FEED TO FOODquality & safety

Skretting Australia Quality Manual

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CONTENTS

The Mission that inspires us:Feeding the future

The Vision that guides us:In a world with limited natural resources

and a growing population, there is a rising demand for high quality meat, fish and shrimp. We will be the global leader

in providing innovative and sustainable nutritional solutions that best support the performance of animals, fish and shrimp

The Values we live by:Innovative, Collaborative,

Capable and Caring

Introduction 6

Skretting & Nutreco 8

Scope 10

Quality Objectives 10

Food Safety & Quality Policy 11

Quality Management System Structure

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Management Responsibility 13

Nutrace 14

Certified Quality & Food Safety

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Ingredient & Supplier Assessment & Management

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Monitoring & Control 20

Risk Management 22

Tracking & Tracing 24

Current Certifications & Compliance

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Skretting Values 28

Quality Management 30

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INTRODUCTION

The Skretting Australia Quality Management System Manual is designed to achieve the following:

• Provide our customers with a concise overview of how we manage quality

• Give an overview of how we manage quality through our Quality Management System covering raw material import, manufacturing operations, all export and services of Skretting Australia

• Serve as a reference for all employees

• Clarify responsibilities in relation to quality

• Detail how we achieve external compliance in quality

• Explain how we put the theory into practice

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WHO ARE WE?

Skretting is a wholly owned subsidiary of Nutreco NV, an international animal nutrition and fish feed company.

In 2015 Nutreco became part of SHV, a Dutch privately-held family investment company. SHV invests for the long term, expanding and developing businesses and providing its customers with excellent products and services, which add value.

Skretting are the leading fish feed producers globally and have a reputation for innovation.

We serve all major aquaculture centres around the world from production plants in Europe, Asia, South America, North America, Africa and Australia.

Skretting people are dedicated to the success of aquaculture as a sustainable and efficient means of providing a growing world population with nutritious, tasty and healthy food.

Aquaculture is the future and we are proud to be playing an important and responsible role in its development.

Quality, innovation and sustainability are guiding principles embedded in the Nutreco culture from research and raw material procurement to products and services for agriculture and aquaculture.

Skretting Australia is the leading producer of fish feed, supplying to a wide range of customers located all over Australia and New Zealand from our manufacturing plant in Cambridge, Tasmania.

1 Skretting Norway

2 Skretting UK

3 Skretting France

4 Skretting Spain

5 Skretting Italy

6 Skretting Turkey

7 Skretting Egypt

8 Skretting Vietnam

9 Skretting China

10 Skretting Japan

11 Skretting Australia

12 Skretting Canada

13 Skretting USA

14 Skretting Ecuador

15 Skretting Brazil

16 Skretting Chile

17 Skretting Nigeria

18 Skretting Zambia (under construction)

19 Honduras (joint venture)

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The Management System covers all Skretting Australia activities across Australia and New Zealand.

No requirements of the AS/NZS ISO 9001 standard have been excluded.

• Achieving our target of zero food safety incidents

• Delivering high quality fish feed to our customers by meeting all quality assurance requirements

• Continuing to improve and refine our quality management systems and supporting employees through providing user guides and regular training

• Converting customer feedback into continual improvements of our systems and processes

• Annual targets are set based on the Quality objectives. The targets are measurable, regularly reported and reviewed by the management team.

SCOPE

QUALITY OBJECTIVES

Skretting Australia is committed to delivering high quality fish feed and reliably satisfying our customers.

To achieve this we manage food safety and quality in all steps of our business from procurement to product development to manufacturing and distribution to customer services.

The Skretting Australia Food Safety & Quality management system will meet the requirements of:

• Nutrace, the global Skretting food safety and quality program

• AS/NZS ISO 9001 Quality Management Systems

• HACCP as defined by CAC/RCP 1-1969 (Rev.4-2003)

• Feedsafe, an Australian stock feed industry Code of Good Manufacturing Practice (GMP)

• Global GAP, Compound Feed Manufacturing, Version V2.1-2_DEC2013

• Nutreco HSEQ Policy

All Skretting Australia employees are required to participate in the delivery of our Food Safety & Quality policy by taking responsibility for food safety and quality systems in their work area, ensuring that the systems are used and regularly reviewed and by contributing to continuous improvement activity to improve them. All employees will be provided with regular training, current documentation and customer feedback.

In doing this we uphold the Skretting values and will establish and maintain the highest standards to our customers and end consumers.

FOOD SAFETY & QUALITY POLICY

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A Quality Management System (QMS) has been established to assist in the achievement of our quality objectives by ensuring that effective process controls are in place for each process.

Each process has a documented procedure and/or work instruction, which may also be supported by checklists and/or forms. Procedures generate performance data to demonstrate implementation and to measure the progress in meeting objectives.

