12a. what is food policy & what are the key issues? (knutson ch. 14, 15)
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12a. What Is Food Policy & What Are The Key Issues? (Knutson Ch. 14, 15). Larry D. Sanders Fall 2005. Dept. of Ag Economics Oklahoma State University. Introduction. Purpose: to understand food policy issues & options Learning Objectives: 1. Become aware of food policy issues. - PowerPoint PPT PresentationTRANSCRIPT
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12a. What Is Food Policy
& What Are The Key Issues?(Knutson Ch. 14, 15)
Larry D. Sanders
Fall 2005
Dept. of Ag Economics Oklahoma State University
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Introduction
Purpose: – to understand food policy issues & options
Learning Objectives:
1. Become aware of food policy issues.
2. Understand key food issues, options & consequences.
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Food Policy Issues
Price & Availability Marketing Share Structural Changes Food Safety Food Nutrition & Obesity Hunger
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Rank the most serious food safety hazards (1=most serious)
____Deliberate food additives
____environmental contaminants (lead/mercury)
____foodborne diseases
____malnutrition
____naturally occurring toxins
____pesticide residue
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Food Price Policy Options Price Controlsblack markets Export Embargoesshortrun price drop Reduced Import Restrictions--WTO, etc.-may harm
domestic producers/agribusiness Marketing Order Controls--more regs? Farm Program Provisions--who is helped? Antitrust Restraints--structutural change vs. competition vs.
global change-may weaken competitiveness Other Govt: tax, education, co-op promotionhigher taxes Free Market--who gains/loses? question of stability
?
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Food Safety--Is It a Problem?
Estimates of numbers contracting food-borne illnesses from microbial pathogens (CDC): – 6 mil.-33 mil./yr.– As many as 9,000/yr. die
1 case of E.coli OH157:H7 outbreak in Pacific Northwest (1992):– 4 deaths, over 800 ill in 4 states
Listeria meat recall of 2002– 10 deaths? 45-50+ ill?
Other cases:– strawberries w/Hepatitis A– raspberries w/Cyclospora parasite (Guatamala)– unpasteurized apple cider w/E. Coli
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Food Safety--What’s the Problem?
Restaurants & Consumers don’t know how to handle/prepare food?
Farmers/ranchers are using unsafe practices & nasty chemicals?
Food handlers & processors are using unsafe practices & nasty chemicals?
Mysterious bacteria are popping up to make food unsafe? Them “durn furiners” are sending us dangerous food? Bio-engineered food opens up a “Pandora’s box” of new
threats to human health (“Frankenfoods”)?
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Food Safety: Are consumers the problem?
Bad Habits Study (FDA, May 97)– 50% consumers eat raw/undercooked eggs
– 23% consumers eat undercooked hamburger
– 17% consumers eat raw clams/oysters
– 26% consumers don’t wash cutting boards after cutting raw meat/poultry
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Food Safety:Are producers the problem?
Some of the public is concerned about pesticide use/residue
While HACCP* hasn’t yet targeted producers, “traceback” could do so
Animal waste blamed for some health problems
Food Quality Protection Act imposes new responsibilities on chemical use
*Hazard Analysis Critical Control Point
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Food Safety:Are handlers/processors the problem?
New Food Safetyregs (HACCP) target this group
more than others The media often pins the blame here
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Food Safety:New Mysterious Bugs the problem?
E coli (CDC study):– 1982--first recognized as pathogen (ground beef)– 1984-child care center– 1985--associated w/acute kidney failure in children– 1987--more common than Shigella in US– 1990--drinking water– 1991--lake swimming; apple cider– 1992--most common bacterial cause of diarrhea in US– 1993--multi-state outbreak--fast-food burgers– 1999--unpasteurized apple cider in Oklahoma– 2000+--continuing recalls, other cases
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Food Safety:New Mysterious Bugs the problem?
Other “bugs” highlighted in media(may be microbial pathogens or parasites)
– Salmonella– Campylobacter– Cryptosporidium– Pfiesteria– Cyclospora
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Food Safety:Is imported food the problem?
Over 30 bil. Tons food
imported each yr
--40% of fruit consumed; 12% of vegs FDA samples less than 1% In short: we don’t know.
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Food Safety: Defining the Problem
There is widespread concern whether the public has access to safe food supplies and can be assured that practical preparation techniques are available/in use. This concern relates to both domestic and imported foodstuffs, as well as concerns by foreign customers w/respect to US food product.
