GrapeNet

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

GrapeNet

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

GrapeNet

Traceability as per Codex

• Ability to follow the movement of food through specified stages of production, processing and distribution.”

Codex Alimentarius Commission

GrapeNet

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

GrapeNet

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

GrapeNet

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

GrapeNet

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

GrapeNet

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.

GrapeNet

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

GrapeNet

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

GrapeNet

• 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

GrapeNet

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

GrapeNet

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

GrapeNet

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

GrapeNet

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

GrapeNet

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

GrapeNet

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

GrapeNet

Command and Control – national Recall situation Map

Shows GLN (ship to) locations and quantities at Recall Release Time – shows highest quantities shipped to GA

GrapeNet

Command and Control – global recall situation Map

GrapeNet

Command and Control – Recall TV and Webinar

GrapeNet

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

GrapeNet

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

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GrapeNet

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

GrapeNet

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

GrapeNet

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

GrapeNet

200922066513

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Residure Analysis Report

2/01335/02/0900

GrapeNet

2/01335/02/0900 MH06091148102

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Residue Analysis Report

MH06091148102

GrapeNet

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

GrapeNet

Qty: ‘000 Mts

Value: Million Dollars

Growth in Export of Fresh Grapes from India(Up to 2009)

Quantity and Value

GrapeNet

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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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

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)

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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