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7 - 9 August 2017
Lome - Togo
Ghana
16th US-Sub-Saharan Africa
Trade & Economic
Cooperation Forum
9 August 2017
Kofi Essuman (CEO, GS1 Ghana)
Ghana
Packaging & Labelling for
Export Competiveness
© 2012 GS1
Content
3
1.Fundamentals of Packaging
2.Packaging Materials
3.Labelling, Marking & Coding
4.Packaging and Standards & Regulations
5.Packaging and Sustainability
Ghana
© 2012 GS1
1. Fundamentals of Packaging
4
Ghana
© 2012 GS1
Packaging
5
What is Packaging
A general term used for the functions, materials and overall
concept of a coordinated system of preparation of goods
for handling, shipment, storage, marketing, distribution and
use at optimum cost, and compatible with the requirements
of the product.
Ghana
© 2012 GS1
The Importance of Packaging
6
The Importance of Packaging
Minimizes handling losses
Enables value addition (along with processing)
Makes movement of goods thus trade possible
Informs about the packaged contents
Provides convenience
Ghana
© 2012 GS1
The Functions of Packaging
7
i. Contain the product
Contain a defined quantity of product (by volume, weight, or count)
Use the available pack volume efficiently
Be tight to prevent escape of the product or ingress of contaminating
materials
Keep the pack size to a minimum to save cost and to optimize package
Ghana
© 2012 GS1
The Functions of Packaging
8
ii. Protect the product
To keep the product in perfect condition until reaching
the intended destination or end user
Avoid spoilage, breakage, moisture damage,
contamination, pilferage
Ghana
Blister packs to protect tablets Packaging must protect
© 2012 GS1
The Functions of Packaging
9
iii. Inform
Packages carry information about:
The product (e.g. what it is; ingredients)
Mandatory regulatory information i.e. sell by date, name
of manufacturer, nutritional values etc.
Ghana
© 2012 GS1 10
iv. Facilitate handling and distribution
The package should facilitate safe handling of the product from the time of packing until its receipt by the end user.
Minimize handling costs throughout the distribution chain
Satisfy handling requirements related to safety, recycle and disposal
Ghana
© 2012 GS1 11
v. Position the product and promote sales
Structural and graphic design of package optimized to
attract and help sell
Ghana
© 2012 GS1 12
Ghana
© 2012 GS1 13
Ghana
Primary Packaging
© 2012 GS1 14
Ghana Secondary Packaging
© 2012 GS1 15
Ghana Tertiary Packaging
© 2012 GS1
Six Packaging checks for Export
16
There are many factors to consider when packing products
for export. The most important of these are:
1. Nature of the goods / products:
Are they perishable, fragile, heavy, hazardous or
robust?
Example: fruits and vegetables are perishable;
chemicals are hazardous; furniture, pottery and many
forms of artwork may be fragile.
Ghana
© 2012 GS1 17
2. Mode of transport:
Will the product be transported by road, rail, sea, air, or
multi-modal (a combination of modes)?
How will these products be handled?
What specific considerations
must be given to each mode
of transport?
Ghana
© 2012 GS1 18
3. Customers’ specific requirements:
Are there any special requirements or requests made by
the customer?
Example: does the customer require the cargo to be
shrink wrapped and palletized for ease of handling?
Shrink wrapping is a useful
way of protecting goods from
dirt, dust and product
tampering
Ghana
© 2012 GS1 19
4. Prevailing regulations: Do you know the specific laws or regulations specific to packaging?
How will this affect your packaging?
The “Green Dot” symbol
means that the “producer”
(supplier of packed goods)
has paid the ‘recycling’ fee
to the relevant national
contracting company, such
as Eco-Emballages in
France or Dual System
Deutschland in Germany.
Ghana
®
Symbols used to identify plastics
for sorting and recycling
© 2012 GS1 20
5. Storage of product:
Does your product need to be stored in a specific way en
route or once it has reached the importer? How is it likely
to be stored?
Example: ice cream must be kept frozen; fruit and vegetables should be kept in an
environment where temperature and humidity or even atmospheric gases are regulated.
Ghana
© 2012 GS1 21
6. Available technologies and materials:
What types of packaging materials are available to you?
