Agrifood Marketing

Rolan Micallef Attard

www.yesitmatters.com

University of MaltaCourse: BSc (Hons.) Mediterranean Agro-Ecosystems Management

Agri-Marketing Channels 2009

Farm to Fork - Supply Chain

The full process which brings a product or

service to the market, form the point of original

production to the point where the product is in

the hands of the consumer

Agri-Marketing Supply Chain

Marketing occurs at all levels of the Agri-Supply

Chain

Intermediary steps: e.g. buying, assembling,

storing, packing, warehousing, communicating,

advertising, financing, transporting, grading,

processing, conditioning, packaging, selling,

retailing, risk taking, insuring, standardising,

regulating, inspecting, market research

Intermediaries of

Argi-Marketing Channels

The Agri-Marketing Channel path depends on:

• The nature of the product

• Short path: e.g. Producer => Consumer

• Long path: e.g. Producer => Assembler => Processor => Exporter =>

Importer => Wholesaler => Distributor => Retailer => Consumer

• Target market e.g. Needs, Geographical position

• Extent of change of the form of the product

• No change: make them into smaller lots (agents, wholesalers, retailers)

• Add value: intermediary function (dry, clean, pack)

• Change/Transform nature: (e.g. processors, manufacturers)

Food Supply Chain

Source: http://www.foodtech-international.com/papers/farmtofork.htm

Vegetable Supply Chain

Source: http://www.bar.gov.ph/bardigest/2006/octdec06_innoapproach.asp

Pig & Chicken Supply Chain

Source: http://cheeseslave.wordpress.com/category/farms/

Case Study

Fiorucci

QualityBecause only through the development of advanced technologies is it possible to guarantee the health of the consumer, the goodness of the product and the nutritional characteristics that ensure a balanced diet

SafetySince 1850 this is the guiding principle of the Fiorucci Group, a quality made possible only through constant attention in the use of selected raw materials, rigorous chemical-bacteriological controls (over 3000 every year) carried out day after day by the Cesare Fiorucci analysis laboratory, accredited by Sinal and qualified by the Ministry of Health for self-checking analyses on the foodstuffs. The Analysis Laboratory interacts with important Italian and international scientific structures and is in the vanguard in terms of chemical, biotechnological and microbiological research and in the development of new products, processes and production technologies

CertificationThe continuous attention on product quality and safety is confirmed by the following certifications that Fiorucci achieved:

• ISO 9001:2000 Certification;

• Sinal Laboratory Accreditation in conformity to UNI CEI ISO/IEC 17025:2000;

• Environmental Certification ISO 14001 for Luigi Ugolotti srl ;

• BRC (British Retail Consortium), high level, International Standard Certification on hygienic and sanitary control system in its plants in order to be qualified for export to UK;

• International Food Standard (IFS), high level, Certification on HACCP (Hazard Analysis Critical Control Point) control system on raw materials, semi-finish products and finished products and industrial processes in order to be qualified to export to the continental European markets;

• FSIS/USDA for export of cured hams to USA;

• Organic Certification.

Fiorucci has been constantly putting a great care into the research of the highest productive standards, obtaining prestigious product certification, as ISO 9001. For these reasons Fiorucci is an absolute guarantee of quality for the user and final consumer

Export

Fiorucci's focus abroad, began around the 1970s, and is now translated into a specialist presence in the food halls of the most famous European department stores: in Harrods and Selfridges in London, in the Galèrie de Lafayette in Nice and in El Corte Inglès in Spain.

Export

Logos/Branding

Nutritional safety and guarantees are our code of practiceThe modern consumer is increasingly attentive to the quality of foodstuffs, and above all to "how" they are produced. Through the Controlled Production Chain project, launched on 1 January 2003, Fiorucci wants to guarantee the consumer products which respect specific benchmarks of traceability, safety, transparency and control in all the critical phases. Traceability in particular allows full knowledge of the history of a product from its origin to its final destination, so Fiorucci has full control of: The Pork products chain; The Dairy products chain.Fiorucci, in its capacity as Head of Chain, makes controls through systematic verifications of all suppliers (over 100), managing and ensuring the health and hygiene features of all the products right along the chain. These audit tests are focused on internal control systems, on procedures, on process control and specialy focused on respecting environmental requirements by all actors of chain. In detail, the first level suppliers are made up of: 90 butchers, suppliers of meat raw materials; 17 suppliers of cheeses and speciality foodstuffs;15 corporate co-packers;It is precisely the involvement of all these actors in the management and control of the production process, with the co-ordinating role of the Head of Chain Fiorucci, that constitutes the added value of the entire project.

