Meeting of the Working group on Agriculture (WGA-8) Enhancing Competitiveness on g g f g Sustainable Sourcing and Tracing of Agrifood products in the

GMS
25 26 October, 25-26th October 2011 Siem Reap, Cambodia

AssuredQuality... A d Q lit fromfarmtotable...

Sudhanshu Deputy General Manager APEDA & Vice President Gs1 India Ministry of Commerce & Industries Government of India

TRACEABILITY IN GENERAL

Organic
Traceability

INDIA

Ability to trace the history, use or y y 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!

Organic
Traceability

INDIA

Ability to follow the movement of food through specified stages of production, processing and distribution. distribution Codex Alimentarius Commission

What traceability implies ?

Organic
Traceability

INDIA

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 g g b) The product processing history c) The distribution and location of the product after ) p delivery

Why traceability is required ?

Organic
Traceability

INDIA

Food safety and traceability is becoming p g concern of importing countries Due to increasing consumer awareness about food safety aspects such tools are aspects, required

Traceability Drivers- Stringent Regulatory/buyer requirements g y/ y q

Demanding regulations:

Organic
Traceability

INDIA

US FDAs 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. Bi t U S Bioterrorism Act (2002) i A t ISO 22005: 2007 HACCP (ISO 22000:205) BRC (British Retail Consortium), IFS (Intl 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? Could I get this less expensively?

Today s Today's consumers are informed and aware.

Does it contain t th peanuts or other allergens?

Was this grown organically?

Is the packaging recyclable?

Do they test their products on animals?

They ask themselves many questions before making a purchase.

Are the employees treated well and paid fairly?

Is the farming and harvesting done in a sustainable fashion?

Does this t company act responsibly toward shareholders?

Rationale & Objective of Traceability

Organic
Traceability

INDIA

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

Stakeholders - Traceability y
Farmers/Aggregators Pack houses/Processing units Laboratories Retailers / Exporters / Processors / ade s Traders Regulatory bodies

Organic
Traceability

INDIA

Limitations - Traceability

Organic
Traceability

INDIA

In countries where the produce/ product , g p 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

Limitations - Traceability

Organic
Traceability

INDIA

The countries having small farm holdings, there the marketable volumes are built up p 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.

What approach is required ?

Organic
Traceability

INDIA

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

Final outcome - Traceability

Organic
Traceability

INDIA

Provides a tool for the establishment of p product authenticity, y, reliability, y, identification of the problem areas for the purposes of tracking and product recall

Recent outbreak of E.Coli in Germany

Organic
Traceability

INDIA

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

Some past incidents- Food Sector

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

Some past incidents- Food Sector

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

R ll of 9.5 million Recall f 9 5 illi 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

Source: AMR Research

Source: AMR Research

Connection : Traceability and Recalls y

Traceability system provides:

Organic
Traceability

INDIA

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

INDIA EMERGING POWER !

Largest democracy political stability & consensus on reforms

Organic
Traceability

INDIA

Fourth largest Economy (PPP) - A safe place to do business

Largest reservoir of skilled manpower

Liberal & transparent investment policies

Long-term sustainable Competitive C titi advantage

Agriculture sector: primary business of more than 60% population

21

INDIAS AGRICULTURE SECTOR POTENTIAL

Organic
Traceability

INDIA

Largest contributor towards GDP of the country and contributes approx. 13% to Indias exports. India is the largest producer of milk, pulses, sugarcane, cashew kernels and tea in the world Second largest producer of wheat, rice, fruits and vegetables in the world Organic products are mainly exported to EU, US, Australia, Canada, J A t li C d Japan, Switzerland, S th Africa S it l d South Af i and Middle East

STATUS OF INDIAN ORGANIC SECTOR

Certified
0.787 mn ha

Organic
Traceability

INDIA

Land Area

Operators
Grower Groups (1646) 4,83,722 farmers Individual I di id l Operators (1128)

0.198 mn ha In-Conversion

3.7 3 7 mn h ha Wild

Export
112

157
3%

2%

Commodities

4%

Value (in mn $) n

4% 5% 6% 12% 17% 24%

Year

STATE-WISE MAJOR ORGANIC PRODUCTS

Organic
Traceability

INDIA

Walnuts Saffron Almonds Fruits Paddy Vegetables Honey Wheat Rice basmati Spices Medicinal crops Spices & Condiments Sesame Spices Cashewnuts Cotton Sesame Mangoes Coffee Spices & Condiments Spices Cotton Pulses Oilseeds Medicinal plant (tul;si) Pulses Ginger Turmeric Rice Pineapple Ginger Turmeric Tea Rice (paddy) Passion Fruit

