farm foundation traceability and quality assurance roundtable november 19, 2003 kansas city, mo...
TRANSCRIPT
Farm FoundationTraceability and Quality Assurance Roundtable
November 19, 2003Kansas City, MO
National Animal ID:Value Traceability Opportunities
National Animal ID:Value Traceability Opportunities
Glenn SmithUSA Country Manager
AgInfoLink USA
Providing traceability systems and business solutions to the food supply chain to
• increase profitability, • promote food safety, and • ensure regulatory compliance.
A Member of the
Alliance
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Government& Regulators
Consumers
Food Chain
FoodOrigins Tools Answer Key QuestionsFoodOrigins Tools Answer Key Questions
How can we improve input/product consistency? How can we segregate defective and unaffected
product quickly and safely? How can this not be just another cost?
How can we improve input/product consistency? How can we segregate defective and unaffected
product quickly and safely? How can this not be just another cost?
Where did “it” come from? Where is “it” now? What processes has “it” been through? How do we contact all the players using “it” with X
number of hours?
Where did “it” come from? Where is “it” now? What processes has “it” been through? How do we contact all the players using “it” with X
number of hours?
“What is in my food?” Where did this food come from? Is it safe?
“What is in my food?” Where did this food come from? Is it safe?
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Traceability has two facetsTraceability has two facets
Improved consistency
Higher yields
Lower cost per unit of production
Supply chain management
Justify brand claims – attribute x delivers result y
Lower cost new products
Value TraceabilityRegulatory Traceability
Food safety requirements
Food security “record keeping”
Process Certification – like organic
Trace-back / forward / middle
Environmental requirements
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Can’t Tell Book By CoverCan’t Tell Book By Cover
Which Animal Produced Highest Profit?
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Tale of Two SteersTale of Two Steers
Feeder Calf: $62.00/cwt $61.00/cwt
Feedlot Wt: 508 lbs 590 lbs
Days on Feed: 161 161
ADG: 4.3 lbs/day 2.4 lbs/day
Quality Grade: Choice minus Select minus
Net Return: $322.93 profit $15.56 loss
Want more of these cattle
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Reduce VariationReduce Variation
1999 Grid Demonstration Project, Iowa State University
66 Pens Evaluated
Average Value Variation $358
Least Value
Variation$156
Greatest Value Variation $746
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“On the average, I’m happy…”“On the average, I’m happy…”
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"By using individual animal ID and creating a P&L for each animal, we were able to identify any cow whose calf didn't return at least a $15/head profit. If we eliminated these animals from the herd, we would have removed 13% of the herd but increased the average return per head by over $40."
- John Todd, Rollins Ranches, FL
Increase ReturnsIncrease Returns
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“With individual animal data, I showed my stocker customer that eliminating the bottom 10% of poor performers would have lowered his cost of gain from $0.41/lbs to $0.36. This would have added $29 / head profit!”
-Mark Williams, Triple W, KY
Reduce CostsReduce Costs
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By managing flour procurement based on these factors, bakery performance can improve by an estimated 1.4 – 2.0%
Yield ImprovementsYield Improvements
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AgInfoLink – Linking the chainAgInfoLink – Linking the chain
Packer
Distributor
Retailer
Seed Stock
Cow Calf
Stocker
Feedlot
Processor
Capture and Share Info
Among Many Owners
Key is to LINK the chain – Bridge the Information Islands
Table
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Products and ServicesProducts and Services
Data collection Data transfer Data warehousing Data sharing Reporting and analysis Data Benchmarking Predictive Analysis
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Real Solutions, Real CustomersReal Solutions, Real Customers
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AgInfoLink – Building private networksAgInfoLink – Building private networks
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Backbone Support: Connecting NetworksBackbone Support: Connecting Networks
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Regulatory Traceability: Supporting USDA / FDARegulatory Traceability: Supporting USDA / FDA
USDA / FDA charged with ensuring “rapid response” to ensure food safety by approving national systems and standards
This mandate is further driven by recent legislation which specifies new information requirements for individual supply chains Country Of Origin Labeling in the 2002 Farm Bill Bio-Terrorism Preparedness Act of 2002 National Animal ID pending
AgInfoLink private network tools enable supply chains to meet information requirements and support rapid response Private networks collect data from partners and can provide information
and reporting to meet both COOL and Bio-Terrorism requirements These private networks connect to related networks and overall regulatory
systems through secure, permission-granted protocols
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Without traceability, there is no way to limit the scope of a product recall in the instance of contamination.
Recall It All
Traceability Provides SecurityTraceability Provides Security
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Traceability delivers containmentTraceability delivers containment
When a contamination incident occurs, the ingredient history of the product is traced and the potentially contaminated source ingredients are isolated. Most of the system remains “safe.”
Selective Recall
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Market AccessMarket Access
Japanese consumer consciousness toward traceability is relatively high, driven by StarLink GMO’s SnowBrand mislabeling Chinese spinach pesticide contamination
Higher end retailers have created “premium priced private labels” to restore confidence
Food Safety is considered a “private sector problem requiring private sector solutions.” Retailers (AEON/Jusco) developing voluntary traceability for beef Importers (Nippon Ham, Prima Ham) developing own traceability
requirements
Government finalizing requirements for domestic traceability for meats; some pushing for mandatory import traceability.
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Japan: Private Label Retail ProgramsJapan: Private Label Retail Programs
Retailers in Japan are promoting premium-priced private label brands equated with quality, safety and trust based on origin
Source: Aeon/JUSCO
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Japan: Private Label Retail ProgramsJapan: Private Label Retail Programs
Aeon/JUSCO has introduced a beef brand supported by a certificate of assurance from the Tasmanian governor and an endorsement by the Australian ambassador, which runs on in-store video ads. JUSCO stores aim to be top 10 global supermarket chain in 5 years.
Source: Aeon/JUSCO
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Why Individual Livestock Identification and Traceability?Why Individual Livestock Identification and Traceability?
Value Traceability Systems Improved management Increased efficiencies Reduced waste Targeted Production Create new values and reduce costs
Regulatory Traceability Animal Disease Surveillance Market Access Rapid Response
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Recommended High Level ArchitectureRecommended High Level Architecture
Data Service Providers
Beef Info Exchange
USDA
Other Custodians
National Animal ID- Location Data
National Animal ID- Ref Server
RequestApproved? Yes
Request from govtagency respondingto potential animal
health threat
NoRevise request
Trusted Custodian(e.g., BIE) (1 of n)
Daily populate nationalreference server with all
new AIN and TC server ID
Activate request toretrieve locationdata for specific
animals
Request from National IDto each Trusted Custodianwith info on specific animal
Trusted Custodiantransfers location information
on only requested animals
AnimalContainment
Report Created
Trusted Custodian(n of n)
12
3
4
56
7 8
Data ServiceProvider 1
Data ServiceProvider 2
Data ServiceProvider n
Can connectto Trusted Data
Custodian(“Push” recmd)
Number oftrusted datacustodians
who get govtapproval
User
User
User
a
b
c
d
Recursivedata
request
Other TrustedCustodians maychoose to “Push”
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Key BIE Architectural ElementsKey BIE Architectural Elements
No data would populate government database until approved emergency
Ownership/location data would be pulled from Trusted Data Custodians (e.g., BIE) to government, never pushed
BIE would provide government database daily AIN list Relationship between Data Service Provider members of BIE to BIE
database could be either “push” or “pull”
Thank You!
AgInfoLink USA1860 Lefthand Circle, Suite GLongmont, CO 80501800.287.8787www.aginfolink.com
Glenn SmithUSA Country Manager