Value Chain Glossary: Traceability
From microLINKS Wiki
| Please use the discussion tab to comment and suggest changes to this definition. |
|---|
Traceability
The ability to track any product to another step in the value chain. The global nature of most value chains necessitates the ability identify history or location of origin of a product and the processes involved in its production. In food production and processing, traceability refers to the recording through means of bar codes or tags and other tracking media, all movement of product and steps within the production process.
Example: Tracemeal S.A., a company based in Geneva, Switzerland, that supplies soymeal to salmon breeders in northern Europe. Tracemeal buys soymeal from a Brazilian soy processor who contracts with farmers to grow certified non-genetically modified soybeans. After processing, the soymeal, which is identity preserved at every stage, is shipped to a port in Denmark, which is dedicated to receiving only non-genetically modified soy. The soymeal then goes to fish feed producers where it is made into feed and given to salmon. Finally, the salmon are shipped to Japan where they are cooked and served fresh, just 72 hours after shipment from Europe. The entire chain-from the salmon dinner in Japan back to the soybean seed in Brazil-can be traced.
In instances where an issue of contamination arises, and a recall is required and where traceability has been closely adhered to, it is possible to identify, by precise date/time and exact location which goods must be recalled, and which are safe. This distinction can potentially save producers millions of dollars in the recall process. Traceability within the food processing industry is also used to identify key high production & quality areas of a business, versus those of low return, and where points in the production process may be improved.
Traceability requirements are becoming compulsory in many end market economies. The European Union's General Food Law came into force in 2002, making traceability compulsory for food and feed operators and requiring those businesses to implement traceability systems. The EU introduced its Trade Control and Expert System, or TRACES, in April 2004. The system provides a central database to track movement of animals within the EU and from third countries. Australia has its National Livestock Identification System to keep track of livestock from birth to slaughterhouse.
For producers, the trend toward more stringent traceability requirements in market countries may require adjustments in production practices. The quality and management of inputs, irrigation, harvest and post-harvest handling can have a direct impact on production and effect consumers. In the U.S., the salmonella strain linked to a nationwide outbreak was found in Serrano peppers and in an irrigation water sample from a Mexican farm. The shortfall in production practices of one farm affected pepper producers as a whole. In months subsequent to the outbreak, Serrano pepper consumption was down 43 percent. While traceability can point to the precise source of a problem along a chain, production failures can deal a devastating blow to a value chain's competitiveness.
