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Food Safety Export Assurance System Requirements for Dairy Products

Food Safety Export Assurance System Requirements for Dairy Products. Malcolm Bailey – Fonterra Director. Confidential to Fonterra Co-operative Group. September 2014. Outlook to 2020. Outlook to 2020 1. 7%. 10%. 4%. 1%. <1%. 7%. Europe. China. 1%. <1%. 4%. Nth America. 2-3%.

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Food Safety Export Assurance System Requirements for Dairy Products

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  1. Food Safety Export Assurance System Requirements forDairy Products Malcolm Bailey – Fonterra Director Confidential to Fonterra Co-operative Group September 2014

  2. Outlook to 2020 Outlook to 20201 7% 10% 4% 1% <1% 7% Europe China 1% <1% 4% Nth America 2-3% India2 4% 2% ASEAN 2% 2% MENA 2% 1% LATAM ANZ Demand Volume Demand Growth Supply Volume Supply Growth 1. Growth rates represent forecast compound annual growth rates. Current volumes are represented by the area of the circles displayed 2. Although strong growth in demand is expected in India, it is expected that the ability to supply into India will continue to be constrained by relatively high barriers to trade for dairy products Source: Fonterra estimates

  3. Dairy farming in New Zealand • 4.8 million cows producing 20 billion litres of milk per year • Pasture grazing farm model • Fertile soils, high rainfall and moderate temperatures • Less than 3% of global milk production • No Government subsidies • Around 90 processing plants in NZ • Export to over 100+ countries • Sales based on safety and quality • Positive regulatory industry relationship • Meets the world toughest regulatory and private standards

  4. The foundation for a successful dairy manufacturing and exporting industry is a regulatory framework that importing countries can trust New Zealand dairy exports are supported by the NZ governments’ commitment to a risk-based regulatory system and standards development programme, underpinned by sound science

  5. The regulatory framework needs to ensure awareness of roles and responsibilityacross the food chain A strong regulatory framework is required… … outlining the legal obligations and duties of farm owners, farm operators, and dairy manufacturers across the food chain.

  6. The Quality Pyramid Sustainable business models are all about consistently meeting and exceeding customer / consumer expectations REGULATORY COMPLIANCE Fully comply with exporting and importing country requirements Meeting domestic and international regulatory requirements is really just the qualifying criteria - Importance of international harmonisation Food safety and quality has to be owned by and built in at every step by the Industry

  7. Milk processing and collection: You are only as good as your raw material – quality starts on the farm .

  8. Ensuring the quality of our Milk Supply in New Zealand • All Farms have government approved RMPs • - processing companies required to ensure day to day compliance • - government audits system compliance • Farms are contracted to a single processing company • Tankers sample and confirm acceptable temperatures • Processors test all loads on arrival against stringent acceptance criteria

  9. Manufacturing control (including storage) is required to produce food acceptable for international consumption HACCP plans are used to identify, evaluate and control risks from hazards to animal or human health of dairy materials or dairy products during the manufacture, transport or storage of the dairy materials or dairy products in NZ

  10. Product sampling, testing and release best practice • Use of accredited laboratories • Milk quality tested on farm, on arrival and at time of manufacture • Only quality verified ingredients are added • Product is released following microbiological, chemical, functional and sensory testing • Nutritionals products may include additional customer, regulatory requirements including tighter limits for food safety tests

  11. Exporters must comply with all relevant food laws and regulations of countries you manufacture in, export to, and where products are sold domestically • Meet domestic regulatory requirements for export • Comply with Overseas Market Access Requirements • Gain any required certificates of assurance from the relevant regulatory authority • These generally relate to animal health, heat treatment, chemical residues, micro and truth of labelling

  12. Monitoring, testing and traceability across the supply chain are key elements in providing food safety and quality assurances Traceability across Supply Chain

  13. Summary • Dairy demand is predicted to outstrip supply by 2020 • To successfully export dairy you need: • Quality from the start • Food safety standards • An effective industry / regulatory framework • Open marketplace • Quality assurance and traceability

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