Effective Chain Management to ensure Safe and High
Quality Products
51st EOQ Congress
22 – 23 May 2007, Prague
ir. Jan van Roekel
Agri Chain Competence Center
OUTLINE PRESENTATION
• The playing field is global; society (citizens) and consumers are at the control
• Needs for value chain development and for getting insight in the value chain
• Cases from ACC – case base:
– HAK Processed Vegetables
– Plantania Potplants
– IKB Pig Sector
Focus on how to ensure safe and highquality products in the agri-food chain
Focus on how to ensure safe and highquality products in the agri-food chain
GLOBAL FOOD SAFETY INITIATIVE
• Benchmark private standards worldwide
• Harmonization of private standards
• Build and implement early warning system
• Encourage cooperation in education and training
• Coordinate good retailing practices
Ahold, Tesco, Carrefour,.......
SUSTAINABLE AGRICULTURE INITIATIVE
• Compiling and developing knowledge
• Raising awareness on sustainable agriculture;
communicating relevant information
• Developing sustainable agricultural practices; working
groups to develop principles
Nestlé, Unilever, Danone, ....
Initiative from food industry to contribute to the
development of sustainable agriculture worldwide
GLOBAL FOOD NETWORK
Initiative from agricultural universities and ACC to establish an international knowledge network on
cross border food supply chains
• Focus on food safety and high quality
• Exchange, development and dissimination of knowledge
• Developing internationally attuned research agenda’s
• Operating a communication structure
EU, Latin America, Africa, ....
WHY IS CHAIN APPRAOCH SO IMPORTANT?
Introduction of (new) standards&
Continious supply of products meeting these standards
=Implications for all partner in the value chain
Needs insight in : - value chain structure
- costs and benefits of compliance - supply chain risks
- innovation process
Farmer Agri-
industry
Food
Industry
ConsumerRetailer
THE HEINZ TOMATO KETCHUP CHAIN
Input supplier
Agri-industry
Primary producer
Consumer
Heinz
Retail trade
Quality
=
Commitment+
Continuous
Improvement
Heinz TQM program:- continuous improvement
- get it right the first time
- zero defects
- no blame concept
- top down/ bottom up
+
+
+
Redefinition
consumer
Partnership/ reward
best supplier
• License to produce and to deliver
• Quality image of actors in chain & network:- added value
- preferred suppliership
• Auditable provenance (origin)
• Best Practices Learning from each other
• Spin off of trust: lower transaction costs, higher turnover
• Integrity as management quality indicator
• Transparency
INCENTIVES FOR INTRODUCING INTEGRAL CHAIN CARE PRINCIPLES
INTEGRAL CHAIN CARE IS VERY COMPLEX
Input industry
Retailindustry
Foodindustry
Agri-Business
Farmers;Growers
Testing & inspecting
ConsultantsCertification
Organizations
Accreditation bodies
Standarddevelopment
bodies
PHASES & CASES
Value Chain DevelopmentValue Chain Development
Development Case
Connecting grower HAK Processed with consumer vegetables
Integral Chain Care Plantania
Integral ChainNetwork Care IKB Pig Sector
CONNECTING GROWER WITH CONSUMER
GrowersGrowers-
associationHAK A.H.
