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Page 1: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for
Page 2: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Food information systems and their design

Dr Heiner Lehr [email protected]

Electronic Traceability and Market Access for Agricultural Trade Facilitation

Page 3: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

World-wide information needs for traded food

• Sanitary and phyto-sanitary information (SPS) – Internal hygiene, food safety and

related export procedures – Disease control

• Food nature and history – Origin (linked to compliance,

consumer health and choice, food safety)

– Certification and Practices (e.g. Halal, fair trade, labour conditions etc)

– Consumer information, in particular related to correct labelling

• Control of illegal activities – Import/export bans – Lack of trade permits – (Caught fish) llegal, unreported and

unregulated fishing (IUU)

• Customs – Trade information – Avoidance of illegal activities – Exporter blacklists

• Statistics – Continuous improvement – Mass balance – Avoidance of illegal activities

• Sustainability – Calculation of environmental,

economic and social impact along supply chains

• Food security – Production prediction models

based on history information

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Page 4: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Chain Food Information Management

• To establish information chains, chain food information management is necessary

• Chain Food Information Management

– refers to the distributed collection, storage and usage of information items, connected by traceability, that can be accessed via electronic systems

• Simple steps:

– Collect data as a food item moves through the chain

– Make sure all processes connect inputs to outputs, i.e. are traceable

– Transport or calculate relevant indicators and make them available to stages in the chain that are n-times removed

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Page 5: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Types of chain food information management systems from a functional point of view

• National single window systems and ePermit systems

Customs management

• Food safety oriented systems

• Animal and carcass tracking

e-traceability systems

• Fair trade

• Religious

• No child labour

Ethical compliance

• Sustainability tracking

• Compliance to specific food standards

Standard compliance

• IUU fishing

• Export/import licenses

• Shipment registration

Legal compliance

• Transparency systems

Marketing-oriented systems

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Page 6: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Food Information & Traceability FRAMEWORK

Information Backbone. Sets Standards. Monitors Operations

FBO FBO FBO FBO FBO FBO

Consumers

FBO FBO FBO FBO FBOs

FBO FBO FBO FBO FBOs

FBO FBO FBO FBO FBOs

FBO FBO FBO

Gov agencies

FBO FBO FBO

Importing agencies

FBO FBO FBO

Other systems

FBO FBO FBO FBO FBOs

FBO FBO FBO FBO FBO FBO

Consumers

compatible business system

compatible business system

compatible business system

compatible business system

Agency IT system

Portal Government

IT system Portal

‘Translation’ IT system

Systemic view

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Page 7: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

schedule map transport

process identify search display schedule

map transport

distributed queries

DA

TA S

OU

RC

ES

DA

TA U

SERS

Food company repository

FBO FBO FBO FBO FBOs

A closer look at a node

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Page 8: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

DIMENSIONS

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Page 9: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

How much of traceability?

• Depth

– How many steps deep does a traceability system have to be?

• Breadth

– How much data is necessary to store at each point?

• Precision

– How big are the “traceability units” or batches

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Page 10: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Depth example: livestock tracking

• Clearly we need to make sure that primary production is in

– Origin determination

– Fraud avoidance

– Compliance to standards

– New sales channel

• Later stages?

– Governmental institutions

– Veterinarians

– Slaughter, distribution and retail

– Consumers?

• What about feed?

– Malaysia Feed Act

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Page 11: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Example breadth: consumer information needs

• 50% want more info on food safety

• 90% believe that food from outside should be subjected to the same rules as in the EU

Do you believe that imported foods from outside the European Union should respect the same conditions of animal welfare/protection as those applied in the European Union, EU-25, 2006 (%) Source: EUROSTAT

Agricultural topics on which the public would like more information, EU-25, 2006 (%) Source: EUROSTAT

For Halal slaughter very important: • Stunning while slaughtering • Pronouncing Allah’s name: tape or

voice? 11

Page 12: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Example precision: economic balance

• Lots of material and discussion about animal lot sizes

• Current trend

– Dairy cows, sows: individual identification

– Sheep, goats: herds

– Fattening pigs, cattle: pens/compartments/batches

– Chicken: houses/flocks

– Aquaculture fish: ponds, some experiments with RFID

• Investment scales with smaller lot sizes

• Economic argument that needs to be part of our business case

• Pareto principle: achieve 80% of the desired effect with 20% of the effort

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Page 13: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Case study: AAITS

• Asean Animal Identification and Traceability System

• Proposed by Malaysia in the 18th ASEAN Sectorial Working Group on Livestock (ASWGL), 2010

• Consumers in the world have become increasingly concerned with the precise origins of meat products and food of animal origin due to repeated food scares caused by diseases such as BSE, HPAI and FMD.

