Dr Heiner Lehrheiner@syntesa.eu

Findings from the field: shrimp2

Supply chain

Farm

Primary middleman

Secondary middleman

ProcessorExporter

Nursery

Hatchery

Farm InputDistributor

Feed productionchain

Importer

Local market

Broodstocksupplier

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In-depth study in the Ben Tre province

• Black tiger (and now vannamei) shrimp are an important part of Ben Tre’seconomy

• All shrimp operations known to local competent authority (district)

• General understanding and use of paperwork was good.

• Understanding of traceability good, but limited to seafood.

– Other inputs or outputs were not understood to be part of the traceability requirements

• (Large) processors have developed own traceability system

• Traceability usually up to pond possible

– Most processors require strict segregation from their supply chain

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Are middlemen a necessity?

• Middlemen are not traders, they handle the material

• No double handling was observed (no primary middlemen)

• Food safety standards generally not impressive

• Added value

– Concentration of small supply sources

– Ripening

• Shortening the supply chain will lead to further concentration of business

– Elimination of smallholders (a good, socially and economically sustainable model)

– But: more difficult to control

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• Uncontrolled mixing occurs at small middlemen– Essential breaking point of the information chain

• Smallholders not part of the traceability effort– Small middlemen use rudimentary (tax related) records and hand out

receipts

• Electronic data capture not realistic

6

Key Traceability Issues

• Integration of smallholders into the traceability effort

• Understanding that all inputs and outputs are part of the traceability system

SeafoodAgricultural

producePharmaceuticals

Feed

Consumption

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Findings from the field: pangasius8

Supply chain

Farm

ProcessorExporter

Nursery

Hatchery

Farm InputDistributor

Feed productionchain

Importer

Local market

Broodstocksupplier

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In-depth study in the An Giang province

• Pangasius (tra and basa) is an important part of An Giang’s economy

• Only 200 out of approx 5-6000 operations are know to local CA

• General understanding and use of paperwork was good

• Understanding of traceability good, but mostly limited to seafood.

– Other inputs or outputs were generally not understood to be part of the traceability requirements

• Processors have developed own traceability system(s)

• Traceability usually up to pond possible

– Processors practice strict segregation and require the same from their supply chain

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An Giang

• Farms never as small, because of capital intensive business

• Usually very simple chains (1 supplier => 1 customer)

• Very professional operations

– Good food safety standards

– Good traceability

– Many companies certified (multiple standards)

• Electronic data capture easier, but still not realistic at farm or earlier

11

Key Traceability Issues

• Registration of FBOs

• Understanding that all inputs and outputs are part of the traceability system

SeafoodAgricultural

producePharmaceuticals

Feed

Consumption

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ANALYSIS

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Focus of assessment

• When trying to develop a traceability system, the best way to start is choosing a traceability (industry) standard

• After careful analysis, we chose to look at TraceFish

• TraceFish is probably the most successful fish traceability standard

– TraceFish is basis for ISO/CD 12875 and ISO/CD 12877

– Generalised into the TraceFood framework, see www.foodtraceability.eu

• TraceFish is built on the following elements

– Unique identification of locations, trade units and logistics units (GS1)

– Unique identification of fish species using the FAO list of species

– Clear instructions what data shall, should or may be recorded

• TraceFish was developed in Europe, a major market for pangasius

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Using TraceFish as a traceablity standard

For a first step implementation of electronic traceability in Vietnam, TraceFishseems too complicated and detailed. Internal procedures can be based on it, but not mandatory data. Not apt for smallholders.

15

Using GS1 as an identification provider

• GS1 is a global supplier of identification products for

– Trade units (product types and instances)

– Locations

– Logistic units

• GS1 is a recognised Issuing Agency under ISO15459

• GS1 is a not-for-profit membership organisation, strong in retail.

• New services, such as EPCIS could be the future standard for exchanging traceability information

• GS1 clearly is an important player

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• In Vietnam, out of 500+k fish business operators, 480k are micro-enterprises

• GS1 Vietnam has about 60,000 members in total 17

Are GS1’s identifiers apt for Vietnam?

• GS1 is a membership organisation

– FBOs have to individually sign up to GS1

– A membership fee is charged annually

• GS1 has very little following in the primary production sector

• Sign-up of all food and feed operations doesn’t seem realistic

• There are ISO15459 registered alternatives, such as the RGCode

"RG Code 8" -- non-significant RG-ID code, 8 characters for issuer name

Field Name Length Total permutations Description

IAC 2 1.296 RG

TYPE 1 36 8

ISSUER 8 2.821.109.907.456 Identifies the node and user of issuer

SUB-ID Variable (min 1)

Length optional (leading zeros ignored)

CRC 1 36 Error control

Minimum length 13 Maximum length 35

Example: RG8-COMPANY1-cc...cc-C

Note 1:

The RG-ID is defined by this code, but might be preceded by a Data Identifier for informative purposes (and ISO 15394 compatibility)

Note 2: The CRC is for error control, and is not an essential part of the RG-ID

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Recommendations for identifiers

• No traceability system should be linked intimately to one particular identification standard. All ISO15459 accepted numbering systems must be acceptable to a traceability system.

