GFSI and FSSC 22000:

Updates, trends and future plans Vel Pillay

LRQA Food Safety Program Manager, Americas

September 20, 2012

“Get to know” the Audience

• How many of you have Japanese Cars & appliances?

• How many of you are familiar with ISO systems?

• How many of you are 9001?

• How many of you have heard of GFSI?

• How many of you have heard or work with FSSC?

Food Safety schemes with Focus on

FSSC 22K

• Food Safety can only be achieved through collaboration from all sectors of the supply chain

• Food Safety is non competitive

• Harmonization is key to reducing the amount of audits

• Auditor competency is critical

Basic Premises

• Introduction - LRQA

• GFSI

• FSSC Foundation

• ISO 22000

• PAS documents

• Q&A

Agenda

Who is Lloyd Register?

• 250 year old Organization

• LRQA is part of the Lloyds Register Group

• Non Profit Organization

• Reinvest most of our revenue in making the world a better place

• Sponsor and subsidize educational projects around the world – Universities and educational institutions

• Champion and support community projects around the world – 42 Global projects in 2010

“ Life Matters”

LRQA is a member of the Lloyd’s Register Group

The Group at a glance…

• >100 offices delivering services in >100 countries

• Some 7,500 employees of 90 nationalities

• Celebrated our 250 year anniversary in 2010

• Four business divisions:

• Marine

• Transportation

• Energy

• Management Systems (LRQA Business Assurance)

• Anticipated annual turnover $1.0bn

How concerned are consumers about the safety of their food supply?

Consumer – Reality or perception

Source: Context Marketing, USA, Oct 2009

The Audit Landscape – Early days

BUYING COMPANIES

Company A

Company B

Company C

Company D

Company E

Food Safety Audit

Food Safety Audit

Food Safety Audit

Food Safety Audit

Food Safety Audit

SHARED SUPPLIER

BASE Supplier A

RESULT

Redundancy

Confusion

Inefficiency

High Cost

Solution Build Confidence in Third Party Certification & Reduce

Inefficiency in the Food System

“once certified, accepted by all”

Audit Landscape Evolution

• Audit proliferation in North America and Europe in early 2000s

• Example: Cargill’s St. Clair, MI Salt plant had 12 – 2nd and 3rd party & 17 customer audits in 2006

• IN 2011, after implementing FSSC 22000, St. Clair Salt plant had 1 – 3rd party audit (FSSC 22000) 12 customers accepted the FSSC audit.

• Wal-Mart changed the auditing world in NA with GFSI request

• Peanut Corporation of America (PCA) swung the pendulum even further; some audits no longer accepted by customers

• Many US plants had to move quickly: most common choices were BRC, SQF, IFS and Dutch HACCP (initially)

• Multi-nationals in the Americas shift to 3rd party audits

• GFSI is rapidly gaining traction globally

What is the GFSI?

GFSI

• Started in 2000 & was European- retail centric

• Developed benchmarking & protocols

• Motto: “Once certified, accepted everywhere”

• Gives companies a choice of several options

• No longer European retail centric

• Has a process to take action on stakeholders suggestions; revise guidance documents, protocols & benchmarking audit schemes through Technical Working Groups

How the GFSI Works

Retailers Suppliers

Food Service

Certification

Bodies

Accreditation

Bodies

International

Organizations

Academia

Government

Scheme Owners

Service Providers

GFSI Mission and Objectives

Driving continuous improvement in food safety to strengthen

consumer confidence worldwide.

