Rural and Regional Affairs and Transport References Committee Regulatory approaches to ensure the safety of pet food

Submission from Nestlé Ltd July 2018

Thank you for the opportunity to provide a submission to the Inquiry into regulatory approaches to ensure the safety of pet food.

Nestlé Australia is a subsidiary of Nestlé SA.

As one of Australia’s largest food manufacturers, we employ around 4400 people at 40 sites in Australia, including eight factories. Our business spans a diverse range of products and some of Australia’s best known brands, including:  Confectionery: Chocolate bars and blocks, medicated confectionery (eg Soothers), sugar confectionery (eg Allen’s lollies)  Snacks (eg Uncle Tobys muesli bars, nut bars)  Baking Chocolates (eg Plaistowe)  Condensed , baking (eg )  Beverages containing cocoa (eg , ), both powdered and ready-mixed  Breakfast cereals (eg Uncle Tobys)  Sauces and recipe mixes (eg )  Instant (Maggi)  Coffee (eg , )  Bottled water and carbonated drinks (eg San Pellegrino)  Infant formula, infant food (eg Nan, )  Toddler formula (Nan)  Medical nutrition products (eg for use in hospital and aged care settings)  A wide range of food products for use in professional food service, including recipe bases, soup mixes, beverage products etc  Pet food and accessories (Purina)  Skin care products

Most of the products we sell in Australia are manufactured locally. We source ingredients locally where practicable, but we also purchase internationally, including through regional and global sourcing teams.

1 Nestlé Purina PetCare

In Australia, Nestlé Purina PetCare makes wet and dry pet foods for cats and dogs, including brands such as Pro Plan, Supercoat, , and Purina One, at its factory in Blayney in central western NSW.

The majority of our pet food products are nutritionally complete. We also make incomplete or complementary foods for cats and dogs.

We do not sell raw or fresh pet food. More than 80 per cent of the ingredients we use at the Blayney factory are sourced locally, including meat and grains.

In 2017, over $32m of pet foods left the Blayney factory for export, including to , and . Meeting both Australian standards and those of export markets are critical to our business.

In addition, Nestlé Purina PetCare imports finished pet food from the , , and New Zealand.

Approaches to ensure the safety of pet food

With Purina pet food sold in 78 countries, Nestlé Purina PetCare has experience in operating in a wide range of regulatory frameworks.

We have noted public comment in Australia about the quality and safety of pet food with concern. This does not reflect our experience as a manufacturer, or the focus that we put into providing high quality products.

Safe pet food requires both food safety, and, where appropriate, nutritional completeness.

Nutrition: Our primary focus is on creating nutritionally complete and balanced, high quality pet food, designed to meet a cat or dog’s entire nutritional needs, while making sure that pets also enjoy the taste. Our research into animal nutrition, coupled with following research around the world, helps us continue to deliver high quality products.

To deliver this, all our pet foods are carefully formulated by pet nutritionists who understand nutrient profiles of ingredients, how different nutrients and processes work together, and what biological effects ingredients will have on an animal’s body. This is then balanced to provide a food that provides 100% complete and balanced nutrition, tailored to the pet's life stage or life style.

To ensure that the product delivers this, we test our ingredients to ensure each batch delivers consistent nutritional balance, despite naturally occurring variation in ingredients.

Food Safety: Nestlé Purina PetCare has a strong focus on food safety through the value chain, from raw material sourcing, through to manufacture and distribution.

All Nestlé Purina PetCare factories globally:  Are certified annually by Global Food Safety Initiative (GFSI)-accredited independent certifying bodies against internationally recognised human food safety scheme ISO 22000 Food Safety Management Systems (more here: http://www.mygfsi.com/)

2  ISO 22000 establishes foundational use by the factory of the HACCP (Hazard Analysis and Critical Control Points) hazard and risk-based food safety process and implementation of Good Manufacturing Processes/Pre-Requisite Programs  Ensure that the manufacturing environment is consistent with hygiene and sanitation standards required to prevent physical (foreign body), chemical, or biological cross contamination of ingredients, semi-finished goods and finished food  Includes warehousing of raw materials, warehousing of finished products, and traceability requirements.

Our factory at Blayney runs around 3500 quality and food safety tests every day, with oversight by our quality team. Testing includes raw materials through to finished product.

We also require that raw ingredients be free of foreign material, with multiple filters, magnets, and other equipment and processes throughout our facility to ensure that only the intended ingredient goes into the final product, and that the product meets the standard the pet owner rightly expects.

