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Improving Organisational Effectiveness Using The SQF 2000 CM Quality Food

Code: 1997-Case Studies in Horticulture

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 Improving Organisational Effectiveness Using The SQF 2000CM
Quality Food Code: 1997 - Case Studies in Horticulture
Peter Bryar
Ph D Candidate, Centre for Management Quality Research, RMIT University
Email: peter.bryar@rmit.edu.au

ABSTRACT
Horticulturalists are implementing a range of food safety systems in response to market demands. Such
systems are put into practice to prevent, eliminate or reduce food safety risk to an acceptable level.
Several Hazard Analysis Critical Control Point (HACCP) based initiatives include quality management
elements that are designed to extend the food safety focus to include produce quality. One such initiative
is the SQF 2000CM Quality Code: 1997.

This paper aims to review the application of SQF 2000CM by horticultural enterprises that were
participants in an action research project designed to explore how they as fresh fruit and vegetable
producers might effectively utilise the code to meet customer and consumer demands. Once
implemented, SQF 2000CM was seen to offer something more than just the management of produce food
safety and quality risk. Enterprises experienced improved organisational effectiveness and a widening of
thinking as to how they would deal with operational problems.

Key Words: HACCP, action research, horticulture, organisational effectiveness

1.0 Introduction
In the last two years or so the fresh produce market has been insisting that growers of fruit and vegetables
develop, implement and maintain an appropriate food safety / quality system if they want to secure their
place in the domestic market as a supplier (Bryar, 1999, p.40). For many such businesses, the system
solution let alone its development, implementation and maintenance, is not so obvious. The SQF 2000CM
Quality Code: 1997 is one such option.

SQF 2000CM is a voluntary food quality code. It is specifically aimed at primary producers and small
businesses involved in the food industry to help them meet consumer demands for safe food of consistent
quality. It is based on a minimum requirements derived from ISO 9002 combined with Codex
Alimentarius Commission HACCP and requires external, third party audit.

2.0 Research Method

Following the successful development and implementation of SQF 2000CM, five horticultural enterprises
reported what they believed were significant changes to their operations. They became case study
organisations for the purpose of this research. This paper reports on how those enterprises took SQF
2000CM one step further and enhanced their organisational effectiveness.

The persons with the food safety/quality system responsibilities within the case study enterprises were
interviewed using a structured process. This data gathering activity was complemented by the open
discussion that followed allowing others in the workplace to take part. The focus of this process was to
seek both what was common and what was particular about the cases, and then trying to find the link or
stimuli, if there was one, which supported improving effectiveness or innovation. To reduce the

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likelihood of misinterpretation, feedback was actively encouraged at all times to clarify the accuracy of
the data collected.

3.0 The Case Study Enterprises

A description of the five case study organisations follows:
a. A large strawberry grower, packer and agent whose market is primarily linked to the retail sector
(major supermarket chains) and a substantial wholesale business at the Melbourne Fresh Market.
They also act as a market agent for their network of over ten independent growers.
b. A large strawberry and capsicum grower and packer who has supply links with one of the major
supermarket chains and the Melbourne Fresh Market. They operate independently and do not
use the services of a market agent. They also process fresh produce into various products that
are then used in food processing industry.
c. A small strawberry grower and packer who acts as a market agent selling their own produce
through the Melbourne Fresh Market and through an interstate agent in the Sydney Fresh
Market.
d. A large asparagus grower and packer who exports into Asia and sells domestically to one of the
large retail supermarket chains. They also sell produce to a food processor. They also pack for
in excess of thirty growers distributing the produce under their own generic label.
e. A small cherry grower and packer who distributes their produce through a market agent in
Melbourne. They also pack cherries for a small network of 4 growers.

4.0 The HACCP Methodology

The HACCP system, which is science based and systematic, identifies specific hazards and measures for
their control to ensure the safety of food. HACCP is a tool to assess hazards and establish control
systems that focus on prevention rather than relying mainly on end-product testing.