What technologies are there to assist in the packing
process?
Should it be primary packaging such as a heat sealed
pouch or protective packaging such as shrink wrapping or
strapping?. Modified atmosphere packaging Stacked and strapped
fruit ready for export
Ghana
© 2012 GS1 22
Ghana
© 2012 GS1
Consumer Demands
23
Image/Brand/Quality
Appearance
Convenience
Clear, concise Instructions
Ingredients/Country of origin/Use by date
Price
Environment and Sustainability considerations
Ghana
© 2012 GS1
Retailer Demands
24
Primary pack image & display to support retail sales?
Packaging for required level of protection and preservation?
Secondary packaging and shelf display facilitation ?
Satisfactory labelling/bar coding?
Meeting retail industry statutory requirements?
Packaging & materials handling systems compatibility?
Compliance with national, regional and/or international
standards?
Environment criteria?
Ghana
© 2012 GS1
Manufacturer Demands
25
Are the needs met of both the consumer and the retailer?
Are there end-user benefits?
Brand and the image
Product differentiation
Competitive with respect to price and consumer benefits?
Meeting product technical requirements?
Satisfactory filling/packing line performance?
Environmental impact?
Ghana
© 2012 GS1
Marketing Demands
26
Designed as a marketing and communications tool?
Product packaging appeal?
Visual design promotes sales (barcode )?
Differentiation of the product?
Designed to meet visual appeal and shelf-space allocation?
Labelled to meet statutory requirements?
Required level of safety and security?
Sustainable?
Designed to bridge the gap between consumer demands,
sustainability requirements and branding/image needs?
Ghana
© 2012 GS1
Supply Chain Demands
27
Suitable for quality maintenance and protection along the entire supply
chain?
Labelling/barcode identification to meet industry, statutory &
requirements?
Does it meet the requirements for traceability?
Sufficiently robust for dispatch, storage, distribution, etc.?
Required level of security along the supply chain?
Cost-effective with respect to deadweight?
Has cube utilization been optimized?
Meet current and anticipated sustainability requirements?
Ergonomics?
Ghana
© 2012 GS1
Environmental Demands
28
Meeting local and destination country regulations?
“Resource effective” in both materials and energy?
Environmentally friendly?
Use of recycled materials generating minimum amount
of waste?
Free of any hazardous chemicals?
Reduced carbon footprint?
Efficient in “packaging to product weight ratio”?
Ghana
© 2012 GS1
Statutory Demands
29
Specific to Country of Origin
International codes and practices
Recycling Codes/Disposal Instructions
Informative, truthful, straightforward and legible labelling
Product traceability
Ghana
© 2012 GS1
Product Demands
30
Required levels of protection and preservation?
Suitable product shelf-life?
Required levels of safety and security?
Substrate providing adequate surface for graphics & labelling?
Desired level of convenience for both the consumer and the
retailer?
Free of toxic chemicals?
Cost-effective?
Required volume and weight efficiency?
Optimal cube utilization optimal?
Sufficiently robust for all the materials-handling throughout the
supply chain?
Designed using minimum and new material/technologies to
support sustainability?
Ghana
© 2012 GS1 31
Containment
Convenience
Preservation
Protection
Security
Visibility
Promotion
Information Transmission
Sustainability
Ghana
Key Selection Criteria for Packaging
© 2012 GS1
2. Packaging Materials
32
Ghana
© 2012 GS1
Packaging Materials
33
Essentially package constitutes:
Material used for creating a basic structure
Material used for decoration and forming a shape and
Associated fitments or components for it to serve its intended purpose
In considering the different packaging materials, it is useful to categorize the different types of packages:
Flexible: Examples include paper sacks, sauce sachets, potato chip and snack packs, and plastic bags.
Semi-flexible: Examples include paperboard or cardboard cereal boxes, aseptic packages (laminated materials), drum liners, blister packs and clamshell packages.
Rigid: Examples include bottles, jars, cans and corrugated fibreboard cartons. Returnable and reusable containers form part of this category.
