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Unilever Sustainable Sourcing Workshop - Overview of Australian Dairy Farm Risk Management Systems

Unilever Sustainable Sourcing Workshop - Overview of Australian Dairy Farm Risk Management Systems. Helen Dornom Dairy Australia 27 th August, 2012. DA’s role .

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Unilever Sustainable Sourcing Workshop - Overview of Australian Dairy Farm Risk Management Systems

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  1. Unilever Sustainable Sourcing Workshop- Overview of Australian Dairy Farm Risk Management Systems Helen Dornom Dairy Australia 27th August, 2012

  2. DA’s role • DA invests around $52-$58m annually on industry based RD&E and other service activities. We look across whole dairy value chain for areas where collective action or collaboration can be used. • DA’s Investment is based on industry agreed issues /priorities Farm Inputs Milk Production Milk Processing Manufacturing Domestic and Export Markets Import 2

  3. Strategic Priorities • Improve farm margins and growth opportunities • Promote and protect dairy • Integrated response to climate change and natural resource management • Grow capability and skills

  4. Discussions today • Overview of the systems to manage risk • Discussion on Food Safety Systems and controls • domestically and internationally • Ag and Vet Chemical Controls • Animal Health and Welfare • Environmental Controls/industry programs

  5. DAIRY PRODUCT ENVIRONMENT Government & regulators Policy Makers Health Organisations Education / Academics Scientists Health Professionals Community Customers Media Financial Institutions Activist / interest groups Food Industry Agricultural Interest groups Industry Service providers

  6. … how to select a manufacturer ? Ethics Chain quality Product quality Product safety Product availability Added values for strategic suppliers 3 basic criteria for all the suppliers

  7. Brand Dairy • Many components: • Food safety • Health and nutrition • NRM • Animal health and welfare • Employer skills and employee attraction • Politicians and investor communication • Product promotion • Investor confidence by existing owners and new capital

  8. Farm Enterprise Milk Replacements Live Export Fodder Mixed Farm Cull Cows Bobby Calves Reared for beef Vealers Abattoirs Meat Animals Other

  9. Sources of on-farm risk Food safety • Contamination of product • Spoilage of product • Pathogens

  10. Sources of on-farm risk Environment • Odours • Water pollution • Carbon • Noise

  11. Sources of on-farm risk Biosecurity • Exotic diseases • Endemic diseases • Weeds • Pests

  12. Sources of on-farm risk Animal welfare • Husbandry practices • Production diseases • Land transport • Bobby calves

  13. Sources of on-farm risk Occupational Health & Safety • Skills • Knowledge • Equipment • Zoonotic diseases

  14. How do dairy farmers manage these risks? • As part of their everyday activities • Structured risk management programs • identification • analysis • evaluation • treatment • monitoring • review • Performance measured against agreed standards

  15. Verification of compliance Self assessment Environmental protection agencies Local government officials Dairy company field officers State dairy food authorities Private veterinarians State government DPI’s Animal welfare agencies Vocational trainers

  16. Dairy assurance activities SCOPE AND FREQUENCY Day to day - embedded in work place activities Control Self Assessment – driven by risk profile and manager’s span of control Internal and External auditing – sampling and verification, aimed at Policy and Standards compliance, and identifying system weaknesses

  17. An established framework Sources of risk National Standards International Standards Verification SELF ASSESSMENT FOOD SAFETY Contamination Spoilage Pathogens EPA’S Dairy Industry On-farm QA system LOCAL GOV’T ENVIRONMENT Odours Water pollution Carbon Noise DAIRY COMPANIES ANIMAL WELFARE SDFA’S Husbandry Production diseases Land transport PRIVATE VETS BIOSECURITY Exotic diseases Endemic diseases Weeds & pests SDPI’S OH&S VOCATIONAL TRAINERS Skills & knowledge Zoonotic diseases

  18. A comprehensive system Sources of risk Verification What dairy QA covers SELF ASSESSMENT FOOD SAFETY Milking sheds Milking equipment Cleaning Sterilisation Water quality Milk chilling Cooling towers Identification Traceability Stockfeeds Herd health Veterinary drugs Agricultural chemicals Pest control Effluent management Hygienic calf rearing Bobby calf management Competency and training First aid Accountability Non-conformances Contamination Spoilage Pathogens EPA’S ENVIRONMENT LOCAL GOV’T Odours Water pollution Carbon Noise DAIRY COMPANIES ANIMAL WELFARE Husbandry Production diseases Land transport SDFA’S PRIVATE VETS BIOSECURITY Exotic diseases Endemic diseases Weeds & pests SDPI’S OH&S VOCATIONAL TRAINERS Skills & knowledge Zoonotic diseases

