Merx_Tracking & Tracing

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FAO ToT Course on GMP & HACCP

Product traceability (tracking & tracing) Ingredient in a safe and efficient food supply

Richard Merx PT Merkadi Management Consulting [email protected] © PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

1

Regulation EC 178/2002 on traceability (1)  The

functioning of the European market in food and feed can be jeopardized where it is impossible to trace food and feed;

 The

European Community therefore deemed it necessary to establish a comprehensive system of traceability of all food and feed within food and feed businesses so that  targeted

and accurate withdrawals can be undertaken or

 information

given to consumers or control officials

 thereby

avoiding the potential for unnecessary wider disruption in the event of food safety problems.

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

2

Regulation EC 178/2002 on traceability (2) 

 





Article 18: The ability to trace and follow food, feed and ingredients through all stages of production, processing and distribution; drive towards complete supply chain traceability in Europe; Article 18 has come into effect in January 2005 (legal obligation); businesses will have to be at least able to identify the immediate supplier and the immediate subsequent recipient (one step back and one step forward); importers will be similarly affected.

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

3

Article 18: Traceability requirements Forward   



Trace a single material through the manufacturing process; Identify what final products contain it; When the final products were shipped; Where shipped (to whom);

Backward     © PT MERKADI MANAGEMENT CONSULTING

Trace a single final product; Identify what raw materials are contained in the product; When the raw material was received; Where received (by whom). Tracking & Tracing

April 2007

4

Regulation EC 178/2002 on traceability (3) Traceability has become an important market access issue 

suppliers unable to meet its challenge may be denied access to European markets and customers, irrespective of the quality or price competitiveness of their products



this has generated an intense debate in the Codex Alimentarius Commission 



The United States government believes that traceability may be legally required for food safety purposes only

the European Union has focused on traceability and labeling as solutions to low consumer confidence in the safety of its food supply, which was over the last few years undermined by successive food safety crises.

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

5

EU guidelines on traceability requirement  



is mandatory; applies to all food, animal feed, food-producing animals and all types of food chain operators from the farming sector to processing, transport, storage, distribution and retail to the consumer; lays down detailed implementing rules for operators  information

on the name, address of producer, nature of products and date of transaction must be systematically registered within each operator’s traceability system;  this information must be kept for a period of five years and on request, it must immediately be made available to the competent authorities. © PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

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EU guidelines on traceability requirement 





specifically defines the criteria that would trigger the withdrawal or recall of a dangerous product from the market; situations where operators are required to inform competent authorities of this withdrawal are also specified; underlines the fact that food manufacturers are responsible for the safety of the food that they produce and put on the market.

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

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Traceability (1) 

traceability systems are recordkeeping systems for tracking the flow of product or product attributes through the production process (internal traceability) or supply chain (chain traceability)



this is usually done for the purposes of managing agriculture and food production, inventory, logistics, distribution, quality, safety, product recalls and withdrawals, and compliance with legislation

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

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Traceability (2) 



the public confidence in food safety has been damaged by recent food scares associated with: 

fish because of dioxin in fish meal and heavy metals in wet fish



poultry because of chicken pocks and Salmonellosis in broilers



pork because of pig pest and other



beef because of mouth & foot disease and BSE in cattle

this is driving the industry and government agencies to improve controls at all stages in the food chain

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

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Traceability (3) 

traceability is then needed to meet food safety requirements, especially in case of product recall, for commercial reasons to ensure supply chain standards and



because it is required by legislation relating to labeling, animal health and welfare, fish marketing, fisheries control and product liability and safety



policymakers in many countries, especially EU and USA have weighed the usefulness of mandatory traceability for managing such diverse issues as bio-terrorism, country-of-origin labeling, genetically engineered foods and livestock diseases

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

10

Differentiation between tracking & tracing Tracking (track down) capability to follow the path of a specified unit of a product and/or batch through the supply chain as it moves between organizations towards the final point-of-sale or point-of-service.

Tracing (trace back) capability to identify the origin of a particular unit and/or batch of product located within the supply chain by reference to records held upstream. © PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

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Upstream and downstream traceability Raw material Supplier 1

Raw material Supplier 2

Raw material Supplier 3

Upstream = Tracing

Producer Wholesaler/ Distributor Retail Shop 2

Retail Shop 2

Retail Shop 2

Downstream = Tracking

Consumers © PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

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Components to be tracked (1)

 

 

Material Equipment Personnel Order

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

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Components to be tracked (2) Material tracking Raw material and in-process material     

Name of material Date and time of receipt or production Quantity Original batch/lot number Quality tests

 

 

Transfer 

Usage 

Operation and order Quantity Date and time

Where was it transferred Quantity transferred Date and time

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

14

Components to be tracked (3) Equipment tracking   

Product produced in equipment Material added to equipment Operating conditions   



 

Temperature Residence time Pressure Rate or speed

Cleaning record Previous production

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

15

Components to be tracked (4) Personnel      

Who monitored/executed process Who added material Who operated equipment Who set or changed operating conditions People on the production crew Who reported variances

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

16

Components to be tracked (4) Order  

  

 

What product was produced What work order was being followed Who was the customer (company or stock) Quantity planned to be produced Actual quantity produced Actual usage of material Explanation of variances

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

17

Principles of traceability (1) Traceability requires a globally applicable method for unique identification to be applied on all products and batches, accurately recorded guaranteeing a link between them, and communicated to customers and other relevant parties in the supply chain: 

unique identification (lot and batch number)



data capture and recording



links management



data communication

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

18

Principles of traceability (2) Unique identification 

any traced or tracked entity must be uniquely identified with a code (unique for each company)



the unique identifier is the key that enables access to all available data about history, application or location of traced/tracked entity



in a majority of food supply chains, products are tracked and traced by 

their production batch, which has undergone the same transformation (production process), and



their transport/storage path (distribution process).

