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FOOD SAFETY, CRISIS MANAGEMENT
 

FOOD SAFETY, CRISIS MANAGEMENT

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    FOOD SAFETY, CRISIS MANAGEMENT FOOD SAFETY, CRISIS MANAGEMENT Presentation Transcript

    • FOOD SAFETY, CRISIS MANAGEMENT & CONSUMER COMMUNICATION Cemlyn Martin, General Manager, Corporate Accounts, Asia-Pacific PDF created with pdfFactory trial version www.pdffactory.com
    • Has a crisis of confidence hit our industry? Each of our Companies? Absolutely. PDF created with pdfFactory trial version www.pdffactory.com
    • China Crisis Melamine contamination 300,000 people developed kidney problems 6 infants died PDF created with pdfFactory trial version www.pdffactory.com
    • China Melamine Crisis •Two condemned to death •Sanlu Chairwoman life in prison •Director of AQSIQ resigned •8 officials resigned or disciplined PDF created with pdfFactory trial version www.pdffactory.com
    • CHINA MARCH 2009 SWINE, GUANDONG PROVINCE • 15 arrested in Guandong Province for selling swine fed banned additives – ractopamine and clenbuterol • Chemicals harmful or fatal to humans • 70 people poisoned PDF created with pdfFactory trial version www.pdffactory.com
    • CHINA 2008 • 437 (reported) food poisoning incidents • 13,095 illnesses • 154 deaths Source: Ministry of Health PDF created with pdfFactory trial version www.pdffactory.com
    • CHINA 2006 SALTED DUCK EGGS, SUDAN II DYE • Sudan Red II dye added to laying duck feed to increase red colour of yolk. • Sudan Red is a phenolic, carcinogenic chemical. • Hong Kong authorities detected Sudan Red in salted duck egg and table eggs from China. PDF created with pdfFactory trial version www.pdffactory.com
    • AUSTRALIA MAY 2008 SWINE, LEAD SCARE • Random testing of swine at slaughterhouse detected high levels of lead in livers. • 80 farms identified as involved. • Contamination traced to zinc oxide used in feed either as feed additive (source of zinc) or growth promoter (gut health modification). • Feed removed from sale. • Pork meat - safe for consumption - livers and kidneys condemned • Zinc oxide from Chinese supplier. Cross-contamination or faulty separation suspected. PDF created with pdfFactory trial version www.pdffactory.com
    • EUROPE • Beef – Mad Cow Disease • Dairy – Dioxin • Animal Feed - Sludge PDF created with pdfFactory trial version www.pdffactory.com
    • IRELAND 2008 A Dioxin scare in Ireland……all pork meat destroyed Beef – cattle on 6 farms destroyed PDF created with pdfFactory trial version www.pdffactory.com
    • CAUSES FOR CONCERN • Antibiotic residues • Growth promoters • Heavy metals in feed trace minerals • Bacterial contamination • Industrial chemicals • Mycotoxins • Pesticides • Animal diseases PDF created with pdfFactory trial version www.pdffactory.com
    • THE COMMON LINK? ANIMAL FEED - Raw materials - Feed additives - Contaminants PDF created with pdfFactory trial version www.pdffactory.com
    • THE CHALLENGE – TO INCREASE TRUST IN FOOD AND FEED PDF created with pdfFactory trial version www.pdffactory.com
    • FOOD SECURITY • Safety • Quantity • Sustainability (Economic, Social, Environmental) • Traceability & Transparency • Social acceptability (Animal Welfare) • Consumer Confidence (Trust) • Human Nutrition • Ethics PDF created with pdfFactory trial version www.pdffactory.com
    • FOOD SECURITY: Our Job is to Feed the World A world in which food production has to double by 2050 to meet demand. PDF created with pdfFactory trial version www.pdffactory.com
    • Charles Darwin • It’s not necessarily the strongest or fittest that survive – but those most adaptable to change PDF created with pdfFactory trial version www.pdffactory.com
    • Crisis Management or Reputation Enhancement? – In The Eyes of the Beholder PDF created with pdfFactory trial version www.pdffactory.com
    • There are three types of companies • Those who do not have a crisis plan in place • Those that say they do • Those that have, and work to it PDF created with pdfFactory trial version www.pdffactory.com
    • When is a Crisis a Crisis? Consumer Risk? Business Risk? Brand Risk? • Risk to life • Financial • Media coverage • Risk of injury • Legal action • Negative position versus competition • Serious product •Extortion contamination RECALL ?????? PDF created with pdfFactory trial version www.pdffactory.com
