EUROCOMMERCEQuality schemes in distribution / 23 June 2016

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EuroCommerce is

…the principal European organisation representing the retail and wholesale

sector. It embraces national associations in 31 countries and 5.4 million

companies, both leading multinational retailers such and many small

family operations.

Retail and wholesale provide a link between producers and 500 million

European consumers over a billion times a day. It generates 1 in 7 jobs,

providing a varied career for 29 million Europeans, many of them young

people.

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We represent

AffiliatedFederations• European perspective• Niche perspective in sub-sectors

Companies• Business outlook & insights• Technical expertise• European perspective

National Associations• Broad support base and legitimacy• National perspective (politics & market)• National lobbying capacity (Council & MEPs)• Issue expertise (some)

LARGE RETAILERS

SMALL SHOPKEEPERS WHOLESALERS

IMPORTERS/EXPORTERS

3 types of member organisations

THROUGH

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Our members are

Affiliated FederationsCompaniesNational Associations

<

(food) (agricultural trade)(shoe)

(direct selling) (e-commerce) (DIY)

(travel)(electrical

wholesalers)

(chemical

distributors)(Croatia chamber of

economy)

(Croatian

employer’s

association)

(Retail consumer

goods – GR)(Agricultural

Trade) (direct selling)

(Finnish

wholesalers and

importers)

(e-commerce)

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Our value chain and priority work areas

Food

General Food Law:

‘food’ (or ‘foodstuff’) means any substance or product, whether processed,partially processed or unprocessed, intended to be, or reasonably expectedto be ingested by humans.

• Art 17.1 1. Food and feed business operators at all stages of production,processing and distribution within the businesses under their control shallensure that foods or feeds satisfy the requirements of food law which arerelevant to their activities and shall verify that such requirements are met.

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Chemical food safety: what do we talk about?

Regulated substances (harmonised at EU level)

Contaminants, Residues, Food Contact Materials, Pesticides, Colourants

Food Improvement Agents: Additives, Flavourings, Extraction solvents

Non-regulated (non harmonised)

Contaminants (process, unintentional)

FCM (many substances not harmonised)

Emerging issues

− new substances (innovation),

− new processes (circular economy),

− adulteration (economic, intentional).

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Retail

Business principles: 1. Legally compliant 2. Respondingto consumer (societal) demand 3. Scientifically validated

Multiple roles

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Maintaining consumer confidence is vital for commerce. Food business operators strictly adhere to food law, apply hygiene practices and implement additional voluntary, certified, food safety schemes.

Distribution

Importer

Manufacturer

FOOD – Specificities of distribution

Many thousands of different product lines, includingboth A-brands & own brand products.

Many suppliers including many SME’s

Clear assignment of legal responsibility for ensuringfood safety (GFL).

Food safety: Non-negotiable / non–competitive.

Millions of customers daily: Close relationship withconsumers but trust easily affected. => Preventionis key

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10© 2012 The World Bank Group

Integrated quality management

Supplier Assessments (third party schemes /visits)

Product Assessments (Independent Laboratory Analyses -own testing)

In-store: hygiene requirements (HACC)

Private certification schemes (along food supply chain)

Clear supply specifications

Long-term supplier relations (limited sourcing outside regular pool of suppliers)

Qualified/dedicated quality managers

Staff training (at all levels)

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Integrated quality management (2)

Qualified Sourcing- and Category Managers

Qualified Quality Assurance Managers

On site staff – training hygiene practices

Development/promotion of new production rules for suppliers when need be.

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Quality management - Controls

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General Food Law

Farm to Fork

Official Controls

Member

States

Food Business Operator

Own controls

ReviewOfficial

Controls

Past

records

Food Safety Schemes

What is a food safety scheme and how does it work?

• A food safety scheme (a standard) is a documentedfood safety auditing scheme, which has specificrequirements, rules & procedures (verifying conformity).

It leads to certification of food business operators(suppliers) on a product, product sector or process.

Retailers use these voluntary schemes to ensure theirsuppliers comply with the standards they expect (espown brands).

Supplier audits have been a permanent feature ofretailer’s systems and procedures for many years.

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Private food standards

• Changing environment => need for developing more uniform quality assurance/food safety Standard.

Main drivers:

• Increasing liabilities of retailers;

• Increasing legal requirements;

• Incr. global and competitive supply chains: From locally sourced food to worldwide trade in raw materials & foods

• Increasing consumer demands;

• Best means for crisis prevention.

• Risk for recalls has increased: Increased technical possibilities to detect very low levels of contamination.