As part of our quality program, we also work with suppliers to ensure that their focus on quality matches ours, and that they understand the impact that issues in their supply chain can have on pets and the people who care for them. It has been encouraging to see suppliers improve their standards over time as a result of this.

Where suppliers will not work to maintain the standard we require, we will cease purchasing from them.

Nestlé Purina PetCare also has a long history of working with the industry, notably the Pet Food Industry Association of Australia (PFIAA), with the goal of ensuring the health and wellness of cats and dogs in Australia.

For this reason, we have been aware of developments in the regulation of the pet food industry in recent years. This has included the 2007 introduction of the Industry Code of Practice, developed as a guide on good manufacturing practice and food safety as it pertains to pet food, and the 2011 introduction of the Australian Standard Australian Standard for the Manufacturing & Marketing of Pet Food (AS5812), followed by its revision in 2017.

We also note additional standards and regulations that have contributed to improving the quality of the ingredients we buy, including meat and grains.

Nestlé Purina PetCare holds the view that the standard to which pet food is made in Australia is high, and that pet owners have every reason to be confident in the quality and safety of foods sold in Australia which has been made to meet the relevant standard. a. the uptake, compliance and efficacy of the Australian Standard for the Manufacturing & Marketing of Pet Food (AS5812:2017)

The Australian Standard for the Manufacturing and Marketing of Pet Food (AS5812:2017) (“the Standard”) covers manufacture, labelling and nutrition requirements for pet food manufactured and/or sold domestically in Australia.

The original Standard was published in March 2011 following Pet Food Safety Committee meetings in 2009 and 2010, and was developed with the involvement of stakeholders including state and federal government, the Australian Veterinary Association, the RSPCA, and pet food industry

3 representatives. It was subsequently reviewed by the same organisations, with the revised edition published in September 2017.

The Standard covers areas such as manufacturing, labelling, nutrition and marketing, as well as guidelines on pet food ingredients. It also covers areas that are of concern to some pet owners, such as product recall procedures, irradiation, and food additives.

Certification to the Standard is conducted independently. The process, while operated by industry association PFIAA, is audited annually by the Department of Agriculture and Water Resources (DAWR) under the terms of the Letter of Exchange Agreement between PFIAA and DAWR.

Almost all the manufacturing members of the PFIAA and all exporter members are now accredited to the Standard. This is estimated to cover more than 95% of the pet food sold in Australia. Nestlé Purina PetCare is certified to the Standard.

Strengths of AS5812:2017  The Standard itself is robust. It gives sound direction for what constitutes a quality pet food for domestic cats and dogs, covering a comprehensive range of pet food types. Pet foods produced and marketed to the Standard will be of high quality and fit for purpose.  The Standard was both developed and reviewed with the input of key stakeholders: the pet food industry was involved, but not dominant.  The government remains involved in the standard, with the certification process assessed annually by the Department of Agriculture and Water Resources.  Pet food made to this standard is accepted by a wide range of export markets, including Japan, Malaysia, , , Korea, and NZ  The Standard is a cost effective and simple way to ensure pet food is made and marketed appropriately.  The Standard is scheduled for review every five years by the same stakeholder groups involved in its development.  Equivalent international standards are also recognised, allowing for simpler import and export.

Shortcomings of AS5812:2017  It is not mandatory or enforceable. It also lacks a complaint mechanism.  It lacks transparency. Because it is administered by Standards Australia, the content of the Standard is not available without payment of a fee. This means that pet owners and others lack a way to see and understand the requirements of the Standard and the expectations on pet food manufacturers, and likewise, lack a means to know whether the food they buy meets that standard. b. the labelling and nutritional requirements for domestically manufactured pet food

Labelling and nutritional requirements are referenced in AS5812:2017.

Nutritional requirements Nutritionally complete pet foods, that is, those that meet an animal’s entire nutrition standard, are defined within AS5812:2017.

4 The Standard refers to two well-recognised global standards: FEDIAF (European Pet Food Industry) and AAFCO (American Association of Feed Control Officials). Each must be used in its entirety. Manufacturers must also test finished products to ensure they meet the relevant standard.

Use of these globally recognised requirements helps local manufacturers to adopt overseas best practice. It also helps both import and export of finished product, by ensuring consistency between different countries.

Labelling requirements Labelling requirements under the Standard are designed to ensure that the pet food is described accurately and that pet owners have the information they need to feed their pet safely.

Labelling requirements under the Standard include stipulations on:  The general name of a product  Identification as pet food  Stating whether a food is or is not nutritionally complete  Nutrition information panel  Directions for use  Ingredient lists, including all food additives  Date labelling, including storage requirements  Batch information to ensure traceability  Labelling of irradiated food.