    • When is a Crisis a Crisis? Basic Crisis Management Model - Product Preparation & Planning - Avoidance Early Warning Learning System & communication - Identify the issue - Communicate control & confidence - Quantify the extent - Prevent recurrence Crisis Response Crisis Closure - Inform relevant people - Replace supply chain - Control exposure - Limit risk - Quarantine product PDF created with pdfFactory trial version www.pdffactory.com
    • When is a Crisis a Crisis? Basic Crisis Management Model - Product Preparation & Planning - Avoidance Early Warning Learning System & communication - Identify the issue - Communicate control & confidence - Quantify the extent - Prevent recurrence Crisis Response Crisis Closure - Inform relevant people - Replace supply chain - Control exposure - Limit risk - Quarantine product PDF created with pdfFactory trial version www.pdffactory.com
    • RISK ANALYSIS – FOUNDATION OF FOOD SAFETY POLICY • Risk Assessment • Risk Management • Risk Communication PDF created with pdfFactory trial version www.pdffactory.com
    • RISK ASSESSMENT • Founded on good science • Easy to understand & communicate • Easily implemented PDF created with pdfFactory trial version www.pdffactory.com
    • What poses the greatest risk and how to: • Avoid • Identify • React • Respond • Assure • Prevent …..Risk assessment PDF created with pdfFactory trial version www.pdffactory.com
    • When is a Crisis a Crisis? Threat Assessment and Threat Rating Threat Rating Matrix LIKELIHOOD Very Very Unlikely Unlikely Possible Likely Likely 1 2 3 4 5 Minor 2 4 6 8 10 Appreciable 4 8 12 16 20 Major 8 16 24 32 40 Severe 16 32 48 64 80 Catastrophic PDF created with pdfFactory trial version www.pdffactory.com
    • When is a Crisis a Crisis? Basic Crisis Management Model - Product Preparation & Planning - Avoidance Early Warning Learning System & communication - Identify the issue - Communicate control & confidence - Quantify the extent - Prevent recurrence Crisis Response Crisis Closure - Inform relevant people - Replace supply chain - Control exposure - Limit risk - Quarantine product PDF created with pdfFactory trial version www.pdffactory.com
    • To Manage a Crisis • Identify key decision makers • Gather facts quickly to act • Keep target audiences in focus • Understand the media • Control information flow • Develop third party allies • Constantly monitor • Establish a crisis centre PDF created with pdfFactory trial version www.pdffactory.com
    • In the Event of a Crisis: Act Now! Group L Finan eader ce Qualit Phone y # Marke ting/P Phone 123456789 Produ R # 1234 ction Phone 56789 # Resea rc Phone 123456789 Sales h # Phone 123456789 Legal # 1234 Phone 56789 # Opera tions Phone 123456789 # Phone 123456789 # 1234 Phone 56 # 1234 789 56789 PDF created with pdfFactory trial version www.pdffactory.com
    • Response • Who is involved? • What happened? • When, date/time? Group L ea • Where, location? Finance der Quality Marketin g/PR Phone # Phone # Phone # 1234567 1234567 89 89 Producti 1234567 on Phone # 89 Researc 1234567 h Phone # 89 Sales 1234567 Phone # 89 Legal 1234567 Phone # 89 Operatio 1234567 ns Phone # 89 1234567 Phone # 89 1234567 89 PDF created with pdfFactory trial version www.pdffactory.com
    • When is a Crisis a Crisis? Basic Crisis Management Model - Product Preparation & Planning - Avoidance Early Warning Learning System & communication - Identify the issue - Communicate control & confidence - Quantify the extent - Prevent recurrence Crisis Response Crisis Closure - Inform relevant people - Replace supply chain - Control exposure - Limit risk - Quarantine product PDF created with pdfFactory trial version www.pdffactory.com
    • Crisis Management or Reputation Management Confidence and Trust Be prepared Be available Be credible PDF created with pdfFactory trial version www.pdffactory.com
    • When is a Crisis a Crisis? What standards should traceability systems adhere to? • Traceable forwards, backwards (+1/-1) • Comprehensive system encompassing all materials/ingredients • Speed of response • Link traceability to management systems • Staff training – how to increase safety standards • Quality improvement teams work proactively on continuous improvement • Ability to successfully recall PDF created with pdfFactory trial version www.pdffactory.com
