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Capacity Building Programme on International Trade towards enhancement of
Competitiveness of Indian Agriculture5th-9th September, 2011
IIFT,New Delhi, India
_____________
SudhanshuDeputy General Manager, APEDA, Ministry of Commerce & Industry
&Vice President, GS1 India
Ministry of Commerce & Industry
Capacity Building Programme on International Trade towards enhancement of
Competitiveness of Indian Agriculture5th-9th September, 2011
IIFT,New Delhi, India
_____________
SudhanshuDeputy General Manager, APEDA, Ministry of Commerce & Industry
&Vice President, GS1 India
Ministry of Commerce & Industry
11
Traceability and Traceability and Traceability initiatives Traceability initiatives
by APEDAby APEDA
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What is traceability in general ?What is traceability in general ?
• Ability to trace the history, use or location of an entity by means of recorded information
• Ability to follow the movement of food through specified stages of production, processing and distribution
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Traceability as per Codex
• Ability to follow the movement of food through specified stages of production, processing and distribution.”
Codex Alimentarius Commission
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Traceability as per ISO 8402
• Ability to trace the history, application or location of an entity by means of recorded identifications
• Ability to clearly specify the requirements i.e. Period of time, point of origin and identification
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What traceability implies ?What traceability implies ?
• 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
b) The product processing history
c) The distribution and location of the product after delivery
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Why traceability is required ?Why traceability is required ?
• Food safety and traceability is becoming concern of importing countries
• Due to increasing consumer awareness about food safety aspects, such tools are required
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Traceability Drivers- Stringent Regulatory/buyer requirementsDemanding regulations:
US FDA’s 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. Bioterrorism Act (2002)
ISO 22005: 2007
HACCP (ISO 22000:205)
BRC (British Retail Consortium), IFS (Int’l 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
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Traceability Drivers- Consumer concerns and needs
Was this grown organically?
Do they test their products on animals?
Is this healthy?
Does it contain peanuts or other
allergens?
Is the packaging
recyclable?
Are the employees treated well and
paid fairly?
Does this company act responsibly
toward shareholders?Is the farming and harvesting done
in a sustainable fashion?
Could I get this less expensively?
They ask themselves many questions
before making a purchase.
Today's consumers are informed and aware.
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Rationale & Objective of TraceabilityRationale & Objective of Traceability
• 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
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Limitations - TraceabilityLimitations - Traceability
• In countries where the produce/ product 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
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• The countries having small farm holdings, there the marketable volumes are built up 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.
Limitations - TraceabilityLimitations - Traceability
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What approach is required ?What approach is required ?
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
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Final outcome - TraceabilityFinal outcome - Traceability
• Provides a tool for the establishment of product authenticity, reliability, identification of the problem areas for the purposes of tracking and product recall
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Ideal Traceability
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Recent outbreak of E.Coli in GermanyRecent outbreak of E.Coli in Germany
• 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
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Traceability Drivers
Lack of traceability exposes food companies to huge risksLack of traceability exposes food companies to huge risks
E.Coli contaminated spinach recall...
Then it spread to lettuce
...became a criminal investigation
China Milk Recall
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Traceability Drivers
• Recall of 9.5 million toys in US and 11 million in others countries.
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
U.S. – Toys Recall
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67% of Food Companies with $5 B or More in Sales had Recalls that Cost $20 M
or More in 2007
Source: AMR Research
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Source: AMR Research
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Connection between traceability and recalls
Traceability system provides:
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
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Command and Control – national Recall situation Map
Shows GLN (ship to) locations and quantities at Recall Release Time – shows highest quantities shipped to GA
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Command and Control – global recall situation Map
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Command and Control – Recall TV and Webinar
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Traceability - APEDA initiatives
Traceability - APEDA initiatives
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APEDA’s APEDA’s GrapeNetGrapeNet
A traceability System for Fresh A traceability System for Fresh Grapes Exported from India to EU Grapes Exported from India to EU
a pilot for promoting exports in a pilot for promoting exports in Indian Agriculture SectorIndian Agriculture Sector
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Grapes Scenario in IndiaGrapes Scenario in India
• Grapes is among the Top Ten Fruits of India, in terms of production
• 1.6 million metric tons produced, majority in Maharashtra, Andhra Pradesh & Karnataka
• 40000 plus farmers• 100 plus exporters• India is the 12th largest producer in the world, but
among the highest in terms of productivity per hectare
2626
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Maharashtra
Andhra PradeshKarnataka
Grape Growing StatesGrape Growing States
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• Registration, record keeping & monitoring of farmsRegistration, record keeping & monitoring of farms
• Product standardization & inspection strengthenedProduct standardization & inspection strengthened
• Implementation of Good Agricultural Practices Implementation of Good Agricultural Practices
• Exports only from recognized pack-housesExports only from recognized pack-houses
• Pesticide Residue analysis by ISO-17025Pesticide Residue analysis by ISO-17025
• NABL compliance labs.NABL compliance labs.
• Setting up of NRL for periodic checks and alertsSetting up of NRL for periodic checks and alerts
• Regular training programs for all concernedRegular training programs for all concerned
What was done before GrapeNet ?What was done before GrapeNet ?
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• Direct stakeholders of APEDA are Direct stakeholders of APEDA are Exporters, Pack houses / processing plants, Exporters, Pack houses / processing plants, Laboratories & State Government Laboratories & State Government DepartmentsDepartments
• Farmers are indirect stake holders, through Farmers are indirect stake holders, through State Agriculture / Horticulture departments State Agriculture / Horticulture departments
• APEDA maintains and continues to offer APEDA maintains and continues to offer more and more services through its website more and more services through its website as a virtual office available 24 * 7as a virtual office available 24 * 7
GrapeNet Initiative
• Reaching out to Farmers, Pack houses, Reaching out to Farmers, Pack houses, Shelling Units, processing units, etc., Shelling Units, processing units, etc., hitherto poor users of ICT / Internet , to hitherto poor users of ICT / Internet , to introduce transparency in information introduce transparency in information flow, regulation and monitoring & flow, regulation and monitoring & improvement in efficiencyimprovement in efficiency
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STAGE I: a Government of India regulation - Regulation of Export of Fresh Grapes from India through monitoring of pesticide residues.
