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Global Supply Chain & Food Security by Barbara Pratt, Director – Refrigerated Services

Global Supply Chain & Food Security by Barbara Pratt, Director – Refrigerated Services. June 7, 2010 Washington, D.C. Agribusiness & Food Security/Safety. No specific regulations presently affecting ocean carriers concerning FOOD security

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Global Supply Chain & Food Security by Barbara Pratt, Director – Refrigerated Services

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  1. Global Supply Chain & Food SecuritybyBarbara Pratt, Director – Refrigerated Services June 7, 2010 Washington, D.C.

  2. Agribusiness & Food Security/Safety • No specific regulations presently affecting ocean carriers concerning FOOD security • Are regulations concerning general cargo security and ARE regulations on FOOD SAFETY • Carriers set up their own self-policing guidelines & requirements • A great deal of information available • There ARE differences between • Commodities • Origin countries • postharvest practices • handling costs • regulations Refrigerated Services - 2

  3. “The transportation industry has some a long way over the years and still has “lots of opportunities … opportunities for improvement”……

  4. “Typical” discussion on agricultural commodities – has many topics to cover….. • Refrigeration • Commodity requirements • Booking • Packaging • Precooling & Hotstuffing • Gensets • Probes & Datalogs • Cold Treatment & Jordan • Pharmaceuticals • Blood Plasma • Stuffing • Monitoring • StarFresh Controlled Atmosphere • Magnum extra-cold • SuperFreezers • Procedures • Datalogs & records • R&D - New Innovations Refrigerated Services - 4

  5. Since the beginning of Reefer Time… Refrigerated Services - 5

  6. Ice was used to keep commodities cold… Refrigerated Services - 6

  7. Today ICE is useful under many conditions… Refrigerated Services - 7

  8. But not under all conditions…. Refrigerated Services - 8

  9. “Black” broccoli is not acceptable… Similarly if pineapple is decayed at origin…. Refrigerated Services - 9

  10. Loading cargo to maximize cube… Refrigerated Services - 10

  11. Inspections, security and government regulations must be accepted as part of today’s environmental conditions and complied with on a daily basis…. Refrigerated Services - 11

  12. Reefer commodities are still moving despite the down economy… • Higher quality • Longer distances • Year-round supply • Cost effective solutions …requires better processes & technologies from the very beginning Refrigerated Services - 12

  13. The “Cold Chain” Field or Ocean Packinghouse Truck / Rail Load Port Vessel Discharge Port Truck to Warehouse Wholesale/Retail Market Consumer Refrigerated Services - 13

  14. Commodity Differences Temperature sensitivities Shelf life vs transit time Cargo value vs risk Refrigerated Services - 14

  15. Reefer Commodities have needs • Meat & Poultry • Fish & Shellfish • Fruits • Vegetables • Tropical Fruit • Live Plants • Cut Trees • Cut Flowers • Dairy Products & Cheese • Chemicals & Pharmaceuticals • Blood Plasma & Film Refrigerated Services - 15

  16. Types of security issues for developing countries are commodity-dependent….. • Details, details & more details • Commodity requirements • Clean water • Postharvest handling • Seal integrity • Traceability • Pest management Refrigerated Services - 16

  17. DAILY MONITORING • How does TRANSIT TIME or trade logistics affect the SUPPLY CHAIN? • Possible vessel delays • Possible vessel by-passes • Delays in regulatory cargo clearance – could cause cargo loss • Generally transit time must be shorter than the commodities shelf life – to allow movement into the marketplace • Technology options Refrigerated Services - 17

  18. Super Freezer Cargo (-60C): Refrigerated Services - 18

  19. StarFresh Controlled Atmosphere What is it? A fully integrated container able to modify the atmospherein which the cargo is carried by regulating the levels of gases such as Oxygen and Carbon Dioxide. Geographical Focus - Central America - Oceania - South America - South Africa Commodities • Avocados - Asparagus - Apples - Berries - Stone Fruit - Cut Flowers (trial) Refrigerated Services - 19

  20. How do Operating procedures affect the supply chain? • Gensets provide electric power to reefer when they are not plugged in at a terminal or on a vessel. Used for inland transit –both truck and rail delivery • Some source of power is needed for support • Monitoring is a requirement Under-slung Refrigerated Services - 20

  21. Ambient temperature Reefer container temperatures Reefer loaded to the vessel in LSA Defrost spikes Supply air temperatures Return air temperatures Reefer discharged from the vessel in Kobe, Japan Setpoint Probe temperatures

  22. Packaging– for ventilation & protection… • Holes in the top and the bottom • are important for the ventilation, • whereas side holes are only • needed for horizontal airflow • (reefer ships). • Packaging protects from mechanical injury too!! Stuffing patterns on pallets are important… Refrigerated Services - 22

  23. STACKINGPineapples from Ghana where shipper has converted from Air to Sea and presumed same packaging could be used for transport in reefer containers Refrigerated Services - 23

  24. Regular reefers with probes - “Cold treatment” Refrigerated Services - 24

  25. Protective service • Railroads treat reefers like dry boxes • monitor & fuel reefers on the rail & in railyards Refrigerated Services - 25

  26. Special Considerations for post conflict or disaster situations? Basic requirements for self-sustaining containers – electricity or fuel Ability to move the containers to land (via a crane) Ability to move containers over-the-road; of course need land-based infrastructure Refrigerated Services - 26

  27. REEFER MONITORING • At plug in or first monitoring round: • Check container for structural damage • Check cable and plug • Check temperature setting • Check ventilation setting and • humidity control setting • Check gas settings & defrost setting Refrigerated Services - 27

  28. Main Challenges • Different commodities have different market requirements • Different commodities require different types of equipment • Different commodities require different SOPs to extend their shelf life to get to destination • Different commodities have different regulatory requirements • Shippers, receivers and carriers – all have similar concerns • To address this market segment we need (and have) experts in reefer Refrigerated Services - 28

  29. Food Safety – Present Situation Strict hygiene rules enforced on dairies, farm process plants etc. No rules nor policies directed towards maritime transport of food stuffs. There are no Government standards defining clean. Self-policing of the maritime transport mode Refrigerated Services - 29

  30. Results... Product safety & security…. Throughout the Global Supply Chain Successful transport of agricultural commodities Refrigerated Services - 30

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