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Traceability implementation - An Indian Quality Initiative Sudhanshu Deputy General Manager, APEDA, Ministry of Commerce & Industry & Vice President, GS1 India Ministry of Commerce & Industry. What is Traceability in General ?.
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Traceability implementation • - An Indian Quality Initiative Sudhanshu Deputy General Manager, APEDA, Ministry of Commerce & Industry & Vice President, GS1 India Ministry of Commerce & Industry
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
Traceability as per Codex • Ability follow the movement of food through specified stages of production, processing and distribution.” • Codex Alimentarius Commission
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
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
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?
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 India’s large number of farmers & entrepreneurs
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
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
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
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
67% of Food Companies with $5 B or More in Sales had Recalls that Cost $20 M or More in 2007 Source: AMR Research
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
Command and Control – national Recall situation Map 60 minutes after Recall Released – show GLN locations who have opened Recall Notification and have submitted questions (Orange). NOTE ISSUE WITH GA
APEDA’s GrapeNet A traceability System for Fresh Grapes Exported from India to EU a pilot for promoting exports in Indian Agriculture Sector 18
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
Grape Growing States Maharashtra Andhra Pradesh Karnataka
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
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.
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. 24
Phytosanitary Certificate (PSC) number S(MAH)2/GR/0000
Agmark Certificate Number GEO/GR/09/0000
Agmark Inspection Report ID 200922066513
Residure Analysis Report 2/01335/02/0900
MH06091148102 2/01335/02/0900
Residue Analysis Report MH06091148102
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
Major Gains • Self confidence among farmers • Culture for food quality and safety • Farmers earned 40% more value • Benefits went to 40,000 farmers and 115 exporters • FOB realization rose from 8 Euro to 11.5 Euro per carton of 3 kg. • Value – addition through improved packaging • EU labs accepted that Indian labs are better
Accolades - GrapeNet • National Award for E- Governance (Year 2008) • E Asia Award (Year 2009)
Further Developments • Success in grapes sector encouraged to replicate and set up traceability system for : • Pomegranates (AnarNet) • Organic products (TraceNet) • Peanuts (Peanut.Net) • All fruits & Vegetables (HortiNet – Under development)
Tracenet Coverage • Farmers : 4.7 lakhs • Individual operators : 1101 • Certification bodies : 20 • Scope certificates : 4064 • Transaction certificates: 11469 • Stakeholders : Farmers, Exporters, Certification bodies, Laboratories
First Traceability system for export of organic products from India implemented at National Level
Tracenet Certificates Scope Certificates Tracenet Certificates
Tracenet Certificates Transaction Certificates
Peanut.Net Certificates Certificates of Export