Reduce Food

Safety Risks

Develop

Competencies

and Capacity

Building

Manage Cost in

the Supply Chain

Knowledge

Exchange and

Networking

GFSI acceptance The following companies have now come to a common acceptance

of GFSI standards

10 Schemes recognized by GFSI

Scheme Scope

FSSC 22000 Food manufacturing

Dutch HACCP (B) Food manufacturing

IFS Food manufacturing

SQF 2000 level 2 Food manufacturing

BRC Food manufacturing

Synergy 22000 Food manufacturing

Global Red Meat standard Red meat manufacturing

GAA Seafood processing Seafood manufacturing

Global GAP Agriculture

SQF 1000 Agriculture

Primus GFS Agriculture and Food manufacturing

Canada GAP Agriculture

Food Safety System Certification 22000

About the Foundation

• Non profit organization

• Owns GFSI approved FSSC 22000 and HACCP food safety systems certification schemes

• Foundation facilitates the schemes

• Maintains the licence agreements with accredited Certification Bodies

• Incorporates: 11 associated Certification Bodies for HACCP, 69 associated Certification Bodies for FSSC 22000

• Independent FSSC Board of Stakeholders: responsible for scheme content and quality of audits

Board of Stakeholders

Independent Chairman Fons Schmid

FoodDrinkEurope Beate Kettlitz

International Margarine Association of the Countries of Europe Sander van Pelt

EMRA (European Modern Restaurant Association) Bizhan Pourkomailian

ICBW (International Council of Bottled Waters Associations) Marc Cwikowski

SSAFE (Safe Supply of Affordable Food Everywhere) Mark Overland

IFDA (International Food Distributors Association) Jorge Hernandez

IIOC (independent international organisation of CB’s) Stefano Crea

IQnet Martha Mikulaskova

BSI (British Standards Institute) Quincy Lissaur

Foundation for Food Safety Certification Cor Groenveld

Foundation for Food Safety Certification Cornelie Glerum

IAF (International Accreditation Forum) Skip Greenaway

ISO (International Organization for Standardization) Kevin McKinley

GMA The Association of Food, Beverage and Consumer Products Companies Leon Bruner

Mission FSSC 22000

“To be the globally leading, independent, non- profit, ISO-based

and GFSI- accepted food safety certification scheme for

the whole supply chain.”

Vision FSSC 22000

• Consolidation or even lower number of GFSI approved food safety certification schemes;

• Increased mutual recognition by large manufacturers, retailers and caterers;

• Increased public/private cooperation on consumer food safety protection through private certification;

• More need for independent, non profit food safety certification management;

• Extension of ISO- based food safety certification in the USA, China, S.E. Asia and Middle and South America.

GFSI Committed organizations

Number of certificates per August

FSSC 22000 sites worldwide1%

35%

7%1%21%

29%

4% 2%

Pacific

Europe

South America

Central America

North America

Asia

Africa

Russia

0

500

1000

1500

2000

2500

2008

2009

2010

2011-1

2011-2

2011-3

2011-4

2012-01

2012-02

2012-03

2012-04

2012-05

2012-06

2012-07

5 49

301428

573

805

11371274

14061538

16711812

20182168

Numberofsites

Period

TotalamountFSSC22000foodsites

Status

• 69 associated CBs around the world

• 48 with full license

• 21 with provisional license, working on accreditation

• New database with certified organizations

• Extension with Packaging (PAS 223)

• 29 CBs with provisional license

• 75 certificates

• 7 licensed training organizations

Integrity Program

• Independent expert

• Desk review audits

• Risk based CB office audits and witnessed on site audits

• KPI’s

• Sanctions

Objectives 2012-2013

• Meeting 6th version GFSI guidance document

• Intensified communication

• Maintaining Integrity Program

• Training Licences

• Global harmonization day for all CBs

• Global representation (seminars, events ,etc) and communication

• Establishing regional represence

• Seek cooperation with authorities

• Possible extension scheme to other food supply chain sectors

What is FSSC 22000 scheme

ISO 22000 Standard ISO 22000 Standard

PAS 220

PAS 223

+

+

=

=

ISO 22000

ISO 22000 Standard

ISO 22000 : 2005

• International, independent standard

• Generic food safety standard for the whole food supply chain

• Developed by HACCP experts representing stakeholders

• State of the art, best practices

• Focus on supply chain assurance

• Management System principles embedded

• Aligned with Codex Alimentarius

• ISO 22000 family of standards

• Is a process based audit

Requirements

Satisfaction

Management

Resources

Measure,

analyze and

Improve

Implementation of FSMS

Uodates and

Product Realisation

Management

Engagements

Guided by FSMS

Entrée Sortie

Safe

Product

Customers

Legislation

Science

Research

General

Production

Competency

RECIPIENTS

Product

characteristics =

Satisfied

Customer

Process based Model of ISO 9001 extended to FSMS

Principle of ISO 22000

-requirements

-materials

-processes

-products

-PRP’s

Risk

analysis operational

PRP´s

Control

measures

Hazard

identification

HACCP plan

CCP´s

Validation

Verification

Modification

Implementation

An integrated management system.

