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More Safety, Quality and Fair Competition in the Fruit Juice Sector through Industrial Self More Safety, Quality and Fair Competition in the Fruit Juice Sector through Industrial Self Control Martin Greeve Project Manager - SGF/QUISEE Vice President - EQCS SGF/IRMA Regional Conference Poland Tuesday, December 12, 2006 Warsaw Marriott Hotel SGF INTERNATIONAL E. V.

Shared Responsibility for Ensuring Quality and Safety for Consumers 5 main Quality Assurance and Shared Responsibility for Ensuring Quality and Safety for Consumers 5 main Quality Assurance and Control Pillars • Producers’ Quality Managements (QM) • Distributors / Retailers Purchasers and QM • Industrial Auto- or Self Control of Sector • State Food Controls • Consumer Organisations / Consumer Magazines SGF INTERNATIONAL E. V. 2 2

Who is SGF INTERNATIONAL E. V. ? • • Sure – Global - Fair Who is SGF INTERNATIONAL E. V. ? • • Sure – Global - Fair • • Non governmental organisation (NGO) • International industry association with direct company memberships • • Registered in Eurocity Frankfurt/Main / District Court • • Democratic structures and decision procedures Biggest and one of main players of EQCS Non profit organisation Budget covered by member contributions Quality control body of industry - no normative function SGF INTERNATIONAL E. V. 3

Facts and Figures • • • Foundation Market & Packer Controls Raw material & Facts and Figures • • • Foundation Market & Packer Controls Raw material & Supplier Controls Companies to be audited p. a. - packers, bottlers (31. 12. 2005) 1974 in 14 countries of EU in > 50 countries - traders, brokers (31. 12. 2005) - RM suppliers (31. 12. 2005) Number of audits/plant inspections Sample Through Put Number of co-workers Number of corrective actions - internal - external Budget / regular control work 2005 Extra budget / QUISEE 2005 36 393 612 5733 26 SGF INTERNATIONAL E. V. 117 670 0 2. 6 Mio € 0, 3 Mio € 4

SGF-Structure Pillars of SGF- Control Work SGF INTERNATIONAL E. V. Sure - Global - SGF-Structure Pillars of SGF- Control Work SGF INTERNATIONAL E. V. Sure - Global - Fair Voluntary Control System (VCS) Bottler and Market Controls in Baltic States, Czech Republic, Denmark, Germany, Austria, Hungary, Ireland Sweden RQCS SGF INTERNATIONAL E. V. Raw Material. Producer and RMSupplier Controls in about 52 countries world-wide IRMA 5 5

Where is industrial Self Control in Europe Market and Packer Controls SGF/RQCS Countries SGF/QUISEE Where is industrial Self Control in Europe Market and Packer Controls SGF/RQCS Countries SGF/QUISEE Countries (only market controls) NQCS Countries EQCS Countries with QUISEE support SGF INTERNATIONAL E. V. 6

Who is Industrial Self Control in the European Fruit Juice Industry ? European Quality Who is Industrial Self Control in the European Fruit Juice Industry ? European Quality Control System (EQCS) SGF/RQCS International Market and packer controls in 14 countries on behalf of 10 national Associations Austria, Czech Republic, Denmark, Estonia, Germany, Hungary, Ireland, Latvia, Lithunia, Sweden SGF INTERNATIONAL E. V. NQCS 5 national control schemes in France, Netherlands, Poland, Spain and United Kingdom SGF/QUISEE SGF/IRMA Market controls in 11 non EQCS countries / support for Spanish and Polish control schemes Raw Material and supplier controls in > 50 countries world wide Belgium, Bulgaria, Cyprus, Finland, Greece, Italy, Malta, Portugal, Romania, Slovakia Slovenia 7 7

SGF/IRMA Raw Material Assurance and Supplier Control Argentina Israel Austria Italy Belgium Ivory Coast SGF/IRMA Raw Material Assurance and Supplier Control Argentina Israel Austria Italy Belgium Ivory Coast Belize Kenya Brazil Malaysia Chile Mexico China Paraguay Columbia Pakistan Costa Rica Peru Cuba Philippines Cyprus Poland Czech Republic Romania Denmark Slovenia Ecuador South Africa Finland Spain France Sweden Germany Switzerland Great Britain Thailand Greece The Netherlands Guatemala Turkey Honduras Ukraine Hungary United States India Uruguay Indonesia Ireland SGF INTERNATIONAL E. V. 8 8

