Chapter 10

Total Quality Management in

Agribusiness

Abdul Ghafoor, Mubashir Mehdi and Leticia Amoakoah Twum*

Abstract
Business world is a dynamic place where concepts and applications change at a rapid
pace. This dynamism becomes more intense in the presence of emerging trends in
consumer preferences, changing marketing strategies, evolving competition,
stringent government regulations and more importantly enhancing focus on quality.
So in order to sustain in this highly competitive market place, firms have to
continuously improve their functions. Total Quality Management (TQM) is thus a
well demanded approach which is based on six principles including participation of
management, focus on customer satisfaction, employees’ involvement, continuous
process improvement, partnership with suppliers and performance measures. The
framework of TQM is built on the integrated connection of knowledge and insight
learned from subject experts, principles and practices, approaches to TQM and tools
and techniques. This framework help the firms to adopt quality approach in their
manufacturing and distribution and thus help achieving product and services with
high quality. It is relatively easy to achieve a status of TQM but it is really hard to
maintain that status. TQM is more important in agribusiness where prime focus
remains on quality of products. International trade of agricultural commodities is
increasingly been recognized with stringent standards and requirements. The
importance of standard management systems like Hazard Analysis and Critical

*
Abdul Ghafoor# and Mubashir Mehdi
Institute of Business Management Sciences, University of Agriculture, Faisalabad, Pakistan.
#
Corresponding author’s e-mail: ghafoor@uaf.edu.pk

Leticia Amoakoah Twum

Biotechnology and Nuclear Agriculture Research Institute, Ghana Atomic Energy Commission, Ghana.

Managing editors: Iqrar Ahmad Khan and Muhammad Farooq

Editor: Abdul Ghafoor
University of Agricutlure, Faisalabdad, Pakistan.

237
238 A. Ghafoor, M. Mehdi and L.A. Twum

Control Point, International Featured Standards, International Organization for

Standardization, Global GAP is thus immeasurable. The importance of relevant and
effective legal and institutional framework is also enormous for achieving and
sustaining a quality management culture in the country. A brief about legal and
institutional system in Pakistan is also narrated in this chapter.
Keywords: quality, total quality management, quality management systems,
HACCP, ISO, IFS, GAP, legal and institutional framework

10.1. Introduction
Quality has become a buzz word in business world and this term is getting attention
of consumers, market stakeholders and policy makers. Researchers have also got an
increasing emphasize on this emerging issue and have tailored their research efforts
accordingly. With the gain in consumer knowledge and power, the marketing
phenomena has changed significantly from production orientation to consumer
orientation. This change is supplemented with increasing concerns of public
authorities across the globe where new legal supports and monitoring mechanisms
are taking their place. Quality is a term which cannot be understood in isolation. In
more solemn language it is the totality of different features of a product or service
(Besterfield et al., 2011). If someone thinks packaging a good attribute of quality
then ingredients or manufacturing process may be the concern for others.
In manufacturing, quality is generally taken as a measure of excellence or a state of
being free from defects, deficiencies and significant variations. Such level of
manufacturing excellence is often achieved by following strict and consistent
commitment to certain standards which help to achieve uniformity in a product to
satisfy consumers’ concerns. ISO 8402-1986 standards define quality as “the totality
of features and characteristics of a product or service that bears its ability to satisfy
stated or implied needs”. Quality is understood in the form of its major dimensions
which are presented in table 10.1

Table 10.1 The Dimensions of Quality

Dimension Meaning and example
Performance Primary product characteristics like engine power of
tractors
Features Secondary characteristics of the product such as tool kit
Conformance Meeting expectation or industry standards
Reliability Consistency of performance overtime
Durability Useful life, free from repairs and defects
Support Services Resolution of problems and complaints like spare parts
and service centers of tractors
Response Human to human interface including behavior of sale staff
Aesthetics Sensory characteristics such as look, color, design etc.
Reputation Past performance and other intangibles
Value for price paid Price should be according to given quality
Source: Garvin (1988); Managing Quality: the Strategic and Competitive Edge
10 Total Quality Management in Agribusiness 239

The business world, considering the quality as determinant to its success, is rapidly
moving towards Total Quality Management (TQM). TQM is systematic approach to
develop quality culture in the enterprises which help moving towards success. It is
said that through management approach the firm becomes in a better way to handle
its resources which ensures efficiency and help developing a culture of excellence
and competition within and outside the firm. TQM is defined as both a philosophy
and set of principles that represents the foundation of a continuously improving
organization. It is application of qualitative methods and human resources to improve
all the process in an organization to exceed customer needs (Besterfield et al., 2011).
TQM essentially integrates fundamental management techniques, existing
improvement efforts and technical tools under a multi-disciplinary approach.

