The best environmental choice in seafood

1. Disclaimer If any interpretive issues arise in relation to the issues covered in these presentations, the text of the English MSC Scheme Documents will prevail in all instances. The MSC is not responsible for any issues arising to any parties as a result of consulting these presentations. If you are unsure of any details on any of the subjects covered, please consult the relevant MSC scheme documents or contact the MSC at standards@msc.org. MSC Executive September 2011 The best environmental choice in seafood

2. Batch Reconciliation Nicolas Viart Product Integrity Manager

3. Learning Objectives • To understand the requirements for batch reconciliation • To know why batch reconciliation is important

4. Overview • Intent • Standard & Certification Requirements • Explanation • Scenarios • Wrap up • Q&A

5. Intent • Ensure the integrity of the supply chain • Verify that no non-MSC certified product is entering the certified Supply chain

6. Standard • 2.1.1 Records shall allow confirmation of volumes of certified inputs and outputs over any given period . • 2.1.2 If processing or packing/repacking occurs, records shall allow conversion rates for certified outputs from certified inputs over any given period to be calculated.

7. Certification requirements: 17.4.3.6 • The auditor shall “Verify that records are sufficient to perform a batch reconciliation of inputs and outputs “. • Auditors shall either witness the certificate holder reconciling, or do their own reconciliation, of a sufficient number of batches to be confident that the system used for traceability is effective for all the products listed in the certification scope .

8. Group: BC3.6.1 The group entity shall assess each site‘s system for batch reconciliation by collecting and reviewing records of reconciliations of inputs and outputs on an annual basis. The group entity shall be confident that the system used for traceability is effective for all the products listed in the certification scope .

9. Explanation Client must be able to demonstrate that over any given period of time : There are controls and systems in place which demonstrate that client has sold less or equal quantity MSC-certified products than purchased

10. Selection of appropriate time interval How do we select any given period of time (2.1.1)? Depends on: • Product shelf life (canned, dried, frozen fresh) • Unit Volume (15kg fish block, 200g can) • Stock rotation (ex purchase once a year) • Client’s internal logistics programme

11. Conversion rate • Only for processing and/or repacking activities (2.1.2) • Conversion rates can • be calculated after an annual exercises • be taken from literature (custom reports) • Be evaluated by the auditor

12. Case studies

13. Scenario 1: manufacturer Time interval: Batch of fresh mackerel (10t) Unit: tons of fish Tons of fish purchases of MSC certified fish 10.0t plus opening stocks of “MSC certified fish” 1.0t less sales of MSC certified product (converted to fish) 6.5t- less remaining stock of MSC-certified product (converted to fish) 2.0t- less waste and other losses0.5t- Total 2.0t • equals closing stocks of MSC certified fish 2.0t

14. Scenario 3: Restaurant Time interval: 1 week Unit: Portions Portions Opening stocks of MSC certified fish 3 Plus purchases of MSC certified fish 25 Less sales of MSC certified fish sold as MSC certified fish 20 Less sales of MSC certified fish not sold as MSC certified fish 1.0 Less waste and other losses 2.0 Total 5.0 Equals closing stocks of MSC certified fish. 5.0

15. Wrap up • Batch Reconciliation • is important to verify product integrity • must be carried out at each audits • Objective is to demonstrate that • Sales of MSC-certified products < purchase of MSC-certified products

16. Intent • Ensure the integrity of the supply chain • Verify that no non-MSC certified product is entering the certified Supply chain

17. Q&A Questions?