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Third-Party Certification for Customer Assurance

Third-Party Certification for Customer Assurance. NichePORK Conference 27 August 2003 KGB Consulting. What’s on the Agenda. Rationale for certification Types of certification USDA certification programs – the “Cadillacs” The Berkshire case Key learnings. Why Certify?.

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Third-Party Certification for Customer Assurance

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  1. Third-Party Certification for Customer Assurance NichePORK Conference 27 August 2003 KGB Consulting

  2. What’s on the Agenda • Rationale for certification • Types of certification • USDA certification programs – the “Cadillacs” • The Berkshire case • Key learnings

  3. Why Certify? • Your product or system has a relevant point of difference and the market is ready to buy • You believe competitors’ claims of equivalency are false • You want to enhance the credibility of your product claims

  4. Don’t Certify if … • You don’t already have a strong marketing position • You can’t generate internal support • You don’t have a lot of patience • You can’t commit to a long-term program • Your attitude is “if we build it, they will come.”

  5. Types of Certification • Your own (if you are serious, don’t waste your time) • State certifications • National Organic Program • COOL? • USDA-AMS – “continuous improvement”

  6. USDA-AMS Programs • Product certification • Snapshot: does the product meet specs? • Process verification • Overall systems approach: can it deliver what you say it does? • USDA inspectors audit the program • In either case, it is up to you to write specs

  7. AMS Website • LOTS of information http://www.ams.usda.gov/ • Auditing Services site http://www.ams.usda.gov/lsg/arc/audit.htm • Refer to the sites often – they change!

  8. The Berkshire Case • Japanese market & its issues • Two reasons for certification • Labeling issues and lack of consumer confidence • Protect investment in pedigree registry

  9. Process Verification • Looks at the entire production system, from genetics to the box • Required when there’s a genetic claim involved • It’s a major commitment

  10. Building the Program • Parts were in place, but … • Needed to organize the documentation • Needed to create forms and tracking system • Needed to develop overall program parameters that would meet customer needs and were do-able by producers

  11. Management Quality System Contract Review Document, Data Control Purchasing Customer-Supplied Product Product ID and Traceability Process Control Inspection, Testing Testing Equipment Control Inspection and Test Status AMS Checklist

  12. Nonconforming Product Corrective, Preventive Action Handling, Storage, Packaging, Marking Quality Records Control Internal Quality Audits Training Statistical Procedures Promotional Materials Control Customer Satisfaction AMS Checklist (cont’d)

  13. Herd Plans: The Foundation • First step, January 2002 • Outlined requirements for registered, commercial and feeder pig finishing herds • Market reporting • Animal identification by lot • Packer & distribution chain • Licensing agreements

  14. Customer Input • Japan trade mission, April 2002 • US Embassy, MAFF, US Meat Export Federation • Commercial interests: trading companies, ham & sausage manufacturers (distributors), further processors, retailers

  15. Back to Work • Revised herd plans • Created additional tracking forms • Formalized policies, procedures • January 2003: Back to Japan • Wrote the program narrative • All reviewed by ABA marketing committee and, eventually, the Board

  16. Test Case • Trained a few producers on the details • Conducted internal audit • Same for packer cooperating in prototype program • Made final adjustments • Created proposed label

  17. Submitting the Package • Created binders (5 lbs each!) for the program documentation and the 41 reference documents - CD, too – and shipped to AMS • Separate package with label application to FSIS • End of March 2003

  18. Response • FSIS first – rejected • Couldn’t user term “genetics” – not in the FSIS “dictionary” of approved terms • Had to expand the label language • Had to summarize the program protocols from 5 lbs to 1 thin sheet

  19. AMS Response • At first glance, looked like we had a lot of work to do • But not that bad • Answer questions, note where parts of the program outline are not applicable • Make sure language is precise

  20. Refile the Packages • Changes to answer AMS concerns took about a month • FSIS package about the same • Label approved mid-July 2003 • AMS documentation OK early August

  21. Where We’re At • Field audits week of 25 August • Headquarters, prototype producers and cooperating packer • Pay the AMS bill

  22. What We’ve Learned So Far • Takes time and attention to detail - follow AMS instructions to a “T” • AMS people are helpful – they may not respond as rapidly as you’d like, but they will respond • FSIS is another story – don’t expect a lot of help from that agency; we were almost ready to hire a label expediter

  23. More Learnings • A Process-Verified Program like the Berkshires’ can be a foundation for add-ons by individuals – organic, or antibiotic free, etc. • Certification is not for everyone • Think “marketing” • Think “continuous improvement”

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