Other aspects of labelling are covered under other legislation and regulation, including the Competition and Consumer Act 2010 and the National Trade Measurement Regulations 2009. c. the management, efficacy and promotion of the AVA-PFIAA administered PetFAST tracking system

The PetFAST system was developed jointly by the veterinary profession and the pet food industry as a tool to identify and respond to reports of adverse events by veterinarians.

Under the system, veterinarian reports on adverse events are monitored; where a pattern is identified, a joint committee will recommend what action should be taken.

The PetFAST system has successfully identified adverse events which are potentially related to pet food. This system has been able to track several incidents over the last few years and draw on the expertise of both the vet community and industry.

As a pet food manufacturer, we value PetFAST for the professional expertise of vets in assessing the health of an animal and identifying any link to a pet food. We also value the veterinarian-to- veterinarian nature of this system, which provides some arms length from manufacturers.

Strengths of the PetFAST system  Veterinarian reports can be easily connected  The system is specific to vets: they do not have to approach manufacturers directly  Clinical information is collected in a standard format  Reports received by manufacturers through the PetFAST system have already been assessed by veterinarians.

5  The system facilitates open discussion about pet food issues within the veterinary profession.

Shortcomings of the PetFAST system  The PetFAST system can make recommendations to manufacturers, but cannot force action including recall.  We are not certain of the extent of knowledge and use of the system among veterinarians. Use and awareness is currently limited to AVA members.  The system, including funding for investigation, is problematic where the pet food under consideration is made by a company which is not a PFIAA member.

Recommendations  Increase promotion of the system among veterinarians and extend its use beyond AVA members.  External reporting would boost transparency and visibility. d. the feasibility of an independent body to regulate pet food standards, or an extension of Food Standards Australia New Zealand’s remit

Nestlé Australia would support options for future regulation of pet food that would support the quality and safety of pet food sold in Australia, and transparency and pet owner confidence in the industry.

We note that some areas are already subject to regulation, such as state legislation covering 'pet meat' and using the terms 'pet food' as a means of categorising meat grade not fit for human consumption. However the current laws in place for pet food safety are limited to meat and do not cover all other types of pet food products.

At present there is no government body tasked or resourced to do this. Arrangements between the Commonwealth and states make this a complex area for human food, with responsibilities sitting across multiple agencies such as FSANZ and the state food authorities, and we understand that similar complexities would need to be addressed in order to introduce full regulation to the pet food industry.

We are also of the view that it would not be as simple as extending the remit of FSANZ or any other agency. While the principles are similar, there are significant difference between pet and human nutrition needs that would require specific pet-focused expertise. At present, we are not aware of this expertise sitting within government.

The existing pet food standard was developed with the engagement of many stakeholders including government, veterinarians, RSPCA and industry. The standard and its implementation in industry is reviewed by government for the purposes of export and is acknowledged by way of a letter of exchange between government and industry. e. the voluntary and/or mandatory recall framework of pet food products

Recalls are appropriate where a product on the market poses a food safety threat to the consumer, whether human or pet.

6 Responses to adverse events in human food, potentially triggering recall, currently sit within the state food authorities. Unlike human food, there is no external standard or system which governs response to adverse events regarding pet food where pet health is potentially at risk. While state food regulators may be used to publicise recalls, public reporting is voluntary and there is no mandatory requirement.

Coverage of pet food adverse events is currently inconsistent:  Therapeutic pet diets are covered under the Agricultural and Veterinary Chemicals Code Act 1994 (AgVet Code), which includes a mandatory reporting requirement for product that is not fit for purpose or for off-label use  A food safety issue in pet food that would also be an issue for human food (for example – the presence of salmonella or listeria) is covered under Australian Consumer Law and would trigger a recall.  A food safety issue in pet food that would impact pet health but not human health (for example - the presence of chocolate in dog food) is not covered and would not trigger a mandatory recall under Australian Consumer Law. It would be up to the company to enact a voluntary recall.  A nutritional deficiency in a nutritionally complete pet food would not trigger a mandatory recall; a nutritional deficiency in a nutritionally complete human food would.

Most reputable companies would act quickly to recall a product that posed a threat to pet health. That said, it is our view that the absence of mandatory recall provisions covering all pet food adverse events that impact pet health is a key gap in the current system.

Nestlé’s approach to product recall Nestlé uses the same rationale and process for pet food as for human food when deciding whether a recall or a withdrawal is warranted. Our processes are tested regularly in every country.

