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
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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
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Milk
Cull Cows Bobby Calves
Reared for beef
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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)?