GrapeNet 1 Traceability implementation - An Indian Quality Initiative Sudhanshu Deputy General Manager, APEDA, Ministry of Commerce & Industry & Vice President, GS1 India Ministry of Commerce & Industry Traceability implementation - An Indian Quality Initiative Sudhanshu Deputy General Manager, APEDA, Ministry of Commerce & Industry & Vice President, GS1 India Ministry of Commerce & Industry

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 follow the movement of food through specified stages of production, processing and distribution. Codex Alimentarius Commission

GrapeNet 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 requirements Demanding regulations: US FDAs 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 (Intl 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 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 Indias large number of farmers & entrepreneurs

GrapeNet Recent 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 5 th 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 Final outcome - Traceability Final 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

GrapeNet Traceability Drivers Lack 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

GrapeNet Source: AMR Research

GrapeNet 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 60 minutes after Recall Released – show GLN locations who have opened Recall Notification and have submitted questions (Orange). NOTE ISSUE WITH GA

GrapeNet Command and Control – global recall situation Map

GrapeNet Traceability - Indian initiatives

GrapeNet 18 APEDAs GrapeNet A traceability System for Fresh Grapes Exported from India to EU a pilot for promoting exports in Indian Agriculture Sector

GrapeNet Grapes 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 plus farmers 100 plus exporters India is the 12 th largest producer in the world, but among the highest in terms of productivity per hectare 19

GrapeNet Maharashtra Andhra Pradesh Karnataka Grape Growing States

GrapeNet 21 Registration, record keeping & monitoring of farmsRegistration, record keeping & monitoring of farms Product standardization & inspection strengthenedProduct standardization & inspection strengthened Implementation of Good Agricultural PracticesImplementation 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 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 ?

GrapeNet 22 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. APEDAs Implementation

GrapeNet GrapeNet : Functions

GrapeNet 24 Grapenet: Introduction Grapenet: Introduction Grapenet: Introduction Grapenet: Introduction An internet based traceability software system An internet based traceability software system Monitors fresh grapes exported to the European Union upto the farm level. Monitors fresh grapes exported to the European Union upto the 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 grower, facilitate tracing back from retail shelves to the farm of the Indian grower, through the various stages of sampling, testing, certification and packing. through the various stages of sampling, testing, certification and packing. GrapeNet features Direct stakeholders of APEDA are Exporters, Pack houses / processing plants, Laboratories & State Government Departments Direct stakeholders of APEDA are Exporters, Pack houses / processing plants, Laboratories & State Government Departments Farmers are indirect stake holders, through State Agriculture / Horticulture departments Farmers are indirect stake holders, through State Agriculture / Horticulture departments

GrapeNet 25 GrapeNet at

GrapeNet Phytosanitary Certificate (PSC) number S(MAH)2/GR/0000

GrapeNet S(MAH)2/GR/0000

GrapeNet Agmark Certificate Number GEO/GR/09/0000

GrapeNet GEO/GR/09/0000

GrapeNet Agmark Inspection Report ID

GrapeNet

GrapeNet Residure Analysis Report 2/01335/02/0900

GrapeNet 2/01335/02/0900 MH

GrapeNet Residue Analysis Report MH

GrapeNet MH

GrapeNet

Authorised Packer

GrapeNet

Exporter

GrapeNet

Traceability 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

GrapeNet 43 Major 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

GrapeNet 44 Accolades - GrapeNet National Award for E- Governance (Year 2008) E Asia Award (Year 2009)

GrapeNet 45 Further Developments Success in grapes sector encouraged to replicate and set up traceability system for : o Pomegranates (AnarNet) o Organic products (TraceNet) o Peanuts (Peanut.Net) o All fruits & Vegetables (HortiNet – Under development )

GrapeNet 46 Tracenet Coverage Farmers:4.7 lakhs Individual operators:1101 Certification bodies:20 Scope certificates :4064 Transaction certificates:11469 Stakeholders : Farmers, Exporters, Certification bodies, Laboratories

GrapeNet First Traceability system for export of organic products from India implemented at National Level

GrapeNet Tracenet Certificates Scope Certificates Tracenet Certificates

GrapeNet Tracenet Certificates Transaction Certificates

GrapeNet Certificates of Export Peanut.Net Certificates

GrapeNet Stuffing Certificate Peanut.Net Certificates

GrapeNet Certificate of Analysis Peanut.Net Certificates

GrapeNet Overall achievement All mandatory certificates generated before customs which leads to single window certificate ( to the possible extent) Setting up of National MIS for the product Organising the supply chain Assurance to buyers

GrapeNet 54 Future vision Integeration with customs to make a single window certification system with traceability Cover other products in the ambit of traceability

GrapeNet 55