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Food Safety Policy: Alternatives to Resolve the Problem
1. Status Quo
--Inspection, HACCP & education, private
2. Free Market
--Let market signals work (pay for quality; tech. solutions)
--Limited education programs (private/public support)
3. Increasing Regulation & Investment in Research & Technology Application
--Expand regulation from inputs to/thru consumer
--Expand education thru marketing chain
--Expand public support for research
--Expand public support to apply technological solutions
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Food Safety Policy: Background Issues
Risk Acceptability--Tolerance Options:– Zero Tolerance– De Minimus (Negligible) Risk (1/1 mil)– No Significant Risk (1/100,000)– Risk Benefit (Benefits > Costs)
Biotechnology Information & Labelling Irradiation “Traceback” Free Market
???
FOOD
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Is Our Food Supply Safe?Are Ag Chemicals a Health Hazard?
PRIVATE CHOICES & PUBLIC ISSUES: “Americans decide as a matter of public policy how much risk they are prepared to tolerate, but they do not do it in the same way at all times in all places & in all contexts. . . .”
D. Kennedy, Former FDA Commissioner
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Is Our Food Supply Safe?Are Ag Chemicals a Health Hazard?
EXAMPLES– Saccharine
– Caffeine
– Alar & Apples
– Nuclear Power
– Tobacco
– Autos
– E.Coli/meat consumption
– Alcohol
– Cyanide/Grapes
– Water
– Red food dye/M&M’s
– Sweets
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The Public Issue of Food Safety “Determination of ‘safe’ food does not necessarily
imply zero risk but rather a personal & societal judgment about the level of acceptable risk. The basic economic problem . . . is one of balance between acceptable risk . . . in terms of health consequences, & cost.” Sporleder & Kramer, ‘89
Historical context to issue; 1960s (additives), 1980s (pesticides), 1990s (microbial)
Issue has shifted from scientific debate to consumer, media & political debate
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Cancer/Other Life-Threatening Risks of Common Substances (Ames, Wilson, Crouch)
Source RiskPCB’s 1/15 million
DDT/DDE 1/10 million
Tap water 1/3.3 million
Peanut Butter(2T) 1/115,000
Diet Cola 1/60,000
Background radiation 1/50,000
Raw mushroom(1/day) 1/35,000
Home accidents 1/9,000
Police work 1/4,500
Auto accident 1/4,200
Beer(12 oz/day) 1/1,200
Wine(8 oz/day) 1/750
cigarettes (pack/day) 1/300
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Top Food/Food Safety Hazards/ Concerns: Perception Vs. Reality
Consumer perception: 1990: pesticide residue in food
1997: both pesticides & food-borne diseases
SCIENTIFIC FACTS BASED ON ANALYSIS (ranked in order):1. Food-borne diseases
2. Malnutrition
3. Environmental contaminants (lead/mercury)
4. Naturally occurring toxins
5. Pesticide residue
6. Deliberate food additives
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Food Safety: Scientific Studies--results
Ames study:– 99.9% of carcinogens in diets result of natural
toxins in plant– By weight, natural toxins about 10,000 times
more concentrated in plants than synthetic chemicals
Pesticide residue-tested food:– 67% --no residue– 96% --residue in allowable limits– <1% --exceeds federal tolerance
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Alternatives To Reduce Food Safety Concerns
1. General education on risks
2. Improve food prep skills
3. Eliminate environmental contaminants
4. Increase testing procedures/regulation
5. Certify foods as
Pesticide-free
6. Eliminate chemical use
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Food Safety Policy Alternatives/Consequences: Status Quo Inspection HACCP FQPA (Food Quality Protection Act) FDA Guidelines Education Likely Consequences
– Continued federal/state/local outlays for inspection/enforcement & education
– Public acceptance of relative food safety levels– Private sector push to minimize HAACP implementation cost– FQPA is controversial, & commercial ag is seeking changes– Some increase in food prices
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HACCP--What is it?
