NTUC Fair Price Cooperative In-house Organic Programme

1. 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

2. 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 Finest
o FairPrice Xtra
o FairPrice Xpress and
o Cheers convenience stores
o 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.

3. 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

4. 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

5. Major supermarkets
1. NTUC Fairprice
2. Cold Storage
3. 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

6. 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

7. 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)

8. False Claims Cause Confusion
“Natural”
“Free-range”
“Organically
Grown”
“Pesticide
Free”
Eco labels

9. 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

10. “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

11. Transporter
Retailer
Grower
Processor
Distribution
Centre
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

12. Pasar
Organic
NTUC FairPrice
Organic Assurance Programme (NOAP)
Supplier
Farm Packinghouse Transporter
Fresh 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

13. NTUC FairPrice Organic Assurance Programme, Version 1
NTUC FairPrice
Organic Assurance
Programme
A Handbook for Operators
in the Value-added Supply
Chain for
Organic Fresh Produce
of
NTUC FairPrice
Copyrights 2007, NTUC FairPrice Co-operative Ltd
Standards of NOAP
Organic Production Standards
1. Organic Farming Standard
2. Organic Handling and
Processing Standards
o Reference:
IFOAM and CODEX
Organic Production Standards
o Adapted to local conditions

14. 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

15. About AgroFood Technologies Pte Ltd
A 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 internationally
recognized Good Laboratory Practices requirements.
Source: www.ava.gov.sg
Our Independent Auditor

16. 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
systems
Aug 2007 –
Mar 2008
3. Communication3. Communication3. Communication3. Communication
Staff training
and briefing
Aug 2007 –
Mar 2008
Oct 2006
– Aug 2007
1. Planning1. Planning1. Planning1. Planning
/ Development/ Development/ Development/ Development
Audited by
3rd Party
-Apr 2008
4. Analysis4. Analysis4. Analysis4. Analysis
& Review& Review& Review& Review

17. 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

18. 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

19. 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

20. 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

21. Challenges in Implementing NOAP
Working with small farms
– Cooperation & Incentives
Getting the systems right
– commitment and resources
1) Management’s Commitment
2) Extensive staff trainings
Sustaining organic market
1) Creating awareness
2) Consumers’ education

22. 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

24. Thank You
Ms. Chong Nyet Chin
Email: nyet_chin.ching@fairprice.com.sg
http://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 proudservice and value to our customers and we are proudservice and value to our customers and we are proudservice and value to our customers and we are proud
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PasarPasarPasarPasar Organic encompasses the goodness and purityOrganic encompasses the goodness and purityOrganic encompasses the goodness and purityOrganic encompasses the goodness and purity
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every step has been taken to ensure the organicevery step has been taken to ensure the organicevery step has been taken to ensure the organicevery step has been taken to ensure the organic
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25. AFRIS. AsianFoodRegulationInformationService.
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FREE to use.
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