This report looks at the business environment surrounding Fonterra and what international rules or regulations affect the way Fonterra behave in different aspects of the business.
The report focuses on the following two areas:
1. Market access
2. Health and safety
The report will first look at what international regulations regarding to health and safety, how did the regulations establish and why the regulations are important that big organizations like Fonterra have to follow, and how do the regulations affect Fonterra and what adjustments Fonterra had to adjust to cope with the standards.
1. Health and safety
One international rule that affect Fonterra regarding to their operation to ensure health and safety standards are met for the consumers is the ISO 22000 global health and safety standards.
• ISO 22000:
“ISO 22000 refers to international standards guiding the proper management of food. These standards aim at protecting the consumer’s safety. The International Organization for Standardization (ISO), a non-profit and non-governmental group based in Switzerland, issued these guidelines in 2005” (eHow money, 2013). The International Organization for Standardization was founded on 23 February 1947; the organization focuses on promoting worldwide proprietary, industrial and commercial standards.
In the United States, the concern over food safety began in the late 1800s but did not come into force until 1906 with the formation of the Pure Food and Drug Act. Over time, preventive approaches were increasingly adapted for food safety, culminating until 1995 with the U.S. publication of Hazard Analysis Critical Control Point (HACCP) requirements and their subsequent evolution into ISO 22000. To fully understand ISO 22000 and the principles that it is based on, we first take a look at the standard that serves as its building block, the Hazard Analysis Critical Control Points (HACCP).
Hazard Analysis Critical Control Points (HACCP)
References: Food Quality & Safety. (2009). The Evolution of HACCP. Retrieved from http://www.foodquality.com/details/article/807887/The_Evolution_of_HACCP.html?tzcheck=1&tzcheck=1 eHow money. (2013). ISO 22000 Standards. Retrieved from http://www.ehow.com/about_6722357_iso-22000-standards.html New Zealand Ministry of Foreign Affairs & Trade. (2013). What is the ASEAN Free Trade Agreement?. Retrieved from http://www.asean.fta.govt.nz/what-is-the-asean-fta/ Ministry of Foreign Affairs & Trade. (2009). Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area. Retrieved from http://www.mfat.govt.nz/downloads/trade-agreement/ASEAN/aanzfta-guide-booklet.pdf William Reed Business Media. (2012). Fonterra goes ‘local’ in Indonesia for swift market response. Retrieved from http://www.foodnavigator-asia.com/Business/Fonterra-goes-local-in-Indonesia-for-swift-market-response Quality Digest. (2009). The Importance of ISO 22000. Retrieved from http://www.qualitydigest.com/magazine/2009/apr/article/importance-iso-22000.html# Institute for Labor Studies. (2009). ASEAN-Australia-New Zealand Free Trade Agreement: An Overview Paper. Retrieved from http://ilsdole.gov.ph/wp-content/uploads/2012/07/Peji_AANZFTA.pdf