• It is not feasible to ask individual smallholders to become GS1 members just to get a company prefix

• It is not correct to make the provincial DARD office become a GS1 entity and bar all other entities in the province from using the full range of GS1’s products. If the products of GS1 shall be used, the whole range must be available

• RGCodes constitute an alternative for GS1 codes. RGCodes do not count with the organisation of GS1 and its services, nor do they count with the support of large retailers. However, for early stages in the supply chain this could be an excellent alternative.

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Information architecture under first attempt

• Full electronic system, based heavily on GS1’s identifiers

– For client side, use of mobile phones and PCs

– Backbone: own development linked to GS1’s GEPIR

• Centralised database

– Other architectures better suited for traceability systems

– System was never put into place

• Main challenge: fully electronic system is not realistic

– Field findings: many even small operations have computers and internet

– However, smallholders don’t

– Data capture not fully understood, much less if electronic

– No pressure from importers

• We believe that a mixed paper/electronic system is better for Vietnam

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SMALLHOLDER TRACEABILITY

Proposal for a system for

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Designing a traceability system for smallholders

• A smallholder traceability system has to take notice of the following:

– It needs to be as simple as possible and therefore limited in scope

– It needs to be easily transportable into an electronic medium for monitoring purposes

– It needs to be affordable and practical for all steps in the supply chain

– It needs to be compliant with local and international regulations

• The purpose of the traceability should be mainly to establish the product flow (e.g. for a product recall)

• Non-essential data, e.g. data on quality checks, samples and other data, is considered a voluntary addition to the product flow data

• Make information electronic at processor

– Larger organisations

– IT capabilities

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Introduction

The proposed system consists of

• A globally unique traceability code (T-code)

• A pre-printed traceability label which is distributed to all FBOs, initially free of charge at least for smaller enterprises

• A traceability (paper) form which relates inputs to outputs and which travels with the goods

2 090304 BT20A2 TOther markings in hand

FAQUIMEX - BA LAI AQUAPRODUCT PROCESSING PLANT

trace.mard.gov.vn

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Breadth and depth of the traceability system

• The purpose of the traceability system is mainly to establish the product flow (e.g. for a product recall)

• Non-essential data, e.g. data on quality checks, samples and other data, is considered a voluntary addition to the product flow data

• It is of interest to record quantities of product

– Enables mass balance and => control over COOL labelling.

– However now a secondary goal and should not be enforced.

• The traceability system applies primarily to

– Grow-out

– Input providers (feed and medicines)

– Middlemen, where present

– Processors

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Registration with CA

Farm

Farm

Middleman Processor Exporter

25

Our proposal: the T-code

Element Base Example Elements in base

Possible combinations

Remarks

IAC 2 [A-Z,0-9]{0,3} RG 36 1296 ISO15459 registered IA

Code type 1 [0-9] 8 10 10

Country 2 [A-Z]{2} VN 26 676 2 digit ISO code for country

Province 2 [A-Z]{2} BT 26 676

District 1 [A-Z,0-9] A 36 36

Business site

3 [A-Z,0-9]{3} W2A 36 46656

Location 2 [A-Z,0-9]{2} A1 36 1296 00 if undetermined, 01 if single location

Serial 3 [A-Z,0-9]{3} 2DG 36 46656 Equivalent to over 120 years of daily operation per location

Check digit 1 [A-Z,0-9] 0 36 36

Total length 17 Example RG8-VNBTAW2A-A1-2DG-0

RG8-VNBTAW2A-A1-2DG-0

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Properties of the T-code

• Globally unique thanks to using an ‘RG’ code

• Traceability features

– Designates country in clear letters => basis for a COOL labelling

– Designates the province in clear letters, e.g. BT = Ben Tre. This will help client to locate their supplier on the map.

– Designates the district by a lookup code. The district is of less importance and less well known at the import end.

– Designates the business site by a lookup code. The business site receives a short code which interested parties should be able to look up from an internet resource. In any case, without accessing any electronic system they can check if the source varies or not between shipments

– A serial code for basic timeline; can help to establish a control of the FIFO system of the supplier

– Basic anti-counterfeiting with serial code and check digit

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The traceability label

2 090304 BT20A2 T

Other markings in hand

FAQUIMEX - BA LAI AQUAPRODUCT PROCESSING PLANT

trace.mard.gov.vn

More information here

Two detachable sub-labels

Code-128 barcode for automated registration

QR code for mobile phones points to web

Clear print code for manual registration

Clear printed name of owner of label

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Properties of the T-label

• The traceability label is designed so that it can be attached to physical goods (the big label), but its two “peel-off” sub-labels are used in combination with paper work.

