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The presenter
Syntesa – Innova(on to market Interna'onal consultancy bringing innova'on to market.
Headquartered in Copenhagen with subsidiaries on Faroe Islands and Spain.
• Facilitate investor and grant funding • Marke'ng of high tech products and services • Management of innova've projects • Socio-‐economic analysis and impact assessments
Our work is based on a hands-‐on approach providing exper'se in financing, marke'ng, management and business development.
Co-‐founder of TraceCore XML Ini'ator of www.foodtraceability.eu Enterprise system provider for TRACE, Europe’s largest traceability project. Technical lead of traceability projects in SE Asia, Middle East and Europe. Speciali'es in using traceability for sustainability monitoring and standard compliance.
Dr Heiner Lehr, a decade of traceability
EcoFishMan ALL-‐SMART-‐PIGS EU-‐PLF Benthis Macro Biotech Costal Fishing in the North Atlan'c WhiteFishMaLL
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Some simple facts: the origin of food
Src: Global Imports of Food, WTO
The global food trade is es'mated to be worth about 1.45 trillion USD
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One example: the European Union
• The world’s largest importer and exporter is the Europe Union – 36% of global imports – 38% of global exports
14%
8%
6%
5%
4%
4% 4% 3%
50%
Source of EU food imports in % Brazil
USA
Argen'na
China
Switzerland
Indonesia
Turkey
Ukraine
Others
2011 Source: Eurostat
• The source is... the world
$1,745
$623
$157 $142 $94 $42 $38 $21 $13 $2
Global food imports in billion USD
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The source of incidences
• Food is a sensi've commodity – directly related to human health – spoils quickly
• As a result, countries monitor food trade closely and reject what is not fit to eat
• The source of reported incidences in Europe is again... the world!
Source: RASFF 5
Has food safety improved over time?
Nagging ques'ons:
• Has the General Food Law improved food safety?
• Has increased traceability resulted in safer food?
• Do consumers feel safe and capable of making well-‐informed decisions?
Num
ber o
f cases and
incide
nce rates o
f various fo
odbo
rne
and waterbo
rne diseases, 2005 (1) Sou
rce: EURO
STAT
If not, why not?
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Total RASFF alerts 2004-‐2010 Source: RASFF
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Information is not equal information
Paper-‐based systems • Easy to implement
• Time resilient
• Not scalable; limited by capacity of personnel and physical transporta'on
• Cannot be re-‐used
• Usually not accessible; filed in physical loca'on
• Informa(on chains impossible to construct
• Library of Congress
Paperless systems • Require technical capacity
• Subject to data format compa'bility issues
• More scalable; can be (semi)automated
• Easy to copy and exchange; no transporta'on 'me
• Easily accessible
• An informa(on chain can be established
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The smarter food vision
smarter food inclusive
safe traceable
70% of food globally is produced by smallholders, most of which are excluded from the global food chain. Informa'on technology is used to integrate small-‐holders in interna'onal supply chains.
Consumers want to make informed choice of the food they buy for religious, environmental or health reasons or simply for preference. Traceable food is food of which informa'on is recorded along its elabora'on process. Consumers can access such informa'on and eat in accordance to their needs.
Food has to be safe to produce and safe to consume. Safe food uses informa'on technology to improve controls over environ-‐mental and social impact of its produc'on as well as its safety to be consumed.
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How electronic traceability can help
smarter food inclusive
Smallholders are not part of global supply chains for a number of reasons • Lack of good prac'ce and human capacita'on • Lack of acceptable food produc'on standards • Lack of understanding global trade requirements and mechanics
On the other hand, global buyers have no access to consistent product offering coming from smallholders • Increased sourcing effort • Increased cer'fica'on effort • Increased brand risk Informa'on technology based on e-‐traceability can provide a plahorm for training, keep track of food safety measures, connect buyers to sellers and assist with global trade mechanics.
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How electronic traceability can help
safe
Food needs to be safe to produce and safe to eat. Food safety is a basic right for ci'zens and part of the Interna'onal Covenant on Economic, Social and Cultural Rights. Governments have the mandate to ensure food safety both for internal consump'on as well as for trade. Nevertheless, food borne diseases have major impact on public health and the public economy. With 9 billion people to feed in 2050 and liile land to expand agricultural produc'on, food produc'on also needs to be safe to produce. Roughly one-‐third of food produced for human consump'on, about 1.3 billion tonnes per year, gets lost or wasted globally. e-‐Traceability can help by op'mising supply chain, calculate shelf-‐life dynamically, alert to breaks in the cold chain and op'mise feed consump'on.
smarter food
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How electronic traceability can help
traceable
Food is an essen'al part of our life, our health and our beliefs. Consumers must be given the tools to live a life according to their convic'ons, their religious rules and their lifestyle. Consumers with food-‐related health issues (e.g. gluten intolerance) find it hard to buy corresponding products in the supermarkets. Muslims face gela'ne-‐based products, unable to decide whether they are Halal. Fish-‐lovers look at the offering wondering: is that really sustainable? E-‐traceability and mobile technology can ensure that a food product adheres to certain standards, give detailed informa'on to those who want or need it, assist consumers with their responsible purchasing.
smarter food
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Obstacles to implementing the vision
• Establishing global e-‐traceability is no simple goal
• Three obstacles have to be overcome – Governance: who owns the system, who owns the data, who gets access for
what purpose – Smallholder integra'on: smallholders produce up to 70% of the world’s food.
