h04 - Food Safety Crisis Management and Consumer Communication PDF

FOOD SAFETY,
CRISIS MANAGEMENT &

CONSUMER COMMUNICATION
Cemlyn Martin,
General Manager,
Corporate Accounts, Asia-Pacific
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Has a crisis of confidence

hit our industry?
Each of our Companies?
Absolutely.
China
Crisis
Melamine
contamination
300,000 people developed kidney problems

6 infants died
China Melamine Crisis
Two condemned to death

Sanlu Chairwoman life in prison
Director of AQSIQ resigned
8 officials resigned or disciplined
CHINA MARCH 2009

SWINE, GUANDONG PROVINCE
15 arrested in Guandong Province for selling swine fed
banned additives ractopamine and clenbuterol
Chemicals harmful or fatal to humans
70 people poisoned
CHINA 2008
437
(reported) food poisoning incidents

13,095 illnesses
154 deaths
Source: Ministry of Health
CHINA 2006 SALTED DUCK EGGS, SUDAN II DYE
Sudan Red II dye added to laying duck feed to increase red

colour of yolk.
Sudan Red is a phenolic, carcinogenic chemical.
Hong Kong authorities detected Sudan Red in salted duck egg
and table eggs from China.
AUSTRALIA MAY 2008

SWINE, LEAD SCARE
Random testing of swine at slaughterhouse detected high

levels of lead in livers.
80 farms identified as involved.
Contamination traced to zinc oxide used in feed either as feed
additive (source of zinc) or growth promoter (gut health modification).
Feed removed from sale.
Pork meat - safe for consumption
- livers and kidneys condemned
Zinc oxide from Chinese supplier. Cross-contamination or faulty
separation suspected.
EUROPE
Beef Mad Cow Disease
Dairy Dioxin
Animal Feed - Sludge
IRELAND
2008
A Dioxin scare in
Irelandall pork
meat destroyed
Beef cattle on 6
farms destroyed
CAUSES FOR
CONCERN
Antibiotic residues
Growth promoters
Heavy metals in feed trace
minerals
Bacterial contamination
Industrial chemicals
Mycotoxins
Pesticides
Animal diseases
THE COMMON LINK?
ANIMAL FEED
- Raw materials
- Feed additives
- Contaminants
THE CHALLENGE TO INCREASE TRUST

IN FOOD AND FEED
FOOD SECURITY
Safety
Quantity
Sustainability (Economic, Social, Environmental)
Traceability & Transparency
Social acceptability (Animal Welfare)
Consumer Confidence (Trust)
Human Nutrition
Ethics
FOOD SECURITY: Our Job is to Feed the World

A world in which food production has to double by 2050 to
meet demand.
Charles Darwin
Its not necessarily
the strongest or fittest
that survive but
those most adaptable
to change
Crisis Management
or
Reputation
Enhancement?
In The Eyes of the Beholder
There are three types of companies

Those who do not
have a crisis plan
in place
Those that say
they do
Those that have,
and work to it
When is a Crisis a Crisis?

Consumer Risk?
Business Risk?
Brand Risk?
Risk to life
Financial
Media coverage
Risk of injury
Legal action
Negative position
versus competition
Serious product
contamination
Extortion
RECALL ??????

Basic Crisis Management Model - Product
Preparation
& Planning
- Avoidance
Learning
& communication
- Communicate control & confidence
- Prevent recurrence
Crisis Closure
- Replace supply chain
Early Warning
System
- Identify the issue
- Quantify the extent
Crisis Response
- Inform relevant people
- Control exposure
- Limit risk
- Quarantine product

Preparation
& Planning
- Avoidance
Learning
& communication
Crisis Closure
Early Warning
System
Crisis Response
- Control exposure
- Limit risk
RISK ANALYSIS FOUNDATION OF FOOD

SAFETY POLICY
Risk Assessment
Risk Management
Risk Communication
RISK ASSESSMENT
Founded on good science