– The spread of disease is a result of movement of infected animals to “clean” herds

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Material provided by Kum Wah Chang, DVS

Page 14: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

AAITS – identify & trace

• to have a system that can identify

– individual animals or

– groups or

– products,

– the premises where they are located, and the date of entry to those premises

• to have a system that can trace…

– The origin

– Date and location of event

– To trace one step before and one step after

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Page 15: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

AAITS – main reason for e-Traceability

• Most traceability and trade data are still paper-based

– this will be a nightmare if the need arises to search and trace a disease outbreak

• In order to achieve optimal success in controlling or eradicating an animal health threat, the ability to retrieve that information within a short period is critical in determining what other animals were exposed and estimating the size and scope of the outbreak. The more quickly this can be done, the less the disease will spread, and the less impact the outbreak will have.

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Page 16: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

RFID started with Cattle Imports

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Page 17: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Basic architecture

• U

17

Unique Identification

number

Database

Linked to

• Animal ID • Birth date • Premise & GPS • Farmer profile • Health records • Vaccination records • Feed records • Breed records • Movement records • Slaughter • etc

Modular structure –

future modules added based on needs and readiness

Page 18: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Traceability flow

Import

Farm

Quarantine

Farm

Abattoir

Plant

Market Consumer

Data –

•Source

•Livestock

•Health status

•Feed

•Biologics

•Transport

Data –

•Processing plant

•Halal

•Source

•Date From

Farm

To

Fork

BarCode

RFID

Page 19: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Database modules

RFID Tag stock (manufacturer)

Keep track of all tags

produced

Integrated Veterinary System

RFID number,

linked to database

RFID Tag stock (authority)

Keep track of all tags

issued

Animal imports ePermit 1

Animal movements ePermit 2

Disease alert SAMPAI

Vaccinations Slaughter

(audit)

(audit)

Herd Management

Disease outbreak management

Animal Disease

Information System (ADIC)

developed

Breed registration eBreed

Quarantine mgmt. eQuarantine

Premise registration ePremis -

(Livestock,

owner, vehicle)

Pet registration Pet passport

Page 20: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Progress

• Registration of premises: – From 2009, over 40,000 premises were registered

• Farms

• Slaughter houses

• Processing plants

• Veterinary clinics

• Pet shops

• Other premises related to animal and animal products

• Registration of transporters – Transport vehicles used in animal movements were registered to facilitate

traceability of animal movements • More than 13,300 vehicles registered in database

• Name and contact of drivers

• Name and contact of assistant driver

– Ruminant transport trucks were sealed after loading and seal is broken at destination by the veterinary authority

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Page 21: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Reduction of disease

• 2009 to 2011 showed that animal movement is the main factor causing disease outbreaks in Malaysia. Although animal movement traceability does not directly prevent the spread of disease, it can minimize the risk and identifies the animals at risk by implementing disease control strategies at the right place and time based on the traceability records.

• Since the implementations of the e-traceability system in 2009, the foot-and-mouth (FMD) disease outbreaks have reduced tremendously from 111 outbreaks in year 2009 to 26 outbreaks in year 2011

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Page 22: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Benefits and challenges of traceability

Benefits

• Compliance to law

• Meeting import regulations for meat products imposed by developed nations

• Creation of livestock registry

• Ability to trace animals at risk of disease

• Future developments extend to feed, pharmaceuticals and Halal

Challenges • No traceability standards • Movement of livestock which

have not been vaccinated or treated for livestock diseases

• No documented reference to establish transparent movement controls

• Source of infection is unknown and cannot be traced

• Animals at risk (exposed to disease) is unknown and cannot be traced

• No assurance of unique identifier for livestock

• Foreign market access limited by the lack of traceability

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Page 23: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

RELEVANT INTERNATIONAL STANDARDS Chain food information management systems

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Page 24: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Complex relationships warrant huge standard ecosphere

Originating country

Public authority

Private business

Citizens Consumers

Receiving country

Public authority

Private business

Citizens Consumers

G2G

B2B

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Page 25: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Standard levels

Procedural standards

• What information is important to store/transport

Information exchange standards

• How to transport information

Semantic standards

• How to name information elements

Syntactic standards

• How store information

Application in chain food information management

Food standards

• E.g. on food safety (ISO22000) or sustainability (RSPO)

IT standards for exchanging information

• E.g. EPCIS, UML and parts of ebXML

Semantic standards

• For fish e.g. ISO 12875:2011

Syntactic standards

• TraceCore, UNeDocs, EDIFACT and derivatives

Standard level/type

NB: General trade-off between ease of application and specificity of a standard set. Generic standards have a tendency to be too abstract and more specific standard sets create interface problems between different subsectors (e.g. fish standards not applicable to dairy production.

