HACCP: A Necessity for the Packaging Industry

June 26, 2007

• Founded in 1949, not-for-profit corporation in 1952.• PAC represents more than 75 per cent of Canadian

packaging manufacturers, designers, raw material suppliers, machinery suppliers, fillers, brand owners, and major retail organizations.

• 1,100 corporate and associate members directly employ about 130,000.

• About 40 per cent of the $15-billion a year Canadian industry is derived from exports -- primarily to the United States.

• Approx 60% of all consumer packaging is sold to the food and pharmaceutical sectors.

PAC – Who are we?

Agriculture Canada - The Canadian Food Safety and Quality Program (CFSQP)

Canadian Food and Inspection Agency – Canadian Food Safety Adaptation Program (CFSAP) and Food Safety Enhancement Program (FSEP)

• Influencing and encouraging our industry partners to develop and implement national systems

• Supporting an integrated approach for the development and achievement of these systems

• Effectively branding Canada

Government Sponsorship

Food Safety Initiative for Packaging Materials that have Direct or

Incidental Contact with Foods

Think Inside the Box

PAC Project

PAC Project Vision

A Canadian Food Safety Program that includes packaging materials that have been manufactured to a recognized voluntary standard based on HACCP principles

Industry wide usage of the standard, both domestic and imports

Recognized Canadian audit and certification capabilities

High industry and public awareness of the need for a recognized standard

2002 PAC Enabling Committee- Evaluate potential benefits of program

2003 Industry Kickoff Meeting Gets Ball Rolling2003 Develop draft Prerequisite Program and

HACCP standards for Flexible PlasticPackaging

2004 Pilot program to validate standardsdevelopment

2005-06 Develop and Pilot draft HACCP standards forRigid Plastic and Paper based packaging

PAC Project History

1. Release the standards to industry and public.

2. Develop and conduct a series of 1½ day HACCP training seminars providing solid introduction to Food Safety principles and the PAC HACCP standards.

3. Development of a PAC HACCP standard for Glass and Metal based packaging materials.

PAC Project in 2007

Customer Focus – The food industry is our customer. HACCP is a recognized food safety system.

Value Proposition – Program can help you grow your business and take cost out of your business.

Canada is a large exporter of foods – We need to ensure food exported from Canada is of the highest quality and international accepted.

Canada is a large importer of foods – We need to protect the integrity of food in Canada and ensure a level playing field.

Why is HACCP a Priority?

Hazard Analysis and Critical Control Point

HACCP is a systematic and preventative approach to food safety that addresses biological, chemical and physical hazards through preventative action rather than by finished product inspection.

The Food & Agriculture Organization (FAO) and the World Health Organization (WHO) established the Codex Alimentarius Commission. In 1991, Codex developed guidelines for HACCP application. This is getting wide international acceptance.

What is HACCP?

HACCP ensures that preventative food safety controls, based on science, will be applied in a systematic and consistent manner

What does HACCP do?

1. Conduct a hazard analysis.

2. Determine the Critical Control Points (CCPs).

3. Establish target levels/critical limits.

4. Establish monitoring procedures.

5. Establish corrective action.

6. Establish verification methods.

7. Establish documentation systems.

The 7 Principles of HACCP

"Kraft Foods requires that all primary packaging, labels, and labeled packaging suppliers have HACCP programs in place. SQE and HACCP requirements are included in purchasing contracts. Suppliers need to look at their packaging material as food contact. This may be a new concept for them. Risk analysis needs to be performed based on risks to the consumer that will eat the packaged food. Canada is among the leaders globally for HACCP initiatives for Packaging Suppliers. Special thanks to the PAC group for leading this effort."

Debra Krug-ReyesGlobal Procurement Quality Department

KRAFT FOODS GLOBAL, INC.

Customer Driven

"In combination with prerequisite programs such as GMP, HACCP is the most effective tool to prevent the occurrence of food borne illnesses and to avoid consumer injuries linked to the consumption of our products. Nestlé Management is strongly committed to applying the Codex AlimentariusHACCP Principles. In keeping with this approach to food safety, vendors to Nestlé are required to have an effective HACCP system implemented.

"The importance of our packaging vendors in ensuring endpoint food safety of our products must not be underestimated. Packaging is an integral part of the product purchased by the consumer. It is important to protect the product, helping to ensure its safety, integrity and shelf-life. It is also the carrier of key consumer information such as ingredient composition, allergen content, nutrition information, and preparation instructions. As such, packaging vendors implementation of HACCP is as important as any other vendor within the food supply chain.“

Sandra Howe, Corporate Quality Systems Manager,NESTLÉ CANADA INC.