10.2. Basic Approaches to TQM

The basic purpose to TQM is to develop a culture of producing quality products
keeping in view the changing and emerging consumers’ needs. In order to earn
success in business, firms need to accomplish this target at lowest possible cost
otherwise meeting higher standards at increasing cost may push them out of the
competition. A right recipe to survive in the competitive business world is to produce
quality products at fair cost to set prices at level which are acceptable by the
consumers. This task should be supplemented with other strategic interventions in
areas of financial management, human resources management and strategic
marketing. Advertisement and sales promotion also play their role in this context.
There are six basic approaches to achieve TQM. These are explained as:

10.2.1. Participation of Management

Management of the firm should effectively participate in quality programmes of the
enterprise. First of all, the top management should decide to take up this issue on
priority basis and start planning to implement the same in the organization by
establishing a quality cell/department or council. This cell/department should chalk
out the clear vision of the firm regarding TQM, set goals and objectives and design
strategies and programmes to achieve those targets. A better approach to design a
quality improvement programme is to adopt integrated approach by involving all
stakeholders at all levels. This initiative should be supported with establishment of a
culture by motivating, guiding and training the team members and other stakeholders.
It is often said that if the management is itself convinced and motivated then it is very
easy to develop any culture in an organization.

10.2.2. Customers Focused Approach

It is now well understood that customer is the king of all marketing activities. A
customer based approach enables you to identify consumers; needs in a better way
which further help you to design your business and marketing policies accordingly.
But to achieve this, it is necessary to really listen your customers. Doing that means
you are involving your customers in consultation process as advisers. An effective
communication system is required to do that efficiently. Afterwards, this initiative
240 A. Ghafoor, M. Mehdi and L.A. Twum

should be supported with development of required facilities and system which really
ensures quality and customer satisfaction. Rather one must plan to move a step ahead
to make customers’ experience delightful.

10.2.3. Employees Involvement

Employees constitute the important part of any organization. As stated earlier TQM
is started often on the initiative of top management but it becomes successful if
everybody in the firms takes it as his personal responsibility. It is said that if you
want to earn success in your business, keep your employees satisfied and happy and
they will turn an asset for you by putting their full energies in the business. It is also
important in another version where we say that major stakeholders of system change
viz. employees if involved in the change system should also be brought up to that
level which is required to perform their tasks efficiently. This situation urges to train
your staff according to requirement of quality system which you plan to introduce in
your firm. This should also be supported with benefits and social safety nets at
workplace which will further improve commitment of employees towards their firm.
Some initiatives like declaration of Best Employee of the month and awarding
him/her with some benefits will leave magical results on performance of employees.

10.2.4. Continuous Process Improvement

TQM is total commitment in a sustained way to deliver quality to your customers.
This is possible only if you will keep on improving your performance in every sphere
of business including production, marketing, post-purchase feedback etc. For this
purpose, managers need to introduce concepts like just in time (JIT), order entry
efficiency, billing error rate, cycle time, supplier management and inventory control.
Some techniques like statistical process control, benchmarking, quality function
deployment and designed experiments may help managers to solve emerging
problems in this context.

10.2.5. Supplier Partnership

Developing partnerships is not only a strategic option rather a business success tool.
No firm in this world can claim availability of unlimited resources. At the same time
every firm has to perform various important functions, some of which they perform
in-house whereas other they have to outsource. This demands to have good
relationships with your partners especially your supplier because they will really help
you meeting your production targets in time. Establishing supply chains of your
products will help you establishing good relations with your partners. In relations
with your supplier you should keep in your priorities to focus on quality and life
cycle costs rather than price. At the same time business firms should develop
relationships with few suppliers to have sustainable relationships.

10.2.6. Performance Measures

Performance of the business firms should be monitored regularly. Measures like
uptime, percent non-conforming, absenteeism, and customer satisfaction should be
10 Total Quality Management in Agribusiness 241

determined for each functional area in the organization. A system of communication

should be developed to channel such measures to every concerned person so that
he/she may act accordingly. Performance should be measured in quantitative form
using requisite data for which acquisition and maintenance of data are crucial
(Hendricks and Singhai, 1999).