All documents relating to the QMS and the certification requirements can be found in our internal document control system.

The QMS is reviewed for its effectiveness regularly and improvements implemented.

QUALITY MANAGEMENT SYSTEM STRUCTURE

Everyone at Skretting Australia has responsibility for Food Safety and Quality. These responsibilities are carried out by following requirements of operating procedures and by engaging in improvement activities.

The Food Safety & Quality Systems Manager (FS&QS Manager) is accountable for the management of the Quality System and its ongoing improvement. The FS&QS Manager ensures that the system is maintained, reports on performance of the system as a basis for improvement and promotes awareness of customer requirements throughout the organisation.

The Skretting Australia Management Team is responsible for reviewing the QMS and supporting the implementation of processes and improvements through the allocation of resources such as time, people, training and priorities.

MANAGEMENT RESPONSIBILITY

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Nutrace is Skretting’s unique, global feed-to-food quality and safety system. It ensures consistency throughout the production process, from raw materials to final feed solutions.

Built on five strong pillars, Nutrace ensures that our customers and end consumers can have full confidence with regard to feeds in the farmed fish value chain.

In 2013 Skretting Australia became the 3rd Skretting company to be awarded Nutrace compliance.

NUTRACE®Certified Quality & Food Safety

Risk Management

Tracking & Tracing

Monitoring & Control

Ingredient and Supplier Assessment & Management

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CERTIFIED QUALITY &FOOD SAFETY

The Certified Quality & Food Safety pillar guarantees the consistent formulation and production of high-quality, reliable feeds. Skretting Australia has implemented several international certifications, systems and internal procedures. Third-party independent bodies and parent company Nutreco check and audit these standards on a regular basis. Customers are welcome to review our system.

Skretting Australia is certified to the ISO 9001 Quality Management System (QMS), Hazard Analysis and Critical Control Point (HACCP) standard, Global GAP, as well as FeedSafe, the stock feed manufacturers standard. Skretting Australia is compliant with Best Aquaculture Practices (BAP) Salmon Farms standard and Aquaculture Stewardship Council (ASC) Salmon standard.

CERTIFIED QUALITY & FOOD SAFETY

Nutrace Certification

ISO 9001 Certification

HACCP Certification

FeedSafe Certification

Global GAP Certification

Our FS&QS Manager is accountable for managing quality certification across the business

Area Managers and their departments are responsible for managing quality certification plans, ensuring that all quality elements are incorporated into our day-to-day processes

All documents that can affect product quality or processes are registered, regularly reviewed, renewed and controlled. These documents are located within our document control system

The QMS is reviewed regularly by the Management Team with recommendations for improvement

We deliver a comprehensive internal training and development program covering food safety, HACCP, quality documents and operational excellence

We participate in custom designed induction and probation, training and development so our customers can be confident in our knowledge and understanding about quality in every area of our business

The FS&QS Manager oversees a comprehensive internal and external audit system conducting over 30 audits annually

We are all involved in identifying and preventing non-conformances in our day-to-day operations and audits

We are trained and supported to conduct internal audits on our most critical business processes and systems

We have a strong focus on customer satisfaction

We maintain caring and collaborative relationships with our customers ensuring reliability and flexibility to meet quality needs.

Customer comments and feedback regarding quality gathered and reported by Sales department. Improvements are implemented in response to all customer concerns.

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INGREDIENT AND SUPPLIER ASSESSMENT & MANAGEMENT

The Ingredient and Supplier Assessment & Management pillar ensures only healthy, safe and sustainable raw materials are used for the production of fish feed. It includes common standards for all Skretting businesses for assessing and managing ingredients and suppliers.

All the information related to feed ingredients and major suppliers of Skretting Australia is stored in global databases, which are shared throughout the Nutreco organisation.

Only approved feed ingredients and suppliers are used by Skretting Australia. Any new supplier must be evaluated and approved before being considered a Skretting Australia supplier.

Approved feed ingredients and suppliers

Raw material (RM) sustainability and specifications

Supplier Audit Plan

Approved laboratories

The FS&QS Manager is responsible for approving our suppliers

All our suppliers are registered in a global supplier database

Prior to approval a risk analysis and evaluation of suppliers’ food safety and quality systems is conducted by our FS&QS Manager

Major raw material suppliers agree to social and environmental standards by signing a Supplier Code of Conduct

The Purchasing Manager is accountable for purchasing all raw materials from approved suppliers

Raw material quality is monitored daily by the Raw Material Quality Team

The FS&QS Manager and Purchasing Manager conduct supplier audits according to the Supplier Audit Plan which is reviewed annually

The Purchasing Manager is responsible for maintaining the currency of supplier records

A comprehensive risk analysis on RM’s and suppliers identifies priorities for our supplier audits

Audit outcomes are followed up in our internal Non-conformance database.

