Practical exercise

Practical exercise

Example exercises

Practical exercise

Top export products

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World production

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Src: FAOSTAT

Red rice

• Bhutanese Red Rice is one of only three red rice varieties in the world – Red hill rice from Phillipines – (Coloured) red rice from the Camargue

• A premium product, mostly created by

smallholders

• Main sales arguments – One of the most select rice varieties in the world – Traditionally farmed on small terraces in the highlands (2,000-3,600m) – Watered with clear glacier water – A fine rice grain, rich in healthy fibres, protein and unsaturated fatty acids – More potassium than Gatorade, and a significant amount of magnesium – Quick-cooking whole grain – Nutritional and culinary superstar.

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Photos from siam-food.blogspot.com/2007/09/roter-reis-aus-bhutan-ein-kostbares.html

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Was offered at 29€/kg = 2320 Nu.

On offer now for 11USD/kg = 660 Nu.

Uses of traceability

• Traceability can be used to – supporting a luxury product by creating a “story” around it. The target would be

selected exporters with an offering compatible with a luxury product.

• Traceability would here be the tool to create a story around the product that would differentiate it from other offerings.

• At the simplest level, it would provide basic production information, ), but the aim would be to use that information to create a differentiation from similar products from other locations. This can be achieved by using – Name, up to date photo and location of farmer(s) and their families

– Media material from production villages, such as photos and movies

– A description of harvesting practices and timing of the involved producers

– A description of milling techniques

– A taste profile by village

• This might be connected to claims such as organic (if certified) or traditionally produced

• Fair trade certification is an option

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SWOT analysis

The main strengths of this system are • Creates a novel product (rice + “history”) • Luxury goods fetch high premiums and could be an excellent target for the low

productivity product

Main weaknesses • Overseas exports still a challenge • Traceability not practised • Total market volume of luxury market and potential penetration rate of

Bhutan rice unknown

The main opportunities would be • Introduce a small number of exporters to a new market segment • Provide farmers and rice mills with a way to promote themselves

The main threats would be • Quality of rice is difficult to measure • It is unclear whether there is enough supply to make this worthwhile

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The winner: potatoes

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http://www.fao.org/potato-2008/en/world/index.html

Top consumers 2005

Exports to Europe?

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1 H

g =

0.1

kg

| 1

Ha

= 1

0,0

00

m2

Ranking producer prices for selected countries

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FAOSTAT 2013: Producer price USD/tonne

Areas Items 2008 2009 2010 2011 4y avg

Netherlands Potatoes 126.8 127.2 167.6 183.5 151.28

Bangladesh Potatoes 210.5 211.5 108.8 111.8 160.65

Austria Potatoes 155.3 137.5 227.6 190.3 177.68

Germany Potatoes 200.7 179.2 218.4 263.9 215.55

United Kingdom Potatoes 272.1 184.4 206.2 235.5 224.55

Ukraine Potatoes 219.1 166.8 268.4 255.1 227.35

France Potatoes 268.6 222.6 332.9 260.6 271.18

China, mainland Potatoes 201.5 243 274.7 443.3 290.63

Bhutan Potatoes 266.6 310.1 396.6 439.6 353.23

Projected demand increase

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Src: 2020 Global Food Outlook - Trends, Alternates, and Choices (IFPRI, 2001, 28 p.)

Trade in potatoes

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Major imports EU

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Uses of traceability

• Traceability can be used to

– despatch advice and notifications to the appropriate persons at the appropriate time to increase the use of good practices in primary production and handling

• Farmers would register with this service on larger scale and record basic actions sowing, weeding, ploughing and harvesting per plot. Failure to record such an event will trigger a warning to be sent to the farmer, suggesting that an action needs to be performed. Together with the warning or independently, basic information (“tips”) can be sent to farmers.

• Data capture and reception of information would be through mobile phones.

• After harvest, the rice mill will record receptions as means for payment

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SWOT analysis

The main strengths of such a system are • Addresses one of the main problems at the root • Provides (anonymous) data about production throughout the country as a basis for in-

depth actuations by relevant bodies • Can be linked to trading platform increasing the possibility of quality-efficient trading

The main weaknesses of this proposal can be summarised as follows • There is no evidence that farmers are indeed interested in receiving such information • In order to have an effect, this system needs a critical mass of farmers on the system.

This requires a certain amount of internal marketing and training • While the technical complexity is low, there is a certain amount of implementation and

operation budget required

The main opportunities would be • Help increase the productivity problem by distributing advice • Improve understanding of the rice production as a basis for improved directed actions

The main threats would be • Lack of interest of farmers and pressers • Lack of resource to implement the system on large enough scale

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Supply chain of fresh fruits and vegetables

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Farmer

Harvesting

collector

Non-harvesting

collector

Middleman

Supermarket

Local markets

Waxer

Exporter

Collecting house

Supply chain of XXX

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Farmer

Middlemen

Processor

Exporter

The pomelo example

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Harvest

Dispatch

Receive Pack

Despatch

Export

*FarmerID or FieldID

Quantity (pieces)

Weight

HARVEST

*MiddlemanID / name

Is stock empty?

Quantity

Weight

DESPATCH

*CollectorID / name

Type

Size

Quantity

Weight

Price

RECEIVE

*Type

*Size

*Boxes

PACK

*ContainerID

*ExporterID

DESPATCH

*ContainerID

*ClientID

EXPORT

+ all dispatch events until next

stock empty

- all harvest events since last

stock empty

+ next reception for same

MiddlemanID

- next dispatch for same

MiddlemanID

+ all pack events until the next

despatch

if none, the next despatch event

- all pack events since the last

despatch.

if none, all reception events

since the last despatch

- all reception events since the

last despatch

+ next despatch event

- the next export event for the

exporter with the same

containerID

- the despatch event for the

exporter with the same

ContainerID

*FarmerID

*FieldID

*CertificateID

Results ok?

GAP INSPECTION

GAP Inspection

Farm Processor Retailer

1. Delivery note / Invoice number

2. Plot Id, Farm ID

1. Delivery note / Invoice number

2. Product/Batch code

Key mapping for external traceability

Backward Trace

Forward Trace

Think about both ways!

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Exercise

• Groups

– GROUP A: Private sector

– GROUP B: Public sector

• Main objective

– Design an efficient traceability system that serves your needs

• Group presentation and discussion

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Tasks

1. Determine your needs and how e-traceability can help you

2. Define the scope of the traceability system

– E.g. food safety, legal compliance, social or environmental standards, …

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Thank you for your attention!

ACKNOWLEDGMENTS: The author would like to acknowledge contributions by 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 presentations was made possible by SATNET and UN ESCAP and the author is very thankful for this opportunity. DISCLAIMER: this presentation expresses the view of the presenter only. In particular, it does not express necessarily the views of cited international bodies and firms.

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