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www.foodindustry.asia
VISION FOR ASEAN
Products made for one ASEAN country can be sold in
other ASEAN countries
Efficient Supply Chain
Benefits to local & regional economy
- scale up & efficient manufacture
- increased trade
Benefits for consumers in all countries
4
What’s this got to do with Nutrition Labelling?
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LABELLING COMPLEXITY -
A MAJOR BARRIER
Common labelling standards are needed for
common information (as in EU)
• Unique Labelling requirements
– goes beyond local language requirements
• There are unique National formats, tolerances or
standards for the same information
• Currently dictating Individual country labels, or
complexity and limiting the information provided
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NUTRITION LABELLING
Nutrition Labelling is either Mandated or the format is
prescribed by most ASEAN countries
- Nutrition Information Facts Panel
Increased Voluntary Information or Claims
- “Good Source of Fibre”
- “Reduced Salt”, and
- Front of Pack “GDA”
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However there are many challenges ........
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CHALLENGE 1
Variance in Mandatory & Voluntary requirements
• Malaysia – mandatory nutrition labelling on many
foods
• Indonesia – required on fortified foods
• Singapore – required on foods making nutrient
claims
• Philippines – the nutrition information format
requires specific measurement units
7 Confusing
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CHALLENGE 2
Differing min & max limits for vitamins & minerals
To meet local standards, one Singaporean
manufacturer needs to:
• Make four different formulations for the same
product to supply 8 ASEAN markets
• And have different analytical testing limits &
requirements for several markets
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Adding Complexity & Costs
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CHALLENGE 3
Variance in Tolerance levels for nutrients
• A common recipe across multiple countries faces
differing tolerances for nutrients
• Most ASEAN countries require products to contain at
least 80% of the declared nutrient (as per Codex), but
some impose further restrictions
- more stringent if fortified
- first consignment vs. subsequent shipments
- Nutrients claimed on the front vs. in the NIP on back
Inconsistent
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CHALLENGE 4
The daily reference values for nutrients vary
• Indonesia, Thailand & the Philippines require the
%RDA to be stated for each nutrient in the NIP;
Malaysia adopts %NRV from Codex
• But these reference values vary between the
countries, making a common NIP label
impossible
10 A disincentive to voluntary nutrition information
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RECOMMEND DAILY INTAKE VALUE
FOR IRON IN DIFFERENT COUNTRIES
11 Consumers don’t receive nutrition information
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BENEFITS OF HARMONISATION
Nutrient values, tolerances and labelling
• Cost efficiencies for manufacturers, trade,
consumers and governments
• Clarity of information for Consumers
• Increased product availability
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EUROPEAN EXPERIENCE
Reluctance to Invest Capital
Where regulation is fragmented and marketing
opportunities are constrained
13
ASEAN needs: Common labelling
standards for common information
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EXAMPLE 1: NON-HARMONIZATION
OF NIP
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Malaysia’s format only After: MY, SG, PH, HK, BR
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EXAMPLE 2:
SPEED OF CODEX ADOPTION
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• Regulatory Circular issued with ONE MONTH to comply.
• Required : Detailed mapping of labels for over 400 SKUs from over
10 countries; 40 pages of such tables, 2 month process.
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EXAMPLE 2:
SPEED OF CODEX ADOPTION
Impact to business – within one site (Singapore)
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Example of impact resulting from change in one section of regulation
for qualification of Vegetable Oil/Fat to one of the following:
1. Hydrogenated Vegetable Oil/Fat
2. Partially Hydrogenated Vegetable Oil/Fat
3. Non-Hydrogenated Vegetable Oil/Fat
Total Number of SKUs 296
Total Number affected of SKUs 117
Implementation: 3 types of stickers with dimensions: 50mm (L) x 5mm (H)
1. Vegetable Oil/Fat is Hydrogenated
2. Vegetable Oil/Fat is Partially Hydrogenated
3. Vegetable Oil/Fat is Non-Hydrogenated
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EXAMPLE 2:
SPEED OF CODEX ADOPTION
Cost and resource impact (sticker solution) = S$364k
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BRAND NO. OF SKUS
MONTHLY QTY
MONTHLY COSTS
ANNUAL QTY
ANNUAL COSTS
MTHS TO STICKER
2012 QTY 2012 COSTS
A 21 190,801 $6,010 2,289,611 $72,123 AU – 12 MY – 4-8
1,939,831 $61,105
B 3 47,232 $1,488 566,784 $17,854 5, 12 (Crumbs)
452,712 $14,260
C 22 137,028 $18,932 1,644,336 $227,189 12 1,644,336 $227,189
D 2 11,652 $367 139,824 $4,404 5 58,260 $1,835
E 8 84,678 $2,667 1,016,136 $32,008 12 1,016,136 $32,008
F 11 50,026 $1,576 600,312 $18,910 12 $600,312 $18,910
G 3 40,236 $1,267 482,832 $15,209 12 482,832 $15,210
H 3 27,000 $851 324,000 $10,206 12 324,000 $10,206
J 7 44,736 $1,409 536,832 $16,910 12 536,832 $16,910
K 5 129,348 $4,074 1,552,176 $48,894 12 1,552,176 $48,894
L 9 66,354 $2,090 796,248 $25,082 12 796,248 $25,082
M 12 133,596 $4,208 1,603,152 $50,499 12 1,603,152 $50,499
N 6 25,942 $817 311,301 $9,806 12 311,301 $9,806
P 5 18,828 $593 225,936 $7,117 12 225,936 $7,117
TOTAL 117 1,007,457 $31,735 12,089,480 $380,819 11,544,064 $363,638
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EXAMPLE 3: NET WEIGHT LABELLING
NEW REQUIREMENT ONE COUNTRY
New regulation requires either “net wt.” or “e”
Interim solution to address a “non-quality” issue for ONE sku
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Product
Carton per month
imported to
Singapore
Cost of
Labelling
per unit
(SGD
0.0306) per
month
Cost of
Labelling
per unit
per 6
months
Cost of
Labelling
per unit
per 1
year Description
A 500 $428 $2,570 $5,141
B 500 $428 $2,570 $5,141
C 500 $428 $2,570 $5,141
D 500 $3,305 $19,829 $39,658
E 500 $3,305 $19,829 $39,658
Total 2500 $7,895 $47,369 $94,738
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NEGATIVE IMPACTS
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Consumers
• Over cluttered food label
• Compromised readability
• Stickers – perception of misleading
Manufacturers
• 3 languages on NIP, ingredients list
Longer ingredients declaration e.g. non-hydrogenated fat, specific food conditioners, nutrients, E codes
• Cost of printing, resources cost especially to train and hire regulatory affairs professionals.
Regulatory agencies
• Resource and time
companies seek
advice to comply,
clarify on different
interpretations of
regulations
How can we reduce these negative impacts for regulators,
manufacturers and consumers?
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EUROPEAN EXPERIENCE
Reluctance to Invest Capital
Where regulation is fragmented and marketing
opportunities are constrained
22
ASEAN needs: Common labelling
standards for common information
So what do we want to do about it ?
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WAY FORWARD
1. How can industry contribute to the development of national regulations in the region harmonized toward Codex standards?
2. How can food industry create a level playing field in implementation of harmonized regulations by MNCs and SMEs?
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Regulatory agencies and industry both want clear
regulations & standards for labelling and claims.
ASEAN needs: Common labelling standards for
common information