Working Principles and Basis of Success p p p p p Independence (finances, politics) Working Principles and Basis of Success p p p p p Independence (finances, politics) from individual companies and other sector associations High reputation and credibility at experts from science, authorities, retailers, industry and consumer organisations Strict confidentiality for all company related information Equal treatment of all market players in complaint cases Contribution to legal security – to clear what is right or wrong Corrective actions in case of quality deviations and unfair competition Provision of useful services for member companies / added values for membership fee Partnership instead of policing industry To be close to market developments and member problems SGF INTERNATIONAL E. V. 9

SGF Scope of Activities Industry Services Market Surveys - Hotline - Info / Early SGF Scope of Activities Industry Services Market Surveys - Hotline - Info / Early Warning Packer/Bottler audits & Controls - Contributions to tech. Association Work SGF Databases - Authenticity - Pesticides - GMO SGF INTERNATIONAL E. V. Research and Development of New Analytical Methods Raw Material / Supplier audits & Controls Ok-Feedbacks & Corrective Actions 10

Analytical Research and Development of New Technical Working Tools and Projects p p p Analytical Research and Development of New Technical Working Tools and Projects p p p p p Pure Juice, FLAIR, BCR, ENEA and Research Coordination international EU-Projects Code of Labelling Raw Materials (IRMA/Co. L) Code of Conduct Suppliers (IRMA/Co. C) Database Pesticides (FRAPP) Quality Initiative South and East Europe (SGF/QUISEE) Hygiene Audits IRMA-Supplier Regional Specific Database authentic juices Info Services (Hotline, Newsletters, Early Warnings) Standard Questionnaire for Supplier Selection / combined audits for different standards (IRMA, BRC, IFS etc. ) SGF INTERNATIONAL E. V. 11

SGF Scope of Controls Ethical Business Attitude Fair Competition Labelling SGF INTERNATIONAL E. V. SGF Scope of Controls Ethical Business Attitude Fair Competition Labelling SGF INTERNATIONAL E. V. Safety and Hygiene SGF Authenticity Traceability/Mass balances 12

Chain of SGF-Control / Audit Points Farmers/Eurepgap Fruit Processors Traders/Brokers Blending Stations/Cool Stores Transport Chain of SGF-Control / Audit Points Farmers/Eurepgap Fruit Processors Traders/Brokers Blending Stations/Cool Stores Transport Companies Packers/Bottlers Retailer Shelves SGF INTERNATIONAL E. V. 13

Chain of SGF-Control / Audit Points EUREPGAP Farmer level IRMA Fruit Processor level EQCS Chain of SGF-Control / Audit Points EUREPGAP Farmer level IRMA Fruit Processor level EQCS Bottlers Packer level RETAILERS Consumers SGF INTERNATIONAL E. V. 14

Central Services p p p IRMA raw material and supplier control Market controls in Central Services p p p IRMA raw material and supplier control Market controls in non EQCS countries (QUISEE) Development of new analytical methods Expert committee for evaluation EU wide market campaigns Control chain from the tree to the bottle (EUREPGAP – IRMA – EQCS) SGF INTERNATIONAL E. V. 15

SGF-Working Procedure Product Controls Sample Taking in Markets & Plant Inspections Laboratory 1 Analysis SGF-Working Procedure Product Controls Sample Taking in Markets & Plant Inspections Laboratory 1 Analysis Laboratory 2 Analysis Secretariat Internal Corrective Action IRMA/RQCS Board External Corrective Action Post Control OK Feedback Producer Expert Committee for Analyses Neutral Evaluation Laboratory 3 Analysis OK Feedback Producer Legend: OK Feedback Producer O. K. SGF INTERNATIONAL E. V. Not O. K. 16

Clearing Function in the Markets for Quality Problems and unfair Competition Issues St ep Clearing Function in the Markets for Quality Problems and unfair Competition Issues St ep s 6 Co rre cti ve 5 2 1 0 Formal EU-Infringement Proceeding / Court Cases Info Retailer / Authority and Exclusion 4 3 Info Consumer Organisation / Public Not OK Post Not Ac. OK tion OK control OK E X T E R N ! Negative Covenant of Producer Involved Quality Commitment / Acknowledgement of Obligation Info Letter / Warning Letter Detection Quality Defect First step, if • Quality Defect detected • Depending on the Seriousness of Infringement SGF INTERNATIONAL E. V. ? ! ? ? ? X X IN T E R N Next Step Corrective Action only, if • No Co-operation • Case of Repetition 17 17

