UV is useful

www.mpi.govt.nz

New Zealand Cold Storage Association 82nd Annual Conference

Peter Brown, Specialist Adviser, MPI Verification Services ,Regulation and Assurance

New Zealand Cold Storage Association 82nd Annual Conference

Peter Brown, Specialist Adviser, MPI Verification Services ,Regulation and Assurance

UV is usefulUV is useful

• Peter Silcock from Horticulture NZ • UV light is a positive thing for fruit quality • A point of difference for NZ product

OverviewOverview

• MPI update • Global Picture

• Stores Update

Another YearAnother Year

As we all know - MAF renamed as the Ministry for Primary Industries (MPI), creating a single unifying identity for the recently merged organisation.

Martyn Dunne – Chief Executive and Director GeneralScott Gallacher – Regulation and Assurance – DDG

Robo BankRobo Bank

• Marc Soccio stated correctly the world is after and in need of high quality food – big demand for protein

• This is what NZ does but lets get it right

Our Strategy 2030Our Strategy 2030

Other Year Other Year

• The Ministry for Primary Industries and the Cold Store Association are committed to working together to keep product safe, compliant and moving

• We live in a fluid changing world. The rules change / legislation changes and expectations change.

• Some of our main markets are in some volatile countries – China – Russia – They do call the shots

• Look at the Dairy sector - We have taken a hit over the China Market. Media was all over it. We front it, learn and take positive action.

• This cost the government many millions dollars

MPI Strategy MPI Strategy

MPI has developed a new organisational strategy that has

a clear vision of “growing and protecting New Zealand”.

• The focus of the strategy is to maximise export opportunities,

• The strategy also will see:• A strong focus on identifying and maximising opportunities for Māori fisheries and agri-business. • A more consistent approach to regulations across the fisheries, agriculture, food and forestry

sectors. • Science having a stronger voice in decision making within MPI. • MPI’s approach is to enable and partner with its stakeholders to help them to be successful. • As a result of Our Strategy 2030, stakeholders and staff should expect a Ministry that is agile,

informed, adaptable, continuously improving its services and known for focusing on relationships and results.

Our PrioritiesOur Priorities

• Over the next decade or so, global demand for quality food and forestry products is expected to increase, largely driven by growth in China and other Asian economies. This creates huge opportunities and some major challenges for New Zealand’s primary producers and exporters.

• Our priorities have been developed in line with Our Strategy 2030. They help us enable and partner with the primary sectors in ‘going global’ and taking maximum advantage of these export opportunities. They also support our work in ‘leading local’ – improving sector productivity, increasing sustainable resource use, protecting from biological risk and maintaining animal welfare standards and safe food systems.

Overview MPI Overview MPI

As an organisation, MPI keeps its focus on the success of the primary industries for the benefit of all NewZealanders.

This is captured in our vision of ‘Growing and ProtectingNew Zealand’.

Overview MPIOverview MPI

Our Strategy 2030 sets out how we plan to achieve

that vision, and its four building blocks: • First, maximising export opportunities• Second, improving sector productivity• Third, increasing sustainable resource use, and• Fourth, protecting from biological risk.

The fact is to continue leading, regulating and enabling the

primary sector, MPI needs to be readying itself today for

the pressures of tomorrow.

Working on improvementWorking on improvement

• MPI’s organisational structure• We recently carried out a structural alignment of MPI to

strengthen our core functions • We are placing an increased emphasis on being a more

integrated, responsive and accountable organisation. • MPI is totally committed to making it easier for our

customers to access our advice and services.

Importance of primary industriesImportance of primary industries

Our primary sector has traditionally been celebrated as the

powerhouse of New Zealand’s economy.

Maximising export opportunities• The current year to June has an export forecast of $36.5

billion.

• It’s not all about dairy. The red meat sector makes a huge contribution, with annual exports of $6.9 billion.

• Even thou Marc from Robo Bank says exports may start to slow down, or our market soften


Other than dairy MPI’s forecast is for the value of New Zealand’s meat and wool exports to increase by about 22% over the next five years. We all need to work together on this.

