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Adoption of New Standards Helps Cerealia Attract Major Global Food Producers

Cerealia Ukraine Ltd., a member of Cerealia Group Corp., processes and promotes cereal food products. In 1991, the plant made the transition to modern technologies when it installed new APV-Baker fast breakfast processing lines. Cerealia Ukraine is the largest processor of breakfast foods in Ukraine. Exports make up 24 percent of its production; "Start!" and “AXA” brand cereals are exported to Russia, Georgia, Kazakhstan, Uzbekistan, Moldova, the Baltic countries and Turkey.

Yet, in order to continue to grow, the company faced a challenge of complying with stringent new national regulations and international requirement. Cerealia needed to implement a food safety management system, driven by both the requirements of the large foreign companies they supplied and their own need to increase output capacity and explore new foreign markets. In 2003, top management decided to develop an integrated quality and food safety management system based on international Standard ISO of 9001:2000 series and on National Standard of Ukraine DSTU 4161-2003.

CerealiaUkraine Ltd. has been tapped by both McDonald's and Kraft Foods
CerealiaUkraine Ltd.  has been tapped by both McDonald’s and Kraft Foods

Hazard Analysis and Critical Control Point (HACCP) food safety management implementation began by bringing routine operations into compliance with the requirements of Good Manufacturing Practices (GMP). Cerealia went through extensive renovations, including redesign of processing areas and reconditioning of obsolete equipment. Changes also involved new work habits and attitudes to institute and maintain rigorous sanitation and hygiene procedures.

Realizing that it would need additional knowledge and expertise, Cerealia sent its specialists to HACCP courses conducted by the International Institute for Food Safety and Quality (IIFSQ), established under the USAID-supported Partnership for Food Industry Development Project in Ukraine. Cerealia also invited IIFSQ staff to offer advice on HACCP system development.

In 2003, as a result of initial HACCP implementation, Cerealia Ukraine became a supplier to McDonald’s worldwide fast food network in Ukraine.  Over the following two years, Cerealia supplied 56.1 tons of puffed rice for its McFlurry frozen dessert, valued at 295,700 UAH ($58,500).

This year, Cerealia’s HACCP compliance helped attract the interest of Kraft Foods Corp, another globally known food producer.  Like McDonald’s, Kraft Foods makes implementation of the HACCP system a major requirement for its suppliers. Having inspected Cerealia’s facilities, Kraft Foods’ auditors recognized that Cerealia’s food safety system complied with its criteria. The companies are currently negotiating supply details.

HACCP has also helped Cerealia’s output capacity. In, 2005 capacity increased by 18 percent compared to 2004, due to new contracts and higher process efficiency. In 2006 the company plans to increase its capacity by an additional 30 percent and to launch a new pasta processing department designed in accordance with GMP requirements.

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