NTUC FairPrice Organic Assurance
Programme (NOAP)
Pasar Organic:Truly Organic
Ms. Chong Nyet Chin
Director, Quality & Processes NTUC FairPrice Co-operative Ltd
On behalf of
Dr. Ngiam Tong Tau
NTUC FairPrice Co-operative Ltd
o Founded by the labour movement in 1973, with a social mission to moderate the cost of living in Singapore
o Largest retailer, FY07 sale revenue S$1.81b, 6000 staff strength
o More than 200 outlets:o FairPrice supermarkets o FairPrice Finesto FairPrice Xtrao FairPrice Xpress ando Cheers convenience storeso Fresh Food Distribution Centre o Centralised Warehousing and distribution company
At NTUC FairPrice, we believe the good life shouldn’t have to cost a lot and we aim to make it accessible to all segments of the community.
Singapore’s Organic Trends
o S$40m sales in 2006; expected to double in 2008
o 4 in 10 consumers buy organic fruits and vegetables
o 12% regular buyer
o Niche market, rapidly growing, full of opportunity, and quite volatile
Nielsen Company’s Survey (2005)
1. Domestic Singapore Consumption
Singapore’s Organic Trends
2. “Organic” Retail Markets: 40 Organic Stores
Limited range of organics; mainly dried certified
food items
Mini-mart
Wider range of organics,
dedicated shelves
Supermarket
Mainly vegetables claimed to be “organic”
without info. on certification; produced locally or from Malaysia
Wet market
- Almost 100% Imported
Major supermarkets
1. NTUC Fairprice2. Cold Storage3. Carrefour
o Certified products from overseas (mainly from Australia, New Zealand, European countries and USA)
o No local organic certification board
Chilled Fruits
Condiments
Singapore’s Organic Trends
Singapore’s Organic Trends
3. Organic food range from FairPrice
o Increased demand for organic produce (fresh produce, rice, meat, eggs, etc) increased by 6 fold over last 3 years
o Specifically Organic fresh vegetables and fruits’ demands in FairPrice have increased by 4x since 2004
Challenges in Organic
Retailing in Singapore
o Price of organic food is 2x of conventional food- To provide affordable organic produce to consumers
o 90% of food are imported- Varying food quality & safety (production technologies & complex distribution channels)
o Limited supply of organic fresh produce - highly priced and mostly temperate types
o No regulations on certification & labeling of organic food - opportunistic behaviors (false claims)
False Claims Cause Confusion
“Natural”
“Free-range”
“Organically Grown”
“Pesticide Free”
Eco labels
Global Trends –
Organic Certification
Types of Organic Standards
� Government Standards (Voluntary or Mandatory)
� Private Sector Standards (CBs)
� Market Standards (importers or retailers, consumers requirements)
� IFOAM & CODEX (WHO/FAO), International Voluntary guidelines
� “Pasar Organic” = Re-assurance for truly organic
� Reduces opportunistic behaviors by creating a specific enforcement system (i.e. in-house certification) which is at zero / low cost to growers
�Ensure organic principles and practices (“organic production standards”) are maintained in an industrial scale production
� Protect organic integrity along the complex supply chain (Organic Assurance Program)
� Cooperate with regional Asian vegetable growers
Our Strategy For
Organic Assurance Program
Transporter
Retailer
Grower
Processor
DistributionCentre
Exporter
Importer
Customer
Organic Supply Chain
NTUC FairPrice Organic Assurance Programme
(NOAP)
The Value-added Supply Chain of Organic Fresh Produce
Certification adds values :
� Assured Organic Integrity
� Transparency
� Traceability
Enhanced competitiveness in
organic business
PasarOrganic
NTUC FairPrice
Organic Assurance Programme (NOAP)
Supplier
Farm Packinghouse TransporterFresh Food
Distribution
Centre
Retail
Outlets
Transporter
o Develop and Implement Organic Production Standards and Regulations (from farm to store)
o In-house Certification System - Audited by 3rd
party (Agrifood Technologies Pte Ltd)
Consumers
NTUC FairPrice Organic Assurance Programme, Version 1
NTUC FairPrice Organic Assurance
Programme
A Handbook for Operatorsin the Value-added Supply
Chain for Organic Fresh Produce
ofNTUC FairPrice
Copyrights 2007, NTUC FairPrice Co-operative Ltd
Standards of NOAP
Organic Production Standards 1. Organic Farming Standard2. Organic Handling and
Processing Standards
o Reference: IFOAM and CODEXOrganic Production Standards
o Adapted to local conditions
Our Regulator
• AVA’s Objectives– To provide resilient supply of safe food, – To safeguard the health of animals and plants– Facilitate agri-trade for the well-being of the nation.