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Objectives of food standards (2)

• Assessing the conformity of suppliers with the buyers’requirements (legal requirements/consumer demand)

• Often address a combination of issues (environmental,social, food safety and quality)

• Efficient means (from the point of view of the buyer) oftransmitting information along supply chain

• SCOPE

– Food Safety

– Animal Feed

– Packaging

– Transportation

– Intentional Adulteration

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The Global Food Safety Initiative (GFSI)

• An industry-driven initiative established in 2000,

• Response to extensive audit fatigue throughoutindustry.

• Benchmarking model that determines equivalencybetween existing food safety schemes (leaving flexibilityand choice in the marketplace).

• Benchmarking model based on the GFSI GuidanceDocument.

• GFSI Vision: Under the umbrella of the CGF, the vision is‘safe food for consumers everywhere’ = global approachwhen tackling food safety issues.

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GFSI - Scope

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FOOD – (emerging) risks

Due to large number of products: Strong need for intelligence (horizonscanning) to adapt own testing regimes/supplies/own brands when/wherenecessary:

- RASFF

- EFSA scientific opinions

- Media

- Horizon scanning tools/databases

- Own testing results

- Trade associations

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Source: WHO

RASFF notifications

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hazard category 2012 2013 2014 2015

adulteration / fraud 3 4 3 4

biocontaminants 1 2

biotoxins (other) 1 5

chemical contamination (other) 1 1

composition 17 15 17 9

feed additives 3 1

foreign bodies 3 10 5 3

GMO / novel food 1 1 31

heavy metals 24 15 9 11

industrial contaminants 19 18 16 11

labelling absent/incomplete/incorrect 1

mycotoxins 79 37 26 19

non-pathogenic micro-organisms 25 23 31 18

organoleptic aspects 1 2 2

packaging defective / incorrect 1 1

pathogenic micro-organisms 134 132 151 108

pesticide residues 11 2 5 7

poor or insufficient controls 1 1 2 1

residues of veterinary medicinal products 10 9 3 4

TSEs 13 12 21

EFSA

EFSA has 3 main goals:

1.Improve EU food safety

2.Re-build consumer confidence in EU food safety

3.Re-build confidence of trading partners in the EUfood supply

EFSA also carries out scientific work to examine emergingissues and new hazards.

EFSA

Hazard identification, Risk assessment, Risk management,Risk communication

EFSA

EFSA carries out risk assessments on a wide range of(chemical) substances, including:

those deliberately added to food and feed,

chemical residues that can be present in food and feed dueto production, distribution, packaging orconsumption,

those that might be present through contact with theenvironment.

Regulated food ingredients

Based on the EFSA finding the European Commission to decide on risk management initiatives (via comitology)

EFSA

Chemical Contaminants: Recent publications Food safety

- Process contaminants in vegetable oils and foods – may3rd 2016

- Acrylamide in food – 4 June 2015

- Veterinary residues – annual report

- Pesticide residues – annual report

- …….

=> EFSA opinions are guidance for retailers to adjust their testing regimes or initiate mitigation strategies or adapt their supply chain requirements.

Food Integrity

Adulteration can include problem with chemicals

• Melamine crisis (2008): result of the intentional adulteration of milk withmelamine in China. Melamine was added to diluted milk to give theappearance of normal protein levels when subjected to test for protein levels.

• Sudan red: 2003/2004 certain food products were found to contain chillipowder, chilli products or curry powder imported from India illegallycontaminated with the Sudan dyes which are chemicals that could causecancer. Their presence, at any level in food, is not permitted in food for anypurpose.

•

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Food Integrity – Actions

Network of official Reference Labs (EURLs)

A future EU reference Centre for Food Integrity (OCR)

Food Integrity Project

Global network of stakeholders

Early Warning System

Detection method/Data basis

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Global Food Safety Initiative

Additional requirements in GSI guidance document

Specify that companies perform a food fraudvulnerability assessment and to have a food fraudvulnerability control plan in place to mitigate theidentified vulnerabilities.

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Food Defence

• Food Defense is the effort to protect food from acts ofintentional adulteration: acts intended to cause wide-scale harm to public health, incl. acts of terrorismtargeting food supply chain.

• In May 2016 Food & Drug Administration (US FDA) issuedfinal rule on Mitigation Strategies to Protect Food AgainstIntentional Adulteration.

• Approach similar to Hazard Analysis Critical Control Point:

– to implement food defense plans aimed at prevention(mitigation strategies for processes)

– Vulnerability assessment: For each point, step, orprocedure in the process, elements determiningvulnerability to be named, monitored and evaluated.

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Thank you!

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