Many have no access to advanced technology; illiteracy is s'll an issue – Standardisa'on of food informa'on, ontologies, iden'fica'on and exchange
protocols
• Success stories exist for all three obstacles, for example – Governance: public private partnership in Norway – Smallholder integra'on: mixed paper-‐electronic traceability in Vietnam – Standardisa'on: EPCIS and the TraceFood framework
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Agriculture Single Window for Smarter Food: Four Pillars
Holis'c strategy and collabora'on Simplified processes
eBusiness Beier regula'on
Smarter Food
13 Material provided by Markus Pikart, UN ECE
Implementing the vision through a Single Window for Agricultural Trade (SWAT)
• Governments may ini'ate development of a Single Window for Agrifood Trade (SWAT) as an inter-‐organiza'on informa'on system aimed at • increasing the security and efficiency of agrifood cross-‐border
trade through collabora'on, electronic informa'on exchange and efficient regula'on.
• If a na'onal Single Window already exists in the country, the SWAT may be developed as a sub-‐component of it or as an independent system which interfaces
• Its scope and design should therefore be grounded in a na'onal agrifood supply chain facilita'on strategy focused on crea'ng trust and collabora'on between par'es by • enhancing access and management of informa'on along the
supply chain, • implemen'ng risk-‐based food control systems, and • simplifying and standardizing business processes.
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Components: Roundtable and Roadmap
• Bring all stakeholders together • Discuss issues and opportuni'es for
agriculture export • Analyse the role of trade facilita'on and
informa'on technology • Develop a vision and ac'ons how to proceed • Private sector par'cipa'on key to success • Secure support and funding
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Components: Business Process Analysis
Beier understanding of the supply chain • What exactly is happening now • Time, costs, risks, improvements • Where can we improve? • Iden'fica'on of missing paperless systems for
agrifood trade • Design the to-‐be supply shain • Early adopters should be incen'vised • Time-‐bound commitments from agencies 16
Components: Authorized Exporters
• Authorized Economic Operator (AEO): Provide facilita'on to exporters with good compliance record
• Facilita'on: exemp'on from cer'ficate requirements, less inspec'ons etc.
• One of the main building blocks within the WCO SAFE Framework of Standards
• Requires: • Exporters upgrade procedures and facili'es • Transac'on history and approval system • Monitoring and control
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Components: Risk based inspections
Idea: check the bad and support the good guys • Risk-‐based trade authorisa'on
– Is management by priori'es – Op'mises resource use in the avoidance of food-‐borne illnesses – Is the consequent applica'on of Hazard Analysis and Cri'cal Control
Points (HACCP) to trade processes
• Risk management and selec'vity is today regarded as best prac'ce • Facilita'on for the trader: exemp'on from cer'ficate
requirements, less inspec'ons • Facilita'on for the Government agency: less but targeted
inspec'ons, beier compliance
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Components: Risk based inspections (cont.)
Components of a Risk Management System: • Strategy: What are the risks we need to manage? • Risk criteria: How can we iden'fy risks • Selec'vity: Monitoring transac'ons and applying
risk criteria • Controls and improvement: How good is our
system? • Automated Informa'on Management System
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Components: electronic information management
Use informa'on to • Manage the supply chain through
informa'on • Reduce risks, delays, costs • Create transparency and trust • Beier regula'on through beier informa'on
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Components: electronic licenses and certiNicates
Ini'al ac'vi'es of the Na'onal Single Window System • simplify and standardise paper documents (UNLK, TDED) • create a data model for licenses, permits and
cer'ficates (LPC in WCO DM Informa'on Package) • create plahorm under ministry of Agriculture for issuance of
electronic LPC • electronic exchange of informa'on with other agencies, in
par'cular Customs • electronic exchange with trading partners and agencies
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Agriculture Single Window: Project Phases
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1. Incep'on Phase 2. Elabora'on
Phase
3. Planning Phase
4. Execu'on Phase
5. Feedback Phase
SWAT: Were to start?
Rome wasn’t built in a day! • Which products/markets are of highest
interest? • Any low hanging fruits? • Which agencies/stakeholders are ready to
move? • How can I priori'se ac'ons?