General Requirements of the Fiorucci Controlled Production ChainThe essential requirement of the Fiorucci Controlled Production Chain is traceability in every phase of production. The Head of Chain Fiorucci requires all actors in the chain to comply with four fundamental additional requirements: Self checking; Quality System; Environmental requirements; Social accountability

Self checking, the suppliers and sub-suppliers answerable to the Fiorucci Controlled Production Chain must guarantee the existence and application of a Self Checking system which conforms with current legislation, Legislative Decree 155/97 entitled "Implementation of the EEC directives 93/43 EEC and 96/3 EC concerning the hygiene of foodstuffs", to CE regulation 178/2002 establishing general principles and requirements on feeding legislation, and to EEC directives on food product hygiene.

Quality System, the suppliers and sub-suppliers of the Production Chain are required to guarantee the existence and application of documented procedures regarding: management of documents and registrations; process control; identification and traceability; management of non-conforming products; corrective and preventive actions; internal audits; personnel training; cleaning and disinfecting; weed and pest control.

Environmental requirements, the suppliers and sub-suppliers of the Production Chain are required to comply with all the regulations in force in the environmental sphere and to the implementation of policies and procedures aimed at the reduction of the environmental impact of their activities. They must also guarantee the existence and application of documented procedures for the operative control of the environmental aspects, the monitoring of the environmental data, the management of emergencies and the management of the legal requirements.

Social accountability, in order to respect the Chain Specifications, all the organisations that are part of the FiorucciControlled Production Chain are required to adhere to the principles contained in the regulation SA 8000 which defines the principles and guidelines for the design and management of a system of corporate social accountability.

Fiorucci and care for the livestock The wellbeing of the livestock is a crucial commitment for all the breeders of the Fiorucci Controlled Production Chain. Effectively, they commit themselves to receiving, rearing and housing the livestock in appropriately equipped and organised structures.

The structures and equipment of the stock farms must be clean and disinfected and capable of guaranteeing the animal adequate conditions of wellbeing without any unnecessary pain, suffering or lesions, and to this end:

the pens: are built in such a way as to guarantee change of air, and the flooring is constructed using water-repellent, thermal and skid-proof materials;

the housing sheds: are built without sharp corners or protruding parts which may cause lesions;

the silos and the food supply systems for the pigs are maintained in good conditions of health and hygiene and are subjected to the periodical removal of food residue;

the feeding: the animal has access to an appropriate quantity of water and feed of adequate quality, in line with the planned daily schedule;

during handling the pigs are not subjected to maltreatment or pointless suffering;

the use of battery operated prodders is prohibited;

in the case of medical treatment, only registered medicinal products or supplements are used, adhering to the administration times and dosage, and recording these on special forms;

registered medicinal products or supplements are not used when these are known to be detrimental to the quality of the meat;

the disposal of the fasces is performed in conformity with the legal regulations and with the protection of the environment.

The Pork Production Chain

Within the framework of the Fiorucci Controlled Production Chain, the Pork Production Chain is a globally elaborated process extending from the production of the feed right through to the end consumer.

It features the following phases:- Feed plant- Stock farm: birth and fattening - Butchering- Pork factory- Transport and distribution- Controls plan

Stock FarmGENETICSAccepted Italian pigs in the stock farms of the Fiorucci Controlled Production Chain are; Italian Large White; Italian Landrace breeds, Cross-breeding of these two breeds with the Duroc breed. Other breeds may be allowed compatible with those of the Italian Herdbook for the production of heavyweight pigs. Excluded are those animals which do not conform with the Production Specifications of the Parma and San Daniele Consortia, and pure-bred animals of the Landrace Belga, Hampshire, Pietrain, Durocand Spotted Poland breeds. The different genetic types admitted to the Italian pigs stock farms of the Fiorucci Controlled Production Chain must assure the achievement of elevated weights with good efficiencies and an average live weight per batch of 160 kg + -10% for a minimum period of 9 months, and must ensure a good yield in lean cuts as well as an appropriate equilibrium between meat and adipose cuts.