10.3. TQM Framework

Total quality management is a goal towards which a more systematic approach is
needed to make some significant success. Generally a firm has to develop a culture
of TQM in its organizational and management structures. This is started with the
knowledge and insight developed by subject experts and followed by respective
firms. The base of the TQM framework is the principles and practices which are
established to achieve said targets. These principles and practices generally revolve
around people and relationship, customer satisfaction, employees’ involvement, and
supplier partnership.
Benchmarking
Knowledge Informati on Technology
Quality Management System
and insight
Environmental Management System
developed Quality Function Deployment
by subject Quality by Design
experts Failure Mode & Effect Analysis
Product & Service Liability
Tools and Total Productive Maintenance
Experts of TQM Management Tools
Techniques Statistical Process Control
Experimental Design
Taguchi’s Quality Engineering

Principles and Product or

Practices Service Customers
Realization

People & Relati onship: Approach:

Leadership Continuous Process Improvement
Customer Satisfaction
Employee Involvement Measure:
Supplier Partnership Performance Measures

Fig. 10.1 Framework of Total Quality Management

There is certainly an approach to follow to achieve these principles that include

continuous focus on improvement and adoption of some performance measures.
Some important tools and techniques are used in this framework to adopt
abovementioned approach. These include benchmarking, information technology,
quality management system, environment management system, quality function
deployment, quality by design, product and service liability, statistical process
242 A. Ghafoor, M. Mehdi and L.A. Twum

control, management tools, experimental designs etc. the focus of these principles
and practices, knowledge generated by experts, tools and techniques is to generate a
framework which aids the business firm to achieve excellence in their work and move
towards total quality management system. This framework is explained in fig. 10.1
Generally TQM is understood as a cultural change or change of mindset which is not
a short term target. This stage is attained in the longer time period subject to the
implementation of best practices in the business. TQM is differentiated from
traditional approach in the following manner mentioned in table 10.2;

Table 10.2 Comparison of Traditional and TQM Cultures

Elements Traditional culture TQM culture
Definition Product oriented Customer oriented
Prioritaies Second service and cost First to or equal to service and
cost
Decisions Short term Long term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality control dept. Every one
Problem solving Managers Teams
Procurement Price Life cycle costs, partnerships
Manager’s role Plan, assign, control and Delegate, coach, facilitate and
enforce mentor
Source: Besterfield et al. (2011); TQM = Total Quality Management

10.4. Obstacles and Benefits of TQM

TQM is a process which is achieved with great commitment and determination.
Business firms have to face many obstacle in their way towards TQM which are
listed below;
Lack of commitment at management level
Lack of ability to change culture of organization
Lack of proper planning
Lack of continuous training and education
Inappropriate structure of organization
Ineffective techniques of measurement and shortage of data
Inadequate attention to customers
Injudicious use of power and teamwork
Inability to improve consistently
There are some benefits of adopting TQM culture which include the following;
Improved quality
Effective employee participation
Building teamwork
10 Total Quality Management in Agribusiness 243

Refining working relationships

Promoting customer satisfaction
Employees satisfaction
Enhanced productivity
Improved communication
Increasing profitability
Increasing market share

10.5. Quality Management Systems in Agribusinesses

Another striking feature of global food system is increasing and more stringent
standards and certification system. Consumer as the king of marketing chain desires
the quality products and producers with other stakeholders are employing more
scientific and systematic methods to preserve quality of food products along the
whole supply chain. In such environment the companies that have adopted
internationally accepted standards are progressing at rapid pace than those which are
still struggling with standards adoption. Some of the important certificates include
Global Good Agricultural Practices (GAP), Hazard Analysis and Critical Control
Point (HACCP), International Featured Standards (IFS) etc.

