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Mechanisms for Product Quality and Food Safety: Certification Systems Jerry ´Jingµ E. Pacturan Jerry ´Jingµ E. Pacturan Organic Certification Center of the Philippines, Inc. Organic Certification Center of the Philippines, Inc. www.occpphils.org www.occpphils.org Philippine Development Assistance Programme, Inc. Philippine Development Assistance Programme, Inc. www.pdap.net www.pdap.net

Jing Presentation Food Safety Certification Systems

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Mechanisms for Product Quality

and Food Safety:Certification

Systems

Jerry ´Jingµ E. PacturanJerry ´Jingµ E. Pacturan

Organic Certification Center of the Philippines, Inc.Organic Certification Center of the Philippines, Inc. www.occpphils.orgwww.occpphils.orgPhilippine Development Assistance Programme, Inc.Philippine Development Assistance Programme, Inc. www.pdap.netwww.pdap.net

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Outline of Presentation

BackgroundBackground--Drivers for quality & food safetyDrivers for quality & food safety--Why certification programs existWhy certification programs exist--What is certificationWhat is certification²²Basic types of certificationBasic types of certification

Overview of Voluntary Certification SystemsOverview of Voluntary Certification Systems--Environmental certificationEnvironmental certification--Social certificationSocial certification--Food safety & good practice certificationFood safety & good practice certification

--Certification for intrinsic food qualityCertification for intrinsic food quality

Organic CertificationOrganic Certification

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Drivers for product quality and

food safety Consumer demandsConsumer demands Environmental concernsEnvironmental concerns

Health concernsHealth concerns Social concernsSocial concerns Government requirements for internationalGovernment requirements for international

 trading trading

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Why certification programs exist?

It brings opportunities to producers/farmers(e.g., market access, protection of local resources, improvement of worker·s health &

living conditions of rural communities.)

Growing market/consumer awareness of the social &environmental problems associated with food

production, processing & trade

Safe and quality products ensure consumer health

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What is Certification?

It is a procedure for verifying that productsconform to certain standards, either

mandatory/compulsory or voluntarily.

In the case of organic products, it is primarily

 the acknowledgement that such products havebeen produced according to the applicableorganic production standards.

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Basic types of certification

Mandatory or Compulsory (public)When products are sold to mainstream domestic market or

exported, national governments & exporting countries normallyrequire standards & certification as part of food safetyregulations (e.g., MRLs on pesticides use,Product Traceability).

Voluntary (private)Decision to adhere to standards & apply for certification ismainly a decision of the producing group for environmental,social, cultural, food safety purposes.

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Voluntary Certification Systems(for agriculture and food products)

Environmental certification Organic agriculture ISO 14001 certification

Social certification Fair trade Social Accountability 8000 (SA8000)

Food safety and good practice certification Good agricultural practices (GAP) Good manufacturing practice (GMP)

Certification for intrinsic quality (cultural) Geographical indications (GI) Halal

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ISO 14001(International Standards Organization)

ISO is a private intl network of national standard institutesworking with governments, industry & consumerrepresentatives

ISO 14001 is designed to help environmental mgt systems oforganizations both in public & private sectors based ongovernment environmental regulations

Granted either b y governmental or private certificationagencies

ISO logo cant be use on products; companies can howeverindicate in their promotional campaign they are ISO certified

Certification quite expensive and theres no price premium for

products

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FAIR TRADE

Based on the fair remuneration of producers. Products have premiumprice which enables producers to support themselves & invest incommunity development

Producers comply with standards notably labor rights, environmental andsocial requirements

Standard setting & certification under the control of Fairtrade LabelingOrganizations Intl. or FLO

Once certified, regular inspections are done annually to check complianceand use of fair trade premium

Key constraint FLO certifies if it finds market for the fair-trade labeled

products, usually in fair trade shops

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SA 8000

Social Accountability Intl is an NGO that promotes SA8000

A voluntary private workplace certification program aimed atcreating better working conditions

Based on intl. workplace norms including social justice, workerrights & working conditions

Some very large firms exporting banana, pineapple, tobacco, wine,

canned fruits & processed coffee are SA8000 certified

Certification mark is not used on product labels but companies mayuse it for promotional activities

No price premium for products of certified companies

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GOOD AGRICULTURAL PRACTICES (GAP)

GAP are practices that address environmental, economic & socialsustainability for on-farm processes, and result in safe and quality foodand non-food agricultural products

