Capacity Building Programme on International Trade
towards enhancement of
Competitiveness of Indian Agriculture
5th-9th September, 2011
IIFT,New Delhi, India
_____________
Traceability and
Traceability
initiatives
by APEDA
Sudhanshu
GrapeNet
Deputy General Manager, APEDA,
Ministry of Commerce & Industry
&
Vice President, GS1 India
Ministry of Commerce & Industry
1
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
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Traceability as per Codex
• Ability to follow the movement of food
through specified stages of production,
processing and distribution.”
Codex Alimentarius Commission
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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
GrapeNet
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
GrapeNet
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
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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)

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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.
Does it contain
peanuts or other
allergens?
Is the
packaging
recyclable?
Are the employees
treated well and
paid fairly?
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Could I get this
less expensively?
Was this grown
organically?
Do they test
their products
on animals?
They ask themselves
many questions
before making a purchase.
Is the farming and harvesting done
in a sustainable fashion?
Does this
company act
responsibly
toward
shareholders?
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
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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
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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.
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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
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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
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Ideal Traceability
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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
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Traceability Drivers
E.Coli contaminated spinach recall...
...became a criminal investigation
Then it spread to lettuce
China Milk Recall
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Lack of traceability exposes food companies to huge risks
Traceability Drivers
U.S. – Toys Recall
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
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• Recall of 9.5 million
toys in US and 11
million in others
countries.
67% of Food Companies with
$5 B or More in Sales had
Recalls that Cost $20 M
or More in 2007
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Source: AMR Research
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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”
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Recall is a use case of traceability
Command and Control – national Recall situation
Map
Shows GLN (ship to) locations and quantities at Recall Release Time
– shows highest quantities shipped to GA
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Command and Control – global recall situation Map
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Command and Control – Recall TV and Webinar
Recall TV
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Traceability APEDA initiatives
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APEDA’s GrapeNet
A traceability System for Fresh
Grapes Exported from India to EU
a pilot for promoting exports in
Indian Agriculture Sector
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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
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Grape Growing States
Maharashtra
Karnataka
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Andhra Pradesh
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
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GrapeNet
GrapeNet Initiative
•
•
Direct stakeholders of APEDA are
Exporters, Pack houses / processing plants,
Laboratories & State Government
Departments
APEDA
Farmers are indirect stake holders, through
State Agriculture / Horticulture departments
Exporters
•
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
Pack
house
s
Proces
sing
units
Labs
Other
Agenci
es
State
Gover
nment
Farme
rs
29
GrapeNet
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.
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GrapeNet
State Govt. Agency
Register Farm
You cannot export
from this farm
No
Recommendation
(after 45 days)
Yes
Laboratory
Fail
Residue Analysis
GrapeNet: Functions
Sample Collection
Sample Receive at Lab
Payment for Testing
Pass
Lot Creation
Exporter
Forwarded to Lab
Lot Creation
Add Packing
Details
Create/Print Pallet Label
Print label By Exporter
Agmark Inspection
report entry
Create Consignment
Apply for PSC
Deposited amount
Agmark
Lot Forward by
Exporter
CAG ID
Generate Agmark
Inspection id
Forward
To lab
With Cheque/DD
Payment
for CAG
Issue CAG
Certificate
Payment for PSC
Payment by Lab
PSC
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Payment
For CAG
(optional )
Payment for PSC
Issue PSC
Certificate
Issue PSC
Certificate
Grapenet features
 An internet based traceability software system
 Monitors fresh grapes exported to the European Union upto the farm
level.

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




GrapeNet
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
GrapeNet at www.apeda.com
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GrapeNet
Phytosanitary
Certificate (PSC)
number
S(MAH)2/GR/0000
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S(MAH)2/GR/0000
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Agmark Certificate
Number
GEO/GR/09/0000
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GEO/GR/09/0000
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Agmark
Inspection
Report ID
200922066513
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200922066513
GrapeNet
Residure
Analysis Report
2/01335/02/0900
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2/01335/02/0900
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MH06091148102
Residue Analysis
Report
MH06091148102
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MH06091148102
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Authorised
Packer
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Exporter
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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
GrapeNet
Results achieved
•
Every consignment of fresh grapes during the last
season from India to European Union was
monitored through this system and no
consignment was rejected due to quality reasons.
•
The export of fresh grapes from India to European
Union increased by 100% plus in the last year.
•
The per unit realization for exporters directly and
farmers indirectly went up from previous years due
to the stringent standards defined and monitored in
the grapes sector in India.
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GrapeNet
Growth in Export of Fresh
Grapes from India(Up to 2009)
Qty: ‘000 Mts
Value: Million
Dollars
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Quantity and Value
Why exports came down in
2009-10 and 2010-11 ?
• Due to finding of a plant growth regulator CCC in
grapes consignment , the containers were put
on hold by the importers that affected the
exports.
• But the traceability system enabled us to
immediately cease the problem after getting the
information.
GrapeNet
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
54
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Grapes Supply Chain Improvements
• Increased implementation of GAP
• Value addition through consumer packs
• Grading as per export standards
• Absolute efficiency of laboratories
• Traceability throughout the supply chain
• Zero paper-work & total accountability
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Accolades - GrapeNet
 National Award for E- Governance (Year 2008)
 E Asia Award (Year 2009)
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Further Developments
Success in grapes sector encouraged
to replicate and set up traceability
system for :
• Pomegranates (AnarNet)
• Organic products (TraceNet)- 1st Traceablity
system in the world implemented at national
level ( 5 lac+ farmers registered )
• Peanuts (Peanut.Net)
• All fruits & Vegetables (HortiNet – Under
development)
GrapeNet
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