    • When is a Crisis a Crisis? Basic Crisis Management Model - Product Preparation & Planning - Avoidance Early Warning Learning System & communication - Identify the issue - Communicate control & confidence - Quantify the extent - Prevent recurrence Crisis Response Crisis Closure - Inform relevant people - Replace supply chain - Control exposure - Limit risk - Quarantine product PDF created with pdfFactory trial version www.pdffactory.com
    • Communicate Confidence • At all times • To all people • In control • Trust • Prevention better than cure… “If you tell the truth you don’t have to remember anything” - Mark Twain PDF created with pdfFactory trial version www.pdffactory.com
    • Communication in a Crisis? Communication Your problem will not improve with age Internal Response External Interface Business Recovery, Investors, Customers, Employee Communications Suppliers, Communities, Government Bodies, Regulatory Groups, Legal Entities, Insurance Groups, Competitors Media Public communication All three elements are related PDF created with pdfFactory trial version www.pdffactory.com
    • Communication in a Crisis? Communication • Consumer information is vital, don’t let the media become the crisis - Prepare a holding statement, clear and simple - Wording is crucial – could cause/avoid panic - Target to the audience - Message must be true • Don’t forget internal communication - Regular briefings to employees - They may be worried about their future - Ensure all are aware of your media communications policy Get it right, Get it quick, Get it out and Get it over PDF created with pdfFactory trial version www.pdffactory.com
    • In a Crisis • Events happen fast • Decisions made quickly • Media scrutiny intense • Media processes, rarely report • Victims drive story • Information not always accurate • Your message does not get out So? Be prepared! PDF created with pdfFactory trial version www.pdffactory.com
    • Reputation Management at Corporate level Management used to shaping events, not events shaping management PDF created with pdfFactory trial version www.pdffactory.com
    • Can you continue to run your business in a crisis? • Ensure you develop a business continuity plan • Ensure you can keep vital operations running • Allow the crisis team to control the crisis • Regular status communications from the team PDF created with pdfFactory trial version www.pdffactory.com
    • RISK MANAGEMENT AND CONSUMER CONFIDENCE PDF created with pdfFactory trial version www.pdffactory.com
    • RISK COMMUNICATION • Transparency is a fundamental requirement • Consumer confidence requires information to the public • Clear relationship with media • Managing the perception of risk PDF created with pdfFactory trial version www.pdffactory.com
    • TRACEABILITY LABELLING MANDATORY RECALL • Traceability must be established at all stages of production, processing and distribution • It must link a unique batch of feed with information • Full labelling to facilitate traceability • Mandatory recall essential to safety based on traceability and labelling PDF created with pdfFactory trial version www.pdffactory.com
    • ® GENE SCAN ‘MADE IN CHINA’ WE CAN TRUST PDF created with pdfFactory trial version www.pdffactory.com
    • • Sustainable Supply System • VP of Corporate Social Responsibility • 3 E’s of Responsibility - Ethical - Environment - Economics PDF created with pdfFactory trial version www.pdffactory.com
    • The Red Tractor Scheme • Launched 2000 in United Kingdom • 78,000 farmers and growers members of the scheme • Commitment to food safety and hygiene, animal welfare and environmental protection • Auditing of members by independent organisation Assured Food Standards (AFS) • Farmers, processors and packers are licensed to use logo • Annual inspection and review covering animal health & welfare, farm procedures and safety, salmonella, movement and transport. • Logo on thousands of products – beef, lamb, pork, chicken, turkey, milk, cheese, cream, cereals, vegetables, sugar, flour, fruits and salads in shops and supermarkets • Swine – covered by Assured British Pigs (ABPigs) PDF created with pdfFactory trial version www.pdffactory.com
    • British Lion Code Thank You PDF created with pdfFactory trial version www.pdffactory.com