• The barcodes will serve two purposes

– Efficiency: Facilitate the electronic capture of traceability data

– Marketing: Project an image of high professionalism of the Vietnamese fish sector

• Labels will be pre-printed and distributed upon registration

– Initially free of charge (at least for smaller operations)

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The Traceability form

VIETNAM Food Traceability FormData entry:

Internet: trace.mard.govSMS: download from trace.mard.gov

Out In

Despatch date:

Two differently coloured areas for inputs and outputs

Space to paste detach T-label

Date (optional)

Link to more info

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Properties of the traceability form

• Requires no writing at all!

– Date is optional

• Maps outputs to inputs in a very intuitive way

• Supports a very simple way to handle mixing

• Is supposed to travel with the goods (as original or as copy)

• Is the minimal expression of traceability

• Other information should be recorded (=>TraceFish) if the enterprise can afford or understands it

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When Supplier Receives a batch of prawn from farmer

Big sticker –stick on physical product

Supplier

Reception by Supplier

Prawn and records from Framer

Sizing

Prawn and records from Supplier

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When Processor Receives a batch of prawn from Supplier

Big sticker –stick on physical product

Processor

Scan T-code stickers with scanner

Reception by Processor

Prawn and records from Supplier

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When Buyer Receives a batch of prawn from Processor

Big sticker –stick on physical product

Buyer

Scan T-code stickers with scanner

Reception by Buyer

Frozen prawn and records from Processor

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How to operate the traceability system

• Processors are the caretakers of the traceability information

• Processors can use the traceability form exactly in the same way as middlemen

• When mixing, apply a new label

• Gain a standardised way to identify batches even for mixed raw materials

• Information will be entered to electronic traceability monitoring system

– With barcode reader for speedier data capture or manually

• Label has information linked to it => Importer can look up information

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Other information

• This system only establishes the product flow

• All enterprises should keep in due course information according to the TraceFish standard (see our own recommendations which data are to be kept)

• Note that this system is product neutral!

– Product type can be established in electronic monitoring system

– Product type not essential to establish its flow

• However, as a first step this is very good

– Product flow clear

– Allows basic monitoring, especially when getting farm input providers on board

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Electronic Monitoring System

Farm

Trader

ProcessorExporter

Hatchery

Nursery

Farm InputDistributor

Importer

37

Electronic Traceability Monitoring System

• Purpose

– Increase speed of recalls

– Increase possibility of early disease detection

– Answer requests from importing nations or even importers

– Project an image of professionalism that reflects correctly the status of Vietnam’s seafood production

• This system should have the following users

– Relevant government officers from the local and the central competent authorities

– Importers

– Consumers

– Other stakeholders

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Services of the traceability system

• Provide simple traceability information

• Provide map view of origin and supply chain

• Government officials can post health certificates (export)

• Importers can check with mobile phone (QR Code) upon reception

• They can choose to provide the label/information to their customers

39

Scan T-codes into the traceability system

Big sticker –stick on physical product

40

Scan T-codes into the traceability system

Big sticker –stick on physical product

41

PROCESSORS

Electronic traceability for

42

Data entry

• Processors are named “caretakers” of the traceability system

• Processors are the latest step when traceability information has to be entered into electronic system

• Barcodes reduce the workload of data entry

• Processors can “outsource” data entry to their supply chain

– Middlemen and farmers gain a small premium

– Proliferation of electronic data capture over time

• The electronic traceability system will accept data entry by

– Computer with internet connection and a standard browser

– Mobile phone through a GPRS/3G connection

– Mobile phone through free application (via SMS)

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Traceability system for processors

Traceability records for Processor

Reception

Primary Material

Secondary Material

Process

Despatch

Prawn

Flour Cooking Oil

Tempura Prawn

44

1. Reception of raw materials

T-code from supplier (Prawn)

45

1. Reception of raw materials

46

2. Reception of Secondary Material & Primary Packaging

T-code for Flour

T-code for Cooking Oil

47

2. Reception of Secondary Material & Primary Packaging (continue)

48

3. Process

T-code fromsupplier (Prawn)

T-code forFlour

T-code forProduct (Tempura Prawn)

T-code for Cooking Oil

49

3. Process (continue)

50

4. Despatch

T-code forProduct (Tempura Prawn)

51

4. Despatch (continue)

52

Search for Despatch Record

53

Trace Backward

54

Trace and track

• T-Code of material received

Reception of Material

• Input: T-Code of material received

• Output: T-Code for Product

Process• T-Code for

product

Despatch

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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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