TREATMENTSThe registration of any medicinal products administered is required. For the therapy and prophylaxis of the animals only the supplements and medicinal products which are registered and accepted for the pig species can be used, respecting the envisaged periods of suspension before slaughtering.

IDENTIFICATION OF THE PIGS PRESENT ON THE STOCK FARMTo guarantee the traceability of the finished product to the end consumer, Fiorucci starts with the identification of the live animals through: - an ear tattoo bearing the codification of the stock farm of origin by means of a code assigned by the local health authority;- an ink stamp on both legs indicating the month of birth of the animal and the identification code of the stock farm of origin assigned by the Consortium of Parma and San Daniele, for the stock farms comprised within these circuits;- a system of forms that can guarantee the identification and traceability of the pigs, making it possible to link up the number of heads/ the number of the piggery/the leg brand/the month of birth.

IDENTIFICATION AND TRACEABILITY OF THE PIGS ON CONSIGNMENT - BIRTH FARMS AND FATTENING FARMS When the pigs are moved from the birth farm to the fattening farm, then to the slaughterhouse, the breeders are obliged to complete the documents necessary to maintain traceability: the Stock Account for the pigs, the Declaration of Provenance of the animals and the Transport Document. The stock farms that form part of the circuit of the Consortium of Parma and San Daniele, the Intermediate Conformity Certificate is required on the consignment to the fattening farm, and the Unified Conformity Certificate at the moment of consignment to the slaughterhouse.

ButcheringButchering is an important phase in the Pork Production Chain: this is the meeting point between the pig breeding on the one hand and the transformation of the meat on the other. As indicated in the Specifications of the Fiorucci Controlled Production Chain, all slaughterhouses are bound to abide by the legislation and regulations in force governing the procedures for butchering, dissection, meat transport, conservation and controls, with special reference to the implementation of a plan of self-checking which conforms to the principles of the HACCP, to the monitoring of the hygiene of the carcasses and the surfaces, and the adoption of manuals of correct hygienic practice.In the phases of butchering and dissection, identification is envisaged both in the slaughterhouse and in any eventual external workshops to which operations of dissection have been entrusted, along with identification during the transport phase, as well as a system of traceability.

IDENTIFICATION IN THE SLAUGHTERHOUSE It is envisaged that, during the butchering phase, the personnel appointed to the processing should mark the batch change, identifying in an appropriate manner, for example with the use of foodstuff chalk, the last pig of the batch and/or the first of the following batch, so as to maintain the identification of the various anatomical cuts in the subsequent operations.Once identified in the butchering phase, the batches are subsequently transferred to the dissection department of the slaughterhouse. In the dissection phase, at the end of each processing bench, the anatomical cuts are identified through special containers complete with tags which enable the reconstruction of the traceability back to the stock farm of provenance.

IDENTIFICATION DURING THE TRANSPORT PHASEDuring the transport phase, the slaughterhouses must identify each container of meat products using labels which record information relating to the name of the slaughterhouse, the type of products supplied and the date of processing of the products.

TRACEABILITY AT THE SLAUGHTERHOUSE The slaughterhouses of the Fiorucci Controlled Production Chain are bound to ensure perfect identification and traceability at every stage of the process, and to maintain the registrations necessary to trace the stock farm of origin of the animals used for the production of the meat raw material delivered.At the time of shipment, the slaughterhouse operators must check the presence of identification labels on the goods, and the conformity of the accompanying documents (Transport document; certificate of National Provenance for the pigs born, reared and butchered in Italy, and the Certificate of Provenance for the pigs born and/or reared abroad). Finally, the slaughterhouses are also bound to draft and apply procedures for the recall of any eventual products which prove to be non-conforming, and to this end they must maintain the registration of all the codes and the related Fiorucci plants to which the goods are destined for at least two years after the date of delivery.