Any HACCP system is capable of accommodating change including advances in equipment design,
operational procedures and developments in practice. Essentially, the HACCP system will facilitate the
prevention or elimination of the food safety hazard or their reduction to an acceptable level. The Codex
Alimentarius Commission (1993, p. 2) suggests that the successful application of HACCP requires the
full commitment and involvement of management and the workforce. It also requires a multidisciplinary
approach; this multi-disciplined approach should include, when appropriate, expertise in agronomy,
production, microbiology, public health, food technology etc.

HACCP describes a logical sequence for thinking through a known process, considering where the likely
sources of non-conformances could arise and then taking appropriate action in order to prevent these from
happening (Adams, 1998, p. 333). With a food safety focus, the non-conformances take the form of
microbiological, chemical and physical contamination.

5.0 SQF 2000CM Quality Code: 1997

The main feature of SQF 2000CM is that it incorporates Codex HACCP. Importantly, the code is also a
quality system designed to assist enterprises to meet customer requirements and improve business
performance and profitability. By applying the principles of HACCP and the inherent quality system
elements the risks to produce safety and poor quality are identified and strategies / action plans are put
into place to minimise and manage these risks.

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The are six quality system requirements within SQF 2000CM. The code (AGWEST Trade &
Development, 1997, pp. 3-6) describes each of these elements in turn:
1. Commitment - someone in the business (generally the owner) must define the enterprise
commitment to quality in a policy statement which is relevant to the business goals and customer
needs and expectations and put such policy into action.
2. Suppliers – enterprises must communicate the food safety and quality requirements of their
incoming raw material purchases with their suppliers. Before raw material supplies are used
they must be inspected to ensure that they meet the business operational requirements.
3. Control of production – production is controlled by the application of the principles of Codex
HACCP. Corrective action procedures are also developed for identifying and documenting the
cause and resolution of significant problems affecting food safety and quality.
4. Inspection and testing – all measuring, test and inspection equipment used for monitoring
activities outlined in the HACCP plan or to demonstrate compliance with customer requirements
must be routinely calibrated. Internal audits must also be carried out to verify that operational
processes comply with the documented requirements.
5. Document control and quality records – emphasis is placed on keeping system documentation
up-to-date so that it reflects current custom and practice. When changes to the operational
process are made, such changes are reflected in the HACCP plan, procedures, work instructions,
quality records and the like ensuring at all times only the most recent versions are being
followed. There is also a requirement to maintain quality records that demonstrate essential
production processes, inspections or tests identified in the HACCP plan have been completed.
6. Product identification and traceability – enterprises must make every effort to reduce the
chance of poor quality and unsafe produce reaching the customer. By identifying produce when
it is harvested, processed, packed and dispatched, faulty produce can be quickly traced and
recalled when necessary.

6.0 The Cases

6.1 Case Study 1

During the conduct of the hazard analysis and identification/assessment of potential risks this
organisation was able to recognise where the weaknesses in their current system of control were and
modified the processes and procedures to deal with the potential risks. When questioned about what
prompted them to look beyond their existing system and the HACCP plan, they explained that they
wanted to grow their business and so substantiate their claim as one of the largest suppliers of fresh
strawberries. Developing and managing their SQF 2000CM system had given them a degree of confidence
that they could expand their operations without increasing the food safety and quality risk.

When deciding to undertake the SQF 2000CM process, this organisation made a number of conscious
decisions that would facilitate growth without compromising food safety and quality. This involved the
building of new packing and storage facilities – the design of the infrastructure and operational process
changed a number of times as they became more familiar with the application of the HACCP principles.
After the implementation of their SQF 2000CM system, they decided to construct a new, purpose built
facility at the Melbourne Fresh Market that would enable customers to view their produce in a food
safe/quality environment. The organisation’s knowledge of HACCP and quality system requirements
made that task easier.

The enterprise also developed an approved supplier system that would enable their grower network to
link with them whilst managing the additional potential food safety / quality risk. This involved the

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conduct of an on-site hazard analysis of each of the individual growers businesses and the identification
of the potential hazards and the control measures that needed to be put in place to minimise the risk.