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

19

Principles of traceability (2) Consumer information (Codex Alimentarius)  

  

Ingredients used Expiry date Lot or batch number Date of production (recommended) Time of filling (if possible)

Example lotnumber: L2-3-15b4 or Lb4 (L=lotnr; year; month; date; tank b; 4 tanknr.)

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

20

Principles of traceability (3) Data capture and recording 

traceability requires pre-defined data to be captured and recorded throughout the supply chain



the accuracy and speed of data capture, recording and retrieval are one of the main performance indicators of any traceability system 

because of increasing information demands from buyers and consumers, it is no longer practical to transmit all the data physically along with the product. A more sensible approach is to mark each package with a unique identifier, and then transmit or extract all the relevant information electronically



but so far it is common to use other ways like telephone, e-mail and fax for communication between the links.

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

21

Principles of traceability (4) Links management 

traceability requires the management of successive links between what is received, produced, packed, stored and shipped across the entire supply chain



if one of the partners in the supply chain fails in managing these links this will result in 

the rupture of the information chain and



in the subsequent loss of traceability.

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

22

Principles of traceability (5) Data communication 

traceability requires associating the physical flow of products with the flow of information about them.



to ensure the continuity of the information flow, each supply chain actor must communicate predefined traceability data to the next one, enabling the latter to apply traceability principles.

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

23

Variation in traceability (1) There is a wide variation in how food sources are traced and the systems used to trace them 

the diverse nature of food processing operations means that each business keeps individual traceability records, and methods used range from sophisticated IT to handwritten labels;



a system for tracking every input and process to satisfy every objective would be enormous, unnecessary and very costly;



the breadth, depth, and precision of each system varies depending on the attributes of interest and each firm's costs and benefits.

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

24

Variation in traceability (2) Breadth describes the amount of information collected  



a recordkeeping system cataloging all of a food’s attributes would be enormous, unnecessary and expensive few producers or consumers would be interested in all this information the breadth of most traceability systems would exclude some of these attributes Example, a cup of coffee      

the beans could come from any number of countries be grown with numerous pesticides or just a few grown on corporate organic farms or small family-run conventional farms harvested by children or by machines stored in hygienic or pest-infested facilities decaffeinated using a chemical solvent or hot water.

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

25

Variation in traceability (3) Depth is how far back or forward the system tracks the relevant information For example for food safety, the depth of the traceability system depends on where hazards and remedies can enter the food production chain 

for some health hazards, such as bovine spongiform encephalopathy (BSE or mad cow disease), insuring food safety requires establishing safety measures at the farm



for other health hazards, such as food borne pathogens, firms may need to establish a number of critical control points along the entire production and distribution chain.

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

26

Variation in traceability (4) Precision reflects the degree of assurance with which the tracing system can pinpoint a particular food product’s movement or characteristics.

In some cases, the objectives of the system will dictate a precise system, while for other objectives a less precise system will suffice  in

bulk grain markets, e.g. a less precise system of traceability from the elevator back to a handful of farms is usually sufficient because the elevator serves as a key quality control point for the grain supply chain

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

27

Variation in traceability (5) 

several systems for tracking livestock, especially beef and poultry in EU and USA are well advanced (e.g. IVI® in veal and NuTrace® in fish and poultry in NL);



major retailers in EU and USA have also put in systems to trace the food they sell;



the ability to trace food in the catering sector in EU and USA is not so well developed

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

28

Market motives for establishing traceability Motives 

supply-side management



product differentiation; and



food safety and quality control

Benefits 

lower-cost distribution systems



expanded sales of high-value products



increased brand equity; and



reduced recall and liability expenses.

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

29

Who is responsible for traceability? 



retailers, as well as legislators, are leaning heavily on manufacturers to install technology that will guarantee complete traceability among the supermarket chains in EU and USA traceability is already the norm  in

addition to the legislation, retail giants are beginning rolling out mandates to their suppliers  primary motivation is building customer loyalty and trust  they are putting into place guarantees that if there is ever a recall, then any problem could be contained quickly without losing credibility  the best way of ensuring this is to ensure that suppliers have full control © PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

30

How important to consumers? 



in EU consumers are willing to pay 5-10% higher prices in return for improved quality; in USA consumers are willing to pay 12% to 15% more for source-verified products carrying identifiable positive attributes.

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

31

EU project TRACE Tracing the origin of food    

 

Integrated Project (IP) in Food Quality and -Safety Duration:Januari 2005 – December 2009 Participation: 56 research institutes and private companies in Europe (17 + 8 countries) Goal: developing methods and systems of traceability, which gives the consumer extra confidence in the authenticity of food in Europa. Activities are divided over 5 Groups en 13 WP’s Pilots in: mineral water, honey, olive oil, meat and grain

www.trace.eu.org © PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

32

Questions, experiences and suggestions ?

© PT MERKADI MANAGEMENT CONSULTING

Tracking & Tracing

April 2007

33

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