  19. A “Whole of Chain” Approach • All parties responsible • Understanding needs and performance • One-step forward • One-step back • Consistent Minimum Mandatory Standards • Partnership Industry & Government

  20. CommunityExpectations BusinessViability Issues   Food Safety Animal Welfare Environment:Natural Resource ManagementStewardshipEnvironmental Degradation Human:OH&S       Context

  21. ON FARM DAIRY QA PROGRAM Trade and other commercial/regulatory issues • Eg. • Antibiotic residues • Milk quality • BJD 3 step plan • Animal welfare (Cattle code) • Environmental Issues • OH&S Food Safety Program Mandatory (Dairy)

  22. On Farm Dairy QA Program Trade and other commercial elements Food Safety Program (FSP) Mandatory Dairy elements Hygienic milking Milking premises Meat elements Ag + Vet + Chemicals Water supply + quality Cleaning or Sanitizing Micro biological Contamination Traceability and Records Personal competency Stock feeds

  23. Dairy Food Safety Compliance Framework DAFF • FSANZ Food Safety Standards • Export Control Orders • Interpretive Guidelines • Standard Operating Procedures • Steering Committees • Working Groups STATE DAIRY/FOOD AUTHORITY • State Legislation • Regulations/Codes • of Practice AUTHORISED OFFICER APPROVED AUDITOR • National Auditor Competencies • Contract - Deed of Undertaking Harmonisation of Export & Domestic Standards

  24. Farm Audits *SRAs require audits at least every 24 months In 2010-11 LPA listed 190,801 program participants, with 5,819 inspections/audits (3%) Dairy had 42% on- farm FSP audits

  25. Verification of Dairy FSPs • SRAs undertake desk reviews yearly • SRAs undertake 5% verification audits of all dairy farms at least every 3 years • In 2009/2010, 195 verification audits (2.5%) • SRAs - national dairy farm auditor workshop held every 6 months - covers issues arising from audits, consistency of interpretation, implementation and reporting

  26. Context Inputs FoodLivestockWaterLabour Outputs EffluentDead stockWaterNutrients CommunityExpectations BusinessViability Issues Farm Enterprise FoodSafety AnimalWelfare Environment:- Natural resource - Stewardship - Environmental degradation Human:- OH&S   Meat Milk Animals Other   Replacements Fodder Live Export Mixed Farm Cull Cows Bobby Calves       Reared for beef Vealers Abattoirs   Constraints Market needs / wants (Domestic - Export) - No. of standards + verification systems Lack of recognition of common / shared outcomes + effective existing controls- Lack of knowledge / evidence- Risk based proposition not well understood

  27. Effectively managing on farm risks

  28. Dairy Australia’s key focus areas include: • Dairy Moving Forward (Research, Development & Extension) (SP1) • Dairy Futures CRC (Animal and Plant performance) (SP1) • Feeding Systems (SP1) • Mastitis and Fertility (SP1) • Automatic Milking/Precision (Smart) Farming Systems (SP1) • People (NCDEA, People in Dairy, Workplace Planning, Leadership Development) (SP4) 7

  29. Dairy Australia’s key focus areas include: • Project Horizon 2020; value Chain models (NSW/Qld/WA) (SP1) • DIAL (including technology transfer) (SP2) • Health and Nutrition (Research and policy advice) (SP2) • Animal Health and Welfare (SP2) • Carbon tax and Water Access Issues (SP3) • Reputation Management/Sustainability (SP2) • Market Analysis (Situation & Outlook) /Market Access (SP1) 8

  30. Identifying areas of leverage and risk 2 4 5 6 7 Build on strengths of national and regional economic contribution, product quality, safety and nutrition? 1 3 Value creation Integrity Environmental stewardship Regional community Proactively reassure on fat, animal welfare and environmental management (especially in areas of water and greenhouse gas emissions)? Health

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