10.5.1. The Global GAP Certification

Good Agricultural Practices (GAP) is a certification system at global level to ensure
quality in the agricultural commodities chains. GAP is basically an integrated system
which ensures appropriate development, execution, improvement, transparency,
integrity, harmonization and transparency of certificates. It is a system of farm
standards which represents good practices in the agriculture ultimately committing
quality products to consumers. Is any firm desires to get this certificate it shows the
commitment and devotion to Global GAP standards. If we take consumers’ and
retailers’ stance then they are interested in this certificate because they are assure of
quality and safety of products coming through this system. This system also takes
care of environmental issues and even animal welfare issues. At the international
level, market has developed to the extent where commodities fail to assure such
safety and quality are denied in the international markets.
The genesis of the Global GAP is rooted in EUREPGAP in 1997. This was an
initiative taken by the retailers in Europe to ensure quality of products coming to
them. The background motives to this initiative were the growing consumers’
concerns about food safety and quality in addition to environmental issues and
animal welfare issues. Eventually all that efforts turned into Global GAP certificate.
As said earlier EUREPGAP certificate was the starting point of Global GAP. This
certificate helped the producers to shape their production system with internationally
accepted criteria of good and safe production, welfare of workers working at the
farms, welfare of the animals working at the farms, appropriate use of resources
including water, feed and propagation methods of plants. Harmonization of
certificate meant sustainability of their audit system as they did not need to get their
farms audited various time by multiple authorities, if they are GAP certified. Over
244 A. Ghafoor, M. Mehdi and L.A. Twum

the years this initiative got popularity and retailers kept on joining this system which
later on developed the basis for its coverage at global level. So eventually in 2007,
the scope and name of EUREPGAP was changed into Global GAP to demonstrate
its global reach and acceptance.
Global GAP is now internationally accepted system of quality certification where
consumers are assure of the quality and safety they need. As such, a growing number
of countries are joining this club and currently the number is more than one hundred.
This system is now not only ensuring quality and safety but also trying to improve
efficiency in production (ITC, 2016). So it helps improving performance of the
businesses and also reduces wastage of raw material. In short this system is working
to make this world a better place for coming generation by conserving resources. It
also covers the following aspects;
• Traceability and safety of food
• Environment (including biodiversity)
• Safety, health and welfare of workers
• Welfare of animals
• Includes Integrated Crop Management (ICM), Integrated Pest Control
(IPC), Quality Management System (QMS), and Hazard Analysis and
Critical Control Points (HACCP)

10.5.2. HACCP- Hazard Analysis and Critical Control Point

HACCP is a quality management criterion that recognizes critical areas required for
careful attention in food production system. The HACCP approach ensures the
microbiological safety of foods. The process was developed through an evolutionary
way in the United State in which food industry, Government regulatory agencies and
scientific organization were involved. In-fact the HACCP approach was developed
by the joint effort of US scientists and space Administration (NASA) during the
process of developing specialized food for the aeronauts. The HACCP system is now
internationally recognised food certification system.
10.5.2.1. Principles of HACCP
Seven principles recognise the HAACP system which explains a framework of
science, food safety and quality system characteristics.
Conduct an analysis that can identify the hazard in food production
Identify the critical points where the problem emerges
Determine and establish the threshold limits at each point
Define monitoring procedures that can guide the corrective actions
Define corrective actions to overcome the fault
Define verification methods
Develop documentation procedures for defects and their rectification
Food processing is different for different kind of foods, therefore its scope depends
on food product and categories of different kinds of food in a production system
(FSAI, 2015).
10 Total Quality Management in Agribusiness 245

10.5.2.2. Planning for HACCP

There are twelve stages for designing and implementing a HACCP system for a
particular food product. These steps involve;
Organise a HACCP team
First of all it is essential to organize a team of experts which includes food engineers,
supervisors and manager who can be involved in the production process. The team
is generally organized by the company head and assigns the respective
responsibilities. The HACCP team is responsible to prepare all necessary documents
for HACCP Plan. The Team is multi-disciplinary therefore a sense of ownership is
evolved among the whole management. Outside experts may be hired, if necessary,
to prepare the HACCP plan. However, one should be careful because the plan which
is completely prepared by external people may have lot of weaknesses and mistakes.
The HACCP process is completely technical therefore experts must have full
knowledge in food processing. The knowledge in the areas such as conducting a
hazard analysis, identify the critical points in potential hazards, how it can be
controlled, developing a monitoring and verification process and developing the
corrective action is essential.
Define the product where the HACCP plan work
A company is involved in number of products, therefore it is essential to identify and
specify the products where the HACCP is needed. The product identification is
needed to identify a typical product which is essential to be certified to build the
brand or product image in the market. Therefore, the description of ingredients and
processing method is required.
Describe the expected use of product
Different products may have multiple uses, therefore it is essential to identify the
expected uses of products so that the process can be audited accordingly. For
example, some medicines are used either for internal or external use therefore it
should be documented. Similarly, there are different types of consumers such as
adults and children who require clarity and instructions for using these products.
Develop a flow diagram that explains the whole process of product development
The flow diagram indicates the process and outlines the steps that are involved in
product development. Therefore, it is essential to include all the key steps in the flow
diagram in the form of blocks, arrows and circles. Each shape has its specific
meaning therefore should carefully be selected while describing a step.
Conduct physical verification of the product flow system
Once a flow diagram is developed, physical verification is necessary to implement
the process. If some variations are found in the actual process then the steps must be
added in the flow diagram. After the final confirmation of flow diagram the seven
principles, as discussed above, are applied.
246 A. Ghafoor, M. Mehdi and L.A. Twum

