Implementing Quality Scheme "Luomu" for Organic Production in Finland

1. Implementing a quality schemes in Finland – the example of quality scheme “Luomu” for organic productionSampsa HeinonenUnit Director SEMINAR“Quality Schemes – better price for producers, higher awareness for consumers”Tallinn, November 26, 2008

2. Background of the Speaker In organics since 1985 • Inspector/researcher/advisor 1988 - 1993 • Senior Officer at the Finnish Food Safety Authority Evira 1994 - 2008 • Chief Audit Manager at Evira 2008 • Unit Director at Finfood Luomu – Organic Food Promotion since August 2008 Work in the IFOAM Organic Guarantee System • Pro bono Member of the Board of IFOAM Accreditation Programme 1990 - 2005

3. In the EC Green paper the Commission asks about food-quality certification schemes: • Goals - Meeting the main societal demands concerning product characteristics and farming methods? • Risk of consumers being misled? • Costs and benefits for farmers and other producers (often small- and medium-sized enterprises) • Involvement of producers' organisations? • EU guidelinesand their criteria to contribute to a more coherent development? • Reducing administrative costs and burdens? • Role of privateschemes in assisting and promoting EU exports? • Facilitating market access for producers in developing countries? Source EC Green paper: Agricultural product quality: product standards, farming requirements and quality schemes, COM (2008)641 final, October 15th 2008http://ec.europa.eu/agriculture/quality/policy/consultation/greenpaper_en.pdf

4. In this presentation I will • Discuss Organic Certification System as Quality System • Principles of Conformity Assessment Systems • Principles of Certification of Organic Production • A standard certification procedure • Present the Case Luomu Ladybird • Story of a private certification system for organic production with additional requirements and emphasis on quality systems • Introduce an approach to certification known as Participatory Guarantee System (PGS)

5. Standards and conformity assessment Standards • Standards are documented, voluntary agreements which establish important criteria for products, services and processes. Standards, therefore, help to make sure that products and services are fit for their purpose and are comparable and compatible. Conformity assessment • The technical term given to the process of evaluation and approval.

6. Methods of Conformity Assesment:Testing, Inspection and Certification Testing • Most common form of conformity assessment. It can include other activities like measurement and calibration. Testing also provides the basis for other forms - for example, it is the main technique used in product certification. • The general requirements for laboratories or other organizations to be considered competent to carry out testing, calibration and sampling. Inspection • Examination of a huge range of products, materials, installations, plants, processes, work procedures and services, in the private as well as the public sector, and report on such parameters as quality, fitness for use and continuing safety in operation. Certification/registration • Certification/registration is when a third party gives written assurance that a product (including services), process, personnel, organization or system conforms to specific requirements.

7. How conformity assessment works? • First-party assessment. Conformity assessment to a standard, specification or regulation is carried out by the supplier organization itself (=self-assessment, known as a supplier's declaration of conformity, SDoC) • Second-party assessment. Carried out by a customer of the supplier organization. For example, the supplier invites a potential customer to verify that the products which it is offering conform to relevant ISO product standards. • Third-party assessment. The conformity assessment is performed by a body that is independent of both supplier and customer organizations. An example is ISO 9000 certification where an organization's quality management system is assessed by an independent "certification" or "registration" body against the requirements of an ISO 9000 standard.

8. Conformity Assessment in Brief

9. Types of Certification • Product certification (initial testing + surveillance) • Type testing (sample product) • Management system certification (ISO9000)

10. Certification in Organic Production • Is a combination of certification of • Product • Production system • Processing method • Quality management system • The ‘organic’ quality cannot be verified through specifications or product testing!

11. Two approaches to certified (organic) quality ”Holistic approach” • Representing the core values based on principles of the organic movement, • defined in the organic and other relevant standards (EU Regulation, IFOAM Norms, SA8000 etc.) and • applied specifically to organic production ”Technical approach” • Derived from generic international technical standards and guidelines, • defined and applied – when needed – in both organic and conventional production systems as standards and legal requirements (e.g. ISO Norms on conformity assessment, FAO Guidelines on HACCP etc.)

12. Characteristics of Organic Certification • Organic agriculture and its quality assurance system(s) is very young, is dynamic and certainly also needs further development • Two movements • Private sector, voluntary standards • Public sector, regulations

13. A standard certification procedure • Application • Operator questionnaire/description • Application accepted • Initial inspection visit • Certification decision/conditions • Contract • General certificate & transaction certificates • Annual renewal • Annual surveillance (inspection visit/audit)

14. What is an inspection ? • Confirmation of compliance with standard? • Filling of a checklist with a bit of observation? • Confirmation that licensee statement is correct? • Challenge, investigation of compliance, or • Risk assessment and assurance that all risks are addressed in the operator’s quality system? • Not sufficiently used: • Use of random residue analyses • The element of surprise (unannounced)

15. Organic Certification Systen as Quality System Private quality and organic standards Legal minimum requirements Basic standards Farm Quality Management Hand book(ISO 9001) GMP GlobalGAP KRAV Additional organic requirements (like USDA NOP) Codex, IFOAM Norms, ISO 65 EU Regu-lation 2092/91

16. ISO 9000 Quality Management Principles • Focus on your customers • Provide leadership • Involve your people • Use a process approach • Take a systems approach • Encourage continual improvement • Get the facts before you decide • Work with your suppliers Source: ISO 9000:2005, Quality management systems. Fundamentals and vocabulary

17. Continuos improvement approach in organic certification Plan Correct /Act Do Control

18. Quality management approach in organic certification system of Evira • The compulsory Organic Management Plan can be a part of a overall farm quality managent system • Organic inspection visits can be used as quality audits and as a method of continuous improvement on organic farms. • Examples of means: • Farmer’s self-evaluation forms with questions and check lists • Feedback - both positive and corrective and not only on certification issues - by the inspector/ certifier may be used for development purposes. • There should be special emphasis on dialogue between the operator and the certifier!

