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FrieslandCampina

Focus on Quality grass to glass

Suzan Horst Director QA, Issue & Crisis management FSSC22000 Harmonization day Oct 2013

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FrieslandCampina is a global top 5 dairy company

10.3 Billion euro revenue

Offices in

countries 28

19,946 employees

Exports to over 100

member dairy farmers

19,487 own the company

1.0 billion consumers

countries

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We feed millions of people… …our products just have to be safe!

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To guarantee this product safety and quality FrieslandCampina developed a single,

comprehensive program

▪ Foqus is the FrieslandCampina program that ensures that all our products and the way in which they are produced meet our own high standards on – Food safety – Quality – Labor safety – Environment

▪ The standards of Foqus are based on requirements and wishes as defined by our customers, governments and society.

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Foqus goes beyond standard criteria and is a customized FrieslandCampina program

▪ FrieslandCampina’s comprehensive program to safety, quality and sustainability based on full control of value chain: from grass to glass

▪ EU legislation and Codex aimed at guaranteeing dairy safety

▪ Dutch legislation aimed at guaranteeing safety, very strict interpretation of EU legislation

▪ Third party accredited operating protocols to secure safety and quality of end products and standardization of production protocols

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Foqus encompasses all stages of the dairy value chain: From Grass to Glass

Feeding & caring

Milking

Collecting

Processing

Packaging

Distributing

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What does Foqus have to do with dairy farmers and their livestock?

planet

Feeding & caring

Milking

Collecting

Processing

Packaging

Distributing

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The Farm part of Foqus consists of 4 elements

Milk Cow Process Surroundings

▪ Milk composition ▪ Milking process

and equipment ▪ Storage facility ▪ Hygiene

▪ Animal health and welfare

▪ Housing ▪ Medicine use

and admin.

▪ Feed quality / sustainability

▪ Supplier selection

▪ Water and energy use

▪ Crisis plan

▪ Neat farm ▪ Grazing ▪ Energy

production ▪ Biodiversity ▪ Mineral usage

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Milk quality – analysis and consequences

Foqus Planet is supported by own farm advisors, and Certified by CI (Qlip) Government check by COKZ (FSA for dairy)

Milk is continuously analysed by independent lab (Qlip), under supervision of Authorities (COKZ) “strange” results will be picked up in time

Shortage on milk payment for every failure & no annual quality bonus (both on system and tests) When failures are made more frequently: Direct stop on collecting milk untill improvement

is shown More multiple failures: end of membership

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Farmers are rewarded based on their system and on the quality and safety of their milk

Every milk delivery is tested and farmers are paid according to composition, safety and quality, and system…

Frequency Parameter

Every delivery ▪ Temperature and color ▪ Fat, protein, lactose,

urea ▪ Antibiotics ▪ Free fatty acids ▪ Freezing point

2x per year ▪ Chloroform

1x per month ▪ Butyric acid spores ▪ Sediment

2x per month ▪ Bacterial count ▪ Somatic cell count

… leading to improvement of quality and safety metrics over time

Penalized deliveries, %

EXAMPLE

Testing is done by independent laboratory (Qlip) under supervision of government

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How does FrieslandCampina guarantee safe production?

food safety & quality

Feeding & caring

Milking

Collecting

Processing

Packaging

Distributing

All factories were multiple 3rd party certified…. …more is better??

All factories had ISO9001, HACCP, often also IFS, BRC, AIB, QLIP-process cert… Nice wall paper… but still room for improvement… We believe that a robust system will lead to robust,

FTR production Robust system includes:

based on ISO tailormade for FrieslandCampina…. checks & audits to monitor status & progress and guide

wise investments strongly aimed at continuous improvement own auditor team to ensure depth and maximum

sharing

Quality policy FrieslandCampina

All factories on Foqus, KPI on Foqus score Foqus = FC interpretation of FSSC22000 Extra attention for

HACCP Change Management GMP Infant Food PDCA (continuous improvement)

As from end 2014: all factories FSSC22000 certified

Fresh eyes Assurance towards customers & governments

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QUALITY ITEMS Plan Do Check Act Score %