Ghana
© 2012 GS1
Packaging – Structural Components & Materials
34
Ghana
Basic Structure
Materials
Decoration and
formation materials
Components
Paper Lacquers
Printing Inks
Adhesives
Labels-Paper, Plastics
Sleeves-Plastics
Closures & lids
Interior Fitments &
Reinforcements
Pallets
Plastics
Metals – Steel,
Aluminium
Glass
Wood
Others – Composites,
Jute,
Biodegradable
/compostable
© 2012 GS1
Glass Packaging
35
Ghana
Glass Jars
Glass Bottles
© 2012 GS1
Metal Packaging
36
Ghana
© 2012 GS1
Plastic Packaging
37
Ghana
© 2012 GS1
Wood Packaging
38
Ghana
© 2012 GS1
Flexible Packaging
39
Ghana
© 2012 GS1
Paper Packaging
40
Ghana
© 2012 GS1
Other Packaging
41
Ghana
© 2012 GS1
3. Labelling, Marking & Coding
42
Ghana
© 2012 GS1
Functions of Labelling
43
There are essentially four functions of labelling:
Ghana
Product
Marketing
Information
Traceability
Legal & Prescribed
© 2012 GS1
Types of Labels
44
There are two types of labels (and coding) to consider:
1. Labels (and coding) applied to the primary packaging or
point of sale/display packaging.
2. Labels (and coding) applied to transport packaging
(outer cardboard boxes, containers etc.)
Ghana
© 2012 GS1
Labels
45
A. Packaging label (point of sale) should contain the following:
Name of the product
Quantity: Weight or Volume
Date of manufacture
Validity, or best before dates
Compliance with safety and environmental regulations (e.g.
recyclable material compliance)
Ghana
Date of manufacture
Best before date
© 2012 GS1
Labels
46
B. Protective / transport packaging label must:
Show the physical address of the exporter/shipper and contact details
Show the physical address of the importer/consignee and contact details
Be easily understood (preferably in the language of the importing country)
Indicate the country or origin
Show the shipping marks
Be in compliance with shipping regulations, such as the International Maritime Organization
Indicate safety regulations (including environmental requirements)
Ghana
Examples of international pictorial cautionary labels
© 2012 GS1
Labels
47
A protective / transport packaging label must:
Include cautionary and handling marks (do not drop, fragile, keep dry etc.)
Display the departure point
Display the arrival point
Indicate any transit points
Indicate the box’s number within a shipment of multiple boxes. For example: 38/100 boxes, indicating that this is box 38 of a shipment of100 boxes
Ghana
© 2012 GS1
Labels
48
A protective / transport packaging label must:
Indicate weight: gross, and net mass
Indicate dimensions of the package
Demonstrate the number of items within the package
Include the correct weights and measurements of the importing country
Show the order, L/C, import license numbers
Eventually bar coding references as requested by the importer for ease
of reading and storage handling may be applied onto the carton or even
pallet load.
Ghana
© 2012 GS1
Labels
49
The label carries a lots of regulatory information
Ghana
© 2012 GS1
BARCODES
50
Ghana
Everyday you see bar codes in the world around you. You see them in supermarkets, on labels, greeting cards and consumable goods.
Today the bar code is accepted as the norm in supermarkets and considered a ‘must’ in order for a supermarket to function effectively.
You do not need a bar code in order to sell your product, however many supermarkets and retail shop in the will refuse to sell your product if it doesn't have one.
.
© 2012 GS1
BARCODES
51
Ghana
• A bar code is a pattern of bars and spaces holding a
unique identification number.
• Each character is represented by a pattern of wide
and narrow bars.
• A bar code can be decoded or read by a scanner to
retrieve the information from a database.
• The information encoded in the bar code is shown in
human readable format beneath the bar code.
© 2012 GS1
Vital Parts of a GTIN / EAN-13 Barcode
>
Guard Bars
Pairs of Dark Bars
(Elements) Human-Readable data
(GTIN)
Light
Margin
Indicator
Light
Margin
Indicator
Light, solid
background
colour
© 2012 GS1
How Does the Barcode Work
5 4 1 2 3 4 5 6 7 8 9 0 8
The barcode is illuminated with a visible red light source
and the reflected light is read and measured.