A recall is conducted where the product may pose a safety hazard to the consumers; in this case, a pet. This action will be taken if there is a reasonable possibility that use or consumption of the food would cause adverse health consequences or even death. Recall action may also be taken if the product has serious defects that pose a potential health risk: for example, in human food, this would include missing labelling of an allergen. Our system includes processes to trigger rapid internal investigations.

A product may be withdrawn from sale and distribution where the product has an irregularity that does not pose a potential risk to health and safety. This might include a quality defect (such as colour or texture), a product that is underweight, or a product with labelling irregularities. A withdrawal may also be conducted as a precautionary measure to stop further sale pending further investigation: the product will subsequently be recalled if a risk to public health and safety is established.

We note some commentators have claimed that a lack of pet food recalls is an indicator of a system that is failing to recall products when it is appropriate.

For Nestlé Australia, this is not the case: recalls are also uncommon events in human food. This is because quality and safety are non-negotiable priorities, and a significant amount of resource and activity goes into ensuring that both human and pet food products meet the quality and safety standards we expect. This includes a team of specialists in quality management in every factory, supported by teams in the Nestlé Australia head office and our global head office. Our approach to quality management is one of continuous improvement to identify problems or potential problems,

7 and take steps necessary to reduce risk. This include rigorous investigation of consumer complaints, aimed at ensuring we understand and address the root cause of any problem. The extent of our investment in quality stems from our recognition that this focus is critical to the confidence of our consumers, and the success of our business.

Information on our quality standards, including information on ingredients and questions consumers ask about our products can be found here: https://www.purina.com.au/quality-standards.

Recommendation: We recommend that a practical mandatory recall system be developed. g. comparisons with international approaches to the regulation of pet food

We are limiting our comments to the areas of complaint and recall processes, as we hope that these are most useful for the Committee.

There are several systems of regulating pet food in overseas jurisdictions.

The most comprehensive can be seen in and the United States.

Europe - recalls Europe operates an effective co-regulated system where industry works with government and stakeholders to develop the industry requirements for pet food manufacture.

Pet food is also included in the comprehensive early warning and reporting mechanism for food and feed safety alerts. The Rapid Alert System for Food and Feed (RASFF) system is the focal point of inputs across Europe, enabling quick sharing of information through the system, with access to RASFF alerts available to anyone.

Recalls are organised at national level by the appropriate authority.

The European Pet Food Industry Federation (FEDIAF) monitors alerts, and can be involved in discussions with EU authorities if the alert is relevant for all the pet food industry (such as an alert concerning a common ingredient that may be used by a number of companies). For such matters, FEDIAF will then work with the EU Commission to ensure a workable outcome across the industry).

More: https://ec.europa.eu/food/safety/rasff_en

USA - recalls In the USA pet food is highly regulated, through both federal and state regulations.

Pet food recalls are covered under the same regulatory process as human food. This framework sits in the Code of Federal Regulation in Title 21, part 7 (https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFRSearch.cfm?CFRPart=7)

This system is effective in removing affected product from the marketplace.

 Recalls are categorised, based upon severity or health implication, into Class I, II, or III. Companies must provide notification of a Class I recall event through the Reportable Food Registry. This usually initiates contact with FDA and a recall.

8  There is provision for company-initiated voluntary recalls and also, as part of the FDA’s new Food Safety Modernization Act authority, mandatory recalls if the Agency sees an egregious food safety issue.  The FDA District Office local to the pet food company has the responsibility to interface with the company to ensure that a recall is conducted properly. For example, Nestlé Purina PetCare would work with its district office in Kansas City, Kansas, which handles the mid- west region where the Nestlé Purina PetCare head office is based. That said, our experience is that other states call Nestlé Purina PetCare to ask what our plans are to enact a recall effectively in their state.  The industry association, the Pet Food Institute, is not actively involved.

USA – Complaint handling The US FDA has recently created a portal for consumers to file complaints on pet food, following consumer requests for greater FDA oversight of pet food. This is a measured approach that can be implemented at reasonable cost and would help sustain both transparency and pet owner confidence.

The portal can be found here: https://www.fda.gov/animalveterinary/safetyhealth/reportaproblem/ucm182403.htm

The portal aims to give the FDA early visibility on potential problems, with a view to taking steps to mitigate risk before it becomes widespread.

Conclusion

Nestlé Australia Limited thanks you again for the opportunity to provide a submission to this Inquiry. Should you require any further information on our submission or the Nestlé Purina PetCare business and operations, we would be more than happy to assist.

Nestlé Australia Limited July 2018

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