MPI is maximising our export opportunities by strengthening ties with existing markets and building relationships with new markets


• Forecasts are that demand for sheepmeat will be driven by the expanding middle class in the Middle East and Asia.

• Similarly, growing demand for beef imports is expected

to be largely centred in Asia.

• We know our dairy products are in huge demand


Live animals Seafood Meat Dairy0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

NZ exports represented in dollars for 2013 & 2014

20122013

Sector

Mill

ions

of e

xpor

t dol

lars

(NZ)

Importance of Primary Industries and a lot of it goes through StoresImportance of Primary Industries and a lot of it goes through Stores


China is now our number one trading partner for goods. Enabling our primary industry businesses to succeed in China will be a key part of achieving the government’s goal of doubling primary industry exports by 2025

In December 2013, the Government committed to increase MPI’s representation in China to seven positions in total.

Tighter ControlsTighter Controls

• Our expectation is that tighter controls from a government process will be the norm.

• Failure to monitor, adjust where necessary the outcomes

and expenditure, runs the risk of reputational harm

• Some may think this is burdensome but we know we have to get it right - the books right – records – systems – monitoring – training - meet all our NZ and MA rules

RegulatorsRegulators

• At the end of the day we MPI R&A are regulators• We have to follow the rules• Get it right• Protect NZ inc name• Protect our reputation

Skills and Capability Skills and Capability

• There will be demand for more people in occupations with higher qualifications, especially for professional degrees in fields of specialisation aligned with the value chain.

• Demand for training is likely to exceed the growth in employment. This is because there is a need to increase the skill level across primary industry occupations.


• In 2002, only 36% of primary industry workers possessed a post-secondary school qualification.

• In 2012 that had increased to 44% and it is expected that

by 2025 this will need to increase to 62%.

• We predict we will need an additional 50,000 skilled workers on top of the natural attrition of workers by 2025.


Addressing this workforce gap will be a significant

challenge, and it is critical that we are successful.

In my view, this is an area that MPI and our different

Industries mainly in the primary industries, need

to focus on

BiosecurityBiosecurity

• MPI’s approach to biosecurity is one of risk management across the whole of the biosecurity system: pre, post and at the border; enabling us to direct our efforts and resources to focus on the things that matter most.

• A significant failure of the biosecurity system is perhaps the single greatest risk to New Zealand’s economy and to reaching our export goal – both in terms of direct economic impact and loss of brand value.

• eg fruit fly


• Changing global demands, growing passenger and trade volumes, increasing imports from a growing number of countries, population expansion and climate change mean that biosecurity risk is growing.

• MPI is doing its utmost to ensure that biological risk is minimised. We will need to do more.

• Significant new investment and improvements have been made at the border over the past 18 months, such as upgrading our X-ray detection technology and successfully recruiting and training nearly 125 new quarantine inspectors since December 2012.


• By the end of this year we will have around 40 dog handling teams protecting our border.

• Potentially more effort will be required in the future. How

that is resourced will be a question for a wider discussion.

Biological risk - FMDBiological risk - FMD

MPI takes a proactive approach to biological risk management - FMD • We are in the process of finalising a report assessing the economic impacts of a foot-

and-mouth disease or FMD outbreak on New Zealand. The work is being undertaken, in partnership with primary industry bodies, as part of a programme of activities to ensure New Zealand is well prepared for the event of FMD detection.

• The report will improve the information base for decision-making on a strategy to respond to FMD detection.

• It will help identify possible trade intervention measures and help us target our preparedness activities to ensure the greatest return.

• It will allow informed input into a Government-Industry Agreement around cost and decision-making sharing for FMD eradication.

• MPI is also progressing other aspects of Foot and Mouth Disease response• biosecurity laboratory surge capacity such as the new $64 million Wallaceville lab, the

Trans-Tasman Action Plan, FMD training in Nepal, and re-signing the memorandum of understanding with the International Animal Health Emergency Reserve.

• We have set up a separate dedicated team to progress an FMD response.