Perform hazard analysis of the all raw material and ingredients involved in each
step of product manufacturing (Principle 1)
The HACCP team performs the analysis that identifies the rectification process. In
this process, a list of hazards is prepared that can cause serious nature of illness if not
controlled. At each step, it is essential to define ingredients and raw material which
can cause physical, biological and chemical hazards. At this stage safety concerns
are more important than food quality. A thorough hazard analysis is the key to
prepare an effective HACCP plan. The hazard analysis and the control measures are
identified.
The hazard analysis process involves two steps: firstly, a brain storming session is
performed in which HACCP team review the ingredients that are used in the product,
activities performed at each step in the process, and the equipment used in the final
product and its inventory management as well as distribution, intended use of the
product by different users or consumers. This review highlights the biological,
physical and chemical hazards which may be controlled at each step. Secondly, an
evaluation is conducted to see the severity and seriousness of each hazard that can
affect public health. The consideration should be given on short-term as well as long
term control of this identified hazard. It is important to mention here that hazard
analysis performed in one product may not be important for other product.
Identify the critical nature of raw material, process which can be controlled at this
step (Principle 2)
Critical nature of the raw material and ingredient express the severity of hazards
where the control process and preventive measures are applied. The accurate and
correct recognition of the hazard is important at this level. The hazard analysis must
be controlled or reduced up to the acceptable levels and complete documentation is
required.
Define critical level of each point identified in step 7 (Principle 3)
A critical level differentiates a point between safe and unsafe levels of physical,
chemical and biological hazards. Threshold limit are based on temperature, time,
physical dimensions, humidity, moisture level, pH value, viscosity, salt
concentration etc. Critical levels must be scientific based and should have one or
more preventive measures. For example cooking of beef patties is designed to ensure
the production of a safe product.
The hazard analysis identified pathogens (e.g., verotoxigenic E. coli such as E. coli ,
and salmonellae) as significant biological hazards. Cooking is the process which is
applied to control these pathogens therefore an accurate information is needed
regarding number of pathogens in the raw petty.
Develop monitoring procedure (Principle 4)
Monitoring involves managing measurements which ensures that the process is under
control and produces desired information for further verification. It is essential for
food safety management that tracks the whole process, indicates the deviation from
the identified path, and provides blue print of the process. Monitoring is a continuous
10 Total Quality Management in Agribusiness 247

process which is done through various physical and chemical methods. For example,
a temperature control is recorded through temperature recording chart in a thermal
process. However, microbiological assessment is difficult in monitoring due to time
taking and detection of pathogens.
Develop rectification for corrective action procedures if the hazard crossed over
the threshold level at each point (Principle 5)
The objective of corrective action is to produce safe food before it reaches to final
consumers. The corrective actions are needed when the deviation is found from the
critical level. It involves identification of cause of non-compliance, nature of non-
compliance and documentation of corrective action that has been taken. The
corrective action must be developed in advance for each critical level. It is also
necessary to identify the responsibility of causing and recovering the deviation from
critical level.
Develop verification procedures that indicate the implementation of corrective
action (Principle 6)
Verification procedures define the effectiveness of HACCP with respect to the plan.
An effective HACCP plan requires little testing of end products rather frequent
verification, regular follow up and monitoring corrective action record is required.
Verification also determines the technical and scientific soundness of the plan. It
explains that all hazards are identified and plan is implemented to control all these
hazards.
Keep the record of all steps (Principle 6)
A record keeping involves summary of the hazard analysis, the description of the
HACCP plan, name of the HACCP team and their responsibilities, definition of the
food product and its distribution, expected use and the nature of consumers, flow
diagram, hazards concerns, critical levels, monitoring and verification procedures
and record keeping procedures.
10.5.2.3. Maintaining the HACCP system
Once the HACCP system is operational then it is required to maintain it effectively
on regular basis. This means the monitoring procedures, the rectification process and
the verification procedures must be maintained in the same manner, it was developed.
It is the responsibility of the HACCP team to determine the system for a product is
redesigned or to be modified in the following situations;
i. If the product is changed from its original use
ii. If the type of raw material or input are changed
iii. If the packaging material is changed
iv. If the process of manufacturing is changed
v. If the equipment involves in the product manufacturing are altered or
changed
248 A. Ghafoor, M. Mehdi and L.A. Twum

