SG - Fairprice

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NTUC FairPriceOrganic Assurance

Programme(NOAP)

Pasar Organic:Truly OrganicMs. Chong Nyet Chin

Director, Quality & Processes

NTUC FairPrice Co-operative Ltd On behalf of

Dr. Ngiam Tong Tau



NTUC FairPrice Co-operative Ltdo Founded by the labour movement in 1973,

with a social mission to moderate the cost ofliving in Singapore

o Largest retailer, FY07 sale revenue S$1.81b,6000 staff strength

o More than 200 outlets:o FairPrice supermarketso FairPrice Finesto FairPrice Xtrao FairPrice Xpress and

o Cheers convenience storeso Fresh Food Distribution Centreo Centralised Warehousing and distributioncompany

At NTUC FairPrice, we believe the good life shouldn’t have to cost a lot and we aim to make it accessible to all segments of the community.



Singapore’s Organic Trends

o S$40m sales in 2006; expected to double in2008

o 4 in 10 consumers buy organic fruits and

vegetableso 12% regular buyer

o Niche market, rapidly growing, full ofopportunity, and quite volatile

Nielsen Company’s Survey (2005)

1. Domestic Singapore Consumption



Singapore’s Organic Trends2. “Organic” Retail Markets: 40 Organic Stores

Limited range of organics; mainly dried certified

food items

Mini-mart

Wider range of organics,

dedicated shelves

Supermarket

Mainly vegetables claimed to be “organic”

without info. on certification; produced locally or from Malaysia

Wet market

- Almost 100% Imported



Major supermarkets

1. NTUC Fairprice2. Cold Storage

3. Carrefour

o Certified products

from overseas(mainly fromAustralia, NewZealand, European

countries and USA)

o No local organiccertification board

Chilled Fruits

Condiments





3. Organic food range from FairPrice

o Increased demand for organic produce(fresh produce, rice, meat, eggs, etc) increased by 6 fold over last 3 years

o SpecificallyOrganic freshvegetables andfruits’ demands

in FairPrice haveincreased by 4xsince 2004



Challenges in OrganicRetailing in Singapore

o Price of organic food is 2x of conventional

food- To provide affordable organic produce to consumers

o 90% of food are imported

- Varying food quality & safety (productiontechnologies & complex distribution channels)

o Limited supply of organic fresh produce

- highly priced and mostly temperate typeso No regulations on certification & labeling of

organic food - opportunistic behaviors (falseclaims)



False Claims Cause Confusion

“Natural”

“Free-range”

“Organically

Grown”

“Pesticide

Free”

Eco labels



Global Trends –

Organic Certification

Types of

Organic Standards Government Standards

(Voluntary or Mandatory)

Private Sector Standards

(CBs) Market Standards

(importers or retailers,consumers requirements)

IFOAM & CODEX(WHO/FAO), InternationalVoluntary guidelines



“Pasar Organic” = Re-assurance fortruly organic

Reduces opportunistic behaviors by creatinga specific enforcement system (i.e. in-housecertification) which is at zero / low cost togrowers

Ensure organic principles and practices

(“organic production standards”) aremaintained in an industrial scale production

Protect organic integrity along the complexsupply chain (Organic Assurance Program)

Cooperate with regional Asian vegetable growers

Our Strategy For

Organic Assurance Program



Transporter

Re ta i ler

Gro wer

Processor

D is tr i b u t io nCe n tre

E x por ter

I m por ter

C us to mer

Organic Supply Chain

N T U C

F a i r P r i c e

O r g a n

i c A s s u

r a n c e P r o g

r a m m e

( N O A P )

The Value-added Supply Chain of Organic Fresh Produce

Certification adds values :

Assured Organic Integrity

Transparency

Traceability

Enhanced competitiveness in

organic business



Pasar Organic

NTUC FairPrice

Organic Assurance Programme (NOAP)

Supplier

Farm Packinghouse TransporterFresh FoodDistribution

CentreRetail

Outlets

Transporter

o Develop and Implement Organic Production

Standards and Regulations (from farm to store) o In-house Certification System - Audited by 3rd

party (Agrifood Technologies Pte Ltd)

Consumers



NTUC FairPrice Organic Assurance Programme, Version 1

NTUC FairPriceOrganic Assurance

Programme

A Handbook for Operators

in the Value-added Supply Chain for

Organic Fresh Produce of

NTUC FairPrice

Copyrights 2007, NTUC FairPrice Co-operative Ltd

Standards of NOAP

Organic Production Standards

1. Organic Farming Standard2. Organic Handling andProcessing Standards

o Reference:IFOAM and CODEXOrganic Production Standards

o Adapted to local conditions



Our Regulator

• AVA’s Objectives– To provide resilient supply of safe food,– To safeguard the health of animals and plants– Facilitate agri-trade for the well-being of the nation.