Customer Driven

"In the food safety food production chain, you're only as strong as the weakest link. There are a lot of links from farm to fork. So you need to build on the weak links, strengthen them, so in the future the chain doesn't break. Packaging is one of those links. ...If you have a system in place like the PAC standard, then that shortens the amount of time we need to spend with you during our audit. ...It's a paradigm change. Where you were used to doing things a certain way, we now need to move to more of a food safety focus. You can't resist it. You need to embrace it, or we'll fall behind.“

Lorne Hietala, Manager, Packaging Services,PARMALAT CANADA

Customer Driven

"From day one, Natrel has been committed to working with PAC and the federal government on the food safety standards for packaging based on HACCP principles, investing time and resources in developing the new packaging-specific standards so converters can more readily become HACCP compliant.

Each of our 20 facilities across Canada is already compliant from a processing standpoint, so if we can extend this level of risk management to encompass the packaging that enters our plants, then we have made significant progress towards safer consumer products on retail shelves.“

Jean-Paul Clément, Manager: Environment & Packaging,NATREL DIVISION OF AGROPUR COOPERATIVE

Customer Driven

Value Proposition… How will it grow my business?

Improved customer satisfaction – Program will lead to improved manufacturing processes which should improve overall quality and customer satisfaction.

Food producers are insisting on it – growing numbers of food producers are requiring their packaging suppliers to have recognized food safety systems and be HACCP compliant (e.g. Kraft, Parmalat, Nestle).

Increased exporting opportunities – HACCP is an international recognized food safety process and international food customers will recognize the program.

Ability to standardize process across multiple plant locations.

Reduction in waste or scrap – Program will lead to improved manufacturing processes which should reduce waste

Reduction in employee absenteeism – Focus on employee hygiene can contribute to reduced sick time

Business risk reductionLimit extent of recalls if faces with a food safety situation Reduction in risks associated with food packaging. Some can be significant (e.g.

allergen labeling issues, material compatibility, glass or metalcontamination)

Due diligence – others are doing it, why not you?

Acting now will reduce cost of implementationProcess will identify other continuous improvement

opportunities

Value Proposition… How will it take cost out of my business?

0102030405060708090

100

2003 2004 2005

% Red'n

• The chart to the left shows reduction in number of complaints from 2003 to 2005.

• In total, number of complaints have reduced by over 30%.

• Major Customer satisfaction in the form of greater confidence in our capability.

Example of HACCP BenefitsChart represents relative improvements in reduction

of complaints after implementation of HACCP by a food processor

Example of HACCP BenefitsPositive feedback from one of the Pilot

sites – Plants have implemented the use of hand sanitizers in the plant. This has been positively received by the employees. Plant manager believes this has also led to “significantly noticeable” reduction in absenteeism due to illness which has been an issue in the past.

Food Industry

• Fillers, Brand Owners, and Retail Organizations

• They use and specify the materials

Packaging Suppliers

• Converters, Manufacturers, Importers, Brokers, Designers, Machinery Suppliers

Raw Material Suppliers

• Resin, metals, glass, paper, inks

Government Stakeholders

Who Have Been Involved?

Acorn Packaging Agriculture and Agrifood CanadaAgropur Division NatrelAlcan PackagingAlte-RegoAtlantic PackagingBall Packaging ProductsBericapBothwell CheeseBrewers Association of CanadaBright Cheese House, TheCadbury Adams CanadaCanadian Corrugated Case

AssociationCanadian Council of Grocery

DistributorsCanadian Food Inspection

AgencyCanadian General Standards

BoardCanadian Plastics Industry

AssociationCanAmera FoodsCanbra Foods LimitedCentral GraphicsChantler PackagingCiom/Novacote

Multistakeholder ParticipationCoca-ColaCousins CurrieCrown PackagingDainty FoodsDare Foods Ellis PackagingFoodConGayLea FoodsGeneral Mills CanadaGraham PackagingGraphic PackagingGuelph Food Technology

Centre Health CanadaHigh Liner FoodsIan Britt and AssociatesJM SmuckerJones PackagingKraft CanadaKraft Foods GlobalLabeladLangen PackagingLoblaw Brands

Richards PackagingRobinhood MultifoodsRopakSandler ConsultingSaputo Bakery DivisionSaxco CanadaScott Paper LimitedSilgan PlasticsSmucker Foods of Canada Smurfit MBISobeysSonocoSpecialty PaperTetra Pak CanadaThe Packaging GroupTWD TechnologiesW.G. Pro ManufacturingWC ParchmentWG CorporateWinPak Technologies