Consumers
ICT – Service Provider
Information Flow
RESULTS OF VERTICAL CO-ORDINATIONIN PROCESSED VEGETABLES CHAIN
Implementation of food safety system including ICT
Integral chain care system leads to 5 % reduction of quality costs
Reduction of uncertainty (sustainability and
responsive planning)
In case of crisis tracking and tracing within 48 hours
PLANTANIA: BUILDING MARKET-ORIENTED CHAINS
ChainReversal
Grower Auction Wholesaler Retailer Consumer
Consumer OBI Lemkes MOS Grower
MOS
INTEGRAL CHAIN INFORMATION SYSTEM ‘PLANTANIA’
MOS LemkesOBI
Datawarehouse
Chain transaction system/ Chain quality system
MarketingInformation system
Gro-
wers
con-su-
mer
INDUSTRY CHAIN PARTNERSTHE DUTCH HOG PORK CHAIN
Genetics
Farrowing
Finishing
Slaughtering
Meat processing
Wholesales
Retail/ Food service
Feed
man
ufa
ctu
re
INSTITUTION AND ASSIOCIATIONSTHE DUTCH HOG PORK CHAIN
• Product Board for Livestock, Meat and Eggs (PVE)
• Corporate Trade Organisations
• Central Bureau of Slaughter-stock Services (CBS)
• SGS-Agrocontrol
• National Inspection Service for Livestock and Meat (RVV)
• Health Services
• Marketing Services
• Research and Development
What is IKB?
IKB = Integrated Chain Control
- Quality Assurance System for pig meat
- Infrastructure through the whole production chain
- Based on EN 45011
- Based on HACCP
- Started in 1992
- Dynamic
Quality management in the Dutch pig sector, 17 may 2006
What is IKB?
Elements of the IKB-system
Voluntary
participation
Sanctions
Traceability
Whole production chain
Independent
control and
certification
Information
infrastructure
National programme
Quality management in the Dutch pig sector, 17 may 2006
IKB: A DYNAMIC SYSTEM
• Scheme Building
- 1988: Research and trials - 1992: Start with farmers, feed
producers and slaughterhouses- 1993: GVP code for vets - 1995: Chain completed by
inclusion of processors and retailers
QA design1992: Independent inspection and sanctioning1993-1995: independent inspectionand sanctioning for each new
scheme participant
• Scheme Development
- 1997: Hygienecode for slaughterhouses
- 1998: Pig welfare code- 2000: Quality regulations for pig
traders and transporters - 2001: HACCP in the feed industry - 2002: HACCP in the meat
industry - 2003…………..
QA Development
- 2003……………
Quality management in the Dutch pig sector, 17 may 2006
IKB requirements in a nutshell
Feed supplier
QA
HACCP
Quality management in the Dutch pig sector, 17 may 2006
IKB requirements in a nutshell
Pig farmer
QA
Hygiene
Animal welfare
Pig identification
Certified suppliers
Quality management in the Dutch pig sector, 17 may 2006
IKB requirements in a nutshell
Transport
QA
Transport code
(hygiene, animal welfare)
Quality management in the Dutch pig sector, 17 may 2006
IKB requirements in a nutshell
Veterinarian
QA
Proven expertise
Positive list antibiotics
Quality management in the Dutch pig sector, 17 may 2006
IKB requirements in a nutshell
Slaughterhouse
QA
HACCP
Animal welfare code
Hygiene
Traceability
Quality management in the Dutch pig sector, 17 may 2006
Quality management in the Dutch pig sector, 17 may 2006
ResultsResults of IKBof IKB
• From 10.000 individuals to one
national (basic) scheme
• Farmers maintain their commercial
freedom
• Image
• Market orientation
• EU legislation
Volume
Annual production of IKB pigs
100%
80%
60%
40%
20%
0%
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Quality management in the Dutch pig sector, 17 may 2006
CHALLENGES FOR DEVELOPING SAFE AGRI-FOOD VALUE CHAINS
• Reduction of costs of compliance e.g. transaction costs
• Improvement of public private collaboration
• Harmonization of standards
• Connecting consumers and farmers in a new way
• Dilemma management of standardization versus differentiation
• Transparency of value chains
• Improvement of communication about safe and high quality products
TO CONCLUDE
The consequences are positive:
• More safe and high quality food
• Reduction of costs for all partners in the supply chain• More transparency in the supply chain
• Better market access• More cross border collaboration
The return on investment is expected to be high!
Effective Food Chain Management
is “hot”
Effective Food Chain Management
is “hot”