Easy to understand & communicate
Easily implemented
What poses the greatest risk and

how to:
Avoid
Identify
React
Respond
Assure
Prevent
..Risk assessment

Threat Assessment and Threat Rating
Threat Rating Matrix
LIKELIHOOD
Very
Unlikely Unlikely Possible
1
2
3
Likely
4
Very
Likely
5
Minor
10
Appreciable
12
16
20
Major
16
24
32
40
Severe
16
32
48
64
80
Catastrophic

Preparation
& Planning
- Avoidance
Learning
& communication
Crisis Closure
Early Warning
System
Crisis Response
- Control exposure
- Limit risk
To Manage a Crisis
Identify key decision makers

Gather facts quickly to act
Keep target audiences in focus
Understand the media
Control information flow
Develop third party allies
Constantly monitor
Establish a crisis centre
In the Event of a Crisis:
Act
Now!
Group
L
Finan eader
ce
Qualit
y
Marke
ting/P
R
Produ
ction
Resea
rc
Sales h
Legal
Opera
tions
Phone
#
Phone 123456789
# 1234
Phone
56789
#
Phone 123456789
#
Phone 123456789
# 1234
Phone
56789
#
Phone 123456789
#
Phone 123456789
# 1234
Phone
56
# 1234 789
56789
Response
Who is involved?
What happened?
When, date/time?
Where, location?
Group L
ea
Finance der
Quality
Marketin
g/PR
Producti
on
Researc
h
Sales
Legal
Operatio
ns
Phone #
1234567
89
Phone #
1234567
89
Phone #
1234567
89
Phone #
1234567
89
Phone #
1234567
89
Phone #
1234567
89
Phone #
1234567
89
Phone #
1234567
89
Phone #
1234567
89

Preparation
& Planning
- Avoidance
Learning
& communication
Crisis Closure
Early Warning
System
Crisis Response
- Control exposure
- Limit risk
Crisis Management or Reputation

Management
Confidence and Trust

Be prepared
Be available
Be credible

What standards should
traceability systems
adhere to?
Traceable forwards, backwards (+1/-1)
Comprehensive system encompassing
all materials/ingredients
Speed of response
Link traceability to management systems
Staff training how to increase safety standards
Quality improvement teams work proactively on
continuous improvement
Ability to successfully recall

Preparation
& Planning
- Avoidance
Learning
& communication
Crisis Closure
Early Warning
System
Crisis Response
- Control exposure
- Limit risk
Communicate Confidence
At all times
To all people
In control
Trust
Prevention better than cure
If you tell the truth you dont

have to remember anything
- Mark Twain
Communication in a Crisis?
Communication
External Interface
Investors, Customers,
Suppliers, Communities,
Government Bodies,
Regulatory Groups,
Legal Entities,
Insurance Groups,
Competitors
Your problem will not improve with age

Internal Response
Business Recovery,
Employee Communications
Media
Public communication
All three elements are related

Communication in a Crisis?
Communication
Consumer information is vital, dont let the media become the

crisis
- Prepare a holding statement, clear and simple
- Wording is crucial could cause/avoid panic
- Target to the audience
- Message must be true
Dont forget internal communication

- Regular briefings to employees
- They may be worried about their future
- Ensure all are aware of your media communications policy
Get it right, Get it quick, Get it out and Get it over

In a Crisis
Events happen fast

Decisions made quickly
Media scrutiny intense
Media processes, rarely report
Victims drive story
Information not always accurate
Your message does not get out
So?
Be prepared!
Reputation Management
at Corporate level
Management used to shaping events, not
events shaping management
Can you continue to run your

business in a crisis?
Ensure you develop a business
continuity plan
Ensure you can keep vital operations
running
Allow the crisis team to control the crisis
Regular status communications from the
team
RISK MANAGEMENT AND CONSUMER CONFIDENCE
RISK COMMUNICATION
Transparency is a fundamental
requirement
Consumer confidence requires
information to the public
Clear relationship with media
Managing the perception of risk
TRACEABILITY LABELLING
MANDATORY RECALL
Traceability must be established
at all stages of production,
processing and distribution
It must link a unique batch of feed
with information
Full labelling to facilitate
traceability
Mandatory recall essential to
safety based on traceability and
labelling
GENE SCAN
MADE IN CHINA WE CAN TRUST