1 COMPANY QUALITY POLICY 90 93.8

1.1 Policy document / annual plan 4 4 3 3 141.2 Quality awareness / ownership / communication 4 4 4 4 161.3 Performance: KPI's 4 4 4 4 161.4 Work meeting structure/Document Control 3 4 3 3 131.5 Implementation of corporate policies & standard 3 4 4 4 151.6 Recommendations from previous audits 4 4 4 4 16

2 2 95 99.0

2.1 Training, skills & competencies 4 4 4 4 162.2 Crisis / incident management / traceability 4 4 4 4 162.3 Internal auditing 4 4 4 4 162.4 Process & product control 4 4 4 4 162.5 Complaint management 4 4 4 3 152.6 Supplier management 4 4 4 4 16

3 MANAGEMENT OF CHANGE 90 93.8

3.1 New product development 4 4 4 4 163.2 Clearance 4 3 4 4 153.3 Post launch conformity control 4 4 4 3 153.4 Change management factory 4 3 3 4 143.5 Change management between factories 4 3 3 4 143.6 Change management external 4 4 4 4 16

4 FOOD SAFETY & QUALITY 120 93.8

4.1 HACCP: Design & quality of studies 4 4 4 4 164.2 HACCP: Coverage & implementation 4 4 3 3 144.3 QCP: Design & quality of studies 4 4 4 4 164.4 QCP: Coverage & implementation 4 2 4 4 144.5 Specific control equipment 4 4 3 4 154.6 Rework 4 3 4 4 154.7 Blocked products 4 4 4 4 164.8 Water, air & environment 4 4 3 3 14

5 HYGIENE & HOUSEKEEPING 86 89.6

5.1 Design of hardware (building & equipment) 2 2 4 3 115.2 Maintenance of hardware (building & equipment 4 4 4 4 165.3 Cleaning of hardware (building & equipment) 4 4 4 4 165.4 Storage, warehousing & transportation 4 4 4 4 165.5 Personnel Hygiene 3 3 4 4 145.6 Food Defense (Food Security) 4 3 3 3 13

123 118 120 12096.1 92.2 93.8 93.8

AUDIT STANDARD

FrieslandCampina Plant X

AUDIT TEAM: ( Names Team Members)

Date Score

A

Continuous improvement is ensured through a systematic inspection regime

Plan

Check

Do

Act

During inspections the quality chapter are scored … … resulting in a Foqus score per plant

Proof that recommendations have been acted upon

The food safety plan and its results must be reviewed periodically and improvement recommendations need to be developed

A food safety plan must be in place stipulating methods and standards for each HACCP

Data must be collected over time in line with methods stipulated by the food safety plan

Plan, Do, Check, Act method is used for inspections

EXAMPLE

Make it happen is about people…

Quality is made by people not by paper…

Foqus on training, awareness, buy-inn, self assessment, internal audit team

QA managers (QA Council) and operation directors jointly responsibility

Results, progress, improvements & problems quarterly discussed in QA Council (‘dare to share’)

No challenges left?? Keep on dreaming…

Our growth markets are

extremely sensitive… Proof that you’re not

involved Proof that your system is

trustworthy Proof….

Systems in order Factories Suppliers traceability

Independent check

2013…. Aflatoxin Fonterra issue: ‘botulism’ Various meat scandals

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Our safety and quality program has evolved over time

-35 years

-25 years

-15 years

today

Future

Milk composition Milk safety

Process safety and quality

Sustaina-bility ?? New topics

Key themes ▪ Fat ▪ Protein ▪ Quantity

▪ Antibiotics ▪ Somatic

cell count ▪ Bacteria

count

▪ Production standards

▪ Hygiene and building standards

▪ Environ-ment

▪ Animal welfare

▪ Medicine usage

▪ tbd

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Our safety and quality program has evolved over time

-35 years

-25 years

-15 years

today

Future

Milk composition Milk safety

Process safety and quality

Sustaina-bility Integrity!? New topics

Key themes ▪ Fat ▪ Protein ▪ Quantity

▪ Antibiotics ▪ Somatic

cell count ▪ Bacteria

count

▪ Production standards

▪ Hygiene and building standards

▪ Environ-ment

▪ Animal welfare

▪ Medicine usage

▪ Critical points ▪ Traceability ▪ Transparency

in the chain ▪ Independent

(3rd party) checks

Thank you for your attention

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谢谢！