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SWAT: kickstart actions
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Electronic licenses,
permits and cer'ficates
Establish Interna'onal coopera'on
Risk Management
System
Food Safety Emergency Handling
Precursor step to kickstart action one: Business Process Analysis
Analyse a specific supply chain end-‐to-‐end • Be the one that knows most about this supply
chain • Look at the supply chain from different
perspec'ves: market, regulatory, logis'cs, produc'on, packaging, environment
• Test the players: who is ready for change, who will delay
• Understand what can be improved • Discuss with stakeholders • Develop a vision on what can be done
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Kickstart action one: Electronic Licenses, permits and certiNicates (LPC)
Streamline and automate the issuance and use of LPC • 2 + 1 op'ons for dematerializa'on: “electronic
document”, “original is in the database” (+ paper document)
• Web interface for traders to apply for PLC • Standardiza'on of paper forms, data, codes • New workflows and business process: How exactly will
it work, who will benefit (and how), who will loose, who will finance?
• Development of an eBusiness Plahorm • Change management: introduc'on of electronic
documents is all about people! • Change of legisla've framework
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Kickstart action two: Establish international cooperation on SWAT and inter-‐agency information systems
Exchange experiences with other countries: • When implemen'ng a single window, many
economies face similar challenges • Crea'ng collabora'ons and learn from past
experiences • Establishing electronic informa'on exchange for
key agriculture export and import products between the expor'ng and impor'ng country
• Consider the use of exis'ng recommenda'ons, standards from UNNExT, WCO, UNECE, FAO and UNCTAD!
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Kickstart action three: Authorized Exporter/Importer
Simplify life for the good guys, foster professionalism, introduce best prac'ce • Iden'fy products/product categories • Develop a concept:
– What are the criteria to become Authorised Exporter (AE) – What are the incen'ves for the exporter? What are the costs for the
exporter – Transparency: how to control the approval process – Objec'ves: How many exporters/transac'ons – Control implementa'on: How to avoid abuse – Changes in the legisla'on
• Validate the concept with the stakeholders! They must see an advantage otherwise you fail.
“Todays costs are hard Euros, tomorrows benefits are so= Euros: For every hard Euro we must make ten so= Euro!”
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Kickstart action three: Automated Risk Management System (cont.)
Analyse risks • Define risk categories and inspec'on strategy
• e.g. green: 5 % inspec'on – red: 100% inspec'on • Define criteria to assign a transac'on to a category (rules):
– History of trader – Type of produce – Volume/value of transac'on, mode of transport, des'na'on... – Random assignment
• Review the inspec'on results: – Inspected but no hit: assignment too restric've, wrong criteria – Random assignment but hit: assignment too lenient, wrong criteria
• Review and supervision of risk management system is management obliga'on
It is NOT good prac'ce to publish internal informa'on on risk management (other than sta's'cs)
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Kickstart action three: Automated Risk Management System
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Kickstart action four: automated food safety emergency management system
System to deal with food safety incidents and emergencies. • A food safety emergency is a health but also an economic risk; it needs to
be contained • Important to have planning, suitable coordina'on and 'mely risk
communica'on both within the country and with other countries • Link into any Rapid Alert Systems (e.g., RASFF of the European Union and
ARASFF in ASEAN), the EMPRES (Emergency Preven'on and Early Warning System) and INFOSAN of FAO/WHO (Interna'onal Food Safety Authori'es Network). • EMPRES provides a comprehensive framework for animal, plant and food
safety by focusing on capacity development for early warning tracking, early detec'on, preparedness and 'mely reac'on, coordina'on and communica'on.
• INFOSAN, which is aimed at preven'ng the interna'onal spread of food-‐borne diseases, was put into opera'on by promo'ng the rapid exchange of informa'on, sharing informa'on, promo'ng partnerships and strengthening capaci'es. Currently, 178 countries are part of the INFOSAN network, with each nomina'ng a single INFOSAN emergency contact point.
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Summary
• Food and agricultural goods are special because they are connected to physical and spiritual well-‐being of humans, in addi'on to being a major factor in interna'onal trade
• The Smarter Food Vision is the consistent applica'on of Informa'on Technology to the agrifood sector to make food more inclusive, safer and more transparent
• The Guide gives 10 recommenda'ons to enhance informa'on management for agrifood trade facilita'on
• The Guide also specifies 4 kickstart ac'ons 1. Implement electronic LPC system 2. Establish interna'onal coopera'on on SWAT 3. Implement risk-‐based inspec'on systems 4. Implement automated food safety management system
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Thank you for your attention!
ACKNOWLEDGMENTS: The author would like to acknowledge contribu'ons by Markus Pikart, UNECE, Francisco Blaha and Gwynne Foster, Xifrat Daten AG, FoodReg and Yakin IT Sdn Bhd. Financial support from the European Commission for research projects is gratefully acknowledged. This deck of presenta'ons was made possible by SATNET and UN ESCAP and the author is very thankful for this opportunity. DISCLAIMER: this presenta'on expresses the view of the presenter only. In par'cular, it does not express necessarily the views of cited interna'onal bodies and firms.
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