SEAFOOD EXPERIENCE AUSTRALIA

HOW SEAFOOD STANDARDS CAN IMPROVE THE BOTTOM LINE

MELBOURNE 4 May 2012

SEA STRATEGY • Levy

• Strategic Partnerships • Member - Seafood Services Australia (SSA)

• Seafood & Health – DAA, GILLS (Global) & tbc CHC, NSA, Omega-3 Centre

• Recreational & other Stakeholders(AMA)

• Training & Education (AgriFood Skills, FRDC HDP) • Primary Industry - Meat, Poultry, Pork, Horticulture,

Wine

• SEA Q – Continuous Improvement/Loyalty

All Standards – Net Benefit

• Must demonstrate positive NB to community • Must provide value or benefit over costs

• NB=Having an overall positive impact • www.standards.org.au

• Public Health & Safety, Social & Community Impact, Environmental Impact, Competition & Economic Impact

7 Benefits of Standards

• Protection • Support Innovation

• Boost Production & Productivity • Enable businesses to be more competitive

• Link Australia to the world • Compliment regulations

• Engagement rewards

Australian Fish Names Standard SSA AS 5300 - 2007

• 75% of all bad publicity

• Years of work came to head with PPPS

• First time Industry ahead of Government

• Takes angst out of issues

• Global first – seen as world leader

• World’s best practice – audit

• Cuts down paperwork

• Assists management

• Opens door for other Standards

• Hard to argue with Standard

– Distinct Promotional Opportunities

Label Rouge

• French Government (1960) • Production method based on creating quality

product through an approved specification that is respectful of animal welfare and protects the environment

• Chicken/Poultry – 30% of market

• Includes seafood • Irish Mussels – 30% premium

Sardines

• La Perle des Dieux at St. Gilles Croix de Vie

• Was 15 canneries – only one left

• Industry on its knees – established 1887

• Artisanal fishers reliant on processing

• Going from strength to strength

Why GAA - What Areas Do Our Standards Cover?

Environmental Habitat, effluents,

salinization

Social Community rights Child labor and worker

safety

Animal Welfare Veterinarian Health

Food Safety Salmonella and other

pathogens Antibiotics, pesticides

Traceability From Mill to processed

lot

Describe GAA-BAP certification

Describe theory of how

certification improves

production

Overlay BAP data onto

certification improvement

theory Does

certification make a

difference

The BAP difference • Modular building block approach, up to 4-star certification • No royalties for consumer pack label usage • Complete and updated list of certified facilities available

online:

– Processing plants , Farms , Hatcheries, Feed mills (click to access)

• Comprehensive scope covering different aquaculture species – Transverse coverage: Social Justice, Environment, Animal Welfare, Food Safety, Traceability – Specific coverage of each step of the production process, pre and post farm gate, including strong feed ingredient related

requirements (possibly the 5th star in the future) – Specific small-scale aquaculture coverage (in development)

• Robust and evolving standards – Recognised GFSI equivalency with additional social ethics and environmental coverage – FAO compliance planned by the end of 2012 – Transparent and inclusive multi-stakeholder development

• Independent and transparent governance • Significant experience – already 8 years out in the field • Training Programs

Lower environmental impacts→

T

Do Nothing Do Nothing

Improve

Theory - how certification works

T

Lower environmental impacts→

All Farms

Attempt Certification

Do not participate

Non-conformities

Pass unconditionally

Do not pass

All Farms

Attempt Certification

Do not participate

265

Non-conformities

Pass Not Certified

130 125 10

GAA Data – 11 countries 152 farms 265 audits

0

20

40

60

80

1 2 3 4 5 6

coun

t

# audits per farm (years)

GAA-BAP certification • 1 — Property Rights and Regulatory Compliance 3 0 • 2 — Community Relations 1 1

• 3 — Worker Safety and Employee Relations 2 9 C

omm

unity

C S

0

1

2

3

4

5

6

1.1. 1.2. 1.3. 2.1. 3.2. 3.3.

GAA-BAP certification • 4 — Mangrove Conservation / Biodiversity Protection 3 2 • 5 — Effluent Management 9 0

• 6 — Sediment Management 2 1 • 7 — Soil/Water Conservation 2 2

• 8 — Postlarvae Sources 2 0 • 9 — Storage and Disposal of Farm Supplies 1 6

Envi

ronm

ent

C S

0 10 20 30 40 50 60 70

4.1.

1

4.1.

2

4.3.

5.1.

5.2.

5.5.

1

5.5.

2

5.5.

3

5.4.

4

5.4.

5

5.4.

6

5.4.

7

6.1.

1

6.3.

7.1.

1

7.2.

1

8.3.

1

8.4.

9.1.

GAA-BAP certification • 10 — Drug and Chemical Management 5 1 • 11 — Microbial Sanitation 2 1

• 12 — Harvest and Transport 2 2 • 13 — Traceability 2 0

Food

Saf

ety

C S

0

5

10

15

20

Does certification make a difference?

• Not a random sample..self selected • 50% of farms that passed had non-conformities

• 50% of “non-conforming” farms do not meet effluent standards

• “Pass” farms have significantly greater “Scored” values than Non-Conforming farms

• Yearly checks are important but YES is answer

STANDARDS

• attract and assure customers • demonstrate market leadership

• create competitive advantage • develop and maintain best practice

• control your industries own destiny • enables strong platform for education

SEAFOOD EXPERIENCE AUSTRALIA

ROY PALMER Chief Executive Officer

roy.palmer@australianseafood.com.

au

Mob +61 419528733