IDENTIFICATION DURING DISSECTIONIn the event of further operations of transformation and dissection being performed at external workshops, these must perform a separate processing for each individual batch originating from the slaughterhouse, so as to maintain the correct identification of the product.

Transport & distributionPROCEDURES FOR THE TRANSPORT AND DELIVERY OF LIVE PIGS The transport of live pigs from the stock farms to the slaughterhouses must be in compliance with the legislation in force, and must take place with the utilisation of appropriately authorised vehicles. The means of transport utilised must be in good structural and hygienic conditions; washed and disinfected before loading, complete with barriers and shavings on the floor. When they reach the slaughterhouse, the pigs are weighed and all the accompanying documentation is delivered to the unloading operator who proceeds to check the correspondence of the transport document with the actual number of pigs transported. Once the checks are completed, the pigs are unloaded and subsequently identified and accommodated in the stalls. At the moment of the unloading of the live pigs, the slaughterhouse belonging to the Fiorucci Controlled Production Chain undertakes to control the state of health of the animals and to apply its own self-checking system; it must also keep the necessary documentation updated and at the disposal of the Head of Chain, Fiorucci.

PROCEDURES FOR THE TRANSPORT AND DELIVERY OF MEAT - RAW MATERIALSAs regards the transport of the meat raw materials, this must be carried out in conformity with the legislation, utilising appropriately authorised vehicles which must be fitted with refrigeration systems and equipped with devices which enable the temperature of the vehicle to be monitored. Upon arrival at the Fiorucci premises, the load is weighed. After this we proceed to the controls envisaged by the corporate procedures to check the correspondence of the goods with the relevant specifications and the purchase order, and upon completion of the controls the goods are duly unloaded.

Controls Plan The Controls Plan of the Fiorucci Controlled Production Chain comprises a mechanism featuring three types of control: analytical (chemical-microbiological analyses); documentary (documentation); inspection (audits)

Feed plant: Analysis of feed; Check on animals' wellbeing; Documentary control so as to guarantee traceability

Stock Farm: Check on the accommodation areas for the livestock; Analysis of the feed; Documentary control to guarantee traceability

Butchering: Control of the conditions of wellbeing of the animals during transport and sojourn in the premises; Chemical-microbiological controls on the sides of pork; Identification of the batches of pigs on arrival; Identification and codification of the anatomical cuts

Pork factory: Verification of the conditions of hygiene of the premises; Verification of the processing procedures; Microbiological controls on the meat, in the transformation phase and on the finished product; Traceability during the phases of the process

Transport and Distribution: Verification of handling procedures; Verification of transport temperature; Verification of storage temperature; Verification of hygiene requirements of the means of transport; Verification of the hygiene requisites of the storage premises; Verification of the correct rotation of the product

Audits: aimed at checking the application of the Production Chain Specifications, are carried out at: the feed plants; the birth farms; the fattening farms; the slaughterhouses and the dissection workshops; the slaughterhouses and the trading organisations (foreign); the carriers; the corporate plants and departments; the corporate sub-contractors; after-sales service

Pre-SlicedThe taste and the quality of the full range of Fiorucci cured meats is offered ready sliced and packed in handy trays: from the cooked or raw ham to the mortadella, from the salamis to the cured specialties. For a host of different occasions, for a snack, a sandwich or a classic and rich antipasto, the Fiorucci pre-sliced are the perfect appetizing answer at every moment of the day.As well as this every pack bears important information useful for a balanced diet: clear and direct information about the product to satisfy the requirements of those who want to know more about what they're eating

Birth Farm

Fattening

Farm

Transport

Slaughtering House

Santa Palomba Plant Roma

The Local Market Trade Channels

From the Exporter to the

Local Consumer

Processor/Packer Retailers

Consumer

Supermarket

Converter

Wholesaler of processed goods/Retailer

Agent/

Distributor

Exporter

From Farm

to Fork

Links

http://ec.europa.eu/food/index_en.htm

http://ec.europa.eu/internal_market/top_layer/index_1_en.htm

http://ec.europa.eu/enterprise/regulation/goods/index_en.htm