10.5.3. IFS-International Featured Standards

International Featured Standard (IFS) is globally recognized standard for certifying
the safety and quality of loose food products and includes all production processes.
It was originally developed as International Food Standard and later its scope was
extended and renamed as International Featured Standards. The aim of this system is
to reduce the burden by the variety of audits in the field of quality assurance for
both suppliers and the trading companies (IFS, 2016).
Number of versions of this system have been developed by the European Retail
system and was formally launched in 2003. IFS (experts) food safety auditors can
work with the firms to certify the products that are produced, prepared, packaged,
and distributed to the highest standards of food safety. The IFS is important with
respect to processing and packaging (primary). IFS Food applies when products are
processed or when there is a hazard for product contamination during primary
packing. This standard requires many specifications of a processing operation that
strengthen the brand image in the market (Claudio et al., 2012).
10.5.3.1. Purpose of the IFS
i. To develop commonly recognized standards which have uniform evaluation
system
ii. To jointly work with the accreditation councils
iii. To confirm comparability and transparency in a whole of chain context
iv. To develop efficient and responsive chains for suppliers and sellers
10.5.3.2. Scope of the IFS
The companies who are involved in processing, handling of loose food products,
primary packaging can go for IFS certification. Generally, the brokers, wholesalers
and retailers are involved in this kind of certification. There are certified auditors
who perform the auditing process. An auditor has to attend an in-house training and
passed the written as well as oral examinations prior to perform audit.
10.5.3.3. Advantages of the IFS
IFS certification can offer a number of key benefits to companies which are
struggling to achieve a competitive position in the market place (Claudio et al.,
2012);
Purchasing Benefits
a) Enhance confidence on the suppliers and products they supply
b) Reduced time cost in finding the suppliers
c) Reduce evaluation cost therefore facilitate screening of suppliers
Production Benefits
a) Develop consensus between management and staff on standards and
procedures
b) Provide criteria to monitor the compliance with food regulations
10 Total Quality Management in Agribusiness 249

c) Efficient and effective use of resources

d) Reduce customer burden on inspection
Marketing Benefits
a) Build company’s image and reputation as a supplier of high quality
standardized products
b) Ability to enhance business with customer insisting on independent
inspection
c) IFS logo and certificate confirm the compliance with the best quality
standards, therefore develop good relationship with customers

10.5.4. ISO-International Organization for Standardization

International Organization for Standardization (ISO) is a non-governmental and
independent organization working for ensuring standards in the business at
international level. ISO is not an acronym otherwise it should have been named as
International Standardization Organization. It is basically derived from the Greek
word ‘isos’ which means equal and when we relate this word with standards then the
meaning is clear stating equal standards for all. So founded in 1947, the founders
decided to give it a shorter name of ISO. Since its inception this has generated 19500
international standards which cover almost every aspect of business and technology.
The number of members is 163 and its headquarter is situated at Geneva,
Switzerland.
ISO standards have make things easier for business persons and consumers. This is
actually a language of quality and safety which everyone irrespective of its
nationality or language understands. Hence these standards have made international
trade not only possible rather easier. These standards virtually cover every
technology and business like agriculture, healthcare, food safety and other industrial
products. Such developments in the international trade is synchronizing international
trading system and hence companies are able to find new customers and markets for
their products. As such this initiative is taking international trading system towards
a fair and transparent trading system.
ISO is a series of standards which covers various dimensions like quality, social
responsibility, environmental conservation, labour issues etc. actually ISO does not
itself issue certificate to companies. They have developed an audit system where
companies need to go to audit through third party and then it gets certificate. In this
era of advancement and increasing consumers’ awareness, this certificate has become
a compulsory requirement to produce and trade the commodities and the companies
which are trying to adhere to international standards are preferably taking this
proactively in their businesses.
250 A. Ghafoor, M. Mehdi and L.A. Twum