This information in the barcode such as manufacturer,
product type, pack size then captured
This allows the shop to uniquely identify every product
and stock keeping unit with its price
6034000396003
© 2012 GS1
Types of Barcodes
54
Ghana
1. GTIN 13 / EAN 13
Are specified for retail Point-of-Sale (POS) for consumer units. Must be printed according to specifications IT IS MADE UP OF 13 NUMBERS 6034000004017
THE NUMBERS ARE SPLIT INTO 4 GROUPS i. COUNTRY OF ISSUE 603
ii. MANUFACTURES NUMBER 6034000004
iii. PRODUCT NUMBER 603400000401
iv. A CHECK DIGIT 7
© 2012 GS1
Types of Barcodes
55
Ghana
2. GTIN 8
Also for POS items but only for products with insufficient space
for a normal GTIN-13 symbol
3. GTIN-128
Used worldwide primarily for encoding shipping and product information for traceability
3. GTIN/ITF-14
Used directly on corrugated cartons to identify items going into warehouses and shops
© 2012 GS1 56
Ghana
The only purpose of a bar code is
that it should be scannable
© 2012 GS1
Remember: Barcodes MUST
57
Ghana
Right symbol
Right place
Right size
Right orientation
Printed accurately
….. and
MEET THE STANDARD!
© 2012 GS1
4. Packaging Standards &
Regulations
58
Ghana
© 2012 GS1
Forces that influence Packaging
Regulations
59
Three key drivers
1. Goods travel over longer distances
• Increasing demand for performing and compliant
Packaging
2. Demands for Safety & Security (traceability) on the
increase
• Packaging: a key vehicle (tamper evidence, labelling)
3. Environment
• Increasing global concerns on the impact of packaging
Ghana
© 2012 GS1 60
EU, US, Japan and other developed countries have strict packaging
regulations. Exporting to these markets therefore needs to be done
with their regulations in mind.
Ghana
Forces that influence Packaging
Regulations
Focus of US, EU & Japan Packaging Regulatory Requirements
US
• Safety more
than health
• Security more
than health
• Environment
(liability)
EU • Environment
through waste
management
• Health
• Security
Japan
• Environment
through reduction
at source
• Volume
reduction
• Substitutions
© 2012 GS1 61
Environment related - directive on packaging and
packaging waste, …
Consumer safety - Food Contact materials (FCNs),
traceability…
Food manufacturing establishments- HACCP
Trade related - BRC, REACH…
Safety- road, waterways, airways etc.
Labour/handling – ILO directives, fair trade..
Ghana Regulations – Impact on Packaging
© 2012 GS1
EU Mandatory Regulations - Foods
62
Fresh Fruits and Vegetables Processed Foods
Quality and grading Regulation (EC)
No 2200/96 & amendments.
Phytosanitary directive 2000/29/
Hygienic Package COM/2000/0438
(Final). Directives on MRL’s.
Product Regulations 2201/96.
Authorized Food additives directive
89/107/EEC.95/2/EC. Authorized
Flavourings directive 88/388/EEC
Labelling: Directive 2000/13/EC.
Basically, the needed information
pertains to :packers/exporters name
address and code, product name
variety/type, country of origin, class,
sorting, group number, number of fruit
row/layer, preservation method.
Special provisions for GMOs.,
Environment Measures-Organic
Production directive 2092/91/EEC
Ghana
© 2012 GS1
EU Mandatory Regulations - Foods
63
Fresh Fruits and Vegetables Processed Foods
Packaging marking and labelling
directive 75/106/EEC. law stipulates
obligations for the packaging of: fruits
juice & concentrates, dried fruits and
vegetables, frozen fruit and
vegetables e.g. quick frozen food
must be packaged in pre-packaging
which protects them against external
contamination and drying. importers
can ask suppliers to use packaging
materials that can be recycled
according to the directive
Packaging marking and labelling
directive 75/106/EEC. law
stipulates obligations for the
packaging of: fruits juice &
concentrates, dried fruits and
vegetables, frozen fruit and
vegetables e.g. quick frozen food
must be packaged in pre-packaging
which protects them against
external contamination and drying.
importers can ask suppliers to use
packaging materials that can be
recycled according to the directive
Ghana
© 2012 GS1
Directive 94/62/EC on packaging &
packaging waste.