China - Whey Protein IssueChina - Whey Protein Issue

Food Safety• I am happy to say that the independent inquiry following the Whey

Protein Concentrate concluded that New Zealand’s food safety regulatory system is equal to the best in the world.

• The Government is committed to implementing all of the recommendations from the WPC Inquiry, many of which have cross-sector benefits, further strengthening our reputation for food safety and as a trusted supplier of safe food products.

• MPI strives to maintain and enhance market access and align our regulation programme with international standards.

ConclusionConclusion

• In conclusion, MPI’s partnership with the different industry sectors is critical in enabling continued growth in the value of New Zealand’s exports.

• It would not be a surprise to you that a market-driven, joint approach, is also critical for all those involved with the export of products.

ConclusionConclusion

• Over the next 20 years, the global population will continue to surge and I believe the different New Zealand industries can play a key role in supplying high-quality food to the world.

• MPI is committed to supporting you through opening up

access to new markets, supporting innovation and growth, and partnering with you to enable your continued success.

Lets look at the Cold Store sector Lets look at the Cold Store sector

We still have six teams in NZ run by Regional Technical ManagersWe still have six teams in NZ run by Regional Technical Managers

Specialist AdvisorSpecialist Advisor

My position has direct accountability for:

Its so specialised I cant tell you

Standard of Stores keeps improvingStandard of Stores keeps improving

•

Perceptions have changedPerceptions have changed

• What a premise looks like both from the exterior and interior counts

• It may have nothing to do with food safety

• A food premise or a premise that stores food needs to be clean and tidy

We better be readyWe better be ready

The EU are coming to audit our stores and our systems this year.They will be looking at – • C&S• R&M• inventory systems• traceability• labelling• EU Separation• records• certification

We better be readyWe better be ready

– For dairy we are changing over to electronic certification on the 1st September

– This means auto approval

RMP Stores in NZRMP Stores in NZ

MPI VS verified a total of 152 RMP registered cold and dry storage operators during the period 1st November 2013 and 30th April 2014. There are a total of 18 dairy only stores, 109 dual stores and 25 non-dairy animal product stores.

From 1st November 2013 and 30th April 2014 VS undertook 469 verifications in this sector.

Location of the store operators in relation to regions (152)

Location of the store operators in relation to regions (152)

Circuit Team Number of Operators

Upper North Island74

Waikato / BOP Regions14

Taranaki / Wanganui / Manawatu11

Hawkes Bay9

Canterbury / Timaru / Nelson35

Southland / Otago9

CARs issued in the 2 yearly period from 30 April 2012 to 30th April 2014CARs issued in the 2 yearly period from 30 April 2012 to 30th April 2014

Topic Number % of total Examples

Processing for Human Consumption 2 2% Product handling and storage

RMP & HACCP 2 2% Not following documented RMP / Checks

Hygiene & Sanitation 3 2% Tidiness and cleaning

Overseas Market Access 7 6%Not meeting specific country requirements e.g. EU, USA, China etc.

Design & Construction 14 11%Repairs, damage, maintenance of facilities

OAP (official assurances programme) 20 16% Certificate issuesIdentification & Traceability 36 29%

Labelling, inventory control, product ID

Quality Assurance 42 33%Internal compliance – identifying and managing own issues

Total 126

PBV percentage from period 5 through to period 12, (period 12 November 2013 to 30th April 2014 in comparison with the other sectors.

PBV percentage from period 5 through to period 12, (period 12 November 2013 to 30th April 2014 in comparison with the other sectors.