10.6. Institutional and Legal Framework for Food

Safety in Pakistan
The main mandate of agriculture has been transferred to provinces under eighteenth
amendment in the constitution of Pakistan. At federal level, Ministry of National
Food Security and Research is the apex body that looks after the food security related
issues in the country. There are various divisions and departments under this Ministry
which are actively involved in inspecting, grading analysis, agriculture plant and
animal health regulations. Some of the key departments and their role are as follow:

10.6.1. Department of Plant Protection (DPP)

Agricultural crops are prone to pests attack and farmers use pesticides to protect their
crops from such attacks. Department of Plant protection facilitates survey and pest
control, quarantine of agriculture commodities, and monitoring of pesticide import,
manufacture, formulation, repacking, advertisement, sale, use and quality. A plant
quarantine division under the DPP performs the function to enforce plant quarantine
act and plant quarantine laws. This division works in adherence to the international
plant protection convention such as phytosanitary inspection, treatment and
certification. It also plays a critical role in inventory management through
maintaining of a database on pesticides, assessment of the crops and pest situations,
in coordination with provincial government, private sector and international
organizations. This division is also responsible to look after the quality and safety
issues like pesticides residues, contaminants and genetic modification of different
food products.

10.6.2. Animal Quarantine Department (AQD)

The Animal Quarantine Department is responsible to ensure the quality and safety
issues regarding animal and animal products produced and consumed in the country.
This department regulates the livestock and its products in the country. The major
mandate is to monitor exports and imports by regulating and implementing high
standard quarantine services in the country. The purpose is to avoid spread of any
diseases due to import of such material in the country. This department also provide
certificate to exporters and importer. National Veterinary Laboratories are
established in Islamabad that provides regulatory support to national livestock wealth
in order to promote greater productivity and profitability in the livestock industry in
Pakistan. These laborites provide the facility of diagnosing biotechnology,
bacteriology, pathology and exotic diseases. The diagnostic services in the laboratory
conduct safety of animal related issues for national and regional projects that prevent
and control transboundary animal diseases. They also deal in protecting the vaccine
quality control such as bird flu. The laboratory also performs the function of residues
and drug analysis with a wide range of sophisticated engineering facilities to assure
confidence of consumers and exporters in livestock and livestock by-products. They
also train veterinarians from provincial and district organizations to learn prevention
and control of economically important diseases and gain awareness.
10 Total Quality Management in Agribusiness 251

10.6.3. Pakistan Standards and Quality Control Authority

(PSQCA)
Pakistan Standards and Quality Control Authority is one of the key department that
controls quality standards of food products in Pakistan. It is a national quality control
body that works under the PSQCA Act, 1996. It was established in December 2000
with an overall objective of formulation of Pakistan standards for quality and safety
for the industry. The major mandate of PSQCA is to develop quality standards on
various dimensions, and work for the spread and adoption of these standards in the
industry and other stakeholders. PSQCA does this by engaging stakeholders from all
related fields of businesses and as such arranges interactive sessions to get their
feedback. PSQCA is the member of many international standard organizations like
ISO. PSQCA has various divisions and one such division covers food and agriculture
related issues. This division is responsible for making and implementing standards
related to food and other agricultural commodities in the country. Actually standards
set by PSQCA are volunteer and are not mandatory. These standards usually
supplement and provide support to Pure Food Ordinance, which is mandatory
regulatory framework in the country.

10.6.4. Pakistan Council for Scientific and Industrial Research

(PCSIR)
The Pakistan Council for Scientific and Industrial Research (PCSIR) was established
in 1953 with the overall objective of undertaking scientific research for the utilization
of indigenous raw material to solve problems faced by the new industries in Pakistan
including food industries. The PCSIR works under 1973 Act. Regarding food
security and safety, the major functions performed by the PCSIR include
development of production technologies for rural areas such as sugar cane crusher,
oil seed expeller, Bench mark of recovery from sugarcane for the farmers, seed
decorticating machine, nut cracking machine, portable water technology and
preservation of vegetables and fruit technologies. They also work for food
preservation and dehydration of fresh fruit and vegetables, vinegar from molasses
and apple, commercial food sauces etc. Major focus of PCSIR remains on
maintaining quality in products.