Raw material quality improvement projects are established in cooperation with major suppliers

The FS&QS Manager is responsible for ensuring the use of approved external laboratories and maintaining our reporting systems

All laboratories used for monitoring analysis are accredited and approved

We perform and document quality checks and verification of all incoming RM’s at the point of taking ownership

We follow procedures for managing non-compliant RM’s

INGREDIENT AND SUPPLIER ASSESSMENT & MANAGEMENT

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MONITORING & CONTROL

The Monitoring & Control pillar ensures Skretting Australia feeds are safe. Since 2000, Skretting Australia has followed a harmonised, detailed and comprehensive global monitoring program which covers undesirable substances from raw materials to finished feeds.

Raw materials are monitored according to a targeted list of undesirable substances and each ingredient follows an approved analytical procedure. Only approved laboratories conduct the analyses. All analytical data is stored in Skretting’s global Laboratory Information Management System and is shared among the Skretting companies.

The Monitoring & Control pillar also includes a standardised internal rapid alert and follow-up system as well as an external notification procedure.

Specifications

Equipment standards and maintenance

Approved laboratories

Monitoring programs

Review and reporting

Procedural control

Raw materialThe FS&QS Manager owns the raw material specifications and determines the standard for aspects, limits and representivity

Finished feedThe Product Manager is responsible for developing finished feed specifications

ProcessThe Process Manager develops sampling and testing procedures to monitor the quality during processing

The Manufacturing Manager is responsible for ensuring raw materials and finished feed are sampled and tested against the raw material and finished feed specifications

Our Mill Operators are responsible for collecting samples and analysing incoming raw material and finished feed according to approved procedures

All changes to sampling and testing methods are managed through change management procedures and approved by the FS&QS Manager

The FS&QS Manager is responsible for utilising approved external laboratories and maintaining comprehensive reporting systems

The Manufacturing Manager is responsible for ensuring that test results are entered into LIMS

The Quality Department generates daily quality reports of all raw materials and finished feed that are reviewed by specification owners

Raw material and finished feed trends are monitored by the Food Safety Team, Raw Material Quality Team and the Master Specifications Team

The FS&QS Manager is responsible for setting and maintaining the monitoring programs

The Manufacturing department collects samples according to the Monitoring Schedules

The Sustainability and Communications Officer is responsible for developing an annual Residue Monitoring Report for our customers

The FS&QS Manager is responsible for ensuring that all test equipment is routinely calibrated, fully functional and regularly maintained

We are responsible for providing daily updates on quality status within our work areas

We hold daily and weekly operational meetings with a critical focus on quality

MONITORING & CONTROL

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RISK MANAGEMENT

The Risk Management pillar ensures professional crisis handling, should an emergency arise. It covers Food Safety and Crisis Management for correct decisions to be taken in order to minimise risks and for unwanted situations to be handled in a correct manner.

It also includes media management and a product recall procedure. Regular training and tests are undertaken by Skretting Australia to ensure we are well prepared to handle a crisis in an effective and appropriate manner.

Food Safety Risk analysis

Food Safety Incident Management & recall procedures

Food Safety Team

Global support

We maintain a Business Continuity Plan which identifies, controls and mitigates our most critical business risks. This plan is regularly reviewed and improved by the Management Team

Food Safety risks are identified within our matrix. Control and mitigation actions are monitored by the Food Safety Team and through QMS reviews

The FS&QS Manager is accountable for ensuring that processes, procedures and manuals are in place to manage our food safety risks

We conduct food safety and recall drills regularly which may involve any employee from within our business

Media training for Corporate Reputation Officers (CRO’s) is provided regularly

The Food Safety Team meets regularly to evaluate and mitigate our food safety risks

We continually review our HACCP system and make improvements

The Food Safety Team follows an annual plan covering all aspects of food safety within the business

The Food Safety Team reviews our food safety risks and inputs into the Monitoring program

We are supported by a comprehensive Skretting global network

The FS&QS Manager is a member of the global Food Safety and Quality Team

RISK MANAGEMENT

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TRACKING & TRACING

Tracking & Tracing ensures an efficient information flow between Skretting Australia, its suppliers, fish farmers and fish buyers.

Skretting Australia has an electronic system in place that precisely traces feed batches back to their raw materials. It provides accurate and accessible records of all ingredients, production processes and feed deliveries. This system delivers rapid upstream and downstream information, which is essential for efficient information gathering and in the event of an incident, recall program.

The Tracking & Tracing system ensures current and pending legal requirements are in place.

