SQF Technical Advisory
Council Meeting –
April 2010
SQF Institute
Discussion Topics
 SQFI Program Updates
 SQF Product Updates
 Quickfire
 Other
SQFI Program Updates
 Program Growth
 Update on training, on-line training
 Marketing update
 Market expansion – Asia / Pacific
 Certification Body performance
 RABQSA update
 Review of scoring / rating solutions
 Input from group
Structure of SQF Program
FMI CEO
Sam DiCarlo
CFO FMI
Jill Hollingsworth
VP of Food Safety
John Schulz
SQFI - BD
Gary Smith
SQFI - TD
SQF Registrations – January 09
 Total of 1963




registrations
Aus / NZ – 1385
N.A. – 322
A / P – 215
S.A. - 15
11%
1%
Aus/NZ
N.A.
A/P
S.A.
16%
71%
SQF Registrations – January 2010
1%
7% 1%
 Total of 4257






registrations
Aus / NZ – 1902
N.A. – 1968
A / P – 286
Latin Am. – 52
Europe – 14
Other - 35
Now 4890 sites
Aus/NZ
N.A.
A/P
L.A.
Eur
45%
46%
North American CBs within SQF –
Number of Registered Sites
 SGS – 1535 (1)
 Silliker – 748 (2)
 NSF – 583 (3)
 NCSI – 354 (5)
 GFTC – 147 (6)
 TUV – 129 (7)
 SAI Global – 100 (8)
 AIB – 86 (9)
Others
- DNV - 48
- Steritech - 37
- SCS - 23
- Eurofins - 3
- Cert-ID - 0
- Intertek (new)
- Perry Johnson (new)
 Eagle – 78 (10)
(rank within total SQF CBs – 19 total)
US Certifications by FSC by % – April 2010
25
23.8
20.9
20
14.3
15
Food
sector
cat
11.6
10.1
10
6.5 7
5.9
5
4.1 4.1 4.3
3.2
4.1
2.9
0.5
N = 1159
0.4
1.1
1.1
1.1
1
0
3
4
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 26 27
Growth in SQF Program
 Overall there has been 117% growth in the
program over the last 12 months
 The number of registered auditors has increased
from 128 to over 300
 There are now SQF certificates in over 30
countries around the world
SQF Budget Performance in 2009
 2009 Budget approved was that SQF was
expected to lose 400,000 USD
 Final 2009 budget numbers show SQF actually
finished in positive numbers, with some revenue
from 2009 actually being attributed to 2010 due to
some CBs invoices still outstanding
 2010 approved budget has a 60 % increase in
revenue
• First quarter 2010 update
Revenue Model Discussion
 SQF current revenue stream
• 52% from registrations (average $300 per year)
• 18% from conference and training (auditor, update)
• 11% from on-line training revenue
• 9.5% from license fees
• 4.0 % from conference sponsorships
• 3.6% from PAF downloads
 Revenue stream from beyond 2010 - ???
Update on SQF Training
 Since January 2009, there have been
• 3,200 Implementing SQF 2000 exams
• 316 SQF auditor exams
• 242 Implementing SQF 2000 on-line course
Training Update
 SQF 1000 Materials
 Training Update
 Upcoming Projects
SQF 1000 Materials
 Training Materials
 Exam
 Guidance Document
SQF 1000-- Training Materials
 Implementation Training Materials for SQF 1000
have been developed
• PowerPoint
• Workbook
• Exam
 Includes food safety and food quality examples
for primary producers
 Need pictures to enhance content
 Future: Spanish translation
SQF 1000-- Exam
 Developed for 1000 Implementation Course
 Designed for Consultants, Suppliers, Practitioners
 Multiple choice – no true/false or negative questions.
Example:
When developing the food safety plan the producer must ensure
A. That at least one critical control point has been identified
B. All employees have attended a HACCP certification class
C. The customer's quality requirements have been considered when
determining critical control points.
D. The SQF Practitioner has validated that each critical limit is effective in
controlling the identified hazard
SQF 1000– Guidance Document
 Developing General Guidance Document
 Ready for review by May 5th
 Need Technical Experts for Animal Handling
(sections 5.6, 6.15, and 6.16)
Training Update
 SQF 1000 Materials
 Training Update
 Upcoming Projects
SQF Training
 Training Survey Overview
 Feedback from Participants and Training Centers
 Training Materials
Survey Results-- Overview
Course attended:
Survey Results-- Overview
Overall did you find the course….
Survey Results-- Overview
The content was…
Survey Results-- Overview
The method and style of presentation was…
Survey Results Overview
The rate of instruction was…
Survey Results-- Overview
The course prepared me to implement SQF systems
Survey Results-- Overview
The course exam….
Survey Results– Participant Comments
Comments can be classified into 4 Categories
 Time
 Materials
 Instruction
 Exam
Survey Results-- Comments
 Time
• Participants would like more time and extend the
Implementing course at least ½ day
• The time for the course content should re-structured
with emphasis on the Implementation modules.
Specifically more time is needed on: SQF Code; Food
Quality Plans; Validation and Verification Activities
Survey Results-- Comments
 Materials
• Fix typos and grammatical errors
• Remove irrelevant information
• Include “real world” examples, pictures and
documents
• Translate in French
Survey Results-- Comments
 Instruction
• Online course is a very useful tool
• Overall instructors are doing a great job
• More interaction/ exercises are needed
Survey Results-- Comments
 Exam
• Exam items are tricky
• A practice exam would be helpful
• Exam items didn’t correspond with the training
material
SQF Training
 Training Survey Feedback
 Updated Training Materials to address
comments
 Translations
Updated Training Materials
Time
 Observation: There is not enough time to cover all
the information presented. The training time
should be extended.
 Resolution: Reorganize the agenda to emphasize
the modules in the Implementing Section.
Trim/restructure the “Cost of Quality” and
“Implementing SQF System.”
Updated Training Materials
Example Agenda:
1)
Introduction and Overview of the Course- 1 hour
2)
The SQF Codes, Food Sector Categories, SQF Vocabulary, Use of the
Logo, SQF Practitioner, SQF Consultant – 90 minutes
3)
Implementing SQF 2000 Systems – 4 hours
Workbook Review – 45 minutes
4) SQF Code- Fundamental Requirements – 90 minutes
5) SQF Code- Pre-requisite Programs – 1 hour
6) Auditing & Certification of SQF Systems: A Supplier Overview – 1 hour
7) The SQF Food Safety Plan – 90 minutes
Exercise: Developing a Food Safety Plan
8) The SQF Food Quality Plan – 1 hour
Exercise: Developing a Food Quality Plan
Updated Training Materials
Materials
 Observation: There are some clerical errors in the
documents. When practical examples are used in the
training course the participant can better understand how
to apply the concepts
 Resolution: Fix all typos and grammar errors. Simplify
some of the “bulky” slides. Include “real world” examples
in the notes section as they apply to the code. Create an
appendix that includes sample documents (Policy
Manual, Pre-requisite programs).
Updated Training Materials
Instruction
 Observation: Some of the information presented was not
current. While the majority of instructors were rated high
there were some instructors that were not rated
favorably.
 Resolution: Audit training courses and develop a train the
trainer course to keep trainers updated on the code
revisions. Include a module on Quickfire
Updated Training Materials
Quickfire Module
Designed as quick introduction and to be used as a long
term reference
Topics:
- What is Quickfire and how do I use it
- How to register your site on Quickfire
- ICIX
- The buyer module
- How to add a buyer
- How to access buyer information
- User guides/videos
Updated Training Materials
Exam
 Observation: The exam questions are tricky and
don’t pertain to the course material.
 Resolution: Develop a new bank of test questions
that are relevant to the course and the participant.
Include a practice exam and/or questions
dispersed within the training materials.
Training Update
 SQF 1000 Materials
 Training Update
 Upcoming Projects
Upcoming Training Projects
 Translations
• Revised SQF training materials to be translated in
Chinese, Japanese, and Spanish (French?)
 Auditor Training
• Revisit training materials
• Develop new bank of audit questions (include a
practical exam as part of training class?)
SQF Marketing Update
 Working with marketing firm Merrill and
Associates on marketing projects
• Short term – March/April newsletter
• Market research – surveys from



