sqf institute sqf technical advisory council meeting – april 2010

SQF InstituteSQF Institute

SQF Technical Advisory Council Meeting –

April 2010

Discussion Topics

SQFI Program Updates SQF Product Updates Quickfire Other

SQFI Program Updates

Program Growth Update on training, on-line training Marketing update Market expansion – Asia / Pacific Certification Body performance RABQSA update Review of scoring / rating solutions Input from group

Structure of SQF Program

FMI CEO

Sam DiCarloCFO FMI

Jill HollingsworthVP of Food Safety

John SchulzSQFI - BD

Gary SmithSQFI - TD

SQF Registrations – January 09

Total of 1963 registrations

Aus / NZ – 1385 N.A. – 322 A / P – 215 S.A. - 15

71%

16%

11% 1%

Aus/NZ

N.A.

A/P

S.A.

SQF Registrations – January 2010

Total of 4257 registrations

Aus / NZ – 1902 N.A. – 1968 A / P – 286 Latin Am. – 52 Europe – 14 Other - 35

46%

7% 1%1%

45%

Aus/NZ

N.A.

A/P

L.A.

Eur

Now 4890 sites

North American CBs within SQF – Number of Registered Sites

SGS – 1535 (1) Others Silliker – 748 (2) - DNV - 48 NSF – 583 (3) - Steritech - 37 NCSI – 354 (5) - SCS - 23 GFTC – 147 (6) - Eurofins - 3 TUV – 129 (7) - Cert-ID - 0 SAI Global – 100 (8) - Intertek (new) AIB – 86 (9) - Perry Johnson (new) Eagle – 78 (10)

(rank within total SQF CBs – 19 total)

5.9

2.9

10.1

0.5

23.8

0.4

11.6

14.3

6.5 7

1.1

4.1 4.1 4.3

1.1

4.1

11.1

3.2

20.9

0

5

10

15

20

25

3 4 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 26 27

Foodsectorcat

US Certifications by FSC by % – April 2010

N = 1159

Growth in SQF Program

Overall there has been 117% growth in the program over the last 12 months

The number of registered auditors has increased from 128 to over 300

There are now SQF certificates in over 30 countries around the world

SQF Budget Performance in 2009

2009 Budget approved was that SQF was expected to lose 400,000 USD

Final 2009 budget numbers show SQF actually finished in positive numbers, with some revenue from 2009 actually being attributed to 2010 due to some CBs invoices still outstanding

2010 approved budget has a 60 % increase in revenue• First quarter 2010 update

Revenue Model Discussion

SQF current revenue stream• 52% from registrations (average $300 per year)

• 18% from conference and training (auditor, update)

• 11% from on-line training revenue

• 9.5% from license fees

• 4.0 % from conference sponsorships

• 3.6% from PAF downloads

Revenue stream from beyond 2010 - ???

Update on SQF Training

Since January 2009, there have been • 3,200 Implementing SQF 2000 exams

• 316 SQF auditor exams

• 242 Implementing SQF 2000 on-line course

Training Update

SQF 1000 Materials Training Update Upcoming Projects

SQF 1000 Materials

Training Materials Exam Guidance Document

SQF 1000-- Training Materials

Implementation Training Materials for SQF 1000 have been developed• PowerPoint• Workbook• Exam

Includes food safety and food quality examples for primary producers

Need pictures to enhance content Future: Spanish translation

SQF 1000-- Exam

Developed for 1000 Implementation Course Designed for Consultants, Suppliers, Practitioners Multiple choice – no true/false or negative questions.

Example: When developing the food safety plan the producer must ensure

A. That at least one critical control point has been identifiedB. All employees have attended a HACCP certification classC. The customer's quality requirements have been considered when determining critical control points. D. The SQF Practitioner has validated that each critical limit is effective in controlling the identified hazard

SQF 1000– Guidance Document

Developing General Guidance Document Ready for review by May 5th Need Technical Experts for Animal Handling

(sections 5.6, 6.15, and 6.16)

Training Update


SQF Training

Training Survey Overview Feedback from Participants and Training Centers Training Materials

Survey Results-- Overview

Course attended:


Overall did you find the course….


The content was…


The method and style of presentation was…

Survey Results Overview

The rate of instruction was…

The course prepared me to implement SQF systems



The course exam….

