Capacity Building Programme on International Trade towards enhancement of

1. Traceability and Traceability initiatives by APEDA Capacity Building Programme on International Trade towards enhancement of Competitiveness of Indian Agriculture 5th-9th September, 2011 IIFT,New Delhi, India _____________ Sudhanshu Deputy General Manager, APEDA, Ministry of Commerce & Industry & Vice President, GS1 India Ministry of Commerce & Industry

2. What is traceability in general ? • Ability to trace the history, use or location of an entity by means of recorded information • Ability to follow the movement of food through specified stages of production, processing and distribution

3. Traceability as per Codex • Ability to follow the movement of food through specified stages of production, processing and distribution.” • Codex Alimentarius Commission

4. Traceability as per ISO 8402 • Ability to trace the history, application or location of an entity by means of recorded identifications • Ability to clearly specify the requirements i.e. Period of time, point of origin and identification

5. What traceability implies ? • Traceability may or may not be required or may begin at a certain point within the production chain or may end at a point before the end of the chain . • Traceability may relate to : a) The origin of materials including raw materials b) The product processing history c) The distribution and location of the product after delivery

6. Why traceability is required ? • Food safety and traceability is becoming concern of importing countries • Due to increasing consumer awareness about food safety aspects, such tools are required

7. Traceability Drivers- Stringent Regulatory/buyer requirements Demanding regulations: US FDA’s speed related traceability requirement – 4 hrs. one up / one back reqmts. EU Food Law (178/2002 –General Principles and reqmts of European Food Law) U.S. Bioterrorism Act (2002) ISO 22005: 2007 HACCP (ISO 22000:205) BRC (British Retail Consortium), IFS (Int’l Food Std – German/French distribution cos) SQF (US Food Marketing Institute) Can-Trace (Canadian Food Law) Food Sanitation Law (Japan) HR 2749 – The Food Safety Enhancement Act of 2009

8. Traceability Drivers- Consumer concerns and needs Is this healthy? Today's consumers are informed and aware. Could I get this less expensively? Does it contain peanuts or other allergens? Was this grown organically? Do they test their products on animals? Is the packaging recyclable? They ask themselves many questions before making a purchase. Does this company act responsibly toward shareholders? Are the employees treated well and paid fairly? Is the farming and harvesting done in a sustainable fashion?

9. Rationale & Objective of Traceability • Human health and safety • Other non health consumer interest like, quality or to ascertain the genuineness of a particular declaration like “Organic” nature of food product • Fair practices in food trade

10. Limitations - Traceability • In countries where the produce/ product raw material, ingredients and components are produced by SMEs or procured through the market systems in smaller volumes, the backward identification of the product becomes quite difficult

11. Limitations - Traceability • The countries having small farm holdings, there the marketable volumes are built up at the collection centers before being taken to a pack house or processing centre. In such case, traceability is possible only up to the stage of packhouse or processing center and not up to the primary level in normal course.

12. What approach is required ? • Firstly, evolve national procedures & policies for Quality & Product Standardization, co-opting all stakeholders in the supply chain from Public and Private sector, for each product • Secondly, put in place the Standards & Agencies • Thirdly, build centralized, national level, internet based, traceability system, with low cost of ownership for large number of farmers & entrepreneurs

13. Final outcome - Traceability • Provides a tool for the establishment of product authenticity, reliability, identification of the problem areas for the purposes of tracking and product recall

14. Ideal Traceability

15. Recent outbreak of E.Coli in Germany The issue began in the second week of May . More than 10,000 samples were taken and analyzed and E.Coli could not be detected and confirmed On 5th July , the case was closed after identification of the food and the source of infection The learning from the investigation was that the only way out is to intensify the investigation on tracing back and tracing forward

16. Traceability Drivers E.Coli contaminated spinach recall... ...became a criminal investigation Then it spread to lettuce China Milk Recall Lack of traceability exposes food companies to huge risks

17. Traceability Drivers U.S. – Toys Recall • Recall of 9.5 million toys in US and 11 million in others countries. • Europe – Belgium- Coca Cola Recall • 5 months to recover the sales • 249 cases of illnesses in Belgium • Recall of 15 million cans and bottles • Crisis cost $200 million in expenses and lost profit