Internal Corrective Action SGF INTERNATIONAL E. V. 18 Internal Corrective Action SGF INTERNATIONAL E. V. 18

Protection against unjustified Attacks and Allegations p p p EU rapid alert 1999, - Protection against unjustified Attacks and Allegations p p p EU rapid alert 1999, - Allegation Methomyl in Orange Juice / Spain EU rapid alert 2000 - Allegation staph aureus in Orange Juice / Greece Anonymus letter to Industry, media and Authorities 2004 - Allegation Water dilution Nf. C orange juice / Brazil EU rapid alert 2005 - Allegation 500 ppb Patulin in Apple Nectar / Greece EU rapid alert 2005 - Allegation Patulin in grapefruit juice / Lithuania Retailer Internet Auction 2005 - Product specification deviating from standard excludes serious bids SGF INTERNATIONAL E. V. 19

Role of Industrial Self Control Summary Contributions to Consumers‘ Health and Safety p Basic Role of Industrial Self Control Summary Contributions to Consumers‘ Health and Safety p Basic control of standard compliance for producers and trade on all production and trade levels: intersectorial chain control (safety, hygiene, authenticity, labelling) p Up-stream traceability on basis of documentation and counter sample system p Stop quality problems and unfair competition issues at its source to block danger of repetition and further profileration p Protection against unjustified attacks and allegations p Development new analytical approaches and techniques to fight new, high sophisticated adulteration recipes p Cost reduction for member companies using control and audit results as a reference means more flexibility to focus on e. g. safety issues p Safe guarding equal implementation of EU legislation and industry standards p Legal security for all players in the market (producers, traders, retailers) p Involvement of retailers in quality commitments and corrective actions SGF INTERNATIONAL E. V. 20

Outlook for Industrial Self Control p p p p p Offer of central operational Outlook for Industrial Self Control p p p p p Offer of central operational services for local control schemes Development of central market and packer controls in Europe Set-up and support of the development of packer and market control schemes in countries outside of Europe (China, Russia, Australia, New Zealand etc. ) Offer and use of SGF/IRMA – services by countries outside of Europe Use IRMA synergies for neighbouring industries (fruit preparation~, jam ~, fresh and canned fruit industry etc. ) Acknowledgement of industry standards (Co. P etc. ) as binding rules for all players in the market Recognition of AIJN/Co. P and industry standards by authorities, retailers, consumer organisations etc. Closer co-operation with State Food Control Authorities, consumer organisations and retailers to stop any image risks for fruit juice products Subsequent development of concepts of industrial self control to keep pace with changing markets and member needs SGF INTERNATIONAL E. V. 21

Industrial Self Control Contributes to 2 sides of the same Coin Consumer Satisfaction by Industrial Self Control Contributes to 2 sides of the same Coin Consumer Satisfaction by safe, healthy natural and authentic products SGF INTERNATIONAL E. V. 22

Industrial Self Control Contributes to 2 sides of the same Coin Fair Competition in Industrial Self Control Contributes to 2 sides of the same Coin Fair Competition in the Markets By authenticity and correct labelling SGF INTERNATIONAL E. V. 23

Industrial Self Control Contributes to 2 sides of the same Coin Consumer Satisfaction by Industrial Self Control Contributes to 2 sides of the same Coin Consumer Satisfaction by safe, healthy natural and authentic products SGF INTERNATIONAL E. V. 24

Industrial Self Control Contributes to 2 sides of the same Coin Fair Competition in Industrial Self Control Contributes to 2 sides of the same Coin Fair Competition in the Markets By authenticity and correct labelling SGF INTERNATIONAL E. V. 25

Industrial Self Control Contributes to 2 sides of the same Coin Consumer Satisfaction by Industrial Self Control Contributes to 2 sides of the same Coin Consumer Satisfaction by safe, healthy natural and authentic products SGF INTERNATIONAL E. V. 26

Industrial Self Control Contributes to 2 sides of the same Coin Fair Competition in Industrial Self Control Contributes to 2 sides of the same Coin Fair Competition in the Markets By authenticity and correct labelling SGF INTERNATIONAL E. V. 27

For more Information Please visit our Websites www. sgf. org or www. eqcs. org For more Information Please visit our Websites www. sgf. org or www. eqcs. org Thank you for your attention SGF INTERNATIONAL E. V. 28