Transcript Slide 1

New Zealand Cold Storage Association
82nd Annual Conference
Peter Brown, Specialist Adviser, MPI Verification Services ,
Regulation and Assurance
www.mpi.govt.nz
UV is useful
• Peter Silcock from Horticulture NZ
• UV light is a positive thing for fruit quality
• A point of difference for NZ product
Overview
• MPI update
• Global Picture
• Stores Update
Another Year
As we all know - MAF renamed as the Ministry for Primary
Industries (MPI), creating a single unifying identity for the
recently merged organisation.
Martyn Dunne – Chief Executive and Director General
Scott Gallacher – Regulation and Assurance – DDG
Robo Bank
• Marc Soccio stated correctly the world is after and
in need of high quality food – big demand for protein
• This is what NZ does but lets get it right
Our Strategy 2030
Other Year
• The Ministry for Primary Industries and the Cold Store
Association are committed to working together to keep
product safe, compliant and moving
• We live in a fluid changing world. The rules change /
legislation changes and expectations change.
• Some of our main markets are in some volatile countries
– China – Russia – They do call the shots
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Look at the Dairy sector - We have taken a hit over the China Market. Media was all
over it. We front it, learn and take positive action.
This cost the government many millions dollars
MPI Strategy
MPI has developed a new organisational strategy that has
a clear vision of “growing and protecting New Zealand”.
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The focus of the strategy is to maximise export opportunities,
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The strategy also will see:
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A strong focus on identifying and maximising opportunities for Māori fisheries and agri-business.
A more consistent approach to regulations across the fisheries, agriculture, food and forestry
sectors.
Science having a stronger voice in decision making within MPI.
MPI’s approach is to enable and partner with its stakeholders to help them to be successful.
As a result of Our Strategy 2030, stakeholders and staff should expect a Ministry that is agile,
informed, adaptable, continuously improving its services and known for focusing on relationships
and results.
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Our Priorities
• Over the next decade or so, global demand for quality food and
forestry products is expected to increase, largely driven by growth in
China and other Asian economies. This creates huge opportunities
and some major challenges for New Zealand’s primary producers
and exporters.
• Our priorities have been developed in line with Our Strategy 2030.
They help us enable and partner with the primary sectors in ‘going
global’ and taking maximum advantage of these export
opportunities. They also support our work in ‘leading local’ –
improving sector productivity, increasing sustainable resource use,
protecting from biological risk and maintaining animal welfare
standards and safe food systems.
Overview MPI
As an organisation, MPI keeps its focus on the success
of the primary industries for the benefit of all New
Zealanders.
This is captured in our vision of ‘Growing and Protecting
New Zealand’.
Overview MPI
Our Strategy 2030 sets out how we plan to achieve
that vision, and its four building blocks:
• First, maximising export opportunities
• Second, improving sector productivity
• Third, increasing sustainable resource use, and
• Fourth, protecting from biological risk.
The fact is to continue leading, regulating and enabling the
primary sector, MPI needs to be readying itself today for
the pressures of tomorrow.
Working on improvement
• MPI’s organisational structure
• We recently carried out a structural alignment of MPI to
strengthen our core functions
• We are placing an increased emphasis on being a more
integrated, responsive and accountable organisation.
• MPI is totally committed to making it easier for our
customers to access our advice and services.
Importance of primary industries
Our primary sector has traditionally been celebrated as the
powerhouse of New Zealand’s economy.
Maximising export opportunities
• The current year to June has an export forecast of $36.5
billion.
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It’s not all about dairy. The red meat sector makes a
huge contribution, with annual exports of $6.9 billion.
• Even thou Marc from Robo Bank says exports may start
to slow down, or our market soften
Importance of primary industries
Other than dairy MPI’s forecast is for the value of New
Zealand’s meat and wool exports to increase by about
22% over the next five years. We all need to work
together on this.
MPI is maximising our export opportunities by
strengthening ties with existing markets and building
relationships with new markets
Importance of primary industries
• Forecasts are that demand for sheepmeat will be driven
by the expanding middle class in the Middle East and
Asia.
• Similarly, growing demand for beef imports is expected
to be largely centred in Asia.
• We know our dairy products are in huge demand
Importance of primary industries
NZ exports represented in dollars for 2013 & 2014
Millions of export dollars (NZ)
14,000
12,000
10,000
8,000
6,000
2012
4,000
2013
2,000
0
Live animals
Seafood
Meat
Sector
Dairy
Importance of primary industries
Importance of Primary Industries and a
lot of it goes through Stores
Importance of primary industries
China is now our number one trading partner for goods.
Enabling our primary industry businesses to succeed in
China will be a key part of achieving the government’s goal
of doubling primary industry exports by 2025
In December 2013, the Government committed to increase
MPI’s representation in China to seven positions in total.
Tighter Controls
• Our expectation is that tighter controls from a
government process will be the norm.