19. Luomu Ladybird Quality Scheme 1 • The Ladybird quality logo is owned and administered by the Finnish Association for Organic Farming, Luomuliitto since 1987 • Granting the logo was based on organic standards of Luomuliitto. • It was the most important organic logo in Finland until 1998. • In 1998 the Ministry of Agriculture and Forestry launced its national organic Sun logo based on the Council Regulation (EEC) No. 2092/91. • The use of the Sun logo is free for certified operators.

20. Luomu Ladybird Quality Scheme 2 • The Ladybird logo started to loose its popularity. • In 2004 Luomuliitto decided to base granting the logo to the quality standards of Luomuliitto. • The standards are additional to the Council Regulation (EEC) No. 2092/91 and consist of compulsory requirements and recommendations.

21. Luomu Ladybird Quality Scheme 3 • The compulsory requirements include • membership of Luomuliitto and • production based on quality management system (ISO9001 or equivalent) • all animal manure used for growing products intended directly for human consumption must be composted. • The basic ingredients of processed products must be 100 percent of Finnish origin and at least 75 percent of ingredients in total. • It is recommended that 100 percent of animal feeds are of Finnish origin.

22. Luomu Ladybird Quality Scheme 4 • Today the logo is mainly used on vegetables • It has not gained back its popularity but it is still well recognized by the consumers. • The new EU logo may bring a new chance for the Ladybird!

23. Good (Certified) Quality System á la Organic • Simple, but includes opportunity for multiple certifications (organic /quality /environment etc.) • Cheap (for small operators) • Understandable to operator • Easy to communicate to consumers • Participatory • Emphasis on continual improvement and dialogue, not only on compliance • Group certification and internal control systems are opportunities for small producers ”Sounds good, but where to find such Systems?”

24. Participatory guarantee systems (PGS) • Developed to counter some of the problems associated with mainstream organic certification (such as high costs, extensive bureaucracy, inflexible processes, and a lack of community development focus), • PGSs are based on the standards of mainstream certification agencies, but differ in that they adapt them to suit e.g. • local conditions, • employ simple verification procedures, • minimize bureaucracy and costs, and • incorporate an element of environmental and social education for both producers and consumers.

25. Key Elements of PGSs • Conscious shared vision that farmers and consumers have in the core principles guiding the program. • Participatory - intense involvement by those interested in the production and consumption of these products. The credibility of the production quality is a consequence of participation. • Transparency - All stakeholders, including farmers, must be aware of exactly how the guarantee mechanism generally works. • Trust - “integrity based (on cultural) approach” • Learning Process - Provide more than a certificate • Horizontality - Sharing of power.

26. Key Features of a PGS (1/2) • Norms conceived by the stakeholders through a democratic and participatory process, but always in accordance with the commonly understood sense of what constitutes an organic product. The norms should stimulate creativity, which is a characteristic of organic farmers, instead of inhibit it. • Grassroots Organization: The Participatory Certification should be perceived as a result of a social dynamic, based on an active organization of all stakeholders. • Is appropriate to smallholder agriculture, because the participatory nature and horizontal structure of the programs allows for more appropriate and less costly mechanisms of certification, and actually highlights and celebrates and encourages consumers to seek out smallholders. • Principles and values that enhance the livelihoods and well being of farming families and promote organic agriculture.

27. Key Features of a PGS (2/2) • Mechanisms to verify farmer’s compliance to the established norms, which is able to stimulate participation, organization, and which allow a learning process for all the stakeholders. • Mechanisms for supporting farmers to produce organic products and be certified as organic farmers, to include field advisors, newsletters, farm visits, web sites etc. • Should have a bottom-line document, for example a farmer’s pledge stating his/her agreement with the established norms. • Seals or labels providing evidence of organic status. • Clear and previously defined consequences for farmers not complying with standards, actions recorded in a data base or made public in some way. Source: http://www.ifoam.org/about_ifoam/standards/pgs.html

28. Impact of the adoption of participatory guarantee systems (PGS) - the case of Rede Ecovida in Brasil • Broad and flexible relationships, within the PGS process, • strengthened the ties among stakeholders, • helped farmers understanding not only the importance of organic farming but also how to start a community based local organic market. • Trustworthy institution (Rede Ecovida) and social cohesion helped expanding PGS among farmers; • this apply also to consumers, accepting products coming from areas not directly under the local social control. Source: Zanasi & Venturi 2008 http://orgprints.org/11618/01/Zanasi_11618_ed.doc

29. Tao of Leadership - Old Chinese Poem Go to the peopleLive with themLove themLearn from themStart with what they haveBuild on what they know But of the best leadersWhen their task is accomplishedTheir work is doneThe people will all remarkWe have done it ourselves Thank you!