Maple Leaf Consumer FoodsMaple Lodge FarmsMcCain FoodsMultiPakMinute Maid Company

Canada, TheNestle CanadaNorampacOwens-Illinois Glass

ContainersOld Dutch FoodsOntario Ministry of

Agriculture and FoodPackaging Association of

CanadaPackallParmalat CanadaPeel Plastics Products PlasticapPolytainersPrimex Packaging ServicesR.A. Miller & Co. Reinhart Foods

PAC HACCP TOOLKIT made up of 2 key elements:

1. Prerequisite Program – Common Good Manufacturing Practices (GMPs) for the converting industries.

2. HACCP Standards for Specific Conversion Processes.• Flexible & Rigid Plastic• Paper• Metal & Glass (under development)

Standards include workbooks to assist users with implementation.

PAC HACCP Standard

Before HACCP a good Prerequisite Program should address the majority of food safety concernsPremises• Building exterior• Building interior (design, construction, maintenance, lighting, ventilation,

waste disposal, employee & sanitation facilities, water, steam, ice

Transportation and Storage• Carriers quality, temperature controls, storage

Equipment• Appropriateness of design

Sanitation and Pest Control • Good housekeeping

Personnel• Training• Hygiene and health requirements

Recall and Traceability

PAC Prerequisite Program

The following sequence of 12 steps is the recommended approach for the development of a HACCP program:

1. Assemble HACCP team2. Describe product3. Identify intended use4. Construct process Flow Diagram and Plant Schematic5. Conduct on-site verification of Flow Diagram and Plant Schematic6. Identify hazards. List preventative measures to control (HACCP principle 1)7. Determine Critical Control Points - (HACCP principle 2)8. Establish limits at each Critical Control Point - (principle 3)9. Establish procedures to monitor Critical Control Points - (principle 4)10. Establish corrective action to take in case of a deviation - (principle 5)11. Establish procedures to verify systems are working correctly - (principle 6)12. Establish effective record keeping - (principle 7)

PAC HACCP Standard

PAC HACCP Plan Program

HACCP Plan development involves analysis and filling out of the following set of forms:

Form 1: Product DescriptionForm 2: List of Product Ingredients and Incoming MaterialsForm 3: Process Flow DiagramForm 4: Plant SchematicForm 5: Biological Hazard Identification and ControlForm 6: Chemical Hazard Identification and ControlForm 7: Physical Hazard Identification and ControlForm 8: Critical Control Point DeterminationForm 9: Hazards Not Controlled by OperatorForm 10: HACCP Plan

PAC HACCP Plan Program

Standard Development• Working committees established for each specific

conversion process• Over 40 companies participated• Cross functional stakeholder representation including

• Fillers, Brand Owners, Retailers and Distributors• Packaging Converters• Government Stakeholders• HACCP and Packaging Industry Experts

• Series of development meetings• Validation of standards with pilot

testing program

Pilot Program Sites

Chantler Packaging — Flexible Plastic

Cousins-Currie (2 sites) — Rigid Plastics (blow molding)

Graphic Packaging — Paperboard & Film (Laminating)

Jones Packaging (2 sites) — Paper (paperboard cartons)

Norampac — Paper (corrugate boxes)

Plasticap — Rigid Plastics (injection)

Sonoco — Flexible Plastic

Pilot Program ObjectivesEstablish a team and train the employeesImplement the standard and provide the following

feedback to the working committees:• is it workable?• Is it clear?• Is it simple?• Is it user friendly?• Is it complete?• Is it effective?• Is it cost-efficient?• Are you still interested in implementing HACCP?• National and international applicability?• Ongoing care and maintenance of the standard?• Any employee specific feedback?

ISO 22000 - PAC HACCP InterfaceISO 22000• Based on Codex

Principles• Lays the groundwork

for the prerequisites—does not offer details or specifics

• Details management roles, internal and external communications, resource management, planning, infrastructure

PAC HACCP• Based on Codex

Principles• Specific to the package

conversion processes• Very detailed and

based on FSEP• Provides shop-floor

guidance• Developed by the

packaging community

Time

Good

Bad

Anticipating Reacting Crisis$$$$$

Cor

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tres

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COST

Responding to Change

Conclusion

HACCP requirements can be intimidating to the initial viewer. If implemented appropriately a good HACCP program can improve the overall effectiveness of your operation

Are you focused on your final customer?

Do you really have a safe food mindset?

PAC can help

Questions and Discussion