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Central & West Africa Region | TROPICAL CLUSTER

Tropical Cluster Central West Africa Region

Private Standards vs. Codex Standards in Food Production by the Private Sector



Agenda

Introduction to Nestlé

Definitions o Standard o Codex Standards o Private Standards

Background

Pros and Cons

Impact in Food Production

Nestlé Position

Conclusions



Introduction to Nestlé

Our objective is to be the recognized leader in Nutrition, Health and Wellness and the industry reference for financial performance

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Nestlé - Fact Sheet

• Founded in 1866, Swiss based

• Trusted Leader in Nutrition, Health & _Wellness

• 70% of F&B sales achieved through brands that generate

> CHF 1 billion each

• 1 billion Nestlé products sold everyday!

• 281,000 employees in 81 countries

• 440 factories worldwide

http://webappps2.hq.nestle.com/appl_Bcom/Search/shFamilyPreview.asp?BRDSelect=212&TXTCat=+All&CatId=-1&OTSelect=6&TXTKey=&TXTKey2=&TXTRef=&TXTName=&TXTDesc=&Action.x=55&Action.y=6&GotoPage=1&SO=1&FAM=5434






Maghreb Region • HQ Casablanca • 3 Countries • 4 factories • ~ 1’100 employees

Total : • 28 factories • ~16,000 employees

NEAR • HQ Cairo • 3 Countries • 3 factories • ~ 3’500 employees

EAR • HQ Nairobi • 21 Countries • 3 factories • ~ 1’100 employees

ZAR • HQ Johannesburg • 5 Countries • 10 factories • ~ 3’900 employees

CWAR • HQ Accra • 22 Countries • 8 factories • 1 R&D: Abidjan • ~ 6’500 employees

Nestlé in Africa

CWAR = Central and West Africa Region ZAR = South African Region EAR = Equatorial Africa Region NEAR = North and East Africa Region



Definitions

Standard A standard is a set of specifications describing an object, or

a way to operate o Exists in all fields of human activity o Designed to both simplify transactions and to impart an

element of certainty in the exchange. o Reduce risk o Build credibility and trust o Contribute to the predictability for both buyers and

sellers.



Definitions

Codex Standards

International standard developed based on science and consensus among the 184 member countries

To protect the health of consumers and to ensure fair practices in food trade

Serves as reference for food national legislations

Voluntary standards, however considered by WTO agreements as benchmark for food safety standards for international trade



Definitions

Private Standards Types

Issued by private companies or non-governmental organizations and vary in scope, ownership and objectives

Cover topics including quality,

ethics, social, environment and food safety.

can be numerical standards

defining product characteristics, process standards prescribing the production processes or related to documentation



Background

Increased prevalence of private standards over the last 15-20 years o more consumer attention on food safety and quality o globalization of agricultural food chains o shift from public to more private market governance

Globally, raises questions on function of established international institutions that set the rules for the adoption of standards for food safety

Private standards for food safety could weaken the role of Codex in the establishment of standards, guidelines and recommendations



Disadvantages

Private Standards

Advantages

They help providers comply with national and international standards by prescribing how it must be satisfied

they encourage the adoption of best practices and improve productivity

they give brands a better reputation and facilitate access to markets and credit for suppliers

they can respond quickly to emerging risks, filling gaps and to facilitate term adoption of international standards

May not always be based on science

Tend to deviate from international standards or official requirements

Several standards without any harmonization

High cost associated with compliance and product certification Usually established without

transparency, consultation or referral systems Impose disproportionate burdens on

producers and exporters of small and medium-sized developing countries



Disadvantages

Codex Standards

Advantages

Standards development process allows for consultation and is based on consensus of member countries Requirements are defined after

rigorous science based risk assessments with input from independent experts Harmonized requirements in all

applying countries Recognised as reference for

arbitration in case of disputes in international trade Implementation at national levels

can aid in strengthening national food control structures

The Commission does not implement the standards, guidelines and recommendations it develops or assess compliance with these Standard development process can

take a long time to complete especially in situations where consensus cannot be achieved



Impact on Food Production

Private standards for food safety have a significant impact throughout the value chain of agro-food products. Require substantial changes to

existing production methods Costs associated with certification

are not distributed equally along the value chain

At the level of food processing, the private standards do not necessarily provide additional controls as compared to existing public regulations



The Nestlé Position

• …Tastes may differ but health requirements and minimum standards are the same the world over. International standards therefore help to shape our company so we can be a global player with globally recognized terms of reference...

• Having a common standard that is globally accepted

helps us to neutralize situations where companies all have their own proprietary standards.

Paul Bulcke, Nestlé CEO Interview with ISO focus; July August, 2012

A B



The Nestlé Position

National Legislation

International Trade

Absence of International Standards

Private Standards

International Trade Intergovernmental standards (e.g.

Codex) should prevail in all circumstances particularly for food safety and public health

Nestlé favours the free movement of goods based on internationally agreed standards

National Legislation National regulations should

reflect these international standards

Absence of International Standards For issues other than food safety,

ISO and/or private standards may help ease trade in the absence of intergovernmental standards

Private Standards Nestlé uses private standards with

an international scope e.g. sustainable cocoa

May even drive their development to respond to specific needs e.g. water footprint of food products (through ISO)



Conclusions

Internationally agreed standards provide harmonized requirements and therefore a level playing field for international trade

Where available, they should remain the principal reference document for compliance



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