Unilever Sustainable Sourcing Workshop - Overview of Australian Dairy Farm Risk Management Systems Helen Dornom Dairy Australia 27th August, 2012 DA’s role • DA invests around $52-$58m annually on industry based RD&E and other service activities. We look across whole dairy value chain for areas where collective action or collaboration can be used. • DA’s Investment is based on industry agreed issues /priorities Farm Inputs Milk Production Milk Processing Manufacturing Domestic and Export Markets Import 2 Strategic Priorities 1. Improve farm margins and growth opportunities SP2 21% 2. Promote and protect dairy SP1 50% 3. Integrated response to climate change and natural resource management 4. Grow capability and skills SP3 7% SP4 15% Discussions today – Overview of the systems to manage risk – Discussion on Food Safety Systems and controls • domestically and internationally - Ag and Vet Chemical Controls - Animal Health and Welfare - Environmental Controls/industry programs DAIRY PRODUCT ENVIRONMENT Government & regulators Policy Makers Health Organisations Education / Academics Scientists Health Professionals Community Customers Media Activist / interest groups Financial Institutions Food Industry Agricultural Interest groups Industry Service providers … how to select a manufacturer ? Ethics Added values for strategic suppliers Chain quality Product quality Product safety Product availability 3 basic criteria for all the suppliers Brand Dairy • Many components: – – – – – Food safety Health and nutrition NRM Animal health and welfare Employer skills and employee attraction – Politicians and investor communication – Product promotion – Investor confidence by existing owners and new capital Farm Enterprise Meat Cull Cows Milk Bobby Calves Reared for beef Abattoirs Vealers Animals Other Replacements Live Export Fodder Mixed Farm Sources of on-farm risk Food safety • Contamination of product • Spoilage of product • Pathogens Sources of on-farm risk Environment • Odours • Water pollution • Carbon • Noise Sources of on-farm risk Biosecurity • Exotic diseases • Endemic diseases • Weeds • Pests Sources of on-farm risk Animal welfare • Husbandry practices • Production diseases • Land transport • Bobby calves Sources of on-farm risk Occupational Health & Safety • Skills • Knowledge • Equipment • Zoonotic diseases How do dairy farmers manage these risks? • As part of their everyday activities • Structured risk management programs – identification – analysis – evaluation – treatment – monitoring – review • Performance measured against agreed standards Verification of compliance Self assessment Environmental protection agencies Local government officials Dairy company field officers State dairy food authorities Private veterinarians State government DPI’s Animal welfare agencies Vocational trainers Dairy assurance activities SCOPE AND FREQUENCY Day to day - embedded in work place activities Control Self Assessment – driven by risk profile and manager’s span of control Regular Checking and Continuous Monitoring Line Management Internal and External auditing – sampling and verification, aimed at Policy and Standards compliance, and identifying system weaknesses Review Third Party Audit An established framework Sources of risk Verification SELF ASSESSMENT FOOD SAFETY Contamination Spoilage Pathogens ENVIRONMENT Odours Water pollution Carbon Noise ANIMAL WELFARE Husbandry Production diseases Land transport EPA’S Dairy Industry On-farm QA system LOCAL GOV’T DAIRY COMPANIES SDFA’S PRIVATE VETS BIOSECURITY Exotic diseases Endemic diseases Weeds & pests OH&S Skills & knowledge Zoonotic diseases SDPI’S VOCATIONAL TRAINERS National Standards International Standards A comprehensive system Sources of risk FOOD SAFETY Contamination Spoilage Pathogens ENVIRONMENT Odours Water pollution Carbon Noise ANIMAL WELFARE Husbandry Production diseases Land transport BIOSECURITY Exotic diseases Endemic diseases Weeds & pests OH&S Skills & knowledge Zoonotic diseases What dairy QA covers Milking sheds Milking equipment Cleaning Sterilisation Water quality Milk chilling Cooling towers Identification