SQF International ConferenceMelbourne, Victoria

SQF International ConferenceMelbourne, Victoria

Implementation of SQFin the US Market

August 25, 2010

Discussion Topics

Growth in the SQF Program Influencing Factors to Growth Buyer Acceptance Prediction on Future Growth

Growth in the SQF Program

SQF Registrations – January 09

Total of 1963 registrations

Aus / NZ – 1385 N.A. – 322 A / P – 215 S.A. - 15

71%

16%

11% 1%

Aus/NZ

N.A.

A/P

S.A.

SQF Registrations – January 2010

Total of 4257 registrations

Aus / NZ – 1902 N.A. – 1968 A / P – 286 Latin Am. – 52 Europe – 14 Other - 35

46%

7% 1%1%

45%

Aus/NZ

N.A.

A/P

L.A.

Eur

Now 4890 sites

5.9

2.9

10.1

0.5

23.8

0.4

11.6

14.3

6.5 7

1.1

4.1 4.1 4.3

1.1

4.1

11.1

3.2

20.9

0

5

10

15

20

25

3 4 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 26 27

Foodsectorcat

US Certifications by FSC by % – April 2010

22.5

28.4

5 5 5

3.1 3.52.1

6.7

4.33.1

12

3.4

1.5 2

19.2

3

6.1

9.3

1

0

5

10

15

20

25

30

1 3 4 5 7 8 9 10 12 13 14 15 16 17 18 19 20 22 25 26 35

Foodsectorcat

Aus Certifications by FSC by % – July 2010

Total Certifications

AU 64%

US7%

Other29%

US61%

Other15%

AU 24%

Growth in SQF Program

Overall there has been 37% growth in the program in Australia and 83% growth in the US from 2009 to 2010

There are now SQF certificates in over 30 countries around the world

The number of registered auditors has increased from 128 to over 300 • Australia: 95 auditors• US: 203 auditors

Auditors per FSC (Australia)

0

10

20

30

40

50

60

70

80

90

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

FSC

Auditor by FSC (US)

0

20

40

60

80

100

120

140

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Auditor by FSC

020406080

100120140

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Food Sector Category

AU US

Influencing Factors to Growth in US

http://www.usatoday.com/

Buyer Support

Industry Acceptance

Industry Acceptance

Supplier Acceptance

Question 2009 2010

SQF Audit is recognized by my customer

83% 85.1%

SQF report is a valuable resource 81% 83.7%

SQF audit reflects food safety issues 78% 84.3%

Pre-assessment tool was a great value

75% 64.7%

CB was responsive to my needs 73% 83.1%

2010 SQF Customer Satisfaction Survey

Buyer Acceptance

Buyers• Immediate access to audit results &

reports, 24/7

• Confidence in supply chain through high standards, e.g. surveillance audits every 6 months

• Supplier discovery - access to certified sites via live database

22

SQF Buyer Module - Reports

SQFI Audit Report• Scored audit report (document review or facility

assessment)

• Ability to filter audit reports Show entire report Show only non-conformances

Audit Response Details• Raw data of the audit report

• Exportable to excel for data management

Buyer Report – SQFI Audit Report

Buyer Report – Corrective Action Plan

Future Program Growth

Regulations

New US Food Safety Regulations

FDA Food Safety Modernization Act Food Safety Enhancement Act

• Food Safety Plans (HACCP)• Regulatory Standards for Fruits and Vegetables• Risk Based Inspections• Traceability• Recall Authority• Foreign Supplier Verification Program• Accredited Third Party Certification

Food Manufacturers in US Animal and Marine Fats and Oils(493)

Beet Sugar (55)

Bread and Other Bakery Products, Except Cookies and Crackers (4,791)

Candy and Other Confectionery Products (1,962)

Cane Sugar, Except Refining (95)

Canned Fruits, Vegetables, Preserves, Jams, and Jellies (1,294)

Canned Specialties (779)

Canned and Cured Fish and Seafood (403)

Cereal Breakfast Foods (217)

Chewing Gum (41)

Chocolate and Cocoa Products (782)

Cookies and Crackers (1,039)

Creamery Butter (89)

Dairy Products, Except Dried or Canned (4,048)

Dog and Cat Food (475)

Dried and Dehydrated Fruits, Vegetables, and Soup Mixes (352)

Dry, Condensed, and Evaporated Dairy Products (710)

Finfish (921)

Fish and Seafood (7,445)

Flavoring Extracts and Flavoring Syrups NEC (633)

Flour and Other Grain Mill Products (639)

Food Preparations, NEC (5,128)

Fresh Fruits and Vegetables (9,202)

Total =89,059

Source: www.manta.com

Frozen Bakery Products, Except Bread (196)

Frozen Fruits, Fruit Juices, and Vegetables (352)

Frozen Specialties, NEC (716)

Groceries and Related Products, NEC (28,714)

Ice Cream and Frozen Desserts (1,529)

Macaroni, Spaghetti, Vermicelli, and Noodles (418)

Malt (44)

Manufactured Ice (662)

Meats and Meat Products (4,966)

Natural, Processed, and Imitation Cheese (565)

Packaged Frozen Foods (1,805)

Pickled Fruits and Vegetables, Vegetable Sauces and Seasonings, and Salad Dressings (646)

Potato Chips, Corn Chips, and Similar Snacks (769)

Poultry and Poultry Products (1,744)

Prepared Flour Mixes and Doughs (171)

Prepared Fresh or Frozen Fish and Seafoods (707)

Roasted Coffee (767)

Salted and Roasted Nuts and Seeds (157)

Sausages and Other Prepared Meats (1,388)

Shellfish (779)

Shortening, Table Oils, Margarine, and Other Edible Fats and Oils, NEC (295)

Vegetable Oil Mills, Except Corn, Cottonseed, and Soybeans (76)

Building Guidance documents

Brokers (fsc 35) Transportation and Distribution (fsc 25 & 26) SQF 1000 general guidance

Summary

SQF Program is growing and will continue to grow as we build partnerships with industry

Increase in auditors in multiple food sector categories satisfy the demand for audits

Food Safety Regulations will potentially drive the need for more certifications

SQF is creating a greater awareness to industry influencers with marketing initiatives