Product Information and Traceability / Product Tracing

1. Module 3.6 Product Information and Traceability / Product Tracing

2. To make stakeholders aware that adequate product information is required to ensure food product safety and suitability To update stakeholders on international discussions on traceability of foods in international trade To make stakeholders aware of what product information should be provided in the marketing of green coffee Objectives Module 3.6 – Product Information and Traceability / Product Tracing

3. Outline • General concepts of product information and product tracing in the food sector • What is traceability and how is it being applied to food trade internationally? • Transfer of product information along the coffee marketing chain • At the point of export • In local marketing Module 3.6 – Product Information and Traceability / Product Tracing

4. Product information and product tracing • Need for product information along the food chain • Ensure adequate information being available to next person in the chain to allow them to handle, store, process, prepare and display the product safely and correctly. • Ensure batch/lot can be easily identified and recalled if necessary. • Long-standing international agreement on product information and food labelling requirements • Codex General Principles of Food Hygiene • Codex General Standard for the Labelling of Pre-packaged Foods • Product information not always related to hygiene issues – also related to general quality considerations Module 3.6 – Product Information and Traceability / Product Tracing

5. Food product marketing and labelling • Lot identification • ‘Lot’ means ‘...a definitive quantity of a commodity produced essentially under the same conditions’ • Lot identification is essential in product recall and also helps stock rotation • Product labelling • For pre-packaged foods, the Codex General Standard for the labelling of pre-packaged foods applies (Codex Stan 1-1985 (Rev. 1-1991)) • National food labelling standards are generally harmonised with the international Codex standard • Labelling of green coffee for export is governed by the rules of the ICO certificate of country of origin Module 3.6 – Product Information and Traceability / Product Tracing

6. Codex and traceability • Discussion of ‘traceability’ at international level is relatively recent • Codex definition of traceability / product tracing • ‘...the ability to follow the movement of a food through specified stages of production, processing and distribution’ • Some Codex texts make reference to ‘traceability / product tracing’ • Principles for risk analysis of foods derived from modern biotechnology • Code of practice for good animal feeding • Code of practice for fish and fish products Module 3.6 – Product Information and Traceability / Product Tracing

7. EU regulation on traceability Regulation (EC) No 178/2002 • Definition ‘…the ability to trace and follow a food, feed, food-producing animal or substance intended to be, or expected to be incorporated into a food or feed, through all stages of production, processing and distribution.’ • Article 18, Paragraph 2 ‘Food business operators shall be able to identify any person from whom they have been supplied with a food or any substance intended to be, or expected to be, incorporated into a food. To this end, such operators shall have in place systems and procedures which allow for this information to be made available to the competent authorities on demand.’ Module 3.6 – Product Information and Traceability / Product Tracing

8. EU regulation on traceability • Article 18, Paragraph 3 ‘Food business operators shall have in place systems and procedures to identify the other business to which their products have been supplied. This information shall be made available to the competent authorities on demand.’ ‘One Step Up / One Step Down’ approach Reference: Regulation (EC) No 178/2002 Module 3.6 – Product Information and Traceability / Product Tracing

9. Traceability / product tracing in the coffee sector • Why are some stakeholders in the coffee sector interested in being updated on international discussions on traceability / product tracing? • Most of the coffee produced is traded internationally • Rules of international trade are germane to the coffee sector • Key characteristics of the coffee sector • Annual global production amounts to ~ 7 million tons green coffee/year • Over 75% is exported to consuming countries • About 95% of export is in the form of green coffee • Most green coffee is exported in 20 ton containers, either in bulk or in bags • About ¾ of world coffee production is by smallholders in about 60 different tropical countries Module 3.6 – Product Information and Traceability / Product Tracing

10. Information required forexport of green coffee • Official documentation / marking required to accompany coffee exports (in bags and / or sealed containers) ICO Certificates of Country of Origin • Prescribed format to be duly stamped by customs • Specifying: exporter, producing country, port, country of destination, unique ICO identification mark (also on bags) and description of coffee • Copies of documents to be sent to ICO References: ICO-document: EB 3775/01 Coffee: An exporter’s guide (ITC-UNCTAD-WTO, Geneva 2002) Module 3.6 – Product Information and Traceability / Product Tracing

11. Coffee quality and safety:significance of ICO certification • ICO minimum standards for exportable coffee • Arabicas: less than 86 defects per 300 g (NY-classification/Brazilian method) • Robustas: less than 150 defects per 300 g (Vietnam/Indonesian classification) • Moisture between 8 and 12.5% (w/w) • No issue of Certificate of Origin in case of non-compliance • Other product information is commonly required as part of commercial contracts Reference: ICO document: ICC Resolutions 407/02 and 420 Module 3.6 – Product Information and Traceability / Product Tracing

