Dr Heiner Lehr Other e-traceability systems

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1 Dr Heiner Lehr Other e-traceability systems

2 Europe Wine, Water, Honey 2

3 Europe Compliance management automation 3

4 UK Centre of Excellence for AIDC 4

5 World - Precision Livestock Farming 5

6 Indonesia shrimp traceability 6

7 Inclusion of smallholders Project concentrated on the inclusion of smallholders into the traceability effort FoodReg designed an innovative system based on pre-printed labels The system establishes the product flow It requires no writing at all Date is optional System was implemented successfully in Indonesia 7

8 Bartolomé Canyelles Spain HACCP & traceability Spain grease & flour traceability for animal feed Spain health examinations 8

9 Vietnam: aquaculture traceability 9

10 Verified traceability data TraceVerified uses FoodReg to build a traceability system for Vietnam System offered by laboratory company Added value: verification of traceability data Origin and process data available to buyers in Europe 10

11 Traceability part of a marketing project for olive oil from Palestine Production costs extremely high due to Micro-orchards, lay farmers and inconsistent processing Lack of irrigation Inconsistent product and supply quality However, good Palestinian oil is a sought-after product As a result, Palestinian oil has a chance as a luxury product Traceability used for story-telling Link back to individual villages with their weaving pattern Palestinian olive oil 11

12 GREECE NATIONAL TRACEABILITY PROJECT (ESIT) Main purpose Promotion of Greek products (origin traceability) Several chains Olives and olive oil Feta cheese Peach puree And other chains 25 pilot users RFID integration Started November

13 Sustainability performance monitoring Sustainability meter 13

14 A very simple example Transport Field Fertilizer Quantity Fertilisation Conversion to kg CO 2 Agricultural practices In more complex examples, the software distributes the GHG emissions according to e.g. energy value of all (by-)products, rules established by the EU RED or by standards such as ISCC. The algorithms can be as complex as required and can provide different views, e.g. for clients Packaging requiring a particular calculation method or for certifications according to a particular standard. Fertilisation Operational level Category level Farm 10 Farm 11 Mill 56 Refinery Transporter Organisational level Transport Agricultural practices Packaging Category level Carbon meter showing up to date carbon footprint of whole operation and savings with respect to fossil fuels 14 Company level

15 Processing plant Z Oil mil B Headquarters Machine-machine interface Data capture directly through mobile platforms Data capture through browser Integration with existing systems Business unit A SLAVE for fastest performance Hierarchical consolidation on different levels Transparent synchronisation Centralised data storage Collection, Group/Entity consolidation and reporting Master system 15

16 Dashboard Headquarters dashboard User: Audrey Yong Last access: 12/03/2013 8:39h GMT+10 English Main changes since Map view List view Location: Rotterdam, Netherlands 12/02/2013 8:39h 11/03 Rotterdam: +7% water 11/03 3 minor accidents (multiple sites) 12/03 Durban: OSH audit 12/03 15 minor incidences (multiple sites) Last week s changes Last month s changes Water CO2e Waste Top 5 Water usage reduction Worst 5 # Team Acc. Delays 1 Durban 3.75% 2 Rotterdam 3.19% 3 Kuala Lumpur 2.03% 4 Jebel Ali 1.99% 5 Heppenheim 0.56% 16

17 CASE STUDY: PALM OIL 17

18 Margarine a truly complex product Hardstock Palm Kernel oil Palm stearin Refinery Refinery Crusher plant Oil mill Plantation Rapeseed oil Refinery Collector Farm? Margarine producer Sunflower oil Refinery Collectors Farms On spot 18

19 Challenges in the supply chain Rapeseed silos hold material from 80 farmers Rapeseed oil production is continuous process with batch sizes of 3-6 months Equivalent to about 2,500 truckloads of rapeseed, potentially from different suppliers and different silos Crude rapeseed oil is stored in silo but at the moment of refining, freshly crushed oil can be mixed with oil from crude oil silo Sunflower oil is partially bought on the spot market no data at all Crude oil is transported by ship from three different collection silos with hundreds of farmers delivering to each silo No unique identification of anything. A few SSCCs here and there. Governance? Who owns the data? 19

20 Palm oil sustainability Extremely efficient oil plant, also apt for biodiesel Commodity ingredient for many food (and non-food) products Margarine and spreads Cooking oil(s) for home and industrial use Bakery products Sweets and cocoa replacement But: commercial forest utilisation needs to be done sustainably Main issues Conservation of endangered species and landscapes (in particular peat) GHG emissions, land use and forest burning Indigenous rights Result: New EU regulation for biofuels puts palm oil under pressure Most food companies don t use the name palm oil on their ingredient list Consumer (representatives) very concerned with the replacement of ingredients by palm oil derivatives (e.g. chocolate) 20

21 The Roundtable for Sustainable Palm Oil Established in 2004 as a multi-stakeholder association Initial cooperation between Aarhus United UK Ltd, Migros, Malaysian Palm Oil Association and Unilever together with WWF starting in 2001 Standard setting organisation (ca. 750 members) Sustainable palm oil production (206 mills) Sustainable supply chain certification (621 facilities) Three supply chain mechanisms Certificate trading with no link to the origin Mass balance ( green in, green out ) chain of custody type system Segregation with batch level traceability Currently uses electronic transaction system by UTZ Certified Monitor sustainable volumes traded Ensure buyers that volumes purchased are certified Src: rspo.org 21

22 Palm oil/biodiesel supply chain Nursery Estate * RDBPO FFB * Mill * CPO Palm kernels * Crusher plant PKO supply chain - Personal hygiene - Fatty alcohols/esters * Transport Biodiesel plant * Refinery PO supply chain - Consumer goods - Chemical industry * Biodiesel supply chain - Biodiesel for vehicles - Energy Bulking facilities Shipping 22

23 Adoption Adoption of the standard and supply chain mechanisms is progressing Certificate trading is subject to greenwashing criticism Traceability system is being studied and might be replaced RSPO is under pressure from other emerging standards North-South conflict and perceived unfairness of cost distribution Src: RSPO Annual Communication of Progress

24 Engagement with stakeholders Src: FoodReg 24

25 Learnings from the RSPO Industrial food production is complex Communication of sustainability is complex, too Making sustainability information available is a long term project Chain food information requires collaboration by all Layered model allows for basic control and value creation, but leaves space for individual companies to differentiate themselves on the market 25

26 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. 26

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