Safe food

Food safety is one of the group’s major risks, affecting all businesses except Primark. For businesses which are adequately prepared and managing their processes efficiently, the prospect of a contamination incident and the risks of product withdrawal and recall are significantly diminished. The group’s food safety policy is as follows:

“We recognise and acknowledge that consumer confidence in the quality and safety of our food products is essential. To this end a high priority is placed on all aspects of food safety.

To manage food safety risks, our sites operate food safety systems which are regularly reviewed to ensure they remain effective, and comply with all regulatory requirements for hygiene and food safety. Our food products are made to high standards regardless of where they are manufactured. We will always put food safety before economic considerations.”

Given the diversity of our businesses, the responsibility for managing and mitigating this risk lies appropriately with the chief executive of each business. There are, however, several internal mechanisms for exchange of best practice amongst the businesses.

A lead in the technical advice aspects of food safety is taken by Allied Technical Centre (ATC), part of Milling & Baking, at Maidenhead. The group technical forum was started in 2007, where senior technical managers from each division discuss and share best practice and emerging developments regarding, inter alia, food policy and regulation, food safety, quality management systems and food safety protocols.

In March 2010, a review of food safety processes at each of the businesses was undertaken by our Chief Executive and Finance Director. This covered quality control, product security, hygiene, regulatory compliance, product recall procedures and incidents over the last two years. As expected, food safety procedures are a high priority for all our businesses. While government standards differ across the countries in which we operate, both AB Agri and British Sugar regard the higher standards demanded of their Chinese businesses as a commercial differentiator versus their competitors.

Across the group’s factories, there is almost universal usage of Hazard and Critical Control Points (HACCP) analysis, which is required by EU law, and widespread accreditation to the ISO quality standards and British Retail Consortium global standards for food safety. Some Illovo sites outside South Africa have yet to implement HACCP, but extension to these sites is planned.

All businesses have documented and tested product recall procedures, except BSO China where testing is still to be undertaken, and the incidence of product recalls in the last two years has been relatively few. However, any recall is damaging to customer relationships, and so a renewed focus is being given to this area.

There are a number of independent audit processes which provide a level of assurance on food safety:

Customer audits

All sites are regularly audited by their major customers. The larger customers have their own teams of food safety experts, who have a clear incentive to ensure that their suppliers have in place robust and effective food safety and quality processes as well as recall procedures.

Site internal audits

All sites have quality and food safety audits carried out by local QC/QA staff. Additionally, some divisions utilise site audits by divisional technical staff and cross-site peer audits.

Product liability insurance

A firm of specialist auditors, RQA, carries out five three-day site audits each year to review the adequacy of each site’s food safety procedures. Where any weaknesses are found, recommendations are agreed and monitored.

Allied Technical Centre (ATC)

ATC provides food safety services to a number of our businesses, mainly, but not exclusively, UK based.

In May 2010 AB Agri hosted the four-day UK-China International Summit on Feed Safety in Beijing. Food safety is a key priority for the Chinese government, which is in the process of integrating the many existing regional food safety standards into a uniform national standard. As many food scares have their origin in what is fed to farmed livestock, AB Agri organised the event to raise the profile of feed safety and share our expertise. 180 government officials, feed inspectors, academics, journalists and colleagues from other feed providers attended the event.