Global Track and Trace system

Maintain records of all inputs and processes from ingredient purchasing to finished feed delivery

The FS&QS Manager is accountable for overseeing built-in tracking capabilities to ensure efficient information flow through the feed to food chain

All our purchase, process and delivery records are captured in our electronic tracking and tracing system

Any product we supply to our customers can be traced back to all ingredient suppliers ensuring quality tracking

Our tracking and tracing system is checked regularly through our food safety drills

Training is provided to support the effective use of our tracking and tracing system

Our tracking and tracing system is fundamental to monitor our raw material use associated with sustainability standards

TRACKING & TRACING

Global GAP

The focus of the GlobalGAP (previously EuropGAP) standard is on establishing Good Agricultural Practices (GAP) between multiple retailers and their suppliers. The standard takes into account Food Safety throughout the whole value chain including workers health, safety and welfare, environment and sustainable land use.

Skretting Australia is compliant with Best Aquaculture Practices (BAP) Salmon Farms standard and Aquaculture Stewardship Council (ASC) Salmon and Abalone standards.

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CURRENT CERTIFICATIONS& COMPLIANCE

Nutrace®

Nutrace is Skretting’s global feed-to-food quality and safety system. It ensures consistency throughout the production process, from raw materials to final feed solutions. Skretting Australia is Nutrace certified, regularly conducts self-assessments and is audited by the Skretting global audit team.

FeedSafe

Skretting Australia maintains this certification to make sure that we are adhering to national industry standards. FeedSafe is the Accreditation Program for the Australian stock feed industry. The central aspect of FeedSafe® is compliance to the Code of Good Manufacturing Practice (GMP). This aligns us with the highest of global manufacturing standards.

ISO 9001

Internationally recognised Quality management system ensuring all critical process are documented

HACCP as defined by CAC/RCP 1-1969 (Rev 4-2003)

HACCP is a risk assessment system which identifies control points and critical control points in the business. The risk assessment includes implementation of limits and actions for each of the points identified.

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OUR VALUES

Innovative

Innovation is a core value that is deeply rooted in our business. It allows us to fulfill our mission by delivering superior nutritional solutions that respond to the needs of the market.

We challenge the status quo and think outside the box.

We don’t fear failure and actively support customer advances and future directions.

We work with a mindset to find, develop and deliver the best solutions.

Collaborative

Our collaborative approach enables us to combine skills and resources to drive innovation and growth. We create shared value by connecting with our customers, suppliers and research organisations to develop nutritional solutions.

Skretting Australia is a team player, building and maintaining internal and external networks to create shared value.

We share knowledge and expertise, especially when needed by others.

We actively consult in key decisions working well beyond traditional boundaries with a global mindset.

Our Values define what Skretting stands for: who we are. These characteristics lend integrity to our Vision, making it more than just a slogan. So what do our Values mean?

Capable

We are determined to be the best at doing what matters most. That is why we develop the capabilities of individuals and our organisation.

We make things happen fast with our can do attitude, taking responsibility and ownership.

We deliver excellence, adapting positively to change.

We continually develop and learn, demonstrating our expertise.

Caring

We are a caring organisation, delivering on our commitments to our suppliers and customers through a balanced approach to people, planet and profit.

We act with integrity, helping others to deal with challenging circumstances.

We demonstrate environmental, ethical and sustainable responsibility.

We care for results and are actively interested in others, seeking always to gain an understanding of their needs.

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QUALITY MANAGEMENT

QUALITY MANAGEMENT

SYSTEM

HUMAN RESOURCES

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INFORMATION MANAGEMENT

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Process DesignEquipment CapabilityCalibration

SalesCustomer LiaisonContract ReviewCustomer Order ManagementTechnical ServicesCustomer Feedback

Customer Product NeedsCustomer FeedbackProduct Specifications

Raw Material Inclusion LimitsNutrition Control Resource Planning

Production Planning

Raw Material ReceivalRaw Material Storage

System ManagementSupplier Audits

Non-Conformance SystemInternal Audits

Roles & ResponsibilitiesTraining & Development

Raw Material Storage

Marketing

FormulationPlanning

Physical Testing

HACCP Control Point

Visual Testing

Document Review

Maintenance/Process Management

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DESIGN & DEVELOPMENT

CONTINUOUS DEVELOPMENT

Customer Requirements

Purchasing

Finance

Supplier ApprovalSupplier FeedbackRaw Material ApprovalRaw Material Specifications

Logistics

Final Test & Review

Credit ControlPrice List Maintenance

Transport ControlOutbound Quarantine LiaisonFinished Product Inventory Control

Financial ManagementControl Processes

Continuous Improvement Development

Data ManagementIT Infrastructure

Product/Process Development Projects

FINANCE

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www.skretting.com.au

HSEQ: System Policies & Manuals: Quality: Quality System Management Manual, version 1.0

The Skretting Australia Quality Manual is a live document and will be regularly updated. Please do not rely on any printed document being the current version.