10.6.5. Pure Food Ordinance and Rules

Pure Food Ordinance (1960) and Pure Food Rules (1965) constitute the legislative
framework of food safety in Pakistan. The food safety system in Pakistan is generally
considered weak (Ahmad and Farooq, 2010) as it has become obsoleted but under
eighteenth amendment, as food has been transferred to provinces so provinces are
making their own food safety acts like Punjab which has developed its food safety
act in 2011. The major weakness of the Pure Food Ordinance was its methods of
implementation. Food safety framework under this ordinance was implemented
through health department which appointed food inspectors for sampling and
inspection procedures. Any other person can also be appointed as food inspector and
dedicated the powers to execute food safety inspection. Many food items are
standardized under this arrangement in the country.
252 A. Ghafoor, M. Mehdi and L.A. Twum

10.6.6. Punjab Food Authority (PFA)

Punjab Food Authority has been established under the Punjab Food Authority Act
2011 with the overall objective to ensure safe and healthy food for human
consumption. The Authority formulates standards for food article and regulates their
manufacturing, distribution, sales, import and storage. The Food authority is
responsible for building standards, procedures and guidelines to any aspect of food
business, food labelling and any appropriate enforcement system, identify procedures
and guidelines for establishing and accreditation of food laboratories, develop
methods of sampling and reporting procedures of results, collect and analyze relevant
scientific data relating to food, facilitate and establish food network consisting of
food businesses and consumers for food safety and quality control, conduct trainings
in food safety and quality standards and promote general awareness for food safety.
This authority also advises the Government in matter related to food and provide
certification for the export of food.
PFA has been very active in recent days and its efforts have really contributed a lot
in enhancing awareness amongst people about food safety and their rights. People
now have started searching for food safety and related terms and their increasing
awareness have helped transforming the food system towards a more safe system.
The food business sector has also taken many actions to comply with requirements
of PFA and as such a positive change can be noticed in food sector.

Conclusion
Food safety is emerging as crucial concern for food sector in the world to which
Pakistan is no exception. In order to comply with international requirements, national
standard system should first be brought in line with requisite needs and then we can
expect some boost in agricultural exports. Total Quality Management is a systematic
approach which helps to change the firms’ culture towards quality orientation.
Increasing consumers’ awareness is demanding improved quality products and the
firms which are able to cope with changing trends are sustaining in the business world
whereas others have to leave. Introducing and executing quality systems in the
business firms is not an easy task. The top management has to show full commitment
before expecting anything from their employee. Focus on customer satisfaction will
help the firm’s management to go for TQM along with

Discussion Questions
Why a firm think globally and what kind of firms could be globally
competitive and why?
What are the different changes occurring at global level for agribusiness
firms and how firms are adjusting to tackle those changes?
Do you know ISO stands for what? What are different standards in this
system and what are their implications for a firm’s development?
10 Total Quality Management in Agribusiness 253

How IFS is different from other quality standards recognized for food safety
and quality?
What do you understand by the term HACCP, also explain the process of
acquiring HACCP certificate for a food firm?

References
Ahmad, M. and U. Farooq. 2010. The state of food security in Pakistan: Future
challenges and coping strategies. The Pakistan Development Review 49:903-23
Besterfield, D. H., C. Besterfield-Michna, G. H. Besterfield and M. Besterfield-
Sacre. 2011. Total Quality Management, 3rd Edition. Pearson Education, New
Delhi, India.
Claudio B., G. Andreas., H. Derek., K. Mette and L. Richard. 2012. International
Feature Standards Version 6, Italy.
Food Safety Authority of Ireland (FSAI). 2015. HACCP - your food safety
management system. https://www.fsai.ie/food_businesses /haccp/haccp.html
Accessed on May 8, 2016.
Garvin, D. A. (1988). Managing quality: the strategic and competitive edge, Free
Press, New York, USA.
International Featured Standards (IFS). 2016. Global safety and quality standards.
https://www.ifs-certification.com/index.php/en/. Accessed on May 10, 2016.
International Trade Centre (ITC). 2016. Global G.A.P. Global Secretariat, Cologne
Germany.