NTUC FairPrice

Organic Assurance
Programme
(NOAP)
Pasar Organic:Truly Organic
Ms. Chong Nyet Chin
Director, Quality & Processes
NTUC FairPrice Co-operative Ltd
On behalf of
Dr. Ngiam Tong Tau
 NTUC FairPrice Co-operative Ltd
o Founded by the labour movement in 1973,
with a social mission to moderate the cost of
living in Singapore

o Largest retailer, FY07 sale revenue S$1.81b,

6000 staff strength

o More than 200 outlets:

o FairPrice supermarkets
o FairPrice Finest
o FairPrice Xtra
o FairPrice Xpress and
o Cheers convenience stores
o Fresh Food Distribution Centre
o Centralised Warehousing and distribution
company

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
1. Domestic Singapore Consumption

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

2008

o 4 in 10 consumers buy organic fruits and

vegetables
o 12% regular buyer

o Niche market, rapidly growing, full of

opportunity, and quite volatile
Nielsen Company’s Survey (2005)
 Singapore’s Organic Trends
2. “Organic” Retail Markets: 40 Organic Stores

Wet market Mini-mart Supermarket

Mainly vegetables
claimed to be “organic”
without info. on
certification; produced
locally or from Malaysia

Limited range of organics; Wider range of

mainly dried certified organics,
food items dedicated shelves

- Almost 100% Imported

 Singapore’s Organic Trends
Chilled Fruits
Major supermarkets
1. NTUC Fairprice
2. Cold Storage
3. Carrefour

o Certified products
from overseas
(mainly from
Australia, New
Zealand, European
countries and USA)

o No local organic
certification board Condiments
Singapore’s Organic Trends
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 Specifically
Organic fresh
vegetables and
fruits’ demands
in FairPrice have
increased by 4x
since 2004
Challenges in Organic
Retailing 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 (production
technologies & complex distribution channels)
o Limited supply of organic fresh produce
- highly priced and mostly temperate types
o No regulations on certification & labeling of
organic food - opportunistic behaviors (false
claims)
False Claims Cause Confusion

“Natural” “Pesticide “Organically

Free” Grown”

Eco labels
“Free-range”
 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), International
Voluntary guidelines
Our Strategy For
Organic Assurance Program

“Pasar Organic” = Re-assurance for
truly organic

Protect organic integrity along the complex
supply chain (Organic Assurance Program)
 Ensure organic principles and practices
(“organic production standards”) are
maintained in an industrial scale production

Cooperate with regional Asian vegetable growers
 Reduces opportunistic behaviors by creating
a specific enforcement system (i.e. in-house
certification) which is at zero / low cost to
growers
Organic Supply Chain

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Certification adds values :
Processor  Assured Organic Integrity
 Transparency
 Traceability
Grower Enhanced competitiveness in
organic business

The Value-added Supply Chain of Organic Fresh Produce

 NTUC FairPrice
Organic Assurance Programme (NOAP)

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)
Supplier Transporter Consumers
Fresh Food
Farm Packinghouse Transporter Distribution Retail Pasar
Centre Outlets Organic
 Standards of NOAP
NTUC FairPrice Organic Assurance Programme, Version 1

Organic Production Standards

NTUC FairPrice 1. Organic Farming Standard
Organic Assurance 2. Organic Handling and
Programme Processing Standards

o Reference:
A Handbook for Operators
IFOAM and CODEX
in the Value-added Supply Organic Production Standards
Chain for
Organic Fresh Produce o Adapted to local conditions
of
NTUC FairPrice

Copyrights 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 wildlife

Source: www.ava.gov.sg
 Our Independent Auditor
About AgroFood Technologies Pte Ltd
A 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 health
diagnostic laboratory testing techniques to meet internationally
recognized Good Laboratory Practices requirements.

Source: www.ava.gov.sg
 NOAP’s Development &
Implementation Cycle
4. Analysis 1. Planning
& Review / Development
Audited by Oct 2006
3rd Party – Aug 2007
-Apr 2008

2. Do/
3. Communication Implementation
Staff training
and briefing Establish
Aug 2007 – systems
Mar 2008 Aug 2007 –
Mar 2008
Long journey which requires
commitment and cooperation
between all operators
Our Assurance Standards
1. Organic Farming Standard
At the farm
• Pasar Organic produce is grown in well-selected
and managed organic farms in Thailand, applying
principles of Organic Agriculture.
Key organic assurance practices:
• Good water source and free from potential
contamination;
• All seeds and plant materials are non-genetically
modified organism and non-chemical;
• Crop rotation to enhance soil;
• Use recycled vegetable wastes as fertilizers;
• Eco-friendly weed and pest management system
Our Assurance Standards
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 using
NOAP permitted agents;
• Segregate Pasar Organic produce from non-
organic produce in sealed boxes;
• Proper documentation for product tracing
Our Assurance Standards
2b. At the Storage Facility
From the processing houses, Pasar organic produce is
delivered to NTUC FairPrice’s Fresh Food Distribution
Centre (FFDC) for sorting and redistribution to the
stores.
Key organic assurance practices:
•Check that packaging is sealed;
•Store Pasar Organic produce in dedicated shelves;
•Segregate Pasar Organic product from non-organic
produce in sealed boxes
Our Assurance Standards

2c. At the Stores

Key organic assurance practices:
•Verify the condition and records of
produce;
•Check that organic labels and packaging
are 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 Commitment
2) Extensive staff trainings

Sustaining organic market

1) Creating awareness
2) Consumers’ education
NOAP Successful Launch

First launch on31st July 2008

to top 10 stores

34 types Asian tropical
vegetables

First to be developed in
Singapore
> Leading role in organic
market place in terms of
organic quality assurance
We are passionate about delivering the best quality,
service and value to our customers and we are proud
to introduce Pasar Organic – our house brand for
fresh organic produce aimed at bringing you a
wholesome organic experience at affordable prices.

Pasar Organic encompasses the goodness and purity

of what nature has to offer with the assurance that
every step has been taken to ensure the organic
integrity of the produce from farm to store.

Thank You
Ms. Chong Nyet Chin
Email: nyet_chin.ching@fairprice.com.sg
http://www.fairprice.com.sg/Corporate.aspx
On behalf of Dr. Ngiam Tong Tau