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1 prietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved. www.FoodLogiQ.com North Carolina Fresh Produce Safety Task Force February 10th, 2009

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1FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

www.FoodLogiQ.com

North Carolina Fresh Produce Safety Task ForceFebruary 10th, 2009

North Carolina Fresh Produce Safety Task ForceFebruary 10th, 2009

2FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Present a case study of an industry led national traceability initiative in the livestock industry highlighting lessons learned and best practices that may be applicable to the produce traceability initiative

Share what we are doing around the statewide traceability initiative in North Carolina

Showcase our recommendation and solution for a cost effective solution to practically implement the produce traceability guidelines focused on small growers

Meeting Objectives

3FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Canadian Livestock Traceability Case Study

Produce Traceability Solution

Summary & Next Steps

About FoodLogiQ

Topics for Discussion

4FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Pro-active initiative by Canadian cattle industry

Successful industry/government partnership

Phased in implementation – 10 years

Industry Sustainable

National Standards

99% program compliance

Invaluable assistance during BSE Investigations

Multi-species

Value-Added services

WLIC/USDA

The Canadian Livestock Traceability System (CLTS)

5FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

CLTS

Premises ID

GIS Mapping

Group/Lot &

Individual Animal ID

Movement & Traceback

Cattle, Bison, Pork, Poultry, Sheep

Age Verification

& Value Added Events

Audit,

Certificates

& Zoning

Accounts

- Primary

- External

- Administrator

ProcessorsRetailers

RestaurantsConsumers

Value Chain System

Direct System Access(optional)

Direct System Access(optional)

Web Site Access System InterfacesWeb Service Mandatory

Interface Data

Industry AssociationsUniversities/Research

Independent VA systems

Value Chain System

6FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Willingness to share information (defined information sharing protocol)

Partner with existing, successful entities, using established programs and technology

Work at the speed of commerce

Participation and closed private data loop between all livestock sectors

Value to entire chain, beginning with producers

Maximize benefits from existing system

Automate only where it lowers cost or adds value

Critical Success Factors for Value-Chain Traceability

Next Phase :•Canadian Cattlemen’s Association and Canadian Beef Breeds Association Value Chain Initiatives

Next Phase :•Canadian Cattlemen’s Association and Canadian Beef Breeds Association Value Chain Initiatives

Client Name: Canadian Cattleman’s Identification Agency (CCIA) Solution Description: Livestock Traceability Region: Canada Vertical: Association

Canadian Cattleman’s Identification Agency

The Canadian Cattle Identification Agency is an industry initiated and established trace back system designed for the containment and eradication of animal disease.

FoodLogiQ.com | 1007 Slater Road, Suite 400, Durham, NC 27703 | P: 866.492.4468 | 401 9th Avenue, Calgary AB T2P 3C5 | P: 403.355.3150

The Canadian Cattle Identification Agency is an industry initiated and established trace back system designed for the containment and eradication of animal disease. Established in 1998, CCIA has developed the only mandatory national traceability program for the cattle industry and works with the Canadian Food Inspection Agency to insure the food safety of the Canadian cattle industry. Largest private livestock traceability system in the world. Owned and managed by the CCIA

Traceability is based on three pillars: 1) Premises ID, 2) Animal & Product ID and, 3) Animal &Product Movement tracking.

World Leader since 1998

>99% Compliance

Enabled BSE traceback & industry recovery in 2003

90,000+ Producers

320 million transactions (5 million per month)

Traceability of exported product (i.e. COOL)

Successful partnership across association and government bodies

Links to Packers (i.e. Cargill for age verification)

The Canadian Cattle Identification Agency is an industry initiated and established trace back system designed for the containment and eradication of animal disease. Established in 1998, CCIA has developed the only mandatory national traceability program for the cattle industry and works with the Canadian Food Inspection Agency to insure the food safety of the Canadian cattle industry. Largest private livestock traceability system in the world. Owned and managed by the CCIA

Traceability is based on three pillars: 1) Premises ID, 2) Animal & Product ID and, 3) Animal &Product Movement tracking.

World Leader since 1998

>99% Compliance

Enabled BSE traceback & industry recovery in 2003

90,000+ Producers

320 million transactions (5 million per month)

Traceability of exported product (i.e. COOL)

Successful partnership across association and government bodies

Links to Packers (i.e. Cargill for age verification)

RFID Ear Tag

Handheld readers and web services for farmers

8FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Canadian Livestock Traceability Case Study

Produce Traceability Solution

Summary & Next Steps

About FoodLogiQ

Topics for Discussion

9FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Unique identification of products (cases) from the farm (first packer)

If product is repacked, linkage of incoming case code to new outgoing code

Capturing and storing of data by every receiver all along the supply chain

Final tracking outbound from DC to retail store, restaurant

Produce Traceability Initiative

10FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Identify farm of origin, assign GTIN, track farm to ECO

• Data collection for item level label printing - grower, GTIN, product, harvest, field code, etc.• Geo code based• Linked to Google Maps for ease of traceback and recall• Includes info on 3rd party audits, self-audits, label testing for pesticides and pathogens

• Data collection for item level label printing - grower, GTIN, product, harvest, field code, etc.• Geo code based• Linked to Google Maps for ease of traceback and recall• Includes info on 3rd party audits, self-audits, label testing for pesticides and pathogens

11FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Pre-print labels for small growers

Data Collection and Ordering Item Labels

Label Printing

Item Labels

Item Labels Linked to Case Labels

12FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Case Level Traceability Example

Farm and Product information available in ERP system for each supplying farm.