Developed by the food industry, producer organizations, governments

& NGOs, aiming to codify agricultural practices at farm level GAP benefits are:

-food quality & safety improvement-facilitating market access-reduction in non-compliance risks re. permitted pesticides, MRLs &

other contamination hazards

Main challenges:

-increase in production cost like recordkeeping, residue testing &certification

-Inadequate access to information and support services

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GOOD MANUFACTURINGPRACTICES (GMP)

International Food Standards (IFS) certification developed byGerman retailers in 2002 and later joined by French foodretailers www.food-care.info

Safe Quality Food (SQF) codes developed by the Western Australian Department of Agriculture in 1996 www.sqfi.com

British Retail Consortium (BRC) standards were developed tocomply with the UK Food Safety Act www.brc.org.uk/standards/

ISO 22000 harmonizes the requirements of national food safetymanagement systems worldwide on a non-governmental,

voluntary basis www.iso.org

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GEOGRAPHICALINDICATIONS (GI)

A private voluntary standard that has been registered by aproducers group or local government authority throughnational agencies in-charge of intellectual property

GIs are seal of quality which helps to promote know-how, tradition, diversity and quality for raw produce and processedfoods

Product comes from a determined geographic area

An appropriate marketing tool for regional & international tradeof characteristic local products

Existing Asian GIs ² Vietnam·s Bien Thuan Dragon Fruit & PhuQuoc Fish Sauce; Thailand·s Doi Tung Coffee; China·s LongjingTea

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HALAL

Halal is an Arabic word that means lawful and refers to things oractions permitted by Islamic law

Covers food & non-food; in food it is used to describe something thata Muslim is allowed to eat, drink or use

All inputs, products, tools, machinery, labour used in production,processing, storage & distribution are separated from anything that is´Haramµ

Halal market is estimated at US$150 billion Standards differ from country to country; Malaysian certification

becoming an international benchmark

Certificate granted by Islamic centers but proliferation of many local

certifying authorities raises concern about enforcement challenges

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Organic Certification

What is organic agriculture?

A production system that sustains the health of soils, ecosystems andpeople.

It relies on ecological processes, biodiversity and cycles adapted tolocal conditions, rather than the use of inputs with adverse effects.

It combines tradition, innovation and science to benefit the shared

environment and promote fair relationships and a good quality of lifefor all involved. (IFOAM 2008, www.ifoam.org)

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Organic Certification

ORGANIC AGRICULTURE PRINCIPLES (IFOAM)ORGANIC AGRICULTURE PRINCIPLES (IFOAM) Principle of HealthPrinciple of Health

     sustain and enhance the health of soil, plant, animal, human and planet as one andindivisible

Principle of EcologyPrinciple of Ecology     based on living ecological systems and cycles, work with them, emulate them and

help sustain them

Principle of FairnessPrinciple of Fairness     build on relationships that ensure fairness with regard to the common environment

and life opportunities

Principle of CarePrinciple of Care     managed in a precautionary and responsible manner to protect the health and well-

being of current and future generations and the environment

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Organic Certification

Is there a need for organic certification?

When organic farmers and traders are operating

in an anonymous market, certification isdeveloped to show and guarantee toconsumers that a product has been producedin consistency with organic standards.

For small farmers/producers - when there issurplus & scale that that warrants new markets,certification becomes important.

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Organic Certification

Balance of interests

CONSUMER requires healthy and environmentally soundproducts and is willing to pay premium price

Trust

FARMER/PROCESSOR is producing according tocertain standards (may be putting higher labour, etc.) is

getting access to premium price markets

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Organic Certification

What is organic certification«

² A procedure by which a third party gives written

assurance that a product, process or service is inconformity with certain standards

² Intended to assure quality and prevent fraud

² A marketing initiative aimed at regulating andfacilitating the sale of organic products toconsumers

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Organic Certification

What is a Certification Body«

² The organization performing the certification

² Might do the actual inspection or contract theinspection to an inspector or inspector body

² Certification decision is based on the inspectionreport, compliance with the standards, farmdocumentation and possibly complemented byother information sources as provided by theapplicant

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Organic Certification

Government² Europe (EU regulation

EEC2092/91)

² US (USDA-NOP)² Japan (JAS)² Canada² Australia² Thailand² India² China

Private Initiative² IFOAM

(www.ifoam.org)² Assurance system is

based on IFOAM norms(includes the IFOAMbasic standard andIFOAM accreditationcriteria)