Hazard Analysis & Critical Control Points– science-based preventive approach that sets new
requirements for slaughter & processing plants – Industry identifies production, manufacturing &
transportation points where contamination could occur, then implements control measures
All plants implementing HACCP since 2000
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HACCP (continued)
7 Steps:
1. Analyze hazards
2. Identify critical control points
3. Establish preventive measures
4. Establish monitoring measures
5. Establish corrective actions
6. Establish effective recordkeeping
7. Establish verification procedures
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Food Safety Policy Alternatives/Consequences: Free Market Let market signals work
– Public, thru trial/error, would find where to purchase safe food, what brands to avoid, how to store/prepare food safely
Limited public education– Some ongoing federal/state/local public education programs
informing producers/processors/retailers/ consumers about safe food handling, storage, preparation
Likely Consequences– Rise in incidence of disease/death
– Increased expenditures on health care
– Decline in food prices
– Changes in consumer preferences/behavior
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Food Safety Policy Alternatives/Consequences: Increasing Regulation & Investment in Research/ Technology Application Expand regulation from inputs to consumer Expand education Expand public support for research Expand public support to apply technological solutions Likely Consequences
– Increased federal/state/local outlays– Increased public confidence in food safety– Mixed results on global competitiveness– Decline in food imports– Increase in food prices
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Food Safety Policy: What can consumers do?
Become more informed on issues, policies & safe food handling/ preparation techniques (County Extension can help)
Most residue, microbial & parasitic problems can be alleviated by practices such as proper storage, washing and cooking
Note the cleanliness of restaurants & their record of violations
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Food Safety Policy: What can farmers & ranchers do?
1. Become more informed about issues, policies & production practices that keep food safe (County Extension can help)
2. Proper use and disposal of chemicals (follow labels), & considering integrated pest management practices can minimize problems.
2. Educate the public on practices used
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Food Safety Policy: What can the voting public do?
1. Continue to let interest groups & elected representatives know their needs.
2. Become more aware of the policy alternatives & their consequences.
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Food Safety Policy: What can agribusiness do?
1. If you handle inputs into the food production process, be aware & advise producers on toxic effects
2. If you handle/process produced food to market direct/value-added, be aware of risk of marketing unsafe food
3. Be aware of & in compliance with appropriate regulations
4. Invest in R & D for safe food processing
5. Partner w/public educators to improve consumer awareness & responsibilities.
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Food Nutrition and Obesity—A Public Problem?
There is widespread concern that Americans, especially children, are not eating nutritiously, in part contributing to the onset of many serious health problems, including obesity which may be at epidemic proportions.
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Food Nutrition/Health Policy Options
Education Labeling Food Assistance
– Food Stamps
– Food Distribution Programs
– School Lunch Programs
– WIC
– Welfare Reform
Change farm bill programs Free Market
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Summary
Food policy issues include: Price & availabilityMarketing shareStructural changesFood safetyFood nutritionHunger--issue is economic (distribution/development)
Food safety--current primary issue Government role--emerging issue World hunger continues
– With population pressures, this may be the single biggest issue
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APPENDIX
A. HACCP (slide 38)
B. E. coli (39-40)
C. FSRIA 02 Nutrition Programs (41-42)
D. Obesity (43-56)
E. Biosecurity (57-60)
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HACCP--ADDENDUM
Estimated “3-5 yrs to develop competent inspection force & undo 90 yrs of practice” (The Kiplinger Agriculture Newsletter, 10/24/97)
Traditional mechanism in place until phase-in complete HACCP may cost Meat & poultry plants $1.3 bil over 20
yrs, but savings from reducing food risks 20% are estimated at $1.9 bil in health costs & lost productivity
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E.coli 0157:H7--Addendum
Significant because:– Affects all age groups (diarrhea, abdominal pain,
intestinal bleeding, kidney failure)– has low infectious dose– is acid-tolerant– is especially associated w/ruminants
Less than 10 cells may cause foodborne illness Hardy, long survival Successful prevention: reduce/eliminate presence, rather
than preventing pathogen growth HACCP can reduce risk, but not infallible
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E.coli 0157:H7--Addendum (continued) What’s effective in killing it?
– heat pasteurization (milk & juice)– ionizing radiation (meat*, fresh fresh fruits, vegs)– steam pasteurization (carcasses)– NOTE: not yet approved for beef & seafood
Incidence: – 3% of dairy calves; 2% of feedlot cattle– raw milk, apple cider, water– dry-cured salami– lettuce, produce from manure-fertilized gardens,
potatoes, radish/alfalfa sprouts, yogurt, sandwiches
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FSRIA 02 Nutrition Program Update (May 04)
International School Lunch: USDA issued a final rule implementing the McGovern-Dole International Food for Education and Child Nutrition Program.