Survey Results– Participant Comments

Comments can be classified into 4 Categories Time Materials Instruction Exam

Survey Results-- Comments

Time• Participants would like more time and extend the

Implementing course at least ½ day

• The time for the course content should re-structured with emphasis on the Implementation modules. Specifically more time is needed on: SQF Code; Food Quality Plans; Validation and Verification Activities


Materials• Fix typos and grammatical errors

• Remove irrelevant information

• Include “real world” examples, pictures and documents

• Translate in French


Instruction • Online course is a very useful tool

• Overall instructors are doing a great job

• More interaction/ exercises are needed


Exam• Exam items are tricky

• A practice exam would be helpful

• Exam items didn’t correspond with the training material

SQF Training

Training Survey Feedback Updated Training Materials to address

comments Translations

Updated Training Materials

Time Observation: There is not enough time to cover all

the information presented. The training time should be extended.

Resolution: Reorganize the agenda to emphasize the modules in the Implementing Section. Trim/restructure the “Cost of Quality” and “Implementing SQF System.”


Example Agenda:1) Introduction and Overview of the Course- 1 hour2) The SQF Codes, Food Sector Categories, SQF Vocabulary, Use of the

Logo, SQF Practitioner, SQF Consultant – 90 minutes3) Implementing SQF 2000 Systems – 4 hours

Workbook Review – 45 minutes 4) SQF Code- Fundamental Requirements – 90 minutes5) SQF Code- Pre-requisite Programs – 1 hour6) Auditing & Certification of SQF Systems: A Supplier Overview – 1 hour7) The SQF Food Safety Plan – 90 minutes

Exercise: Developing a Food Safety Plan8) The SQF Food Quality Plan – 1 hour

Exercise: Developing a Food Quality Plan


Materials Observation: There are some clerical errors in the

documents. When practical examples are used in the training course the participant can better understand how to apply the concepts

Resolution: Fix all typos and grammar errors. Simplify some of the “bulky” slides. Include “real world” examples in the notes section as they apply to the code. Create an appendix that includes sample documents (Policy Manual, Pre-requisite programs).


Instruction Observation: Some of the information presented was not

current. While the majority of instructors were rated high there were some instructors that were not rated favorably.

Resolution: Audit training courses and develop a train the trainer course to keep trainers updated on the code revisions. Include a module on Quickfire


Quickfire ModuleDesigned as quick introduction and to be used as a long term reference

Topics:- What is Quickfire and how do I use it - How to register your site on Quickfire- ICIX- The buyer module

- How to add a buyer- How to access buyer information

- User guides/videos


Exam Observation: The exam questions are tricky and

don’t pertain to the course material.

Resolution: Develop a new bank of test questions that are relevant to the course and the participant. Include a practice exam and/or questions dispersed within the training materials.

Training Update


Upcoming Training Projects

Translations• Revised SQF training materials to be translated in

Chinese, Japanese, and Spanish (French?)

Auditor Training • Revisit training materials

• Develop new bank of audit questions (include a practical exam as part of training class?)

SQF Marketing Update

Working with marketing firm Merrill and Associates on marketing projects• Short term – March/April newsletter

• Market research – surveys from Suppliers CBs Retailers

• Marketing materials

• Review of SQF website

Activities in Growth of Asia / Pacific Market

Conference in China, November 2009 Auditor course in China, April, 2010 Other activities / potential

• Brazil

• Mexico

• Central America

• Europe

Certification Body Performance

Monitoring capabilities limited from Quickfire• Currently able to do report review and monitoring of audit group

management • Feedback provided to CBs

Have requested more reports from Quickfire for future monitoring

Have been in close contact with both accreditation bodies with reports from recent assessments and concerns

One Certification Body has been delisted due to monitoring activities

CB Compliance Data

Reality – very limited reporting capability out of Quickfire presently

Management of Audit Groups – audit groups closed within 45 days after due date

North American CBs – (SQF average 93.7)• CB A – 100% - CB H – 75%• CB B – 99% - CB J – 70%• CB C – 97% - CB K – 56%• CB D – 95% - CB L – 50%• CB E – 93%• CB F – 85%• CB G – 78%

RABQSA Performance

Since Sept 1, all applications have been handled electronically by RABQSA

Applications received – 263 applications total• 196 auditor applications

• 58 consultants

• 9 trainers

Turn around time of applications now at 7 business days Concerns –

• 9 trainers applications only –14 total trainers registered

Rating Issue

Issue: Due to the scoring system of SQF audits, ratings for all audits are skewed very high

Potential solution:• Rework rating formula for determination of rating

• Increase weighting of non-conformances

Fix will be incorporated with new PAFs for SQF 2000 in May, 2010

Example of Rating Issues

Example: site with 2 majors, 15 minors, and 10 OIP – surveillance audit needed• Currently rates – 96.0% E rating• Reworking formula – 84.1% C rating• Weighting of N/C – 77.6 % C rating

Weighting of N/C proposal• OIP: -1 point• Minor: -10 points• Major: - 50 points• Critical: -100 points