Suppliers
CBs
Retailers
• Marketing materials
• Review of SQF website
Activities in Growth of Asia / Pacific
Market
 Conference in China, November 2009
 Auditor course in China, April, 2010
 Other activities / potential
• Brazil
• Mexico
• Central America
• Europe
Certification Body Performance
 Monitoring capabilities limited from Quickfire
• Currently able to do report review and monitoring of audit group
management
• Feedback provided to CBs
 Have requested more reports from Quickfire for future
monitoring
 Have been in close contact with both accreditation bodies
with reports from recent assessments and concerns
 One Certification Body has been delisted due to
monitoring activities
CB Compliance Data
 Reality – very limited reporting capability out of
Quickfire presently
 Management of Audit Groups – audit groups closed
within 45 days after due date
 North American CBs – (SQF average 93.7)
•
•
•
•
•
•
•
CB A – 100%
CB B – 99%
CB C – 97%
CB D – 95%
CB E – 93%
CB F – 85%
CB G – 78%
- CB H – 75%
- CB J – 70%
- CB K – 56%
- CB L – 50%
RABQSA Performance
 Since Sept 1, all applications have been handled
electronically by RABQSA
 Applications received – 263 applications total
• 196 auditor applications
• 58 consultants
• 9 trainers
 Turn around time of applications now at 7 business days
 Concerns –
• 9 trainers applications only –14 total trainers registered
Rating Issue
 Issue: Due to the scoring system of SQF audits,
ratings for all audits are skewed very high
 Potential solution:
• Rework rating formula for determination of rating
• Increase weighting of non-conformances
 Fix will be incorporated with new PAFs for SQF
2000 in May, 2010
Example of Rating Issues
 Example: site with 2 majors, 15 minors, and 10 OIP –
surveillance audit needed
• Currently rates – 96.0% E rating
• Reworking formula – 84.1% C rating
• Weighting of N/C – 77.6 % C rating
 Weighting of N/C proposal
• OIP: -1 point
• Minor: -10 points
• Major: - 50 points
• Critical: -100 points
 Weighing of N/C chosen by AP group, show both
scores for a year
 Implement by June 1st, 2010
Discussion Topics
 SQFI Program Updates
 SQF Product Updates
 Quickfire
 Other
Multi-site Certification
 Some confusion on multi-site certification,
clarification from TAC needed
• Audit protocols