6.2 Case Study 2

During the development of the process flowchart and subsequent hazard analysis this organisation saw
the considerable quantity of produce (both strawberries and capsicums) that did not meet agreed customer
specifications. This produce would normally be dumped or sold cheaply at the front gate. Their HACCP
based food safety risk assessment indicated that the produce was food safe and suitable for other purposes
(they had assumed incorrectly that the produce was not sound). Rather than continue to throw the
produce out they searched for another market. In the case of strawberries they found that they could sell
them to a processor who would use the produce for jams and sauces. They also found that the producer
would accept the produce in a number of forms – fresh with or without the calyx and whole in the case of
strawberries and diced capsicum. All forms had to comply with customer specifications.

The enterprise conducted a further hazard analysis relating to the requirements for processing/part-
processing the fruit and determined that it was within their capabilities. They saw that their new idea
could be put into practice without too much modification to their existing operations. Suitable equipment
has been purchased and a processing line developed.

They are still fine-tuning the processing of strawberries. They have tried removing the calyx in the field
and in the shed with a simple, farm-made machine. The process worked well in both locations however
there is a higher food safety risk if the capping is conducted in the field. They are currently verifying
their system.

The business has also found a customer that requires frozen, diced capsicum. They are able to use
capsicums that have blemishes or marks on them that were unsuitable for the fresh market. They are able
to cut away the blemishes or marks, dice and sanitise the capsicums prior to freezing.

The business owners believe that if they did not have a practical knowledge of HACCP and SQF 2000CM
that they would not identified the opportunity to process produce that was largely unsaleable.

6.3 Case Study 3

The third case study enterprise is much smaller when compared to the previous two. Nonetheless, they
sell fresh strawberries in the Melbourne and Sydney markets. The business owner identified that
chemical residue on produce was his biggest potential risk. Generally speaking, strawberries require
much chemical treatment to manage pests and diseases. Not only is this an expensive exercise, it is also
time consuming.

This organisation decided to look for other methods of pest and disease management that would reduce
the need to spray thereby reducing the potential food safety risk. They investigated the use of predatory
mites to control invertebrate pests and saw promise. They introduced an integrated pest management
program whereby they substantially reduced the need for farm chemicals resulting in cost and labour
savings.

The business owner suggested that if he did not look into his operations as deeply as HACCP and SQF
2000CM required, he would not have seen the possibilities for change. He also indicated that the process
made him question the everyday things that he had been doing for years, often without really knowing
why, and that provided the stimuli for new practices. This organisation still uses farm chemicals but it is

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only part of the total strategy for pest and disease management. They are keeping abreast of new methods
and have volunteered to be a part of government trials in pest management.

6.4 Case Study 4

The challenge for this enterprise with a large grower support base was to link HACCP and SQF 2000CM
into their existing Australian Quarantine and Inspection Service (AQIS) certified quality management
system. The AQIS certification assurance had enabled the business to self-inspect their produce for
export.

Although asparagus is deemed to be a low risk produce they wanted peace of mind that their produce was
both food safe and would meet local market requirements. It was also becoming more important as their
grower network was expanding. With this focus in mind they saw how HACCP and SQF 2000CM could
further support their endeavours by providing the additional controls within their operational processes
they thought were necessary as well as potentially improve their domestic market access.

When applying the HACCP principles and the SQF 2000CM quality system element ‘Control of
Production’to their packing shed operations they saw much opportunity to improve existing processes
and procedures. As a consequence of the review, grading and packing lines were reconfigured and the
process flow simplified. New infrastructure such as a larger packing shed and cool-room storage have
been built to facilitate business growth. Overall this is resulting in improved efficiency and productivity
of the operation as well as reduced product loss. Understanding and management of processing
techniques has also improved substantially.