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Page 26: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Examples of procedural standards for food safety

• Codex Alimentarius – International reference standards for consumer

protection and food safety, used as the legal basis of international trade

– Joint effort of the FAO and WHO

• ISO 22000 family – Family of voluntary industry standards on food safety

– Main building block HACCP (includes traceability)

– Recognised by GSFI

• GlobalGAP (and similar efforts BRC, IFS etc) – Buyer-driven private standards

– Based on general principles and ideas of international food standards

– Application-oriented with the aim to be practical

– Often include a general traceability requirement

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Page 27: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Examples of procedural standards for sustainability

• No specific generic standards for sustainable food production; efforts are sector based – ISO14000 series on environmental management

– ISO26000 series on social responsibility (non-certifiable)

• Some sector-specific examples – Palm oil: Roundtable for sustainable palm oil (RSPO) – www.rspo.org

Very complex standard attempting a holistic approach to sustainable palm oil production. Takes into account environment, social aspects as well as business profitability. Has supply chain certification and runs a traceability system.

– Aquaculture: Aquaculture Stewardship Council (ASC) - www.asc-aqua.org A relatively new player in aquaculture sustainability. Created in a stakeholder-driven approach. Looks primarily at environmental sustainability, but also animal welfare. Uses a weaker chain of custody approach.

– Fair trade: Fairtrade International (FLO) – www.fairtrade.net Internationally used standard for fair trade. Has generic rules for different organisations related mostly to fair distribution of gains along the value chain. Has specific standards for food subsectors. Requires membership.

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Page 28: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Examples of procedural standards for trade

• eCert

– UN/CEFACT Standard for sanitary and phyto-sanitary export certificates to facilitate trade of agricultural products • Assures that the commodity has met the importing government requirements

• Improves business processes for import clearance through consistent quality data

• Facilitates real time clearance, e.g. through early shipment notifications

– In use with a number of countries (EU, US, CA); fully paperless by 2014

• eCustoms – Main goals

• control and facilitate the movement of goods into and out of the internal market through efficient import and export procedures;

• increase the competitiveness of European trade through a reduction of compliance and administrative costs and an improvement in clearance times;

• facilitate legitimate trade through a coordinated approach relating to the control of goods;

• improve the safety and security of citizens with regard to dangerous and illicit goods;

• offer improved protection of the financial interests of the European Union and its Member States;

• contribute to the fight against international crime and terrorism by providing rapid and relevant information with regard to the international supply chain;

• allow for a seamless flow of data between the authorities of exporting and importing countries

– Project to be implemented by 2020

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Page 29: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Technical standards

Trade Facilitation Implementation Guide

Pre-requisite: Unique identification of - Traceable units (TU) - Logistic units (LU) - Locations - Contractual relations Data carrier standards - 1D & 2D Barcodes - RFIDs

tfig.unece.org/contents/intro-domain-ebs.htm

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Page 30: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Identification

• Unique identification is one of the key principles required for chain food information management

– Food being globally traded requires globally unique identification

– Local identification for products, traceable units (such as product instances), logistic units, business sites etc is not globally unique

• Currently no globally unique identification products available free of charge

• ISO 15459 regulates globally unique identification and has a register of entities that may issue globally unique identifiers

• In early stages of the food supply chain, there is no pre-dominant supplier of identities; in later stages, particularly distribution and retail GS1 is a leading supplier of identity products. GS1 is a recognised Issuing Agency under ISO15459 – Identification for smallholders is an unresolved issue

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Page 31: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

One example: smallholder traceability and RGCodes in Vietnam

Element Base Example Elements in base

Possible combinations

Remarks

IAC 2 [A-Z,0-9]{0,3} RG 36 1296 ISO15459 registered IA

Code type 1 [0-9] 8 10 10

Country 2 [A-Z]{2} VN 26 676 2 digit ISO code for country

Province 2 [A-Z]{2} BT 26 676

District 1 [A-Z,0-9] A 36 36

Business site

3 [A-Z,0-9]{3} W2A 36 46656

Location 2 [A-Z,0-9]{2} A1 36 1296 00 if undetermined, 01 if single location

Serial 3 [A-Z,0-9]{3} 2DG 36 46656 Equivalent to over 120 years of daily operation per location