• AVA’s core functions
– Ensure food safety, resilience in food supply – Safeguard animal, plant health & animal welfare – Promote Agro technology – R & D– Protect endangered wildlife
Source: www.ava.gov.sg
About AgroFood Technologies Pte LtdA fully-owned subsidiary of the AVA, (consultancy services in food &
agriculture)
Broad scope of services:• Technical feasibility study on farming of vegetables & aquaculture; • Technology transfer & training • Implementation of GAP certificate scheme; • Design and set up of farm, meat and agri-produce processing
facilities; • Consultancy to meet HACCP requirements • Recommend improvements to food safety, animal and plant health
diagnostic laboratory testing techniques to meet internationallyrecognized Good Laboratory Practices requirements.
Source: www.ava.gov.sg
Our Independent Auditor
NOAP’s Development &
Implementation Cycle
Long journey which requires commitment and cooperation
between all operators
2. Do/ 2. Do/ 2. Do/ 2. Do/
ImplementationImplementationImplementationImplementation
Establish systemsAug 2007 –Mar 2008
3. Communication3. Communication3. Communication3. CommunicationStaff training and briefing Aug 2007 –Mar 2008
Oct 2006 – Aug 2007
1. Planning1. Planning1. Planning1. Planning
/ Development/ Development/ Development/ DevelopmentAudited by 3rd Party-Apr 2008
4. Analysis 4. Analysis 4. Analysis 4. Analysis
& Review& Review& Review& Review
Our Assurance Standards
1. Organic Farming Standard
At the farm
• Pasar Organic produce is grown in well-selected and managed organic farms in Thailand, applying principles of Organic Agriculture.
Key organic assurance practices:
• Good water source and free from potential contamination;
• All seeds and plant materials are non-genetically modified organism and non-chemical;
• Crop rotation to enhance soil;
• Use recycled vegetable wastes as fertilizers;
• Eco-friendly weed and pest management system
Organic Handling and Processing Standards
2a. At the Processing House
After harvesting, Pasar Organic produce is sent the processing house in Thailand for packing.
Key organic assurance practices:
• Verify and record source;
• Dedicated packing facility;
• Clean, disinfect and sanitize facilities using NOAP permitted agents;
• Segregate Pasar Organic produce from non-organic produce in sealed boxes;
• Proper documentation for product tracing
Our Assurance Standards
2b. At the Storage Facility
From the processing houses, Pasar organic produce is delivered to NTUC FairPrice’s Fresh Food Distribution Centre (FFDC) for sorting and redistribution to the stores.
Key organic assurance practices:
•Check that packaging is sealed;
•Store Pasar Organic produce in dedicated shelves;
•Segregate Pasar Organic product from non-organic produce in sealed boxes
Our Assurance Standards
2c. At the Stores
Key organic assurance practices:
•Verify the condition and records of produce;
•Check that organic labels and packaging are intact;
•Display produce on dedicated shelves
Our Assurance Standards
Challenges in Implementing NOAP
� Working with small farms – Cooperation & Incentives
� Getting the systems right – commitment and resources1) Management’s Commitment2) Extensive staff trainings
� Sustaining organic market 1) Creating awareness 2) Consumers’ education
NOAP Successful Launch
� First launch on31st July 2008 to top 10 stores
� 34 types Asian tropical vegetables
� First to be developed in Singapore > Leading role in organic market place in terms of organic quality assurance
Thank YouMs. Chong Nyet Chin
Email: [email protected]://www.fairprice.com.sg/Corporate.aspx
On behalf of Dr. Ngiam Tong Tau
We are passionate about delivering the best quality, We are passionate about delivering the best quality, We are passionate about delivering the best quality, We are passionate about delivering the best quality,
service and value to our customers and we are proud service and value to our customers and we are proud service and value to our customers and we are proud service and value to our customers and we are proud
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integrity of the produce from farm to store.integrity of the produce from farm to store.integrity of the produce from farm to store.integrity of the produce from farm to store.