The case of Asia GAP

7th EurepGAP Conference, 20-21 September 2006, Prague/Czech Republic

Chiyuki Uehara, AEON

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The case of Asia GAP

AEON is trying for safety food in quality controlÆON Co., LtdChiyuki UEHARA

Prague2006/9/21

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AEON group Revenues 38.52 billion dollars(Revenues 4.43trillion yen / Operating income 166.1billion yen)

*1 US dollar = 115 Japanese yen

Company Introduction: http://www.aeon.info/aeoncorp/english/

Company name: ÆON Co., LtdEstablished: Sep. 1926Operating income: 1.89 trillion yenCapital: 101.9 billion yenType of industry: Synthetic retailer

(as of Feb. 2006)

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AEON Basic Principles:- “Peace” AEON is a corporate group whose operations are dedicated to the pursuit of peace through prosperity.- “People” AEON is a corporate group that respects human dignity and values personal relationships. - “Community” AEON is a corporate group rooted in local community life and dedicated to making a continuing contribution to the community.



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The expanding of AEON group business:“ÆON” in this report refers to a group of 158 companies.

Specialty stores (3,246stores)

Operating income: 499.13billion yen

Financial services

Operating income: 607.27 billion yen

Retail stores (4,212store)

Operating income: 36.41 trillion yen

Developer services

Operating income: 68.4 billion yen

*major group companies only 3

Taiwan

2 stores

Taiwan

2 stores

China (Hong Kong)

19 stores

China (Hong Kong)

19 stores

Malaysia

14 stores

Malaysia

14 stores

ÆON continues to expand its operations in Asia(GMS / SM)

Thailand

7 stores

Thailand

7 stores

Japan

1,154 stores

Japan

1,154 stores

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Environmental conservation and Socialcontribution

Aeon supports international conservation efforts such as “Great Wall Reforestation Project”.

Aeon donated funds to the Cambodia.

Aeon removes trash and help make the neighborhood “clean and green” around the community to restore natural beauty.

Aeon planted trees indigenous to each locality.

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AEON farm products approach declaration:1. We contribute to customers for safe and healthy eating2. We carry safe commodity for customers3. We try to decrease environmental burden4. We aim at practice of agriculture that makes the best use of regional

nature5. We respect producers’ health, safety, and welfare6. We respect partnership with all the people involved in the process from

production/ distribution to consumption

In order to achieve the things above, we minimize risk of food from agricultural products by consistent standards and codes (GAP/ GMP/ GDP) through the process from production to consumption. Simultaneously, we work on building A-Q system to progress food safety by realizing accurate recording activity/ giving information, and third party reconfirmation.

AA--Q (Application of ISO9001 and HACCP )Q (Application of ISO9001 and HACCP )AEON Produce SuppliersAEON Produce Suppliers--Quality Management StandardsQuality Management Standards

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(1) Requirement

AEON introduced GAP first in Japan , 2002

AA--Q SystemQ System

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i. GAP/ GMP/ GDP Managementii. Construction of quality management systemiii. Analysis of harm and introduction of critical

control point

(2) Introduction of internal and external inspection

Processingmanufacturing

DistributionProduction

Q M S

G A P G D PG M P

AA--Q SystemQ System

Internal & external inspection

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1. Workers Management

2. Varieties, Seeds and Rootstocks

3. Irrigation Water Management

4. Site Management

5. Soil and Substrate Management

9. Post Harvest Treatment

10. Environmental Concerns

11. Protection and Management of Workers

12. Record Keeping and Traceability

13. Reflect on Customers’ Voice

<PURPOSE> Realization of safe and high quality agricultural products

Control Points

AEON GAP

6. Fertilizer Management

8. Cultivation Management

7. Pests and Diseases Management

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Sample of GAP content

* Patent pending

- Visualize degree of achievement- Indicate degree of achievement by using icon color

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Practice case of GAP

Policy

Make manual

Flow chart

Common information Record document

Indicate particulars11

-Put a case into action- GAP “Health administration”For example: lavatory

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-Put a case into action- GAP “Agricultural chemicals management”

Agricultural chemicals management account book

Agricultural chemicals storage

Storageagricultural chemicals management manual

Inside of the storage

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Precise record management Precise record management byby databasedatabaseand and EEnvironmentnvironment management by management by paperlesspaperless

DB

FAX

Use methods to preventionfertilization record

Account book of output

i-mode Audioresponse record

Data record from every producerwill be accumulated

Printer for Account bookCheck the data content advance management

Data input

Data Base

Advance identify screen

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Output of record list



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i-mode register systemReport from farm

“i-mode” is the internet access system for cellular phone in Japan

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The system is being developed for the confirmation of the degree of achievement comparing “should be” and “present situation” by visualizing

picture of the current state

Confirm the progress report of improvement

Progress report

Database of auditing standards

Internal auditor

Should be The present situation

Comparison

We can see the execution degree of standards

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Example of GAP execution management screen

- Possible for individual producer to confirm the content of execution in visual.

- Example of good case has possibility to develop in horizontally.

*Patent pending17

Cellular phone information system for consumers Two Dimension Code is added on package. Taking the code picture by mobile phone’s camera provides the cultivation information anywhere, anytime.

Production historytraceability database

InteractiveInteractive

Consumers

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ProducersTwo Dimension =>Code



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Disclosure by other portable terminal information

Information disclosureby in-store POP

Packaging materials displaycultivation information

Information disclosure by site

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Positioning between EUREPGAP & AEONGAP

NBProducts

EUREPGAP

EUREPGAP

AEONGAP

AEONGAP

Original Standard

for PB

Present

PBProducts

Future

EUREPGAPAEONGAP

EUREPGAPAEONGAP

Original Standard

for PB+

They both are on same level



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For the best retail store consumers continue to trust

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Documents

The case of Asia GAP