Tea Cardamom Medicinal & herbal Cotton plants Pulses Oilseeds Oil d

Vegetables Coffee Cashew Spices & Condiments Medicinal & herbal plants Spices & Condiments Cashew Coffee

Edible products Non Edible : - Cotton - Garments - Cosmetics - Body care prducts

APEDAS ROLE IN STRENGTHENING ORGANIC SECTOR

Organic
Traceability

INDIA

APEDA is the Nodal point for implementation of NPOP in Organic sector (National Programme for Organic Products) Visualized the potential in organic sector and benefits of organic food and set up a centralized certification database leading to Tracenet Accreditation and monitoring of CBs, Group / ICS and Farmers for CB s, compliance with NPOP and equivalent standards Monitoring the export of organic p g p g products out of India Strengthening the certification process of the CBs by providing them common platform for a healthy competition Provides various kinds of assistance to promote group farming

INDIAN ORGANIC SECTOR STAKEHOLDERS

Organic
Traceability

INDIA

India is the first country to y introduce the concept of Group farming

Farmers

OBJECTIVE: TRACEABILITY

Organic
Traceability

INDIA

To streamline and fasten the process of Organic exports To gather information of each consignment that goes out of India To trace the consignments to farm To plug all the l l ll h loopholes and create a f l proof h l d fool f system

To stop fraudulent activities for better brand building of Indian Organic products in the world To bring all the p y g players at the same level To gain trust about genuinity of organic products To increase the credibility and confidence of worldwide consumers in Indian Organic standards and products

MAJOR STAKEHOLDERS

Organic
Traceability

INDIA

APEDA

CBs

Group / p ICS

Producer, Processor, Processor Exporters

KEY COMPONENTS OF TRACENET

Organic
Traceability

INDIA

Registration Data Filing Internal & External Audits Scope Certificate Updation of harvest and creation of lot Transaction Certificate Export

WEB BASED ACCESSIBILITY

Organic
Traceability

INDIA

Click Here

REGISTRATION OF FARMERS
There are 18 Certification Bodies in India which certify agro product as Organic or in-conversion. Each of them is provided with a user name and password by APEDA to use the system. y Registration of farmers and the Groups is done by these CBs and the system subsequently issues user CB s name and passwords to these groups to enter their data in the system. Certificate of Registration is issued to these registered groups groups. Each farmer and group is given a unique registration number at pan India level.

Organic
Traceability

INDIA

ICS Registration

REGISTRATION

Organic
Traceability

INDIA

DATA FILING

Organic
Traceability

INDIA

ICS are required to enter their data of farmers, farms and i d h i d ff f d products being produced by them In case of Individuals CBs enter their data All ki d of checks are in-built in the system to prevent data kinds f h k i b ilt i th t t td t integrity

DATA FILING

INTERNAL AUDITS

EXTERNAL AUDITS

Organic
Traceability

INDIA

In case of ICS, the ICS manager inspects each of its farmers by visiting the field physically. physically 100% Inspection report is added in the system s stem without which details cannot be forward to the CB CB.

CBs do the annual inspection of the operators by visiting their field field. Inspection report of a ICS / Individual y has to be entered into the system before generation of Scope certificate. Automatic alerts are generated at various stages of the information flow to assist the CB in choosing right sample for auditing purpose. In case any major fault is found by the CB, scope certificate cannot be g generated.

Registration

Data Filing

Internal Audit

External Audit

ISSUE SCOPE CERTIFICATE

Organic
Traceability

INDIA

After all the major Non-Conformities are closed down by the operators which were raised by their CB, scope certificate can be generated by CB through the system. SCOPE certificate is valid for 1 year and can be cancelled or suspended by the CB as per their discretion.

