNED about food safety compared to 2 or 3 years ago

• Management of the Supply Chain is essential to assuring food safety and improving consumer confidence

Consumer Confidence

• Recalls have a huge financial impact:

Peanut Butter (Salmonella): $66 million

Spinach (E.coli): $25-$50 million

Pet Food (melamine): $40+ million

Chili Sauce (botulism): $35 million

Topps Meat (E.coli): $31 million

Tomatoes/Peppers (Salmonella):$200 million

GMA Commitment to Consumers

4 Pillars of Food Safety

Commitment to Consumers

• Pillar I – Mandatory Supplier Quality Assurance Program– Food companies and importers must establish

a program to provide safety and quality assurance including compliance with national requirements

– Program guidance to be issued by FDA

Commitment to Consumers

• Pillar II – Voluntary Low Risk Importer Program

– Reduce the inspection pool by sharing data and test results voluntarily with regulators

– Inspections focus on high risk products– Expedited entry to low risk importers

Commitment to Consumers

• Pillar III – Capacity Building Foreign Focus

– Expand capacity of foreign exporting countries

– Expand food safety training globally– Expand efforts to harmonize food standards

globally

Commitment to Consumers

• Pillar IV – Capacity Building at the Border

– Expand resources for laboratories and scientific expertise

– Improve analytical testing and information technology

Supply Chain Management

Supply Chain Management

• What is “Supply Chain Management?”

Due diligence to assure that products received from suppliers meet required regulatory, legal, and contractual standards of safety.

Goal is Prevention of Food Safety Problems

Supply Chain Management

• Food industry relies upon a web of inter-company relationships– Producers and growers– Brokers– Repackers– Ingredient vendors– Co-Manufacturers

Supply Chain Management

• Food industry relies upon a web of inter-company relationships

– Knowing and building relationships represents a sound investment in food safety management

Supply Chain Management

• Role in Food Safety

–Legal Considerations•Regulatory compliance•Liability

Importance of Supply Chain Management

• Role in Food Safety–Legal Considerations– Financial Considerations

•Price vs Quality•Value of Brand

–Commercial brand–Reputation of exporting economy

Importance of Supply Chain Management

• Role in Food Safety–Legal Considerations– Financial Considerations– Consumer

• EXPECT and ASSUME food to be safe– Put responsibility and blame on both product

AND exporting economy

Importance of Supply Chain Management

• Role in Food Safety• Role in Trade

– Domestic & International• Facilitates efficient and effective movement of

product• Assure compliance with all national and/or

local laws and regulations of BOTH exporting and importing economies

• Bolster consumer confidence in importing economy

Achieving a Successful Supply Chain

Management System

GMA Food Supply Chain Handbook

EnglishSpanishMandarinFrenchRussian

www.gmabrands.org

Elements of Food Supply Chain Handbook

Hazard Analysis Critical Control Point (HACCP)Good Manufacturing Practice (GMP) Good Hygienic Practices (GHP)Good Agricultural Practice (GAP) if applicableGood Aquaculture Practice (GAqP) if applicableEmployee trainingUS regulatory complianceRecall programProduct Testing

Achieving a Successful Supply Chain Management System

• Infrastructure–Robust regulatory infrastructure–Private Sector

•Technological capability•Processes for assuring compliance throughout the supply chain

Scientific Foundation

Achieving a Successful Supply Chain Management System

• Infrastructure• Ongoing Training and Education

– Build technical competence of regulators and manufacturer and understanding of food safety management.

Training and Education

• Regulator and manufacturer technical competence and understanding of food safety management is critical

• Use of international best practices in food safety management to better assure the safety of the food supply chain

• Establish and sustain working relationships to help anticipate, prevent and manage incidents

Summary

• International Trade in Foods and Agricultural Products Will Continue to Increase

• Internationally harmonized science based standards –based on “best practices” will improve safety and trade

• Managing the Supply Chain will be Essential to Assuring Safe Products and Consumer Confidence

• Government and Private Sector share responsibility for supply chain management

• Commitment to Training and Adoption of New technologies will be essential

• The key to food safety is prevention at the source

Thank you!

Peggy S. [email protected]

www.gmaonline.org