Traceability Stockfeeds Herd health Veterinary drugs Agricultural chemicals Pest control Effluent management Hygienic calf rearing Bobby calf management Competency and training First aid Accountability Non-conformances Verification SELF ASSESSMENT EPA’S LOCAL GOV’T DAIRY COMPANIES SDFA’S PRIVATE VETS SDPI’S VOCATIONAL TRAINERS A “Whole of Chain” Approach • All parties responsible • Understanding needs and performance – One-step forward – One-step back • Consistent Minimum Mandatory Standards • Partnership Industry & Government 20 Context Issues Food Safety Animal Welfare Environment: Community Expectations Business Viability Natural Resource Management Stewardship Environmental Degradation Human: OH&S ON FARM DAIRY QA PROGRAM Trade and other commercial/regulatory issues Eg. • Antibiotic residues • Milk quality • BJD 3 step plan • Animal welfare (Cattle code) • Environmental Issues • OH&S Food Safety Program Mandatory (Dairy) On Farm Dairy QA Program Trade and other commercial elements Food Safety Program (FSP) Mandatory Dairy elements Meat elements Ag + Vet + Chemicals Water supply + quality Cleaning or Sanitizing Micro biological Contamination Traceability and Records Personal competency Stock feeds Hygienic milking Milking premises Dairy Food Safety Compliance Framework DAFF •FSANZ Food Safety Standards • Export Control Orders STATE DAIRY/FOOD AUTHORITY • State Legislation • Regulations/Codes of Practice AUTHORISED OFFICER APPROVED AUDITOR • National Auditor Competencies • Contract - Deed of Undertaking •Interpretive Guidelines •Standard Operating Procedures •Steering Committees •Working Groups Harmonisation of Export & Domestic Standards Farm Audits Dairy Farm Audits Number of Licensed Dairy Farms Number audited 2010-11 Total Queensland* NSW* Vic* Tas SA WA 6993 620 825 4613 445 306 184 2915 384 442 1165 445 306 173 *SRAs require audits at least every 24 months In 2010-11 LPA listed 190,801 program participants, with 5,819 inspections/audits (3%) Dairy had 42% on- farm FSP audits Verification of Dairy FSPs • SRAs undertake desk reviews yearly • SRAs undertake 5% verification audits of all dairy farms at least every 3 years • In 2009/2010, 195 verification audits (2.5%) • SRAs - national dairy farm auditor workshop held every 6 months covers issues arising from audits, consistency of interpretation, implementation and reporting Inputs Outputs Food Livestock Water Labour Effluent Dead stock Water Nutrients Farm Enterprise Context Community Business Expectations Viability Issues Meat Food Safety Animal Welfare Environment: - Natural resource - Stewardship - Environmental degradation Human: - OH&S Milk Cull Cows Bobby Calves Reared for beef Constraints Market needs / wants (Domestic - Export) - No. of standards + verification systems Lack of recognition of common / shared outcomes + effective existing controls - Lack of knowledge / evidence - Risk based proposition not well understood Abattoirs Vealers Animals Other Replacements Fodder Live Export Mixed Farm Effectively managing on farm risks Dairy Australia’s key focus areas include: Dairy Moving Forward (Research, Development & Extension) (SP1) Dairy Futures CRC (Animal and Plant performance) (SP1) Feeding Systems (SP1) Mastitis and Fertility (SP1) Automatic Milking/Precision (Smart) Farming Systems (SP1) People (NCDEA, People in Dairy, Workplace Planning, Leadership Development) (SP4) 7 Dairy Australia’s key focus areas include: Project Horizon 2020; value Chain models (NSW/Qld/WA) (SP1) DIAL (including technology transfer) (SP2) Health and Nutrition (Research and policy advice) (SP2) Animal Health and Welfare (SP2) Carbon tax and Water Access Issues (SP3) Reputation Management/Sustainability (SP2) Market Analysis (Situation & Outlook) /Market Access (SP1) 8 Identifying areas of leverage and risk Build on strengths of 6 1 national and regional economic 3 contribution, product quality, safety and nutrition? 2 Value creation 4 Integrity 5 Environmental stewardship Regional community 7 Proactively reassure on fat, animal welfare and environmental management Health (especially in areas of water and greenhouse gas emissions)?