C CB Generate SCOPE

SCOPE CERTIFICATE

ISSUE TRANSACTION CERTIFICATE

Organic
Traceability

INDIA

ICS can enter the details of their harvest and create batches of it s products its products. They can create consignment and enter the sourcing details of all the products they want to sell Application is forwarded to CB which then verifies it pp Certificate is issued online in specified format of the exporting country

Update Harvest details Create Lot C t L t Apply for TC

TRANSACTION CERTIFICATE

Organic
Traceability

INDIA

ORG/TC/1002/000012

EXPORT CYCLE

Organic
Traceability

INDIA

ICS Registration Data Filing Internal Audit CB- External A dit CB E t l Audit Scope Certificate Transaction Certificate

E X P O R T

HOW TRACEABILITY IS ACHIEVED!

Organic
Traceability

INDIA

Every consignment that goes out of the country has a bar code printed on it with a unique 26 digit TC no. using internationally g recognized GS1 format. Using this TC No. all the lots that were used in any particular TC can be traced. Each lot No. is identified with a unique number. From Lot No. , system can trace from which scope the product was sourced and finally the farm where the product was sourced. sourced

SIMPLIFIED MAZE
Scope Certificate

Organic
Traceability

INDIA

Bar code printed on TC

TC NO
From LOT ?

YES

NO

From LOT ?

YES Farm 1------n

AN EXAMPLE

Organic
Traceability

INDIA

AN EXAMPLE

Organic
Traceability

INDIA

AN EXAMPLE

Organic
Traceability

INDIA

Rakesh Sharma

TRACENET UNIVERSE
Certification Bodies Individual Operators Group Operators (ICS)

APEDA Tracenet

National MIS

NPOP

Ministryof Mi i t f Commerce

Indian Export Consignment

Scope Certificate
Producer, Processor, Producer Processor Trader Products
Transaction Certificate for Export Consignment

Certified Group (ICS) Individual Producer

Exporter Consignments Destination Packing Details P ki D t il Financials Consignment Created from multiple producer lots Production Lots created From Registered Farms

Transaction Certificate
Exporter Sourced Items

APEDA Tracenet Database

Traceability Certification

POST TRACENET SCENARIO

Organic
Traceability

INDIA

See the farm where the product was produced Check the authenticity of scope cand transaction certificate Can receive the copy of transaction certificate online Be assured that all the products have gone through the traceability system as no certificate can be issued outside the system Same format of certificates. No confusion! A substantial coverage of 4,83,722 farmers 4 83 722 up to till date under tracenet which was 3,62,907 earlier before tracenet Export growth from 112 USD Million in the year 2009-10 to 157 USD Million in the year 2010-11

BENEFITS TO SMALL FARMERS

Organic

INDIA

Traceability The grower group concept has led to consolidation of quantities of small farmers leading to big volume required by exporters. Apart from increasing the export of organic products it is also ensured that a fair price is passed on to the farmer for their produce. Increasing the value proposition for the farmers and processors of organic products, by providing the required credibility of the organic production process of India. It has exposed the best practices of organic production across the country to all stake holders, at no cost to them.

PIONEERING SUCCESS!

Organic
Traceability

INDIA

Worlds first ever organic traceability system at national level GPS system is used to enter latitude and longitude of the farms which can subsequently be traced by APEDA Mobile SMS/e-mail based alert system for exporters

Strengthening credibility of Indian certification procedures in the world market All the consignments that are exported can be traced back to the farm level for efficient monitoring All the data is kept on APEDAs server with proper back up and APEDA s security features and can be accessed 365*24*7 Brings transparency in the system and gives a uniform platform to all the players All the farmers are recognised at national level and their movement within the business can be traced anytime Reduced documentation, saving time and efficient control

Strong, Robust, Scaleable, End to End System

OTHER TRACEABILITY INITIATIVES

Organic
Traceability

INDIA

Launched

G pN GrapeNet

in 2005 as a

pilot project for tracing export of Indian grapes which was a huge success and is being currently used by all grape exporters

Post P t grapenet success t

AnarNet

for export of Pomegranates,

tracenet
products and

for export of organic

PeaNut.Net

for export of

Peanuts was launched

FUTURE VISION

Organic
Traceability

INDIA

Expand d

Tracenet T t

in

all

horticulture products exported from India f I di

or el

Integeration of all traceability I i f ll bili system leading to

Single window Certification

Capacity building for replicating such model in th li ti h d l i the

Asian region

Organic
Traceability

INDIA

Thanks for your kind attention

www.apeda.gov.in