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How to Nip the Growing Problem of Organic Food Fraud in the Bud with a Traceability System

by Matthew Melay on 09-Apr-2018 15:11:25

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Empowered by access to information, modern consumers are becoming increasingly selective about the provenance of foodstuffs. For the growing number of shoppers who believe it’s important to know where our food comes from to make informed decisions, country of origin can signal quality; supporting faster decision making, and serve as a competitive advantage against competitor foodstuffs whose origin is not clear.

Country of origin labelling can have a considerable influence on their consumers’ perception and purchasing decisions. Consumers who are concerned about human and animal rights or environmental impact look to country of origin to ensure their purchase supports economies where higher welfare standards prevail. For other consumers, interest in knowing food’s country of origin may relate to a desire to reduce the carbon footprint associated with produce shipped from farther away than what is available locally. For others, it may be about the desire to support local or national economies, or a belief that domestic brands are more trustworthy and better attuned to consumers’ needs or tastes.

Country of origin is also sometimes used as a proxy measure for quality and safety standards, where certain practices, pesticides or fertilisers are used (or not used) in a country or region. In 2017 there was backlash in the UK against importing US chicken washed in chlorine as part of a post-Brexit transatlantic trade deal, while chlorination is currently prohibited in the EU.

For other consumer sub-cultures such as the foodies, country of origin has more to do with location-based branding and protected designations of origin providing assurances around distinctive local goods. Certain products have a specific quality or characteristics that are due to the geographical environment or local tradition in which they’ve produced, such as Champagne, Roquefort, Chianti and Darjeeling.

Read the Vision33’s ERP solution for Food and Beverage  Manufacturers/Distributors to learn how you can maintain country of origin in  your supply chain through food traceability.

Fact or Fiction?

Complicating matters for consumers is that country of origin labelling on food products has become a somewhat controversial topic in recent years amid “fake foods” scandals. In 2015 Italian extra-virgin olive oil flooding the world’s market shelved was neither Italian nor extra-virgin – or even olive oil in some cases. in 2017 UK grocery retailers came under fire for using controversial “fake farm” names on its own-brand produce and meat, based on believable brand names such as Woodside Farms – in fact, some of these products were not even sourced in the UK but imported from overseas.

It’s not only supermarkets capitalising on deception. Under an EU labelling loophole, UK retailers – including farm shops and local butchers – are entitled to call a meat product ‘British’, even if the meat itself is sourced from abroad if the product has been processed and packed in the UK. It’s not unusual to see ‘Wiltshire’ cured ham that, on closer scrutiny of the label, is made from EU pork – and it can even bear a union flag on the packaging. There is an opportunity for businesses to offer greater value to potential customers that are navigating provenance claims in the marketplace.

Food Traceability As a Competitive Advantage

Country of origin is not a guarantee of food safety: 2013’s horse meat scandal illustrated that if you believe you’re buying a beef lasagne, horsemeat is horsemeat, regardless of where it comes from. Nor does country of origin provide any real certainty about the way livestock has been reared, slaughtered, processed, or packaged. However, country of origin is an important component in food traceability – the ability to track any foodstuff, feed, or food-producing animal through all stages of production, processing and distribution. But with increasing globalisation, products often traverse complex global supply chains to reach consumers, making traceability a technical, logistical, and financial challenge.

Some countries have introduced legal reform, such as the US FDA Country of Origin Labelling (COOL), which mandates specific labelling practices for several “covered commodities”. But private sector traceability initiatives and voluntary quality assurance systems are also emerging, often because of pressure from downstream food retailers, motivated by a justifiable desire to reduce their own risk exposure.

For both distributors and manufacturers, the ability to reliably select products based on country of origin can be a distinct competitive advantage. For example, a company making authentic passata will specify Italian tomatoes in its recipe, rather than Spanish. Or a Mediterranean supermarket may have a strict requirement for apricots grown in Turkey rather than France or Algeria.

A Batch of Reasons to Capture Data

Whether meeting regulations or requirements, an effective traceability system is at the heart of solving the country of origin conundrum. A modern, fit-for-purpose food traceability system should enable every single pallet, case or item to tell its story wherever it goes, at any point in the supply chain – not just provide the bare minimum of ‘one step back, one step forward’ visibility.

Batch attributes a standard feature supported by Produmex Food & Beverage for SAP Business One are of vital importance for any food business that must manage and track information such as country of origin, GM status and farm, which can then be used to provide documented evidence to customers and supply chain partners. While system users via RF mobile devices can capture a purchased product’s country of origin now of receipt, recorded at the item batch/lot level. This data is available from the point of receipt, through one or more production activities, packaging, movement through the warehouse and as part of each shipment to the customer.

In the digital era, traceability of origin is highly feasible using an industry focused solution such as Vision33’s ERP solution for Food and Beverage Manufacturers/Distributors. The solution offers an opportunity for food industry enterprises to differentiate and position their businesses at the forefront of the market. To learn more about how Vision33’s ERP solution for Food and Beverage Manufacturers/Distributors supports country of origin, read the solution brochure.

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