• AVA’s core functions

– Ensure food safety, resilience in food supply– Safeguard animal, plant health & animal welfare

– Promote Agro technology– R & D– Protect endangered wildlife

Source: www.ava.gov.sg



About AgroFood Technologies Pte LtdA fully-owned subsidiary of the AVA, (consultancy services in food &

agriculture)

Broad scope of services:• Technical feasibility study on farming of vegetables & aquaculture;

• Technology transfer & training• Implementation of GAP certificate scheme;• Design and set up of farm, meat and agri-produce processing

facilities;

• Consultancy to meet HACCP requirements• Recommend improvements to food safety, animal and plant healthdiagnostic laboratory testing techniques to meet internationallyrecognized Good Laboratory Practices requirements.

Source: www.ava.gov.sg

Our Independent Auditor



NOAP’s Development &Implementation Cycle

Long journey which requires commitment and cooperation

between all operators

2. Do/2. Do/2. Do/2. Do/

ImplementationImplementationImplementationImplementation

Establish

systemsAug 2007 –Mar 2008

3. Communication3. Communication3. Communication3. CommunicationStaff trainingand briefing

Aug 2007 –Mar 2008

Oct 2006– Aug 2007

1. Planning1. Planning1. Planning1. Planning

/ Development/ Development/ Development/ DevelopmentAudited by3rd Party

-Apr 2008

4. Analysis4. Analysis4. Analysis4. Analysis

& Review& Review& Review& Review



Our Assurance Standards

1. Organic Farming Standard

At the farm

• Pasar Organic produce is grown in well-selectedand managed organic farms in Thailand, applyingprinciples of Organic Agriculture.

Key organic assurance practices:

• Good water source and free from potentialcontamination;

• All seeds and plant materials are non-geneticallymodified organism and non-chemical;

• Crop rotation to enhance soil;

• Use recycled vegetable wastes as fertilizers;

• Eco-friendly weed and pest management system



Organic Handling and Processing Standards

2a. At the Processing House

After harvesting, Pasar Organic produce is sent

the processing house in Thailand for packing.

Key organic assurance practices:

• Verify and record source;

• Dedicated packing facility;

• Clean, disinfect and sanitize facilities usingNOAP permitted agents;

• Segregate Pasar Organic produce from non-organic produce in sealed boxes;

• Proper documentation for product tracing




2b. At the Storage Facility

From the processing houses, Pasar organic produce is

delivered to NTUC FairPrice’s Fresh Food DistributionCentre (FFDC) for sorting and redistribution to thestores.

Key organic assurance practices:•Check that packaging is sealed;

•Store Pasar Organic produce in dedicated shelves;

•Segregate Pasar Organic product from non-organicproduce in sealed boxes




2c. At the Stores

Key organic assurance practices:•Verify the condition and records ofproduce;

•Check that organic labels and packagingare intact;

•Display produce on dedicated shelves




Challenges in Implementing NOAP

Working with small farms– Cooperation & Incentives

Getting the systems right– commitment and resources

1) Management’s Commitment2) Extensive staff trainings

Sustaining organic market1) Creating awareness2) Consumers’ education



NOAP Successful Launch

First launch on31

st

July 2008to top 10 stores 34 types Asian tropical

vegetables

First to be developed inSingapore> Leading role in organic

market place in terms oforganic quality assurance



Thank You Ms. Chong Nyet Chin

Email: [email protected]://www.fairprice.com.sg/Corporate.aspx

On behalf of Dr. Ngiam Tong Tau

We are passionate about delivering the best quality,We are passionate about delivering the best quality,We are passionate about delivering the best quality,We are passionate about delivering the best quality,

service and value to our customers and we are proud service and value to our customers and we are proud service and value to our customers and we are proud service and value to our customers and we are proud

to introduce to introduce to introduce to introduce Pasar Pasar Pasar Pasar Organic Organic Organic Organic – –– – our house brand for our house brand for our house brand for our house brand for

fresh organic produce aimed at bringing you a fresh organic produce aimed at bringing you a fresh organic produce aimed at bringing you a fresh organic produce aimed at bringing you a

wholesome organic experience at affordable prices.wholesome organic experience at affordable prices.wholesome organic experience at affordable prices.wholesome organic experience at affordable prices.

Pasar Pasar Pasar Pasar Organic encompasses the goodness and purity Organic encompasses the goodness and purity Organic encompasses the goodness and purity Organic encompasses the goodness and purity of what nature has to offer with the assurance that of what nature has to offer with the assurance that of what nature has to offer with the assurance that of what nature has to offer with the assurance that

every step has been taken to ensure the organic every step has been taken to ensure the organic every step has been taken to ensure the organic every step has been taken to ensure the organic

integrity of the produce from farm to store.integrity of the produce from farm to store.integrity of the produce from farm to store.integrity of the produce from farm to store.

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