Nutrition: USDA implemented Food Stamp rule changes which simplify the program and allow many legal aliens to be eligible for program benefits on the same basis that citizens are eligible.
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FSRIA 02 Title IV – Nutrition Programs Update (May 04)
First Year: – Funded Farmers’ Market Nutrition Programs for seniors and for
WIC recipients at over $30 million in FY 2003. – Implemented Food stamp rule changes which simplify the
program and allow many legal aliens to be eligible on the same basis that citizens are eligible.
– Provided $6 million to schools in a pilot to increase fruit and vegetable consumption.
Second Year: – Issued purchase specifications involving irradiated food
products for use by schools wishing to purchase such products for school feeding programs.
– Awarded $5 million in food stamp participation grants to State agencies.
– Submitted EBT implementation report to Congress.
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The Claims about the Source of Obesity and Overweight Trends in the US
“The source is behavioral.”– Sedentary life/work– Affluence– Bad eating habits– Lack of exercise
“The source is the food system & that leads back to human behavior.”– Pre-packaged, over-processed foods– Fast food– High fat/cholesterol/sugar/carbohydrates– Food additives
“The source is govt payments to farm programs that cause low food prices that causes poor behavior.”
“The source is medical/organic (genetic, etc.).”
44
Research & Claims about Obesity
Recent claims/studies suggest farm programs contribute to obesity
The argument:– Govt subsidies encourage production of foodstuffs that
contribute to obesity (sweetener, hi carbs, hi fat, etc) Other studies The Journal of Economic Perspectives: lower food prices couldn't cause obesity....that prices simply have not fallen enough and food demand is not that elastic
45
US Overweight and Obesity by Age, 1960-2002 (% of population)*
-10
0
10
20
30
40
50
60
70
1960-62
1963-65
1966-70
1971-74
1976-80
1988-94
1999-2002
Children 6-11 yrs
Adolescents 12-19 yrs
Adults 20-74
Linear (Children 6-11yrs)Linear (Adolescents 12-19 yrs)Linear (Adults 20-74)
Note: some youth data not available in 1960-70
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US Direct Government Payments, 1960-2004
-5
0
5
10
15
20
25
govt payments
Linear (govtpayments)
1996 Farm Act
$ Billion
*Projected
2002 Farm Act
$15.7 b.
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US Nutritional Program Spending, 1974-present ($m)
0
5000
10000
15000
20000
25000
30000 Food Stamp Program
Women, Infant &Children's Program
National SchoolLunch Program
School BreakfastProgram
School Milk Program
CHILD/ADULTCARE FOODPROGRAM
Linear (Food StampProgram)
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Some Thoughts on Causation
Complex issue Farm programs and nutrition programs have different goals, and
different outcomes Difficult to separate farm and nutrition programs/spending when
medical profession disagrees on basic causes of obesity Co-incidence of increasing trends in obesity and government
farm program payments and nutrition program spending doesn’t prove causation
Correlation between obesity government payments and nutrition program spending doesn’t prove causation
If there is a relationship between what we encourage farmers to grow, what we educate the public on with respect to nutrition and obesity trends, it will likely take decades to change the current structure and support systems (consider tobacco as a model)
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Alternative Responses to the Obesity Situation in US
1. Status quo2. Aggressive research programs funded by private
sector and government3. Reduction of nutrition program spending and
government involvement, allowing private sector and consumers to find resolution
4. Reduction of farm program spending to reduce government incentives for existing mix of food production
5. Aggressive education program funded by private sector and government
50
Status Quo: Likely/Potential Consequences
Continuation in trends of health problems Continuation in trends of federal nutrition program
spending Continuation in trends of federal farm program
spending Continued opportunity for private sector response
– Possible medical/medicinal responses that reduce or alter health problem trends for those who can afford it
– Consumers could choose to change behavior with resulting improvement in health
51
Aggressive research programs funded by private sector and government: Likely Consequences
Increased spending likely to increase prices of pharmaceuticals to cover research expense
Increased spending likely to increase federal budget deficit or taxes, or force further cuts in other federal programs
Could result in breakthroughs in:– nature of obesity– more certainty with causes– New medical or alternative therapies and responses
that improve health
52
Reduction of nutrition program spending and government involvement: likely consequences
Uncertain impact on health trends (no studies to indicate this will improve health trends)
Private sector likely to pick up advocacy of various nutrition regimes– More likely to benefit those who can afford it and leave
behind those who can’t– Information likely to be less objective than government
info and biased in favor of profit potential Decreased federal spending will improve federal
deficit situation or give decision makers options for alternative use of funds
53
Reduction of farm program spending: likely consequences
Uncertain impact on health trends (no studies to indicate this will improve health trends)
Decreased federal spending will improve federal deficit situation or give decision makers options for alternative use of funds
Decreased farm income support likely to have adverse impact on program farms in short run
54
Aggressive education program funded by private sector and government: likely consequences
Uncertain impact on health trends if more of the same
Increased spending likely to increase prices of pharmaceuticals to cover program expense
Increased spending likely to increase federal budget deficit or taxes, or force further cuts in other federal programs
Begs the question: Do we know what we should be educating consumers to do beyond the standard message “diet and exercise”?