² CertAll

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Organic Certification

Levels or Types of Certification

First Party Verification² The producer with installed internal control system claims

 that the farm is organic² The system exist in areas or communities where the

producer and consumer know each other

² Farm or processing activity is open for consumerinspection

² Example is the Participatory Guarantee System (PGS)

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Organic Certification

Levels or Types of Certification

Second Party Verification² Occurs when the consumer verifies the production system

and farmer/processor adheres to the standard set by theconsumers

² Consumers inspect the farms before a marketing

agreement and activity takes place² This type of guarantee system sits in a situation where

 there exist an organized consumer and producer group

² Example is the Community Supported Agriculture (CSA)

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Organic Certification

Levels or Types of Certification

Third Party Certification² Is done by a third party without direct interest in the

economic relationship between the supplier and the buyer

² The certification is the formal and documented procedureby which a third party assures that the organic productionstandards are followed

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Organic Certification

Third Party Certification

For two basic types of clients ²² Individual farm or processing enterprise

² Group certification through the installation of theInternal Control System (ICS)

ICS is part of the documented quality assurance system that allows the external certification body to delegate theperiodical inspection of individual group members to anidentified body or unit within the certified operator

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Organic Certification

Certification Requirement/Processes

Study the organic standards

Compliance to the standards Documentation and record keeping (day to day

farming and marketing records and other activities) Planning ²written annual production plan

Application Inspection Fees (need for costing and scale for cost recovery)

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What must be certified?

Farmer Processor

Trader

Transporter

ExporterShippingtransporter

Retailer Consumer

*Those shaded in blue needs organic agriculture certification

Organic Certification

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Certification Process forIndividual Farm or Processor

 Applicant apply

for certification

Fill out formsand signcontracts

CertificationComm. assignsinspector

Inspector

inspects thefarm/processingplant

Farm walk

Check inputsand its sources

Checkdocumentation

Exit meeting

Inspectionreport to be

submitted toCertificationCommittee

Certification

Committeedeliberation

Release ofCertification

Decision

Organic Certification

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Certification Process forSmallholder Group

 Applicant apply

for certificationFill out formsand signcontracts

CertificationComm. assignsinspector

Inspector inspectsInspector inspectsthe internal controlthe internal controlsystem of thesystem of theorganizationorganization

Farm walk(random sampling)

Check inputs andits sources

Checkdocumentation

Exit meeting

Inspectionreport to besubmitted toCertificationCommittee

Certification

Committeedeliberation

Release ofCertification

Decision

Organic Certification

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OCCP Certification Costs

Validity & Cost of Certification Validity of certificate ² 12 months subject for renewal

For local certification Application fee ² Php 2,000.00 (about US$42)

Minimum certification fee² Php 20,000 ² producer (US$420)² Php 20,000 ² processor (US$420)² Php 40,000 ² production & processing (US$840)² Php 25,000 ² group certification (US$520)

Inspection fee is Php 5,000 per day (US$104)

For foreign certification (in partnership with CERES of Germany) Application fee ² Euro 100 Minimum certification fee

² Euro 1,000.00 for individual farms/processors² Euro 1,200 for group certification

Inspection fee is Euro 100 per day

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Independent, Non-stock, membership based,standard setting and organic certification body

Trained by Bio-Swiss, Bio-Inspecta, Fibl andCERES Accredited by the DA-BAFPS in December 2004. Currently with 19 inspectors (8 passed the

international inspectors training)

 About OCCP

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IFOAM member Philippine Fair Trade Forum (PFTF) Member Accreditation to Korea Member of Certification Alliance International Certifying Body Partners

-CERES GmbH (Germany)-ICEA (Italy)-ACT (Thailand)

 About OCCP

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Organic Certification

Program- Organic Standard Development- Organic Farm certification- Organic Livestock certification- Organic Processing certification

- Smallholder group certification

 About OCCP

Research, Policy and

 Advocacy- Technical and social research- Local and national policy on

organic agriculture- Advocacy and promotion of 

certified organic products

Services

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Products that were certified by OCCP

- Rice - Garlic

- Fruits - Lemongrass oil- Virgin coconut oil - Cooking oil- Coconut vinegar - Herbal plants- Henna - Wild herbal plants

- Vegetables - Coconut

 About OCCP

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OCCP Seal

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Thank you !!!

Maraming salamat po!!!