Ray Smith: Dairy still has growth potential despite flat export outlook
Ministry for Primary Industries (MPI) Director General Ray Smith believes there is potential for an increase in dairy farming in New Zealand.
A spokesman for MPI says 20 submissions were received; most stakeholders broadly support the proposals on minimum export labelling, export requirements and a manufacturing standard.
Consultations have closed but MPI says some stakeholders have an extension until September 26.
"Of the submissions received to date, most submitters are broadly supportive of the proposals in principle, with comments focusing on the detail and implementation of the draft standards," MPI says.
MPI will update the regulations and discuss the proposed final versions with industry working groups that have helped develop the standards. A transition period will be provided to enable businesses to understand and adopt any new requirements.
The MPI spokesman says it is seeking feedback from industry on appropriate transition times. "During this transition period, MPI will work with industry to implement new requirements and processes."
Auckland infant formula manufacturer and exporter GMP Dairy welcomes the proposed changes. GMP is one of a handful of New Zealand manufacturers approved to export infant formula to China; the company was the only one to clear the initial Chinese audit. GMP deputy general manager Ravinesh Kumaran says the proposed changes will improve our standards further.
"GMP has voluntarily adopted pharmaceutical standards and we have been audited and received HACCP and GMP (Good Manufacturing Practices) certification in addition to RMP (Risk Management Program). Our factory and in particular the building, machinery, layout, people, documentation, validation and traceability systems have been continuously developed over the last few years and are based on pharmaceutical standards.
"While we don't want MPI to make pharmaceutical standards compulsory, lifting the standards is good for the industry."
Kumaran points out that most of MPI's proposals are already implemented at GMP. "They are a part of our standard operating procedures."
MPI agrees the proposals are intended to fine tune our existing system to take account of the rapid growth in infant formula manufacturing and exporting. They consolidate requirements already in place and set out new provisions to strengthen requirements for infant formula exporters.
The proposed infant formula manufacturing standard aims to reduce variation in the application of risk management measures by manufacturers. "MPI considers most manufacturers would already substantially comply with the proposed standard," the spokesman says.
The changes will also boost traceability which, for regulatory assurance and recall purposes, is already provided through the dairy supply chain in New Zealand.
However, there are a few markets, such as Hong Kong, that do not require official government assurances for infant formula exports and the proposed changes will ensure that MPI has comprehensive information about these exports.
MPI says the proposals include a requirement for export declarations on infant formula destined for those markets.
"This will enable MPI to hold information about all infant formula products exported from New Zealand and the businesses that are involved in the export of those products.
"The information can be used for compliance monitoring and to speed up response times in the event of product withdrawals and recalls that affect export products to those markets. This also supports New Zealand's official assurance framework by enabling MPI to, among other things, respond to overseas regulator requests for information about New Zealand products that may enter their market through another market."
Formula for babies deserve higher standards
CHINA HAS signalled that it wants the highly regarded pharmaceutical systems for infant formula manufacturing.
GMP's Ravinesh Kumaran says China insists on good manufacturing practices and these are typically found in pharmaceuticals operations.
"That's why we decided to undergo a voluntary audit for Good Manufacturing Practices for production of Formulated Milk Powder and Infant and Young Children Formulated Milk Powder."
He says the changes proposed by MPI will be received positively in the world's largest market for infant formula. Infant formula has a sensitive market – babies – and this is an important issue for China. The improvements initiated by MPI and the industry in New Zealand are in the right direction and China will appreciate and place more confidence in our systems and high standards."