55
Implications for Agriculture, Federal Support & Education Programs
Obesity alone not likely to be a major reason to cut/alter farm program support
Obesity may be a contributing factor (w/budget deficit, trade talks) to make some adjustments
Obesity likely to be a key factor in continued evolution of nutritional programs that could discourage consumption of some ag production (grains, meat), but not likely significant in near term
Obesity likely to be a key factor in encouraging consumption of vegetables and some nuts, and the use of local markets for fresh and less processed product
56
Implications for Agriculture, Federal Support & Education Programs (cont.)
Further evaluation of what it means that there is a coincidence between increases in farm program payments, nutrition program spending and obesity– Are either farm subsidies or nutrition programs or both actually contributing
to obesity?– Would obesity trend be worse if we didn’t have the level of farm subsidies or
nutrition programs?– Is the relationship just coincidental or spurious?
Further science needed on what causes obesity and what “good nutrition” means
Do we need a new direction in or more funding for nutrition programs and farm support?
There is a need for public extension educators to increase the understanding of the public on this subject
57
Another Emerging Food Chain Issue:Agrosecurity/Biosecurity
An issue before 9/11, that turning point has shifted focus from natural/accidental incident concern (mad cow, food poisoning, etc) to acts of terrorism
All sectors of food chain at risk (input, production, processing, distribution thru retail to customer)
Both domestic and global markets at risk Magnitude and breadth of the problem suggests the
complexity of the issue Traceability and impact on cost becomes critical
58
At each control point in the farm,the pack house, the trucks, the containers, the repackaging centre,the Retailer DC, lot numbers andbar codes are created linking all Traceability information to the very beginning
SUPPLIERCentral
TraceabilityDatabase
Pack House 1
Pack House 2
RETAILREPACKING
RETAIL DISTRIBUTION
CENTER
Tenerife
Port
Cadiz
Port
Store 1
Store 950
Store 267
Tracing Fruit & Vegetablesfrom 4500 farms to 950 supermarkets
RETAILERCentral
TraceabilityDatabase
Farm 1
Farm 376
Farm 2763
Farm 4499
TraceAbility PartnersSupply Chain Integrators
Goods Flow
Information FlowManual label
XML
XML
XML
XML
XML
XML
XML
XML
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Tracing Processed FoodPasta Example
Salt receiving
Pepper receiving
Flour receiving
Eggs receiving
Salt plantCuracao
PepperIndia
Flour MillBelgium
Egg FarmBelgium
Importer/Retailer DC
Store 78Store 1
Store 190 Store n
Physical flow
Traceability flow
**
**
*
*
* * *
Transfer to
Process Hall
*
*
*
*
*
*
*
*
*
* External control pointvia XML
* Internal control pointplant
TraceAbility PartnersSupply Chain Integrators
Each * is a control point and generates a traceabilitylot number tracing back to the beginning
PlantTraceability
Database
PlantAdmin
Database
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DataBase
RepackagingCentre
XML
TraceabilityDataBase
Retailer
RetailerQuality
Management
RetailerERP
network
network
Stores
Smallfarm
Largefarm
Shipper
XML
Manual
DataBase
ExporterXML
DataBase
Importer
XML
XML
Via an electronic Advanced Shipping Notice,files with traceability information are attached, so that from each data base has complete traceability back to the field on line
TraceAbility PartnersSupply Chain Integrators
Data Flow from Source to Retailer via each intermediate Data Base