• Failure to monitor, adjust where necessary the outcomes
and expenditure, runs the risk of reputational harm
• Some may think this is burdensome but we know we
have to get it right - the books right – records – systems
– monitoring – training - meet all our NZ and MA rules
Regulators
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At the end of the day we MPI R&A are regulators
We have to follow the rules
Get it right
Protect NZ inc name
Protect our reputation
Skills and Capability
• There will be demand for more people in occupations
with higher qualifications, especially for professional
degrees in fields of specialisation aligned with the value
chain.
• Demand for training is likely to exceed the growth in
employment. This is because there is a need to increase
the skill level across primary industry occupations.
Skills and Capability
• In 2002, only 36% of primary industry workers
possessed a post-secondary school qualification.
• In 2012 that had increased to 44% and it is expected that
by 2025 this will need to increase to 62%.
• We predict we will need an additional 50,000 skilled
workers on top of the natural attrition of workers by 2025.
Skills and Capability
Addressing this workforce gap will be a significant
challenge, and it is critical that we are successful.
In my view, this is an area that MPI and our different
Industries mainly in the primary industries, need
to focus on
Biosecurity
• MPI’s approach to biosecurity is one of risk management
across the whole of the biosecurity system: pre, post and
at the border; enabling us to direct our efforts and
resources to focus on the things that matter most.
• A significant failure of the biosecurity system is perhaps
the single greatest risk to New Zealand’s economy and
to reaching our export goal – both in terms of direct
economic impact and loss of brand value.
• eg fruit fly
Biosecurity
• Changing global demands, growing passenger and trade
volumes, increasing imports from a growing number of
countries, population expansion and climate change
mean that biosecurity risk is growing.
• MPI is doing its utmost to ensure that biological risk is
minimised. We will need to do more.
• Significant new investment and improvements have
been made at the border over the past 18 months, such
as upgrading our X-ray detection technology and
successfully recruiting and training nearly 125 new
quarantine inspectors since December 2012.
Biosecurity
• By the end of this year we will have around 40 dog
handling teams protecting our border.
• Potentially more effort will be required in the future. How
that is resourced will be a question for a wider
discussion.
Biological risk - FMD
MPI takes a proactive approach to biological risk management - FMD
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We are in the process of finalising a report assessing the economic impacts of a footand-mouth disease or FMD outbreak on New Zealand. The work is being undertaken,
in partnership with primary industry bodies, as part of a programme of activities to
ensure New Zealand is well prepared for the event of FMD detection.
The report will improve the information base for decision-making on a strategy to
respond to FMD detection.
It will help identify possible trade intervention measures and help us target our
preparedness activities to ensure the greatest return.
It will allow informed input into a Government-Industry Agreement around cost and
decision-making sharing for FMD eradication.
MPI is also progressing other aspects of Foot and Mouth Disease response
biosecurity laboratory surge capacity such as the new $64 million Wallaceville lab, the
Trans-Tasman Action Plan, FMD training in Nepal, and re-signing the memorandum of
understanding with the International Animal Health Emergency Reserve.
We have set up a separate dedicated team to progress an FMD response.
China - Whey Protein Issue
Food Safety
• I am happy to say that the independent inquiry following the Whey
Protein Concentrate concluded that New Zealand’s food safety
regulatory system is equal to the best in the world.
• The Government is committed to implementing all of the
recommendations from the WPC Inquiry, many of which have crosssector benefits, further strengthening our reputation for food safety
and as a trusted supplier of safe food products.
• MPI strives to maintain and enhance market access and align our
regulation programme with international standards.
Conclusion
• In conclusion, MPI’s partnership with the different industry
sectors is critical in enabling continued growth in the value
of New Zealand’s exports.
• It would not be a surprise to you that a market-driven, joint
approach, is also critical for all those involved with the
export of products.
Conclusion
• Over the next 20 years, the global population will continue
to surge and I believe the different New Zealand industries
can play a key role in supplying high-quality food to the
world.
• MPI is committed to supporting you through opening up
access to new markets, supporting innovation and growth,
and partnering with you to enable your continued success.
Lets look at the
Cold Store sector
We still have six teams in NZ run by Regional Technical Managers
Specialist Advisor
My position has direct accountability for:
Its so specialised I cant tell you
Standard of Stores keeps improving
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Standard of Stores keeps improving
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Perceptions have changed
• What a premise looks like both from the
exterior and interior counts
• It may have nothing to do with food safety
• A food premise or a premise that stores food
needs to be clean and tidy
We better be ready
The EU are coming to audit our stores and
our systems this year.
They will be looking at –
• C&S
• R&M
• inventory systems
• traceability
• labelling
• EU Separation
• records
• certification
We better be ready
– For dairy we are changing over to electronic certification
on the 1st September
– This means auto approval
RMP Stores in NZ
MPI VS verified a total of 152 RMP registered cold and dry
storage operators during the period 1st November 2013
and 30th April 2014. There are a total of 18 dairy only
stores, 109 dual stores and 25 non-dairy animal product
stores.
From 1st November 2013 and 30th April 2014 VS undertook
469 verifications in this sector.