Ceiling PBV percentage

period 5 period 6 period 7 period 8 period 9 period 10 period 11 period 12

AMD 90 87 90 88 94 92 95 95

Bee 98 96 94 95 93 98 97 96

BMS 79 86 79

By-product 98 93 96 82 89 98 95 97

DOB 96 96 95 93 93 90 92 93

EAP 96 95 96 99 99 99 99 99

Egg 92 93 93 90 91 94 95 91

Establishment 74 71 74 73 65 81 78 68

Live Animal 95 95 95 100 77 91 95 90

Meat 81 88 90 85 88 85 78 74

Petfood 98 98 91 93 90 90 88 93

Pharm Tech 90 88 82 97 89 94 91 97

Poultry 75 79 91 83 90 89 95 100

Seafood (land) 78 81 87 90 90 88 83 86

Store 84 80 80 84 71 70 72 73

Transport 90 91 92 95 91 92 97 96

Vessel 92 95 97 96 98 90 68 69

National average 89 90 91 91 88 89 89 88

Sector ceiling PBV stepsSector ceiling PBV steps

Establis

hmen

t

Vessel

Store

Meat

BMS

Seafoo

d (lan

d)

Live A

nimal Egg DOB

Petfoo

dAMD Bee

Transpo

rt

By-prod

uct

Pharm

Tech EAPPou

ltry60

70

80

90

100

Sector ceiling PBV percentage - period 12

Sector

Cei

ling

PBV

perc

enta

ge

Unacceptable PBV percentageUnacceptable PBV percentage

Establis

hmen

tMea

tStor

eBMS

DOBPou

ltry

Seafoo

d (lan

d)

Vessel Egg

Live A

nimal

Petfoo

dBee

By-prod

uct

Pharm

Tech

Transpo

rtAMD

EAP0

3

6

9

12

15

18

Unacceptable PBV percentage - sectors for period 12

Sector

Una

ccep

tabl

e PB

V pe

rcen

tage

PBV StepPBV Step

Why are only 73% of Stores are on their minimum

compliance step?

One reason is Dairy stores have now been included in this

sector. Some are still working their way up to their

Minimum PBV step.

Another is companies not managing their own internal

compliance – operator control – making sure labelling,

inventory control, product ID, certification are correct

Stores PerformanceStores Performance

Currently 73% of operators are on the Minimum PBV step available, ie step 7 (domestic) and step 6 (export)

We need to make improvements in this area

• As stated = Improvements to work on• Repairs and Maintenance• Cleaning and sanitation• Labelling, Inventory, traceability, certification• Internal compliance (monitoring, daily, weekly

checks)• Process management - records

Five Main Issues – OngoingFive Main Issues – Ongoing

MPI are committed to and will continue to

communicate and confirm strategy with the

association and executive.

StrategyStrategy

• as the China issue showed we work together well

• Communication plan– robust working relationship– current/relevant technical information– performance data

• we see working with the association and executive as a key to this information sharing.

StrategyStrategy

A review of the Stores Annual Review is due to be done. From this a compliance status of the store sector will be established.

The Stores Modus Operandi will be reviewed. This targets those areas that have the majority of compliance issues identified. There will be a strongemphasis on company internal compliance, operator verification and R&M

OverviewOverview

Modus Operandi:• ensure all standards, and required compliance

levels are nationally consistent • Was new and introduced to the Store Sector, in

July 2010• will be reviewed in 2014.

(We will communicate with the Cold Store Association to discuss and put in place a plan to address any issues. For example: Quality Assurance, Load In/Load Out Verification, Official Assurance Programme, Internal compliance, R&M)

Modus OperandiModus Operandi

We give the store sector clear rules and commercial

certainty arising from the “Circuit Technical Capability

Project” and establishment of the Modus Operandi.

For example:• Set Scope for PBV (operators get a copy prior to audit)• Costs - Set compliance (pre-audit, audit, report writing)

and travel charge times (depends on PBV step).• You all know what we will be auditing

SummarySummary

• VA Online (GEN2) implemented and functioning.• A single system – uniform verification to ensure all Store

Operators are measured against standard criteria across New Zealand by MPI VS

• All performing the same functions nationally• Drive to maintain national consistency across the board

NOTE: We need to improve the national compliance level

SummarySummary

The Ministry for Primary Industries and the Cold Store

Association are committed to working together to ensure

we comply to all the rules and legislation and keep

product safe, compliant and moving

Protect NZs great name

Working togetherWorking together

Thank you for giving me the opportunity to give this presentation.

ThanksThanks

UV is useful

Documents

Transcript of UV is useful