AG 9000: Quality
Management System for
Grain Production
Chad Laux
12/13/04
Overview
Background
Attitudes about Biotech
Customer/consumer importance
Satisfy needs through differentiation
Customer focused systems – QMS
ISO 9000
Implementation issues
AG 9000
Standards process
Background
Increased usage of biotechnology in
agriculture
Grower benefits including pesticide
reduction, increased profit
As a result, current use of GM modified
food products widespread
95% of Argentinean soybeans GM modified
(Millis, 2001)
Customer Attitudes
Concerns about use
biotechnology in US
and abroad range
from little concern to
outright opposition
Are Genetically Modified Foods Safe?
0.46
0.29
0.25
Poll of US citizens of
GM food safety:
(Hoban, 2001)
Safe
Unsafe
Not Sure
Result: strong consumer resistance to GM in many countries
Customer Focused Markets
There are more open, transparent, marketoriented economic systems today than ever
before.
Customer choice on food preferences or traits
results get back to producer
• South Korea buys a majority of soybeans from Brazil
rather than US due to non-GM soybeans Brazil supplies
(Harl, 2002)
Consumer/customer dominates the debate (Harl,
2002)
Market Conditions Today
Increased customer demand for product
information
Result: Global markets moving from
homogenous foodstuffs to differentiated
foodstuffs
• Food products increasingly defined by product
differentiation rather than as commodities
categorized by grades (Reardon, 2002)
Product Differentiation
Products defined by product attributes,
traits, verification by testing, or process
defined by auditable or certified
production system (Clause, 2003)
Separation of product w/ testing doesn’t
address how Agriculture does business
(blend and send)
Prescriptive Approach
Approach that relies on organizational
change, and customer focus to adapt
to the changing marketplace.
Customer Focused Systems-QMS
A quality management system (QMS) is a
system that defines operations to achieve
consistency and creditability with customers
(Weigers, 2001)
Also, it refers to what the organization does
to manage its processes, or activities in order
that the products or services that it produces
meet the objectives it has set itself (ISO,
2004)
ISO 9000 series (International Standards
Organization standard on quality management)
ISO 9000
ISO 9000 is a generic standard - means that
the standard can be applied to any
organization, large or small, whatever its
product in any sector of activity
ISO is an auditable system – organization
may be certified to a market standard by
outside agency (Weigers, 2001)
ISO 9000 predominant QMS today – adopted
by 149 countries/economies (ISO, 2004)
Growth of ISO 9000
Almost 350,000
companies registered to
ISO 9000 series (ISO,
2003)
Top 10 countries for
registrations:
China (approx. 27%)
Italy
UK
Japan
Spain
USA (approx. 9%)
Germany
Australia
France
South Korea
ISO 9000 Characteristics
Leadership demonstrates commitment to
customer requirements.
Policy and measurable quality objectives are
set and renewed.
Processes are identified, analyzed, and
managed.
Customer satisfaction is measured.
Data are collected, analyzed, and used.
System effectiveness is continually improved.
(Bloomfield, 2004)
ISO Process Approach
Company must identify
and manage numerous
linked activities.
An activity uses
resources, is managed
in order to enable the
transformation of inputs
into outputs.
ISO 9000 and Agriculture
ISO compels process control, traceability of
product information, and continuous
improvement practices in Agriculture. (Clause,
2002)
Operational discipline resulting in improved
efficiencies such as a 2:1 payback ratio.
(Hurburgh and Lawrence, 2002)
Rigor and profit-based model is attractive to
Agriculture dominated by low-margin products
Implementation Issues
Limited adoption of ISO in Agriculture thus
far
ISO not explicitly written to Agriculture
• ISO a general quality management system document
• ISO is applicable to all industries and sectors
Fiscal impacts of ISO not explicit
• Focused on operations, not on accounting
• Picture of fiscal impact of ISO mixed
Create an ISO Guidance standard for
Agriculture
AG 9000: ISO 9000:2000: Quality
Management System for Grain
Production Draft Document
Scope: This standard will encompass
all quality aspects of grain production
from planning to the delivery of the
product.
AG 9000 guideline for ISO 9001:2000
and ISO 9004 will clarify
implementation issues for farmers.
Ag Core Processes
Planning
Land Allocation
Procure Inputs
Field Preparation
Planting
Field Activities
Pre-Harvest
Harvest
Grain Management
Storage
Distribution and Delivery
Timeline and Standards Process
Written 1st draft document for adoption
by ISO.
Initial response from international
community very positive. (EU)
Will become New Work Item under
ISO/TC 34/Working Group
Handles Food Products
TC 34 Structure
TC 34
Food Products
WG 7
GMO
WG 8
Food Safety
Systems
WG 9
Traceability
Single Standards
Allergenicity
Food Irradiation
SC 2
SC3
SC 4
SC 5
SC 6
SC 7
SC 8
SC 9
SC 10
SC 11
SC12
SC 14
SC 15
SC 16
(AOCS, 2004)
Timeline
1
PROPOSAL
New Work Item
NWIP
2
PREPARATORY
Working Draft
WD
3
COMMITTEE
Committee Draft
CD
4
ENQUIRY
5
APPROVAL
Final Draft International Standard
FDIS
6
PUBLICATION
Publication-International Standard
IS
Draft International Standard
DIS
(AOCS, 2004)
Key Aspects of ISO Participation
Timely – prompt response to enquiries within
the accepted timeline
Consensus – all points of view are accepted in
forming the TAG position, majority support
for the position
Transparent – activities of the committee are
open and may be inspected by all interested
parties
Traceable – all items must be accompanied by
a voting record
(AOCS, 2004)
Considerations from ISO/TC 34/WG 8
Food Safety Systems
What would the ideal standard look like?
How can different national standards be
integrated together?
How can we ensure consistency between
different interests?
How far is the current draft from ideal?
- guidance document or auditable
standard
Compromise: Guidance document with annex
containing auditing plan
(AOCS, 2004)
Questions?