    • STAR FARM (METRO), CHINA • Standardized, comprehensive traceability framework covering farm production, processing, packaging, logistics, marketing. • Star Farm quality security system combined with HACCP and Global Gap enhances production safety and product quality, strengthens brand image and provides the end consumer with safe and traceable food products. • Collect and record specific information along supply chain. • Customer log-in to website allowing search for product information, producer details – all of which are also on product label. PDF created with pdfFactory trial version www.pdffactory.com
    • Where are we going? PDF created with pdfFactory trial version www.pdffactory.com
    • CRISIS “The Chinese use two characters to write the word 'crisis.' One stands for danger; the other for opportunity. PDF created with pdfFactory trial version www.pdffactory.com
    • What can we do? “The world we have created today has problems which cannot be solved by thinking the way we thought when we created them.” -Albert Einstein PDF created with pdfFactory trial version www.pdffactory.com
    • What are the pillars upon which we can rebuild our industry? PDF created with pdfFactory trial version www.pdffactory.com
    • The 5 pillars • Crisis management • Education • Innovation • Branding • Cause and Fun • Trust and Integrity PDF created with pdfFactory trial version www.pdffactory.com
    • “Next week there can’t be any crisis, my schedule is already full” Henry Kissinger PDF created with pdfFactory trial version www.pdffactory.com
    • David Byrne Former European Commissioner for Health and Consumer Protection PDF created with pdfFactory trial version www.pdffactory.com
    • Two types of organizations Those that have Those that will had a crisis PDF created with pdfFactory trial version www.pdffactory.com
    • We need a system Crisis Management PDF created with pdfFactory trial version www.pdffactory.com
    • The Key to Crisis Management “Someone is in charge, there is a plan, the plan is working” -David Byrne, Former European Commissioner for Health and Consumer Protection PDF created with pdfFactory trial version www.pdffactory.com
    • Question Do you audit Do you have a your totally traceable suppliers? quality control system? PDF created with pdfFactory trial version www.pdffactory.com
    • PDF created with pdfFactory trial version www.pdffactory.com
    • “Every company, every institution, every industry needs a Crisis Management System” -David Byrne, Former European Commissioner for Health and Consumer Protection PDF created with pdfFactory trial version www.pdffactory.com
    • The 5 pillars • Crisis management • Education • Innovation • Branding • Trust and Integrity PDF created with pdfFactory trial version www.pdffactory.com
    • We have to educate them or someone else will PDF created with pdfFactory trial version www.pdffactory.com
    • The 5 pillars • Crisis Management • Education • Innovation • Branding • Trust and Integrity PDF created with pdfFactory trial version www.pdffactory.com
    • Embracing Innovation PDF created with pdfFactory trial version www.pdffactory.com
    • Greenhouse gases Methane: 18% Nitrous oxide: 9% Carbon dioxide: 72% PDF created with pdfFactory trial version www.pdffactory.com
    • Agriculture contributes emissions of all three PDF created with pdfFactory trial version www.pdffactory.com
    • Innovation: Nutrigenomics The gene chip never lies PDF created with pdfFactory trial version www.pdffactory.com
    • The 5 pillars • Crisis Management • Education • Innovation • Branding • Trust and Integrity PDF created with pdfFactory trial version www.pdffactory.com
    • An agricultural brand that people: - Recognize - Respect - Trust - Has core values - Endures - Stands out PDF created with pdfFactory trial version www.pdffactory.com
    • The 5 pillars • Crisis Management • Education • Innovation • Branding • Trust and Integrity PDF created with pdfFactory trial version www.pdffactory.com
    • Trust & Integrity: Partnerships We need true and meaningful relationships along the food chain PDF created with pdfFactory trial version www.pdffactory.com
    • The running of the pigs PDF created with pdfFactory trial version www.pdffactory.com
    • So, do we have a future? PDF created with pdfFactory trial version www.pdffactory.com