Location of the store operators in relation to regions
(152)
Circuit Team
Number of Operators
Upper North Island
74
Waikato / BOP Regions
14
Taranaki / Wanganui / Manawatu
11
Hawkes Bay
9
Canterbury / Timaru / Nelson
35
Southland / Otago
9
CARs issued in the 2 yearly period from 30 April 2012 to 30th April 2014
Topic
Number
% of total
Examples
Processing for Human
Consumption
2
2%
Product handling and storage
RMP & HACCP
2
2%
Not following documented RMP / Checks
Hygiene & Sanitation
3
2%
Tidiness and cleaning
Not meeting specific country
requirements e.g. EU, USA, China etc.
Repairs, damage, maintenance of
facilities
Overseas Market Access
7
6%
Design & Construction
14
11%
20
16%
36
29%
Certificate issues
Labelling, inventory control, product
ID
33%
Internal compliance – identifying and
managing own issues
OAP (official
assurances programme)
Identification &
Traceability
Quality Assurance
42
Total
126
PBV percentage from period 5 through to period 12, (period 12 November
2013 to 30th April 2014 in comparison with the other sectors.
Ceiling PBV percentage
period 5
period 6
period 7
period 8
period 9
period 10
AMD
90
87
90
88
94
92
95
95
Bee
98
96
94
95
93
98
97
96
79
86
79
BMS
period 11
period 12
By-product
98
93
96
82
89
98
95
97
DOB
96
96
95
93
93
90
92
93
EAP
96
95
96
99
99
99
99
99
Egg
92
93
93
90
91
94
95
91
Establishment
74
71
74
73
65
81
78
68
Live Animal
95
95
95
100
77
91
95
90
Meat
81
88
90
85
88
85
78
74
Petfood
98
98
91
93
90
90
88
93
Pharm Tech
90
88
82
97
89
94
91
97
Poultry
75
79
91
83
90
89
95
100
Seafood (land)
78
81
87
90
90
88
83
86
Store
84
80
80
84
71
70
72
73
Transport
90
91
92
95
91
92
97
96
Vessel
92
95
97
96
98
90
68
69
National average
89
90
91
91
88
89
89
88
Sector ceiling PBV steps
Sector ceiling PBV percentage - period 12
100
Ceiling PBV percentage
90
80
70
60
Sector
Unacceptable PBV percentage
Unacceptable PBV percentage - sectors for period 12
18
Unacceptable PBV percentage
15
12
9
6
3
0
Sector
PBV Step
Why are only 73% of Stores are on their minimum
compliance step?
One reason is Dairy stores have now been included in this
sector. Some are still working their way up to their
Minimum PBV step.
Another is companies not managing their own internal
compliance – operator control – making sure labelling,
inventory control, product ID, certification are correct
Stores Performance
Currently 73% of operators are on the
Minimum PBV step available, ie step 7
(domestic) and step 6 (export)
We need to make improvements in this area
Five Main Issues – Ongoing
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As stated = Improvements to work on
Repairs and Maintenance
Cleaning and sanitation
Labelling, Inventory, traceability, certification
Internal compliance (monitoring, daily, weekly
checks)
• Process management - records
Strategy
MPI are committed to and will continue to
communicate and confirm strategy with the
association and executive.
Strategy
• as the China issue showed we work together
well
• Communication plan
– robust working relationship
– current/relevant technical information
– performance data
• we see working with the association and
executive as a key to this information sharing.
Overview
A review of the Stores Annual Review is due to be
done.
From this a compliance status of the store sector
will be established.
The Stores Modus Operandi will be reviewed.
This targets those areas that have the majority of
compliance issues identified. There will be a strong
emphasis on company internal compliance,
operator verification and R&M
Modus Operandi
Modus Operandi:
• ensure all standards, and required compliance
levels are nationally consistent
• Was new and introduced to the Store Sector, in
July 2010
• will be reviewed in 2014.
(We will communicate with the Cold Store Association to
discuss and put in place a plan to address any issues. For
example: Quality Assurance, Load In/Load Out Verification,
Official Assurance Programme, Internal compliance, R&M)
Summary
We give the store sector clear rules and commercial
certainty arising from the “Circuit Technical Capability
Project” and establishment of the Modus Operandi.
For example:
• Set Scope for PBV (operators get a copy prior to audit)
• Costs - Set compliance (pre-audit, audit, report writing)
and travel charge times (depends on PBV step).
• You all know what we will be auditing
Summary
• VA Online (GEN2) implemented and functioning.
• A single system – uniform verification to ensure all Store
Operators are measured against standard criteria across
New Zealand by MPI VS
• All performing the same functions nationally
• Drive to maintain national consistency across the board
NOTE: We need to improve the national compliance level
Working together
The Ministry for Primary Industries and the Cold Store
Association are committed to working together to ensure
we comply to all the rules and legislation and keep
product safe, compliant and moving
Protect NZs great name
Thanks
Thank you for giving me the opportunity to give
this presentation.