64
“Essential requirements” Article 11, limits the cumulative content of Pb, Hg, Cd & hexavalent chromium to 100 ppm in every component of packaging.
• Coalition of North-western Governors (CONEG) in USA, has enacted laws that impose the same limits.
• Procedures for minimizing levels of substances dangerous to the environment - CEN Standard EN 13428:2004.
• Best way to ensure conformity-Obtain from every supplier of materials a declaration/ test certificate attesting that the sum of the 4 heavy metals present does not exceed 100 ppm (aside from the derogation of recycled plastic or glass).
Ghana
© 2012 GS1
Food Contact Materials
65
General requirements for all food contact materials are laid
down in Framework Regulation 1935/2004.
Specific EU regulations have been established for
ceramics, regenerated cellulose film, plastics, recycled
plastics and active and intelligent materials.
In addition, there are Directives on single substances or
groups used in the manufacture of food contact materials
Ghana
© 2012 GS1
Regulation (EU) No 10/11 PIM
66
Regulations covering rules on:
• Directive 2002/72/EC
− General rules
− Authorized substances
− Restriction &specifications
− Declaration of compliance
• Vinyl chloride monomer
− Restrictions & migration testing
• Directive 82/711/EEC
− Migration testing
• Directive 85/572/EEC
− Food simulants
Ghana
© 2012 GS1
Codex & the International Food Trade
67
Codex Alimentarius Commission
A body established in 1963 by the FAO and the WHO.
Main aims are to protect the health of consumers and
ensure fair practices in the international food trade.
Recognized by WTO as an international reference point
for the resolution of disputes concerning food safety and
consumer protection.
Ghana
© 2012 GS1
HACCP
68
Under Food Safety Management system it always pays to
follow HACCP.
Such a management system, under the overall
plant strategy necessitates certain
Record keeping with respect to packaging and
packaging material.
Ghana
© 2012 GS1
Standards based on retailers need
69
BRC/IOP Packaging Standard: Technical Standard & Protocol for
companies manufacturing & supplying food packaging materials for
retailer branded products . Standard is developed to specify the safety, quality and operational criteria required to be in place within a packaging manufacturing organization to fulfil obligations with regard to legal compliance & protection of the consumers.
REACH - Registration, evaluation, authorization of chemicals (REACH) in the EU, has the potential to fundamentally change: Which packaging materials can be used? The cost of materials, How packaging is printed and assembled and which suppliers should be used?
Ghana
© 2012 GS1
Other standards and initiatives
70
• GFSI: Global Food Safety Initiative,
• IFS: International Food Standard (German retail trade)
• SQF: Safe Quality Food (Australia),
• Danish standard DS 3027
• Industry sector documents, such GMP
• ISO/CD 22000: System for management of safety of
foods
• Requirements, ISO 15161
• CEN TC 261 “Packaging”: Management of hygiene in the
production of packaging for foodstuffs
Ghana
© 2012 GS1
Traceability
71
Codes of good practice and traceability have become mandatory for all food products and this includes organic products as well as their packaging.
The producer, manufacturer, distributor, and any other professional in the supply chain, insofar as their activity may
affect the safety of a product as defined in EU Directive 2001/95/EC, should evaluate and anticipate the risks, and fulfil these requirements by maintaining the appropriate records.
Being aware of developing legislation will help to ensure that
they remain in business.
Ghana
© 2012 GS1
European Regulations on Environment
Related to Packaging
72
recycling mandates/laws
material reduction mandates/laws
bans/restrictions on packages/materials
bans on materials accepted for landfill
green labeling requirements/prohibitions
purchase preference mandates
tax incentives/penalties
deposit laws
refillable container mandates/laws
recycle content mandates/laws
quantity-based garbage removal fees
Ghana
© 2012 GS1
5. Packaging & Sustainability
73
Ghana
Examples of packaging aspects and their positive impact on sustainability
© 2012 GS1
Sustainability Concepts & Packaging
74
Sustainability concepts are very important in the development of modern packaging systems and their supply chains.