12. Product information: coffee grade markings • A variety of coffee grading systems exist in different coffee-producing countries • Harmonization of grading systems would enhance transparency and facilitate trade • Relevant international grades/ grading systems for visual defects include: • ICO minimum quality standards for exportable coffee (ICO Resolutions 407 and 420) • ISO Green Coffee Defect Reference Chart Module 3.6 – Product Information and Traceability / Product Tracing

13. ISO green coffee defect reference chart • ISO 10470:2004 defines defects into 5 categories independent of Arabica/Robusta: • Foreign matter, non-bean coffee matter, irregular formed beans, irregular visual appearance and off-taste coffee • Rates them with respect to loss of mass and sensorial concern • Application example is included • Can be used to specify terms of purchasing contracts between trading parties Module 3.6 – Product Information and Traceability / Product Tracing

14. ‘European Contract for Coffee’ (E.C.C.) defines arrangements for transfer of green coffee from exporter/seller to buyer concerning: • Weight • Packing • Quality • Samples • Freight • Port of Destination • Shipment • On-carriage • Advice of Shipment • Insurance • Shipping Documents • Payment • Claims and Arbitration Product information:EU commercial requirements Link: www.ecf-coffee.org Module 3.6 – Product Information and Traceability / Product Tracing

15. Product information:US commercial requirements • ‘Green Coffee Association (of New York) Contracts’ are digitized (available in XML language format from GCA) • They define • Contract Type (FCA/FOB/CFR/CIF/DAF) • Weighing (when, where, by whom) • Quantity and Packaging • Position, Period and Tender • Quality (a.o. country of origin, max. moisture) • They have as particular item the ‘no pass no sale’ clause for the obligatory FDA sanitation check • Price • Contracting Parties • Delivery and Payment References: www.green-coffee-assoc.org FDA/NCA booklet: ‘Health and Safety in the Importation of Green Coffee into the United States’ Module 3.6 – Product Information and Traceability / Product Tracing

16. Product information flow in theinternal marketing of coffee • ICO resolutions/ formal contracts/ other agreements define minimum characteristics and info at specific points in the coffee chain. • Prevention of contamination must involve all participants at all points of the chain • Following marketing chain diagrams show that coffee flows are quite complex and variable – this complicates the transfer of product information along the chain Module 3.6 – Product Information and Traceability / Product Tracing

17. Indonesia robusta marketing Module 3.6 – Product Information and Traceability / Product Tracing

18. Farmers (Co-operatives) Co-operative Factories Estate Farmers Co-operative Societies Millers (3 commercial and 4 private) Marketing Agents Nairobi Coffee Exchange (= Auction) Coffee Dealers Exporters Kenya coffee marketing Module 3.6 – Product Information and Traceability / Product Tracing

19. Obstacles to product informationflow in the internal marketing of coffee • Extreme resource limitations for upstream operators to maintain documentation/ record keeping systems • There is much pooling of coffee at the levels from small traders down to the mill – difficult to maintain product history in mainstream marketing • Traceability upstream of the mill, in most cases, is practically impossible Module 3.6 – Product Information and Traceability / Product Tracing

20. What can we know about coffeein internal marketing chains? • National regulations may stipulate ‘allowed’ product characteristics (max. moisture, max. residence time in marketing chain, facility requirements, handling requirements, etc.) • National competent authorities often do not have the capacity to enforce regulations • ‘Actual’ product characteristics may not meet ‘allowed’ values • According to the characteristics of the marketing chain, national authorities can determine meaningfulandpracticable documentation/ record keeping at various stages of the chain Module 3.6 – Product Information and Traceability / Product Tracing

21. Main strategy in preventing contamination • Main assurance of acceptable quality of coffee comes through promoting good practises • Training and awareness-raising to all stakeholders • Creating incentives and suitable policy environment • Buyers’ stipulation of minimum quality requirements and identification of acceptable suppliers is an effective way of ‘knowing your product’ • Many buying schemes link trained farmers to large traders or exporters • Training of many exporters is based on the European Coffee Federation Code of Practice Module 3.6 – Product Information and Traceability / Product Tracing

22. Product information flow in‘specialty’ coffee marketing • There are strict product information requirements for many specialty coffees • Premium quality single origins • Organic • Fair trade • Sustainable production, etc • Mechanisms for maintaining systems of documentation and record keeping are possible in the coffee chain under certain conditions (small proportion of market volume / substantial price incentives) Module 3.6 – Product Information and Traceability / Product Tracing

23. Summary • Several official documents, standards and contracts define product characteristics and info at specific points in the coffee chain • Adequate product information is required throughout entire chain to ensure food safety • National authorities should establish ‘appropriate’ requirements for documentation and record keeping in local coffee chain Module 3.6 – Product Information and Traceability / Product Tracing

24. Summary • Identification of ‘approved suppliers’ by economic operators in the coffee chain can help in achieving quality and safety goals • EU regulation requires ‘One step up / One step down’ traceability • Exported lots are in principle traceable backward as far as the mill for most mainstream coffee marketing Module 3.6 – Product Information and Traceability / Product Tracing