Weighing of N/C chosen by AP group, show both scores for a year

Implement by June 1st, 2010

Discussion Topics

SQFI Program Updates SQF Product Updates Quickfire Other

Multi-site Certification

Some confusion on multi-site certification, clarification from TAC needed• Audit protocols

Every 6 months central site audited, sample of sub-sites Full document audit done at one sub-site Full audits done by central site of each sub-site annually Only certificate received by central site

• Questions Should sub-sites each receive a certificate from CB How should a document review audit of sub-sites be conducted

SQF 1000 Update

5th Edition Final version was released Sept 1st, 2009

Minor revisions in Jan, 2010

Updates• Transition over March 1,

2010

• Minor revisions to ensure GFSI recognition

• Level 2 and 3 PAFs available

Update on Competing Produce Standards

Freshcare• Given growth of Fresh Care in Australia, we are

meeting with them to discuss collaboration options• Given status of 1000 and declining market share,

what should we attempt to accomplish United / LGMA / FL Tomato

• No push for GFSI certification within produce industry in North America

• Less robust standards being developed and accepted by US buyers

United Produce Standards

Developing a produce standard with customer buy-in and participation that can be used by anyone.

The goal isn’t to create a new standard but use the content from existing standards to create a “harmonization” approach.

Currently have 39 out of 60 standards developed. Target date for completion is October 2010

Next big discussion is on how the developed standard will be implemented and sustained.

Future of SQF 1000

SQF 1000 market share eroding quickly Freshcare in Australia becoming dominant

produce standard In North America – produce industry has not

embraced 1000, GFSI recognized many primary produce standards

Actions / Strategies to move forward

SQF 22000

SQF 22000 has been submitted to GFSI for benchmarking• Using session 5 and 6 from SQF 2000 standard, with ISO

22000 as the foundation for food safety management

Accreditation will have to include 17021 as an scheme, CB criteria document must be updated

Reason – North American, Asia/Pacific option for 22000, easy access to SQF CBs

Status – initial benchmarking, additional work needed to complete benchmarking, no activity until July, 2010

SQF Ethical Sourcing Module

Module built combining the SQF modules (RSP, REP), retailer standards and the Global Social Compliance Program (GSCP)

To be combined with SQF certification audit Expected to be 1 additional audit day Auditors will be required to be SQF registered and

undergo an additional training session on ethical sourcing module and on-line exam • Webinar April 28th

• Classroom May 7th - Chicago

Responsible Social Practices

Responsible Environmental Practices

Ethical Sourcing Food Defense

Solution for Sustainability – SQF Modules

Guidance Documents for SQF

General Processing Requirements

Produce Packing House (FSC 4)

Shell Egg (FSC 12) Transport and Distribution

(FSC 25 & 26) Packaging (FSC 27) To begin in Q1 of 2010

• Dairy (FSC 10)• Brokers (FSC 35)

Guidance Document Approvals Needed

Packaging Produce Packinghouse Ethical Sourcing

Other Potential New Products

Ethical sourcing training and on-line training Animal welfare – module around humane

handling of animals, chicken, beef, pork, lamb Aquaculture module SQF branded products

Quickfire Support Solution

SQF Quickfire Support Personnel• Australia – part time, 20 hrs per week

• US – part time, 20 hrs per week (ON HOLD)

Dedicated to providing Quickfire support to Industry• Suppliers

• CBs

Will be interacting with Muddy Boots directly when there are issues they cannot address

Implementation April 1st, 2010 in Australia Webinars, user guides, Muddy Boots training

Quickfire Discussion

Current status – SQF has expressed major concerns to Muddy Boots over usability of system, report capabilities, interface requests, responsiveness and engagement of SQF team in communication and strategy

Concerns – Have we asked them to do too much?• Reality – system not built to run a certification program, very

limited customization to SQF needs

Future – reviewing options on reporting capabilities with other service providers, contracted objective review with usability of system for customer interface

SQF Conference, August 2010

In conjunction with AFS HACCP conference in Melbourne

Review of agenda and speakers Awards and sponsor updates

GFSI Update

Many standards globally seeking GFSI recognition• Primus, Global GAP, FSSC 22000, Syngery 22000, Red Meat

Standard recognized• Concern expressed to GFSI on number of recognized

standards growing• GFSI not concerned with number of standards, want as many

as possible, more concerned on costs of GFSI certification audits and expansion into emerging markets

6th Edition of the GFSI Guidance Document set for July, 2010 release

SQF working with GFSI Accreditation committee on Witness Audit Recognition Program with CB association (Food Safety Forum)

Other Discussions

Sprouts / Mushrooms to be SQF 2000 ICIX integration Use of the SQF buyer module