Sustainable Supply System

VP of Corporate Social Responsibility
3 Es of Responsibility
- Ethical
- Environment
- Economics
The Red Tractor Scheme

Launched 2000 in United Kingdom
78,000 farmers and growers members of the scheme
Commitment to food safety and hygiene, animal
welfare and environmental protection
Auditing of members by independent organisation
Assured Food Standards (AFS)
Farmers, processors and packers are licensed to use logo
Annual inspection and review covering animal health &
welfare, farm procedures and safety, salmonella, movement
and transport.
Logo on thousands of products beef, lamb, pork, chicken,
turkey, milk, cheese, cream, cereals, vegetables, sugar,
flour, fruits and salads in shops and supermarkets
Swine covered by Assured British Pigs (ABPigs)
British Lion Code
Thank You
STAR FARM (METRO), CHINA
Standardized, comprehensive traceability framework

covering farm production, processing, packaging, logistics,
marketing.
Star Farm quality security system combined with HACCP

and Global Gap enhances production safety and product
quality, strengthens brand image and provides the end
consumer with safe and traceable food products.
Collect and record specific information along supply chain.
Customer log-in to website allowing search for product

information, producer details all of which are also on
product label.
Where are we going?
CRISIS
The Chinese use two characters

to write the word 'crisis.'
danger;
the other for opportunity.
One stands for
What can
we do?
The world we have
created today has
problems which cannot
be solved by thinking
the way we thought
when we created them.
-Albert Einstein
What are the pillars upon

which we can rebuild our
industry?
The 5 pillars
Crisis management
Education
Innovation
Branding
Cause and Fun
Trust and Integrity
Next week
there cant be
any crisis, my
schedule is
already full
Henry Kissinger
David Byrne
Former European
Commissioner for
Health and Consumer
Protection
Two types of organizations

Those that have
had a crisis
Those that will
We need a system
Crisis Management
The Key to Crisis Management

Someone is in
charge, there is a
plan, the plan is
working
-David Byrne, Former
European Commissioner for
Health and Consumer
Protection
Question
Do you have a
totally traceable
quality control
system?
Do you audit
your
suppliers?
Every company,
every institution,
every industry
needs a Crisis
Management
System
-David Byrne, Former
European Commissioner for
Health and Consumer
Protection
The 5 pillars
Crisis management
Education
Innovation
Branding
Trust and Integrity
We have to educate them or

someone else will
The 5 pillars
Crisis Management
Education
Innovation
Branding
Trust and Integrity
Embracing
Innovation
Greenhouse gases
Methane:
18%
Carbon
dioxide:
72%
Nitrous oxide:
9%
Agriculture
contributes emissions
of all three
Innovation: Nutrigenomics
The gene chip

never lies
The 5 pillars
Crisis Management
Education
Innovation
Branding
Trust and Integrity
An agricultural
brand that people:
- Recognize
- Respect
- Trust
- Has core values
- Endures
- Stands out
The 5 pillars
Crisis Management
Education
Innovation
Branding
Trust and Integrity
Trust & Integrity:

Partnerships
We need true and
meaningful
relationships along
the food chain
The
running
of the
pigs
So, do we
have a future?
CRISIS
"One should
never waste the
opportunity of a
good crisis!"
Rahm Emanuel,
Obama's new head of staff
Thaila
nd
THAILAND
Dr. Yukol Limlamthong, Director-General of

the Department of Livestock Development at
the Ministry of Agriculture and Cooperatives
Apart from the effect of the economic
downturn, the biggest change in demand
patterns has to be that Thai people nowadays
are more health conscious than in the past
and they understand more about food safety.
Consumer purchasing behaviour has changed
from being based largely on price or quantity
to a level where quality is also taken into
consideration. They are especially willing to
pay more for foods that are considered to be
safer.
Pig International magazine, March/April 2009, p.24
What is your primary concern when purchasing the