Farm and Product information available in ERP system for each supplying farm.

PD417 style 2D barcode contains Farm ID, Product ID, and Unique Serial Number that can be entered on ECO or FoodLogiQ website to trace product origin.

PD417 style 2D barcode contains Farm ID, Product ID, and Unique Serial Number that can be entered on ECO or FoodLogiQ website to trace product origin.

Optional: GS1-128 Barcode contains GTIN number for Produce Traceability Initiative

Optional: GS1-128 Barcode contains GTIN number for Produce Traceability Initiative

13FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Item Level Traceability – PLU Sticker

PLU Number for manual entry at checkout

PLU Number for manual entry at checkout

GS 1 Databar for scanning at retail checkout – links to ECO GTIN

GS 1 Databar for scanning at retail checkout – links to ECO GTIN

14FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Item Level Traceability – Clamshell Label

PLU Number for manual entry at checkout

PLU Number for manual entry at checkout

GS 1 Databar for scanning at retail checkout – links to ECO GTIN

GS 1 Databar for scanning at retail checkout – links to ECO GTIN

FoodLogiQ Farm Code for text message or web based information

FoodLogiQ Farm Code for text message or web based information

15FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

All labels will be pre-printed for contract growers

The Label will have:• A DataBar that ties to the case GTIN

• Printed PLU

• Internal “Field Code” for text messaging or web access unique based on defined granularity (i.e. grower, field, production lot)

Association at printing versus in the field• GLN (GS1 packing location code)

• Product

• Harvest date range

• Grower/field/block

Web interface to printing company to order labels for field or packing house x weeks in advance of harvest

Item Level Traceability - DataBar

16FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Traceability Expertise…

17FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Traceability Expertise…

18FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Canadian Livestock Traceability Case Study

Produce Traceability Solution

Summary & Next Steps

About FoodLogiQ

Topics for Discussion

19FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Importance that it is an industry led initiative

Key is continual investment – it cannot be a static one time investment through grant money – programs must be sustainable

It must drive value to growers and the industry• For growers they should be able to gain access to new markets or new

customers (especially for differentiated producers)

Solutions must be consumer oriented• Where consumers can gain access to more information about products – this is

appealing to manufacturers and retailers (not just country of origin but production practices, recipes, promotional information)

There needs to be a catalyst organization that drives the initiative

Traceability Lessons Learned

20FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Canadian Livestock Traceability Case Study

Produce Traceability Solution

Summary & Next Steps

About FoodLogiQ

Topics for Discussion

21FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Leading On Demand Food Safety Software provider of food Quality, Safety & Defense best practices and systems.

• Web-based software tools sized appropriately for small and large organizations

• Traceability, audit and lab testing, product labeling, local/sustainable initiatives and quality management systems (GFSI and ISO 22000 standards based).

Ten years of deep industry experience. FoodLogiQ is the only software provider managing a national RFID traceability system in North America.

Clients include large and small growers, grower associations, food manufacturers, grocers and restaurants

• International Clients: Canadian Cattle Identification Agency, Wisconsin Livestock Identification Consortium, Seneca Foods, Aramark, EU Center of Excellence, UNC Chapel Hill

• Local: NC Choices, May’s Meats and Eastern Carolina Organics

Who We Are - FoodLogiQ Fast Facts

“The goods news for the industry is that over 40% of companies surveyed plan to spend at least $20M dollars in 2008 to improve the traceability of products across the links of their supply chains….For companies seeking cross – enterprise traceability and food safety solutions consider products from FoodLogiQ…”

22FoodLogiQ Confidential & Proprietary. Reproduction by any method or unauthorized circulation is prohibited without prior approval. Copyright © 2008. All rights reserved.

Customers and Solutions

22

Sample Clients

FoodLogiQ Software

Value Chain Managemento OnDemand Traceabilityo Audit and Lab Testingo Quality Management System

Clarkston Consulting

Centers of Excellenceo Strategy Development and Execution

o Process Design and Development

o Quality and Regulatory Management

o Integration Technologies

o Training and Change Management

o Emerging Technologies (RFID, UCCNet)

Business Solutionso Enterprise Resource Planning

o Integration of Demand-and-Supply

o Trade Promotion Optimization

o Innovation/Product Lifecycle Management

o Business Analytics/Segmentation

o Consumer and Customer Insights