Every 6 months central site audited, sample of sub-sites
Full document audit done at one sub-site
Full audits done by central site of each sub-site annually
Only certificate received by central site
• Questions


Should sub-sites each receive a certificate from CB
How should a document review audit of sub-sites be conducted
SQF 1000 Update
 5th Edition Final version
was released Sept 1st,
2009
 Minor revisions in Jan,
2010
 Updates
• Transition over March 1,
2010
• Minor revisions to ensure
GFSI recognition
• Level 2 and 3 PAFs
available
Update on Competing Produce Standards
 Freshcare
• Given growth of Fresh Care in Australia, we are
meeting with them to discuss collaboration options
• Given status of 1000 and declining market share, what
should we attempt to accomplish
 United / LGMA / FL Tomato
• No push for GFSI certification within produce industry
in North America
• Less robust standards being developed and accepted
by US buyers
United Produce Standards
 Developing a produce standard with customer buy-in and
participation that can be used by anyone.
 The goal isn’t to create a new standard but use the
content from existing standards to create a
“harmonization” approach.
 Currently have 39 out of 60 standards developed. Target
date for completion is October 2010
 Next big discussion is on how the developed standard
will be implemented and sustained.
Future of SQF 1000
 SQF 1000 market share eroding quickly
 Freshcare in Australia becoming dominant
produce standard
 In North America – produce industry has not
embraced 1000, GFSI recognized many primary
produce standards
 Actions / Strategies to move forward
SQF 22000
 SQF 22000 has been submitted to GFSI for
benchmarking
• Using session 5 and 6 from SQF 2000 standard, with ISO
22000 as the foundation for food safety management
 Accreditation will have to include 17021 as an scheme,
CB criteria document must be updated
 Reason – North American, Asia/Pacific option for 22000,
easy access to SQF CBs
 Status – initial benchmarking, additional work needed to
complete benchmarking, no activity until July, 2010
SQF Ethical Sourcing Module
 Module built combining the SQF modules (RSP, REP),
retailer standards and the Global Social Compliance
Program (GSCP)
 To be combined with SQF certification audit
 Expected to be 1 additional audit day
 Auditors will be required to be SQF registered and
undergo an additional training session on ethical
sourcing module and on-line exam
• Webinar April 28th
• Classroom May 7th - Chicago
Solution for Sustainability – SQF Modules
 Responsible Social
Practices
 Responsible
Environmental
Practices
 Ethical Sourcing
 Food Defense
Guidance Documents for SQF
 General Processing





Requirements
Produce Packing House
(FSC 4)
Shell Egg (FSC 12)
Transport and Distribution
(FSC 25 & 26)
Packaging (FSC 27)
To begin in Q1 of 2010
• Dairy (FSC 10)
• Brokers (FSC 35)
Guidance Document Approvals Needed
 Packaging
 Produce Packinghouse
 Ethical Sourcing
Other Potential New Products
 Ethical sourcing training and on-line training
 Animal welfare – module around humane
handling of animals, chicken, beef, pork, lamb
 Aquaculture module
 SQF branded products
Quickfire Support Solution
 SQF Quickfire Support Personnel
• Australia – part time, 20 hrs per week
• US – part time, 20 hrs per week (ON HOLD)
 Dedicated to providing Quickfire support to Industry
• Suppliers
• CBs
 Will be interacting with Muddy Boots directly when there
are issues they cannot address
 Implementation April 1st, 2010 in Australia
 Webinars, user guides, Muddy Boots training
Quickfire Discussion
 Current status – SQF has expressed major concerns to
Muddy Boots over usability of system, report capabilities,
interface requests, responsiveness and engagement of
SQF team in communication and strategy
 Concerns – Have we asked them to do too much?
• Reality – system not built to run a certification program, very
limited customization to SQF needs
 Future – reviewing options on reporting capabilities with
other service providers, contracted objective review with
usability of system for customer interface
SQF Conference, August 2010
 In conjunction with AFS HACCP conference in
Melbourne
 Review of agenda and speakers
 Awards and sponsor updates
GFSI Update
 Many standards globally seeking GFSI recognition
• Primus, Global GAP, FSSC 22000, Syngery 22000, Red Meat
Standard recognized
• Concern expressed to GFSI on number of recognized standards
growing
• GFSI not concerned with number of standards, want as many
as possible, more concerned on costs of GFSI certification
audits and expansion into emerging markets
 6th Edition of the GFSI Guidance Document set for July,
2010 release
 SQF working with GFSI Accreditation committee on
Witness Audit Recognition Program with CB association
(Food Safety Forum)
Other Discussions
 Sprouts / Mushrooms to be SQF 2000
 ICIX integration
 Use of the SQF buyer module