Chong Nyet Chin

NTUC FairPriceOrganic AssuranceProgramme(NOAP)Pasar Organic:Truly OrganicMs. Chong Nyet ChinDirector, Quality & ProcessesNTUC FairPrice Co-operative LtdOn behalf ofDr. 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 SingaporeooLargest retailer, FY07 sale revenue S$1.81b,6000 staff strengthMore than 200 outlets:o FairPrice supermarketso FairPrice Finesto FairPrice Xtrao FairPrice Xpress ando Cheers convenience storeso Fresh Food Distribution Centreo Centralised Warehousing and distributioncompanyAt NTUC FairPrice, we believe the good life shouldn’t have to cost a lot and we aim tomake it accessible to all segments of the community.

Singapore’s Organic Trends1. Domestic Singapore Consumptiono S$40m sales in 2006; expected to double in2008o 4 in 10 consumers buy organic fruits andvegetableso 12% regular buyero Niche market, rapidly growing, full ofopportunity, and quite volatileNielsen Company’s Survey (2005)

Singapore’s Organic Trends2. “Organic” Retail Markets: 40 Organic StoresWet marketMini-martSupermarketMainly vegetablesclaimed to be “organic”without info. oncertification; producedlocally or from MalaysiaLimited range of organics;mainly dried certifiedfood itemsWider range oforganics,dedicated shelves- Almost 100% Imported

Singapore’s Organic TrendsMajor supermarkets1. NTUC Fairprice2. Cold Storage3. CarrefourChilledFruitsooCertified productsfrom overseas(mainly fromAustralia, NewZealand, Europeancountries and USA)No local organiccertification boardCondiments

Singapore’s Organic Trends3. Organic food range from FairPriceo Increased demand for organic produce(fresh produce, rice, meat, eggs, etc)increased by 6 fold over last 3 yearso SpecificallyOrganic freshvegetables andfruits’ demandsin FairPrice haveincreased by 4xsince 2004

Challenges in OrganicRetailing in Singaporeo Price of organic food is 2x of conventionalfood- To provide affordable organic produce to consumerso 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 oforganic food - opportunistic behaviors (falseclaims)

False Claims Cause Confusion“Natural”“PesticideFree”“OrganicallyGrown”“Free-range”Eco labels

Global Trends –Organic CertificationTypes ofOrganic Standards Government Standards(Voluntary or Mandatory) Private Sector Standards(CBs) Market Standards(importers or retailers,consumers requirements) IFOAM & CODEX(WHO/FAO), InternationalVoluntary guidelines

Organic Supply ChainCustomerRetailerNTUC FairPrice Organic Assurance Programme(NOAP)TransporterImporterExporterDistributionCentreCertification adds values : Assured Organic Integrity Transparency TraceabilityEnhanced competitiveness inorganic businessGrowerProcessorThe Value-added Supply Chain of Organic Fresh Produce

12 Western Journal of Speech Communicationthe social rewards people receive are directly related to their ability tofacilitate positive regard. As such, we posited that individuals probablydevelop a sense of their affinity-seeking competence and could thus offervalid reports of these skills. This proposition was put to an empiricaltest in a fourth investigation. The issue here is whether people's perceptionsof their competence, as assessed by the ASI, are consistent withothers' perceptions of their abilities. This question was addressed by comparingpeople's self-reports of their proficiency at affinity-seeking to theirfriends' perceptions of their competence.STUDY 4: FRIEND EVALUATIONSParticipants and ProceduresStudents enrolled in communication courses at a large easternuniversity were asked to participate in a study of liking. Each broughta close friend to the investigation, someone who knew him or her well.Participants were 43 pairs of friends (20 male-male pairs, 15 femalefemalepairs, and 8 mixed-sex pairs). After each pair arrived to adesignated room at a specified time, they were separated and then givena questionnaire consisting of two copies ofthe ASI. Initially, participantswere asked to complete the ASI with their own communication tendenciesin mind (hereafter referred to as their self-rating). Next, each participantwas told to pretend that he or she was the friend and to completethe ASI as the friend should if the friend was being completelyhonest in his/her self-assessment (hereafter referred to as thefriend-rating).Results and DiscussionEach participant's self-rating of affinity-seeking skill was matchedwith the friend-rating of his/her comrade (A^=86). The alpha reliabilitiesof the scales for the self-ratings were .89 for ASC and .84 for SP; theinter-correlation for these two self-ratings was .29. The means (and standarddeviations) were 43.20 (7.61) for the ASC scale and 21.98 (5.79) forthe SP measure. The reliabilities for the friend-ratings on the ASC andSP measures were .84 for both. If self-reported affinity-seeking skillreflects actual abilities, we should expect substantial correlations betweenthe self- and friend-ratings on the ASC and SP scales. The correlationbetween self-ratings and friend-ratings of ASC was .44 (p< .001);after correcting for attenuation, the correlation was .51. The correlationbetween self-ratings and friend ratings on the SP measure was .37(p< .001); the unattenuated correlation was .44. Thus, there was a correspondencebetween people's reports of their affinity-seeking skills andtheir friends' perceptions of these abilities.

Standards of NOAPNTUC FairPrice Organic Assurance Programme, Version 1NTUC FairPriceOrganic AssuranceProgrammeOrganic Production Standards1. Organic Farming Standard2. Organic Handling andProcessing StandardsA Handbook for Operatorsin the Value-added SupplyChain forOrganic Fresh ProduceofNTUC FairPriceo Reference:IFOAM and CODEXOrganic Production Standardso Adapted to local conditionsCopyrights 2007, NTUC FairPrice Co-operative Ltd

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 wildlifeSource: www.ava.gov.sg

Our Independent AuditorAbout 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 processingfacilities;• 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

NOAP’s Development &Implementation Cycle4. Analysis& ReviewAudited by3 rd Party-Apr 20081. Planning/ DevelopmentOct 2006– Aug 20073. CommunicationStaff trainingand briefingAug 2007 –Mar 2008Long journey which requirescommitment and cooperationbetween all operators2. Do/ImplementationEstablishsystemsAug 2007 –Mar 2008

Our Assurance Standards1. Organic Farming StandardAt 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

Our Assurance StandardsOrganic Handling and Processing Standards2a. At the Processing HouseAfter harvesting, Pasar Organic produce is sentthe 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 nonorganicproduce in sealed boxes;• Proper documentation for product tracing

Our Assurance Standards2b. At the Storage FacilityFrom the processing houses, Pasar organic produce isdelivered 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

Our Assurance Standards2c. At the StoresKey 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 resources1) 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 tropicalvegetables First to be developed inSingapore> Leading role in organicmarket place in terms oforganic quality assurance

We are passionate about delivering the best quality,service and value to our customers and we are proudto introduce Pasar Organic – our house brand forfresh organic produce aimed at bringing you awholesome organic experience at affordable prices.Pasar Organic encompasses the goodness and purityof what nature has to offer with the assurance thatevery step has been taken to ensure the organicintegrity of the produce from farm to store.Thank YouMs. Chong Nyet ChinEmail: nyet_chin.ching@fairprice.com.sghttp://www.fairprice.com.sg/Corporate.aspxOn behalf of Dr. Ngiam Tong Tau