5.17 Examples of In-market QA Developments

Recent contact information has provided the following discussion of recent developments in customer and consumer preference for quality programmes in Europe.

5.17.1 Veal Quality Programme in Germany

      In Germany approximately 1.2 million animals are slaughtered for veal each year, and significant quantities of veal are imported from third countries, particularly the Netherlands. Animals are slaughtered at weights between 120 and 145 kilo, at 6 months of age. They are intensively farmed indoors, and are slaughtered at a number of slaughter premises, concentrated generally in the north of Germany around Bremen. One of the largest slaughterhouses, kills just over 300,000 head per year.

      All slaughterhouses have combined to introduce an animal traceability programme that includes a quality assurance programme that guarantees the animals are free from growth hormones, residues, and microbiological contamination. This programme has been introduced by slaughterhouses as a consequence of a series of media articles regarding antibiotic contaminated veal being sold in Germany. The programme works in two parts, the first being traceability, and on the back of that, the residue-free programme has been established.

      All animals are required by German Law to have two ear tags (one in each ear) and a "passport". The passport and ear tags are issued by German Authorities at the time of the animal's birth (they are not issued in bulk to farmers, but one at a time) and all changes of ownership must be registered on the passport through to slaughter. This scheme became compulsory for all animals born after 1 January 1998, and animals sent for slaughter after 15 July 1998 will not be accepted unless they comply with this requirement.

      A proportion of farms are audited for a number of issues including veterinary pharmaceutical use, and slaughterhouses have agreed that they will only purchase from farms that are part of the farm management and audit programme. The manager of one slaughterhouse has indicated that in his opinion they had no option if they wished to preserve veal's market share. Animal welfare issues are legislated for, and the audit programme will also check farm compliance with those requirements (most of which refer to housing conditions and space) as well as being subject to audit by German Authorities. Environmental issues were not of significant concern to either the slaughterhouses, or the fattening farms.

5.17.2 Integrated Chain Management (IKB) Scheme in Holland

      The IKB programme was established in the Netherlands as a result of a series of residue problems and bad press in the late 1980's and 1990's. As a consequence the PVE (industry, farmers and unions, the Pork Council) developed an integrated chain management programme which has resulted in a product label, now advertised on television.

      For meat to be able to display IKB label, it must come from an approved slaughterhouse (there are 52), and that slaughterhouse is responsible for auditing all aspects of the chain of supply. This includes the breeder, the fattener, and the feed supplier. Areas to be audited include animal welfare, chemical and residue use, energy use and waste management. Feed suppliers are required to operate a GMP programme, and while feeds from animal sources are currently allowed, consumer pressure is likely to result in this being changed within the next twelve months.

      Veterinarians are heavily involved with the programme, and are required to give advice to participating farmers on animal health issues, as well as providing some audit of breeders and fatteners. A random audit programme is provided for this scheme. All animals are individually identified, and while at present the fattener changes the ear tag from that of the breeder, within 6 months the same identification will stay with the animal from birth forward.

5.17.3 IVI Veal Scheme

      The largest single producer of veal in Holland (killing 350,000 head per year) is ESA, part of the Alpuro group. It is a vertically integrated veal producer owning a slaughter plant, fattening farms and milk replacer factory. Alpuro have a complete animal traceability and quality programme, required by their customers who are located throughout Europe. A feature of the IVI programme is the customer's ability to dial into Alpuro's Internet database and receive information about their shipment of veal. This information includes details of every animal that has contributed parts to the shipment, and which farm each animal came from. Equally, farmers can dial in and find out where their animals were shipped. Parts of the Internet site describing the programme can be found at www.alpuro.nl. The ESA Operations Manager indicated that they were obtaining significant market advantage by having this level of traceability and information feedback. The system was developed at a cost of about NZ$ 500,000 in addition to the costs of the plant's own information management system.

5.17.4 MPS System for Flowers - Holland

      MPS is a programme for flower growers which has been running for four years in Holland, and is now being extended to other countries such as Denmark, Belgium, Costa Rica, Israel, Zambia and Zimbabwe. The MPS programme monitors inputs and outputs (use of chemicals, energy, water, waste) and grades growers according to their performance in these four areas. Performance is compared on a `per square meter of each different crop grown' basis, with different benchmarks for each crop and for each country. Weighting of inputs is different between countries. For example water use is being given higher weighting in Israel than in the Netherlands. The programme is a benchmarking programme, and growers are in effect compared against their peers.

      Seventy percent of flowers grown in Holland are now grown under the MPS system, with just over 3,000 growers now qualified to use the label. Another 400 are going through the twelve month long qualification programme. Other countries are still going through their qualification programme. There are over 100 growers in Israel in the pilot. Some purchasers now require the flowers to be from an MPS source (for example Migros of Switzerland) and growers spoken to who had been in the system for four years reported significant decreases in chemical use and costs. On average, those growers entering the scheme in 1994 now use 75% of the chemicals (active ingredients) they used four years ago.

      The reason that the scheme was launched (by the Dutch Auction Floor) was as a method of benchmarking with the objective of reducing chemical use, waste etc to assist their growers, and also due to increasing consumer concerns over these issues. The MPS Group now has revenues of over NLG4 million per year, and audits 30 percent of participating growers on an annual basis.

5.17.5 Red Star Tomatoes - Netherlands

      A group of five growers (total of 13 hectares under glass) are growing tomatoes with environmental claims. They are reporting significant drops in cost (chemical use now 1% of that prior to entering the scheme) even after allowing for increased labour costs. ICM methods are used extensively.

      The group is targeting English supermarket chains who are prepared to pay a premium for their product (they produce about 45,000 tonnes of tomatoes a year). A grower recently visited noted that he had no option but to follow this path. His major customers are clearly indicating he would have no option in the future, and he had the opportunity to get early adopter premiums.

5.17.6 French Programmes

      SGS France has a number of programmes under the AgriConfiance label, the largest of which has over 1,000 producers involved. These are quality management programmes based on the ISO 9000 standard, driven by supermarket chains wishing to ensure consistent quality and traceability. Chains such as Auchan and Carrefour run programmes in a range of areas including beef, fresh vegetables, pork, free-range eggs and fish. In about half the cases the supermarkets operate these programmes themselves, and the other half by the grower co-operatives. It should also be remembered that the Appellation-Controllé Wine Programme is in fact a quality control programme.

5.17.7 Consolidation of Multiple QA Programmes

      There are some initiatives to consolidate the multiplicity of small quality assurance programmes into one or two standards across Europe. There is a grouping of 35 major retailers currently working with the Europa-Handel Institute in Bonn to select what they believe are the best of the programmes operating. Sainsbury and Novartus are collaborating to develop a good agricultural practice (GAP) standard initially with the horticultural and arable sectors. It appears that the UK retailers lead the charge in demanding traceable product produced under ICM programmes.

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