FOOD SAFETY MANAGEMENT APPLIED BY DISTRIBUTORS (AGENTS AND BROKERS STANDARDS)

In order to maintain food safety (as well as quality and authenticity) in the entire supply chain, food (product) safety standards also cover companies that trade (but not produce) food: agents and brokers. What are agents and brokers and is there a difference between the two terms?

According to the BRC Agents and brokers standard:

– “Brokers Companies that purchase or take title to (i.e. become the legal owner of) products for resale to manufacturers, other brokers, retailers or food service companies but do not directly sell to the consumer”;

-“Agents or non-manufacturing service providers Companies that trade between a manufacturer or broker and its customer but do not at any point own or take title to the goods. Such companies provide a range of services to facilitate the safe and legal trade of products”.

According to the IFS Broker standard: broker is defined as a generic term for the following types:

– Middleman: person or company who acts as an agent for others, as in negotiating contracts, purchases or sales in return for a fee or commission.

– Sales Agent: person or company who is authorized or appointed by a manufacturer to sell or distribute his products in a given territory but who is in business for himself, takes title of the goods and does

not act as agent for a principal.

– Trader / Dealer: person or company whose business is buying and selling or bartering.

– Importer: person or company who brings goods into a place or country from another country with the purpose of selling

Certain companies deal with both types of activities (they can be both agents and brokers).

Therefore, the goods are either owned by the company (broker) or the company only mediates (as a trader) between the producer and the buyer (agent). But, in order for the goods to reach the customer, logistic activities such as storage, distribution and even some kind of processing (such as re-labelling) are included. Do these activities also belong to the activities of agents and brokers? These activities are not in the description of the activities of agents and brokers, but belong to the services (subcontractors) of agents and brokers.

AGENTS AND BROKERS STANDARDS

IFS Broker

IFS, within its group of standards, has also developed the IFS Broker standard, the currently valid version of which is 3.1. published in 2021. IFS Broker follows the structure of other IFS standards, so the following requirements are included in the standard:

1. Senior management responsibility

2. Qauality and Product safety management system

3. Resource management

4. Planning and service process

5. Measurements, analyses, improvements

6. Product defense assessment

The grading system is the same as with other IFS standards, with 8 KO (knock out) requirements:

1.2.2 Senior management responsibility

2.3.1 Product quality and safety management

4.2.2 Product Specifications

4.6.1 Traceability system

5.1.1 Internal audit

5.2.2 Product Analysis

5.5.2 Withdrawal and recall procedure

5.7.2 Corrective Actions

BRC Agents&Brokers

BRC, within its group of standards, developed the BRC Agents&Brokers standard, the currently valid version 3 of which was published in October 2021. BRC Agents&Brokers follows the structure of other BRC standards, so the standards include the following requirements:

1. Senior management commitment

2. Hazard and risk assessment

3. Product safety and quality management system

4. Supplier and subcontracted services management

5. Personnel

With broker standards, the assessment is different compared to, for example, food or logistic standards, so when we don’t have a tour of the location and process, but an assessment of the documentation, then the question arises as to what the non-conformities might be:

• Critical: Where there is a critical failure to comply with a product safety or legal compliance issue within the scope of the module
• Major: Where there is a substantial failure to meet the requirements of any clause of the module or a situation is identified which would, on the basis of available objective evidence, raise significant doubt as to the conformity of the product to the module
• Minor: Where a clause has not been fully met but, on the basis of objective evidence, the conformity of the product is not in doubt.

If you need support with the implementation of the Agents and Brokers standard, you can contact our Agency!!!!