    • CRISIS "One should never waste the opportunity of a good crisis!" Rahm Emanuel, Obama's new head of staff PDF created with pdfFactory trial version www.pdffactory.com
    • Thaila nd • Dr. Yukol Limlamthong, Director-General of THAILAND the Department of Livestock Development at the Ministry of Agriculture and Cooperatives “Apart from the effect of the economic downturn, the biggest change in demand patterns has to be that Thai people nowadays are more health conscious than in the past and they understand more about food safety. Consumer purchasing behaviour has changed from being based largely on price or quantity to a level where quality is also taken into consideration. They are especially willing to pay more for foods that are considered to be safer.” Pig International magazine, March/April 2009, p.24 PDF created with pdfFactory trial version www.pdffactory.com
    • What is your primary concern when purchasing the following consumer products: personal care, medications, electronics, toys, fresh meat & fish, fresh produce, and packaged goods? SAFETY AND QUALITY ARE THE PRIMARY DECISION MAKING DRIVERS FOR CHINESE CONSUMERS Personal Care 81% 6% 13% Medications 92% 1% 7% Electronics 89% 7% 4% Toys 83% 14% 3% Fresh Meat & Fish 85% 6% 9% Fresh Produce 80% 14% 6% Packaged products 79% 8% 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Safety and Quality Environmental friendliness Source of product/product ingredients Source: 2008 Chinese Consumer Survey, Institute for Business Value, China n: 300 {60 from Beijing, Shanghai, Guangzhou, Wuhan, Chongqing} PDF created with pdfFactory trial version www.pdffactory.com
    • For each of the following statements, please tell us how you think each has changed over the last two years. CONSUMERS ARE READY TO PAY MORE W illingness to pay more for non-food consumer products 62% 29% 9% that are environmentally friendly W illingness to pay more for environmentally sustainable 65% 33% 2% food W illingness to pay more for non-food consumer products 71% 26% 3% that are safe 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increased Stayed the same Decreased Source: 2008 Chinese Consumer Survey, Institute for Business Value, China n: 300 {60 from Beijing, Shanghai, Guangzhou, Wuhan, Chongqing} PDF created with pdfFactory trial version www.pdffactory.com
    • Please indicate your level of agreement with each of the statements about: PROVIDING CONSUMERS W ITH DESIRED INFORMATION IS AN OPPORTUNITY 67% 66% 66% 65% 65% 64% 63% 62% 61% 60% 60% 59% 58% 57% I would like more information about I would like more information about I would like more information about the ingredients of the food the source of the food product I how the food is processed and products I buy buy manufactured Source: 2008 Chinese Consumer Survey, Institute for Business Value, China n: 300 {60 from Beijing, Shanghai, Guangzhou, Wuhan, Chongqing}. The chart shows the sum percentage of people who selected “strongly agree” and “very strongly agree”. PDF created with pdfFactory trial version www.pdffactory.com
    • BENEFITS FOR THE PUBLIC • Confidence and certainty • Safety • Good quality, safe, acceptably priced, nutritious food available in the quantity desired PDF created with pdfFactory trial version www.pdffactory.com
    • BENEFITS FOR INDUSTRY Opportunity to capture economic advantage: – premium pricing - export market access - steady revenue and profit growth - consumer and brand loyalty and trust PDF created with pdfFactory trial version www.pdffactory.com
    • “Food companies should reduce safety risks by better monitoring of the whole production and distribution process from raw material to sales. Although it requires a huge investment to establish an entire monitoring chain, it is good for a company in the long run.” Mr. Liu Yonghao, Chairman, New Hope Group Reported in Beijing Sci-Tech Report PDF created with pdfFactory trial version www.pdffactory.com
    • International Trade • Safety and traceability is now central to the global trade in food. • Importing countries demand and expect traceability. • National incomes will be negatively affected by distrust in food safety. • Governments play an important role in setting the right legal framework for ensuring food safety, with appropriate penalties for non-conformance. PDF created with pdfFactory trial version www.pdffactory.com
    • Thank You PDF created with pdfFactory trial version www.pdffactory.com