Standards to meet international market demands
Agencies to test compliance with these standards
And no export of fresh grapes can happen to European Union without adhering to this system.
STAGE II: IT enable the regulation, compliance and monitoring
integrating all the stakeholders in the supply chain of Grapes export from India, with a centralized database.
APEDA’s ImplementationAPEDA’s Implementation
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No Yes Fail Pass Forwarded to Lab Print label By Exporter Deposited amount With Cheque/DD
State Govt. Agency
Laboratory
Register Farm
Sample Collection
Recommendation (after 45 days)
You cannot export from this farm
Sample Receive at Lab Payment for Testing
Exporter
Lot Creation
Create/Print Pallet Label
Add Packing Details
Forward To lab
Lot Creation
Generate Agmark Inspection id
Agmark Inspection report entry
Payment For CAG (optional)
Payment for CAG
Issue CAG Certificate
Payment for PSC Issue PSC Certificate
Create Consignment
Agmark
Lot Forward by Exporter
CAG ID
Payment by Lab
PSC Payment for PSC Issue PSC Certificate
Apply for PSC
Residue Analysis
GrapeNet: Functions
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GGrraappeenneett:: IInnttrroodduuccttiioonn
An internet based traceability software systemAn internet based traceability software system Monitors fresh grapes exported to the European Union upto the Monitors fresh grapes exported to the European Union upto the
farm level. farm level.
An end-to-end system for An end-to-end system for monitoring pesticide residue, monitoring pesticide residue, achieve product standardization and achieve product standardization and facilitate tracing back from retail shelves to the farm of the Indian facilitate tracing back from retail shelves to the farm of the Indian
grower, grower, through the various stages of sampling, testing, certification and through the various stages of sampling, testing, certification and
packingpacking. .
Grapenet Grapenet featuresfeatures
Direct stakeholders of Direct stakeholders of APEDA are Exporters, Pack APEDA are Exporters, Pack houses / processing plants, houses / processing plants, Laboratories & State Laboratories & State Government DepartmentsGovernment Departments
Farmers are indirect stake Farmers are indirect stake holders, through State holders, through State Agriculture / Horticulture Agriculture / Horticulture departments departments
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GrapeNetGrapeNet at at www.apeda.comwww.apeda.com
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Phytosanitary Certificate (PSC)
number
S(MAH)2/GR/0000
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S(MAH)2/GR/0000
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Agmark Certificate Number
GEO/GR/09/0000
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GEO/GR/09/0000
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Agmark Inspection Report ID
200922066513
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200922066513
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Residure Analysis Report
2/01335/02/0900
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2/01335/02/0900 MH06091148102
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Residue Analysis Report
MH06091148102
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MH06091148102
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Authorised Packer
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Exporter
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Traceability at displayTraceability at display
• Traceability through labels pasted on Pallets/Cartons
• Pasted in barcode as well as Human readable format
• Leads to the Plots from where Grapes have been sourced
GrapeNet – a live preview
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• Every consignment of fresh grapes during the last season from India to European Union was monitored through this system and no consignment was rejected due to quality reasons.
• The export of fresh grapes from India to European Union increased by 100% plus in the last year.
• The per unit realization for exporters directly and farmers indirectly went up from previous years due to the stringent standards defined and monitored in the grapes sector in India.
Results achievedResults achieved
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Qty: ‘000 Mts
Value: Million Dollars
Growth in Export of Fresh Grapes from India(Up to 2009)
Quantity and Value
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Why exports came down in Why exports came down in 2009-10 and 2010-11 ? 2009-10 and 2010-11 ?
• Due to finding of a plant growth regulator CCC in grapes consignment , the containers were put on hold by the importers that affected the exports.
• But the traceability system enabled us to immediately cease the problem after getting the information.
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Major gainsMajor gains
• Self confidence among farmers
• Culture for food quality and safety
• Farmers earned 40% more value
• Benefits went to 40,000 farmers and 115 exporters
•FOB realization rose from 8 Euro to 11.5 Euro per
carton of 3 kg.
• Value – addition through improved packaging
• EU labs accepted that Indian labs are better
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GrapeNet
5555
Grapes Supply Chain Improvements
• Increased implementation of GAP
• Value addition through consumer packs
• Grading as per export standards
• Absolute efficiency of laboratories
• Traceability throughout the supply chain
• Zero paper-work & total accountability
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GrapeNet
Accolades - GrapeNet Accolades - GrapeNet
National Award for E- Governance (Year 2008)
E Asia Award (Year 2009)
National Award for E- Governance (Year 2008)
E Asia Award (Year 2009)
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GrapeNet
Further DevelopmentsFurther Developments
Success in grapes sector encouraged to replicate and set up traceability system for :
• Pomegranates (AnarNet)• Organic products (TraceNet)- 1st Traceablity
system in the world implemented at national level ( 5 lac+ farmers registered )
• Peanuts (Peanut.Net)• All fruits & Vegetables (HortiNet – Under
development)
Success in grapes sector encouraged to replicate and set up traceability system for :
• Pomegranates (AnarNet)• Organic products (TraceNet)- 1st Traceablity
system in the world implemented at national level ( 5 lac+ farmers registered )
• Peanuts (Peanut.Net)• All fruits & Vegetables (HortiNet – Under
development)
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GrapeNet
5858