Generally this type of enterprise has had a post harvest emphasis – from picking through to customer.
Interestingly, the growing side of the business is paying more attention to plant development and quality
control in the field. They have recognised that quality begins in the paddock and that the sooner potential
problems are dealt with or prevented in the first place, the easier quality and food safety control is. They
have even taken an active interest in the research and development of new varieties of asparagus and have
planted a number of trial plots.

6.5 Case Study 5

The owners of this small enterprise have been thinking about the development and future growth of
harvesting and packing quality cherries for some time. Very early in the piece they decided that they
needed to put a management system into place that would achieve a number of things including:
• Maintaining a high quality product.
• Increasing buyer confidence in their produce.
• Being able to meet the food safety and quality system requirements of the market.
• Being confident that their operational processes supported food safe and quality management
practices.
• To continue to be profitable by improving efficiency and productivity and reducing potential waste
product.

They were established, knowledgeable growers and had a good sense of the market. The difficulty they
had was in choosing a food safety / quality system that would support their current practices and ideas for
growth, and that they could manage themselves. SQF 2000CM would meet their needs.

During SQF 2000CM implementation they were able to identify some potential weaknesses in their system
of control and were able to modify those practices to take more effective control. It was at this time that

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 they wanted to expand their packing operations to include a small network of other growers who did not
have appropriate grading and packing facilities. They saw the possibilities of including their grower
network into their approved supplier system based upon the food safety and quality management risk
strategies they had developed for their own SQF 2000CM system. This decision would mean that the
grower network would have to undertake a basic level of HACCP training and introduce prescribed risk
management practices into their businesses.

Last season was not a good season for this enterprise, the grower network or for cherry growers in
general. Prices were down, the quality of fruit was good but much was undersized and as a result did not
meet the requirements and demands of the market. This enterprise was able to make a considered
decision towards the end of the short harvest season and stop harvesting. By making this decision they
were able to reduce overall labour (harvest, grading and packing) and distribution (packaging, cool-
storage and transportation) costs and as a result protect some of their early seasonal profit.

This enterprise is still thinking ahead. They have reviewed this last poor season and have initiated some
new practices that reduce overall costs yet maintain the integrity of their quality management system.
They have already engendered the support of more growers and are confident that the next season will be
better, and that they will be ready to deal more effectively with the trials and tribulations of seasonal fruit
growing. They also see the possibilities of export as well as expanding their domestic market base. SQF
2000CM has and still is supporting their endeavours.

7.0 Concluding Remarks

In many ways SQF 2000CM is both a logical, practical and complementary extension of HACCP. There is
an inherent synergy between the management of food safety risk and the management of quality. The
path to successful development and implementation of SQF 2000CM is not easy and should not be taken
too lightly. It is however straight forward and manageable and enterprises can take control of the system
themselves and achieve recognition of their efforts through an external, third party certification process.

The case study organisations support this statement however have in addition provided objective evidence
that HACCP as encompassed within the SQF 2000CM Quality Code can also be used to stimulate new
practices that can result in productivity gains and improvement in organisational effectiveness. SQF
2000CM offers a new dimension for those enterprises that do not want to accept the status quo and who are
willing to continuously question how and why they operate in the quest for improvement. Conservative
thinking is giving way to innovation as lateral thinking provides better ways of dealing with potential and
actual problems. Once SQF 2000CM is embedded into an enterprise’s operational activities and becomes
a part of the day-to-day practice, it can promote new thinking particularly when operators at all levels
start to question what and why they do particular actions.

References
Adams, C.E. [1998]. “Maximising food safety for the business”, Food Australia, vol.50, no.7, pp.332-
335.
AGWEST Trade & Development, [1997]. SQF 2000CM Quality Code: 1997, 2nd edn, Agriculture Western
Australia, Perth.
Bryar, P. J., [1999]. “Experiences in Implementing HACCP Based QA Programs in the Horticultural
Sector”, Proceedings of the 6th Australian HACCP Conference, Adelaide, 10-13 August, pp.40-
44.
Codex Alimentarius Commission, [1997]. Hazard Analysis and Critical Control Point (HACCP) System
and Guidelines for its Application, Alinorm 97/13, Appendix II.

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