Check digit 1 [A-Z,0-9] 0 36 36

Total length 17 Example RG8-VNBTAW2A-A1-2DG-0

RG8-VNBTAW2A-A1-2DG-0

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Page 32: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Data carrier standards

• Basic data carrier types

– Human-oriented labels

– Data carriers for automated identification and data capture (AIDC)

• Data carriers can

– Carry identities (animal, product, traceable unit, logistics unit, asset etc)

– Carry information

One-dimensional barcodes

Standards: e.g. Code128

Two-dimensional barcodes

Standards: QRCode

Radio-frequency identifiers (RFID)

Standards: EPCGlobal

IMPORTANT: data carriers do not by themselves establish traceability

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Page 33: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Food information exchange standards

• ebXML

– Developed by UN/CEFACT and OASIS

– Open, XML-based infrastructure that enables the global use of electronic business information in an interoperable, secure, and consistent manner by all trading partners

– Framework standard covering business interactions and addressing in particular information transport. Does not cover “payload”, i.e. document contents

• Universal Business Language (UBL) - OASIS

– Covers electronic commerce

– Maps a number of business processes

– One implementation of a “payload” for ebXML

– Initial success in eProcurement (Northern EU)

– Latest version: 2.0 published in 2006

Since February 2005, use of the UBL Invoice standard has been mandated by law for all public-sector business in Denmark. 1.2 million UBL invoices are currently exchanged in Denmark every month. The Danish Ministry of Finance estimates savings to the government of 100 million euros annually from use of this one document type. With the introduction of their OIOUBL initiative in 2007, these savings are estimated to double. The adoption of OIOUBL affects 440,000 businesses in Denmark and is now in the process of forcing UBL support from every company that sells business software in Northern Europe.

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Page 34: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Food information exchange standards

• TraceFood

– Good traceability practices

– TraceCore

• Ontologies

• Exchange protocol

TraceFood

authenticity and food safety

Europe’s largest research project on food traceability with a total budget of about 20m€. Research was performed in supply-chain independent origin verification via physico-chemical analysis and on development of robust supply change information exchanges. The main aim was to enhance food safety and origin determination. There were 5 industry-based pilots.

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Page 35: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

EPCIS

• Electronic Product Code Information Services (EPCIS)

– Standard for sharing Electronic Product Code (EPC) related information between trading partners.

– Defines standard set of messages for both data capture and data exchange

– The what, where, when, and why of events occurring in any supply chain is exchanged

– Stores important business information such as time, location, disposition and business step of each event that occurs during the life of an item in the supply chain.

– Not originally created for food

– Two main areas: Event Capture and Query Interface

Norway: eSporing Unique effort to implement electronic food traceability country-wide. eSporing system is based on EPCIS, but had to extend the standard for food. A workshop in Oslo reviewed the status of EPCIS as a basis for a globally acceptable food information exchange standard.

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Page 36: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Case study: Building trust for fish export facilitation in Vietnam

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The movie

Page 37: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

TraceVerified – the concept

• To offer the full advantages of electronic trace-ability to Vietnamese pangasius producers

• To provide importers with hard facts about the fish they buy – anytime, anywhere

• To provide a service from Vietnam that importers in high value markets can trust

Traceability you can trust.

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Page 38: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Differentiation

www.TraceVerified.com

Traceability data is checked to ensure compliance with the principles of the system

Control of information as it flows through the supply chain

Regular and surprise visits and a fully equipped testing laboratory to ensure the quality of the data

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Page 39: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

1) Implementation advice and training

2) TraceLabel

3) TraceVerified information system 4) Data verification

5) TraceReport for importers

TraceVerified – the components

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Page 40: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

How does TraceVerified work?

www.TraceVerified.com 40

Page 41: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Reporting

Traceability Report

www.TraceVerified.com 41

Page 42: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Reports

There are two types of report

• General Report:

– Basic information about the product and its supply chain

– Publicly accessible

• Detailed Report:

– Full information of the product and its supply chain

– Authorised access only

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Page 43: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

TraceVerified – adoption

• TraceVerified attempts to make important development steps together with pilot users and buyers

• However, motivation is mixed

– Fear of extra cost

– Lack of understanding of the advantages of information delivery

– Sector under pressure

• TraceVerified has identified diversification as a main strategy to drive adoption