Management

PAS Documents – to date

34

REVIEW PANEL:

Open for comments from industry peer groups

PAS 222

Industry Steering Group

35

REVIEW PANEL:

Open for comments from industry peer groups

Industry Steering Group

36

REVIEW PANEL:

Over 100 organisations contacted, 67 reviewed, 144 comments received

The Future…

• Short Term…

• ISO strategy paper for SSAFE

• Extension to scope for FSSC 22000

• Gain full GFSI benchmarking approval

Medium Term…

• Submit into ISO as a seed document

• Maintain the PAS (review and/or revise where necessary)

Long Term…

• Withdraw PAS once an ISO is published

37

Future trends

• Create more PAS documents for specific sector. The industry is currently

working on a PAS for the retail industry and one for storage and distribution

• FSSC Foundation to include other sectors in their Scope.

• FSSC Foundation to increase regional presence

• GFSI to continue creating visibility and credibility globally

• GFSI currently working on Auditor competency

• Use of GFSI Capacity Building Program – Basic and Intermediate

Important Considerations

Implementing a scheme

• Know your customer’s expectations

• Investigate the audit schemes to determine which one is best for your company’s culture; start with www.mygfsi.com

• Benchmark with other companies who have already deployed

• Get upper management commitment

• Deploy a change management strategy

• Determine your criteria for your choice of a CB (ie. number & qualifications of auditors, audit timeliness, cost, reputation, training expectations, etc.)

• Investigate the merits of several CBs & decide who you will use;

• Design your training & deployment strategy with your CB

How to ensure integrity of audits?

Most critical factors:

• Education, experience and skills of auditor

• Initial qualification and training process of Certification Body

• Qualification per scheme and sector

• Sufficient time for the audit

• Reviews and monitoring of the auditor

• Continuous development of the auditor

Expectation of CB from the organization being audited

• Proof of a robust, risk-based management system

• A process-based management system approach, not just an inspection

• Skilled, experienced auditors understanding your business / processes

• Audits and results shall be tied to your business

• Vendor assurance capabilities

• Solid internal and corporate audit programs

• Improving performance, reducing risk

Thank you for your attention!

And always manage

your risks . . .

Services are provided by LRQA and other members of the Lloyd’s

Register Group. For further information visit www.lr.org/entities

For more information, please contact:

Vel Pillay LRQA Food Safety Program Manager, Americas

1330 Enclave Pkwy., Suite 200

Houston, TX 77077

vel.pillay@lrqa.com

www.lrqausa.com

• Our findings:

• Insufficient transparency across supply chain

• Lack of cooperation

• Geographical positions links

• Insufficient depth in hazard-risk analysis

• Insufficient harmonization legislation / standards

• Control hazards / risks not at the right place

• Insufficient control suppliers

• Validation / management of changes.

Why do problems persist in Food Supply Chains?

• Focused on risk areas

• Clear technique for analysis

• Transparency throughout the whole chain

• Control of hazards at the right place

• Trust within the chain

• Harmonization of schemes/approvals

• Embedded continual improvement programs

Preventing failures and customer satisfaction

= Reduction of costs

= Increasing confidence of clients / consumers

= Protection of brand / image

Managing the supply chain

Summary – Facts about Management System based

assessment

• Plants must “think and justify”

• Intensive audit in Year 1 to determine whether an effective system is in place and whether it is functional

• Is a “system” audit vs. a “checklist” audit

• It is an in-depth evaluation of the systems

• Independent ownership

• Syncs well with other ISO standards

• Same audit and “language” across the world