following consumer products: personal care,
medications, electronics, toys, fresh meat & fish, fresh
produce, and packaged goods?
SAFETY AND QUALITY ARE THE PRIMARY DECISION MAKING DRIVERS FOR CHINESE
CONSUMERS
81%
Personal Care
Medications
6%
13%
92%
1% 7%
89%
Electronics
Toys
7% 4%
83%
Fresh Meat & Fish
14%
85%
Fresh Produce
80%
Packaged products
79%
0%
10%
Safety and Quality
20%
30%
40%
Environmental friendliness
6%
50%
60%
70%
80%
6%
13%
90%
Source of product/product ingredients
Source: 2008 Chinese Consumer Survey, Institute for Business Value, China
n: 300 {60 from Beijing, Shanghai, Guangzhou, Wuhan, Chongqing}
9%
14%
8%
3%
100%
For each of the following statements, please tell us

how you think each has changed over the last two
years.
CONSUMERS ARE READY TO PAY MORE
W illingness to pay more for
non-food consumer products
that are environmentally
friendly
62%

environmentally sustainable
food
29%
65%

non-food consumer products
that are safe
33%
71%
0%
10%
20%
30%
Increased
40%
50%
60%
Stayed the same
n: 300 {60 from Beijing, Shanghai, Guangzhou, Wuhan, Chongqing}
2%
26%
9%
70%
80%
Decreased
3%
90%
100%
Please indicate your level of agreement with each of

the statements about:
PROVIDING CONSUMERS W ITH DESIRED INFORMATION IS AN OPPORTUNITY
67%
66%
66%
65%
65%
64%
63%
62%
61%
60%
60%
59%
58%
57%
I would like more information about I would like more information about I would like more information about
the ingredients of the food
the source of the food product I
how the food is processed and
products I buy
buy
manufactured
n: 300 {60 from Beijing, Shanghai, Guangzhou, Wuhan, Chongqing}. The chart shows the sum percentage of
people who selected strongly agree and very strongly agree.
BENEFITS FOR THE PUBLIC
Confidence
and certainty
Safety
Good quality, safe, acceptably
priced, nutritious food available in
the quantity desired
BENEFITS FOR INDUSTRY
Opportunity to capture economic advantage:

premium pricing
- export market access
- steady revenue and profit growth
- consumer and brand loyalty and trust
Food companies should reduce safety risks by better

monitoring of the whole production and distribution
process from raw material to sales.
Although it requires a huge investment to establish an entire
monitoring chain, it is good for a company in the long run.
Mr. Liu Yonghao, Chairman, New Hope Group

Reported in Beijing Sci-Tech Report
International Trade
Safety and traceability is now central to the global trade in food.

Importing countries demand and expect traceability.
National incomes will be negatively affected by distrust in food safety.
Governments play an important role in setting the right legal framework
for ensuring food safety, with appropriate penalties for non-conformance.
Thank You

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FOOD SAFETY,

CRISIS MANAGEMENT &

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Has a crisis of confidence

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300,000 people developed kidney problems

China Melamine Crisis

Two condemned to death

CHINA MARCH 2009

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(reported) food poisoning incidents

Source: Ministry of Health

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CHINA 2006 SALTED DUCK EGGS, SUDAN II DYE

Sudan Red II dye added to laying duck feed to increase red

AUSTRALIA MAY 2008

Random testing of swine at slaughterhouse detected high

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THE COMMON LINK?

THE CHALLENGE TO INCREASE TRUST

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FOOD SECURITY: Our Job is to Feed the World

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There are three types of companies

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When is a Crisis a Crisis?

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When is a Crisis a Crisis?

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When is a Crisis a Crisis?

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RISK ANALYSIS FOUNDATION OF FOOD

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Founded on good science

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What poses the greatest risk and

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When is a Crisis a Crisis?

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When is a Crisis a Crisis?

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Identify key decision makers

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In the Event of a Crisis:

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When is a Crisis a Crisis?

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Crisis Management or Reputation

Confidence and Trust

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When is a Crisis a Crisis?

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When is a Crisis a Crisis?

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If you tell the truth you dont

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Your problem will not improve with age

All three elements are related