– Extension to shrimp, vegetables, honey and other product

• Slow in adoption

– Needs to become de-facto standard

– Needs market pull in addition to technology push

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Page 44: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

THE LAYER MODEL

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Page 45: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

The “market forces” in the establishment of paperless trade systems

• The establishment of chain food information systems is a major challenge

– Buy-in is necessary from • Governmental institutions

• Supply chain players

• Trade partners

• Consumers

• In the food chain, the main power lies within distribution and retail

– However, without buy-in from upstream, there is little they can do to implement e-systems

• In international trade, public administrations hold a key position

– However, only with buy-in from stakeholders can chain food information management systems be successful

Institutional interests

• Consumer well-being

• Political interests

Private industry

• Minimum regulation

• Status quo unless change is essential

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Page 46: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

What has been tried?

• Top down

– Government-sponsored implementations of chain food information management systems

– Typical project size: 500k-2m USD

– Accompanied by promotional programmes

– Examples: Malaysia, Vietnam

– Main challenges • Sustainability after end of funds

• Ownership of systems and data

• Bottom up

– Industry or industry-association driven, perhaps in form of a Public Private Partnership (PPP)

– Typical project size: very diverse

– Requires strong industry motivation

– Examples: Norway, Denmark

– Main challenges • Understanding the value of transparency

• International standards

• Smallholders

Ian G Smith and Anthony Furness, eds. Vicarage Publications, 2008 ISBN 978-0-9553707-17

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Page 47: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

The role of regulations in the establishment of paperless systems

• Regulations play a vital role in the adoption of paperless trade systems

– Legal framework of all-electronic transactions (incl. validity of e-signatures)

• Place electronic transactions at the same level as paper transactions

• Specifically incentivise the submission and management of electronic information

• Regulate data confidentiality and security and make offenses liable

– Definition of data sets for specific purposes

• Such as food safety, disease control, legality of trade, origin determination etc

– Support for globally unique identification

• Mostly by fomenting the use of globally unique identifiers and avoiding the creation of country-wide (or even ministry-specific) identification schemes

– Support for international standards for data exchange

• Recognising the need to exchange information in an automated fashion

• Support for international schemes and push for standardisation by e.g. ISO

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Page 49: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

RECOMMENDATIONS

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Page 50: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Recommendations

Development of a Single Window for Agrifood Trade (SWAT)

• Layer 2 (Businesses) as described in the agrifood chain information management structure, will use the SWAT for one time submission of information, paperless licenses and permits, and other communications with the public authority.

• Layer 1 (Public authority) will use the SWAT for coordination of controls between agencies in the country using automated risk assessment systems for risk based controls. It will also use the SWAT for trade and trade facilitation, including the promotion of national products associated with certain demonstrable qualities.

• Ideally, the SWAT is a simple component in a National Single Window, so that one time submission of information is guaranteed even across product categories.

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Page 51: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Recommendations

• Establishment of a roundtable for agrifood chain information management

• Identification and implementation of missing paperless systems for agrifood trade

• Establishment of normative databases for locations, products and land use

• Establishment of standard framework for identification and information exchange

• Establishment of authorized economic operators

• Establishment of risk-based inspection system for issuance of licences and certificates

• Addressing legal implications of information management systems for agrifood chains

• Funding development of core components

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Page 52: Food information systems and their design 4-03 Key element… · –Fair trade: Fairtrade International (FLO) – Internationally used standard for fair trade. Has generic rules for

Recommendations

Establishment of a roundtable for agrifood chain information management

• Stakeholder buy-in is essential for the establishment of information management systems in agrifood chains.

• The main responsibility of the roundtable will be to develop a national vision for information exchange on its agrifood production.

– Such a national vision should be supplemented by a master plan for its implementation.

– It is part of the responsibilities of the roundtable to foment the change of attitude towards increased transparency in food production

• Participation of the private sector should be made a priority.

• The roundtable needs to be embedded in the establishments of national trade facilitation committees and should be established as a working group thereunder.

• Relationships with the relevant institutions established according to WTO agreements on Sanitary and Phytosanitary Agreements (SPS), Technical Barriers to Trade Agreements (TBT), Trade Facilitation Agreements need to be considered.

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Recommendations

Identification and implementation of missing paperless systems for agrifood trade

• Efficient information management in agrifood chains is not possible based on paper documents.

• Adoption of agrifood chain information management systems should be made a priority and early adopters incentivised – be that public or private entities.