Life Cycle Assessment (LCA)
measure a product’s (manufactured good or service) impact on the environment along the entire supply chain - from cradle-to-grave
Carbon Footprint
forms part of an LCA
the total amount of greenhouse gas emissions (especially CO2) caused by an organization, product, process, event etc.
usually expressed in the amount of CO2 emitted over a certain period of time
Ghana
© 2012 GS1
Reduce, Reuse, Recycle, etc.
75
1. Reduction
Minimum amount needed
Minimum weight
Bulk packaging (reduce package: Package weight ratio)
2. Reuse
Durable materials
In-mold labels
Efficient return system
Monetary incentives
Ghana
3. Recycling
Single material packaging
Use materials for which a collection system exists
Water soluble adhesives for labels
In-mold identification symbols for plastics
4. Use post-consumer waste materials
5. Use biodegradable materials
6. Safe disposal of ‘toxics’
7. Marketing
© 2012 GS1
Eco- labels
76
Ghana
Germany NL Spain Nordic Austria
Czech France
© 2012 GS1
Waste Hierarchy Pyramid
77
Ghana
PREVENTION
REDUCE
REUSE
RECYCLE
RECOVER
DISPOSAL-
LANDFILL
LEAST-FAVOURED
OPTION Source: EPA (US Environmental Protection Agency)
© 2012 GS1
The Perfect Package
78
The European Organization for Packaging and the Environment (EUROPEN) provides an appropriate set of criteria for the Perfect
Package:
Packaging should be designed holistically with the product in order to optimize overall environmental performance.
Packaging should be made from responsibly sourced materials.
Packaging should be designed to be effective and safe throughout its life cycle.
Packaging should meet market criteria for performance and cost.
Packaging should meet consumer choice and expectations.
Packaging should be recovered efficiently after use.
Ghana
© 2012 GS1
The Packaging Sector in SSA
79
Ghana
Strengths
Proximity to end customers within the country and region
Lower volume potential reduces clients’ capital outlay
Capability to meet the demands of SMEs
Growing awareness and interest in the potential of the packaging industry in a country’s economic development
© 2012 GS1
Weaknesses
80
Ghana
Lack of domestic or regional raw material supply
Low quality compared to imported packaging usually due to obsolete machinery and technologies
Support service often weak resulting in downtimes (lack of spare parts or expertise to repair
Due to small markets there is often limited investment into new technologies
Conversion machines, equipment and accessories are imported
© 2012 GS1
Weaknesses
81
Ghana
The packaging industry is heavily focussed on plastics, and the poor management of plastic waste has given a negative impression of packaging in general
There are no well-equipped packaging testing,
development and design laboratories
In view of poor road infrastructure, products tend to be damaged in transit. Coupled with multiple handling in distribution, packaging has to be extra strong and this affects cost.
Local packaging sometimes tends to be expensive.
Packaging depends on economies of scale. However local demand is relatively low therefore cost of production is often high.
© 2012 GS1
Threats
82
Ghana
Cheaper imports of packaging from China and the Far East
Globalization, free trade and trade liberalization facilitates importation of cheap consumer goods. This adversely affects local manufacturing industries (some have shut down) and demand for local packaging.
Regional manufacturers find it difficult and expensive to comply with international trade regulations, requirements and practices (HACCP) and therefore cannot compete globally.
The industry is fragmented, stakeholders hardly interact with each other and there is no strong regional packaging group therefore it is easy for external factors to affect it
© 2012 GS1
Opportunities
83
Ghana
Proximity to neighbouring countries and regional integration trade protocols within ECOWAS, e.g., provides access to a market of about 250m people
Establishment of export processing zones with tax incentives provide opportunities for increased exports and demand for packaging. Manufacturers may switch to domestic supply
The growing trend of modern trade and supermarket chains is driving new standard of quality in packaging. These developments provide an opportunity for industry to raise the quality of packaging in the region to international standards
Region still experiences high levels of post-harvest food loss that requires processing and packaging
© 2012 GS1
Recommendations
84
1. MULTIPURPOSE PACKAGING PLANT
2. SMALL/MEDIUM SCALE PACKAGING SUPPLY CENTRE
3. CONTRACT PACKING
Ghana
© 2012 GS1
The Global Language of Business
85
Ghana