18. 67% of Food Companies with $5 B or More in Sales had Recalls that Cost $20 M or More in 2007 Source: AMR Research

19. Source: AMR Research

20. Connection between traceability and recalls Traceability system provides: Visibility to location of food products/consignments in Supply Chain Unique identification of each player in Supply Chain (raw matls supplier to finished products mfgr to intermediate distribution chain partners to retailer) Unique identification of products/consignments and qty held in Supply Chain and by whom “Accurate, timely and fast recalls can only be effected if traceability systems which provide accurate product identification, partner identification and location of products/ consignments at all times are in place” Recall is a use case of traceability

21. Command and Control – national Recall situation Map Shows GLN (ship to) locations and quantities at Recall Release Time – shows highest quantities shipped to GA

22. Command and Control – global recall situation Map

23. Command and Control – Recall TV and Webinar RecallTV

24. Traceability - APEDA initiatives

25. APEDA’s GrapeNet A traceability System for Fresh Grapes Exported from India to EU a pilot for promoting exports in Indian Agriculture Sector 25

26. Grapes Scenario in India • Grapes is among the Top Ten Fruits of India, in terms of production • 1.6 million metric tons produced, majority in Maharashtra, Andhra Pradesh & Karnataka • 40000 plus farmers • 100 plus exporters • India is the 12th largest producer in the world, but among the highest in terms of productivity per hectare

27. Grape Growing States Maharashtra Andhra Pradesh Karnataka

28. What was done before GrapeNet ? • Registration, record keeping & monitoring of farms • Product standardization & inspection strengthened • Implementation of Good Agricultural Practices • Exports only from recognized pack-houses • Pesticide Residue analysis by ISO-17025 • NABL compliance labs. • Setting up of NRL for periodic checks and alerts • Regular training programs for all concerned

29. GrapeNetInitiative • Direct stakeholders of APEDA are Exporters, Pack houses / processing plants, Laboratories & State Government Departments • Farmers are indirect stake holders, through State Agriculture / Horticulture departments • APEDA maintains and continues to offer more and more services through its website as a virtual office available 24 * 7 • Reaching out to Farmers, Pack houses, Shelling Units, processing units, etc., hitherto poor users of ICT / Internet , to introduce transparency in information flow, regulation and monitoring & improvement in efficiency

30. APEDA’s Implementation • STAGE I: a Government of India regulation - Regulation of Export of Fresh Grapes from India through monitoring of pesticide residues. • Standards to meet international market demands • Agencies to test compliance with these standards • And no export of fresh grapes can happen to European Union without adhering to this system. • STAGE II: IT enable the regulation, compliance and monitoring • integrating all the stakeholders in the supply chain of Grapes export from India, with a centralized database.

31. GrapeNet: Functions

32. Grapenet: Introduction An internet based traceability software system Monitors fresh grapes exported to the European Union upto the farm level. Grapenet features • Direct stakeholders of APEDA are Exporters, Pack houses / processing plants, Laboratories & State Government Departments • Farmers are indirect stake holders, through State Agriculture / Horticulture departments • An end-to-end system for • monitoring pesticide residue, • achieve product standardization and • facilitate tracing back from retail shelves to the farm of the Indian grower, • through the various stages of sampling, testing, certification and packing. 32

33. GrapeNet at www.apeda.com 33

34. Phytosanitary Certificate (PSC) number S(MAH)2/GR/0000

35. S(MAH)2/GR/0000

36. Agmark Certificate Number GEO/GR/09/0000

37. GEO/GR/09/0000

38. Agmark Inspection Report ID 200922066513

39. 200922066513

40. Residure Analysis Report 2/01335/02/0900

41. MH06091148102 2/01335/02/0900

42. Residue Analysis Report MH06091148102

43. MH06091148102

45. Authorised Packer

48. Exporter

50. Traceability at display Traceability through labels pasted on Pallets/Cartons Pasted in barcode as well as Human readable format Leads to the Plots from where Grapes have been sourced GrapeNet – a live preview