• For the private sector, incentives can include reduction of fees when submitting information electronically, reduction of tariffs in international trade, but also incentives such as loans or subsidies for the adoptions of electronic systems

• For the public sector, the volume of electronic vs paper based information should be made a key performance indicator of the respective agency. Time bound commitments should be made by all relevant agencies in the agrifood chain for total elimination of paper records. These time- bound commitments should be made in accordance with the national vision.

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Recommendations

Establishment of normative databases for locations, products and land use

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Database of food production locations

• Draws on existing farm and food premises registration schemes

• Integrated with existing geospatial information

Product type database

• Based on UN Central Product Classification (CPC)

• Introduction of product classification in all relevant government processes

Land use database

• The link between premises and product types, supporting geo-traceability

• Integrates with existing data sources

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Recommendations

Establishment of standard framework for identification and information exchange

• It is therefore an important milestone in its implementation that a globally unique numbering system is adopted, apt for identifying – Product types, batches, trade units, logistic units, business partners, business

locations

• If several ISO15459 registered identification schemes are adopted, interoperability between the schemes must be addressed.

• For smallholder adoption, identification needs to be easily accessible

• In addition, governments should have a facilitating role in establishing a framework which – Names uniquely all relevant parameters for a food stuff

– Defines a set of exchange protocols how to exchange data – Allows interconnectivity with variety of information systems

– Implements effective safeguards against unauthorised governmental data access

– Maximises efficiencies with other information needs (B2B, Certifiers, B2C etc.)

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Recommendations

Establishment of authorized economic operators

• The AEO concept is one of the main building blocks within the WCO SAFE Framework of Standards (SAFE).

• SAFE is part of the future international Customs model set out to support secure trade.

• SAFE sets out a range of standards to guide international Customs Administrations towards a harmonised approach based on Customs to Customs cooperation and Customs to Business partnership.

• Authorised economic operators (AEOs) are those exporters that have proven to be highly qualified and reliable entities with a low risk profile.

• It is a reasonable strategy to implement Single Window operations with AEOs before extending it to all operators.

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Recommendations

Establishment of risk-based inspection system for issuance of licences and certificates

• Risk-based trade authorisation

– Is management by priorities

– Optimises scarce resources in the avoidance of food-borne illnesses

– Is the consequent application of Hazard Analysis and Critical Control Points to trade processes

• The purpose is to provide adequate evaluation of food-borne risks:

– Detect and categorize risk factors

– Measure/estimate risk for society

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Recommendations

Addressing legal implications of information management systems for agrifood chains

• The SWAT requires regulation on what data is required from food business operators. • Data elements need to be motivated by the national vision and the master plan.

• It is good practice to refrain from capturing any data that is not absolutely necessary

• Provisions should be made in the regulatory framework that data may be delivered via trusted third party to remove any barrier to implementation of the regulation.

• More guidelines on establishing legal framework for paperless trade systems are available in UNNExT Legal Guide for Electronic Single Window and Paperless Trade (http://unnext.unescap.org/tools/default.asp)

• In order to facilitate the collaboration between layer 2 systems and the SWAT, it is recommended that relevant laws on data ownership and confidentiality exist and that a governance policy is put into place and regularly assessed by an external party.

• Data and system ownership is key

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Recommendations

Funding development of core components

• Governments should fund core components that improve internal efficiencies and prove the viability of the agrifood chain information management system • This will include the SWAT and those components/project necessary to convince the

industry of the advantages of establishing layer 2 systems.

• Governments may provide financial support for the adoption including development of national infrastructure, promotion and use of the agrifood chain information management system used by food business operators, but the bulk of the cost should be borne by private industry.

• However, governments should recognise that smallholders and other smaller actors in the food chain are naturally less ready to adopt electronic systems. Therefore, the government should help them with the introduction of electronic systems by providing tools, facilitation of the creation of independent data collectors and by direct incentives for adoption. In particular mobile technologies will be key to gather data from smallholders, as can be seen in many developing countries.

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Thank you for your attention!

ACKNOWLEDGMENTS: The author would like to acknowledge contributions by Francisco Blaha and Gwynne Foster, Xifrat Daten AG, FoodReg and Yakin IT Sdn Bhd. Financial support from the European Commission for research projects is gratefully acknowledged. This deck of presentations was made possible by SATNET and UN ESCAP and the author is very thankful for this opportunity. DISCLAIMER: this presentation expresses the view of the presenter only. In particular, it does not express necessarily the views of cited international bodies and firms.