Taking digital traceability seriously
The agri-food industry comprises intricate supply chains encompassing organisations, individuals, data, and resources. While supply chains offer substantial benefits, they also introduce inherent risks. In response to these challenges, digital traceability emerges as a potent solution, capable of eliminating human errors and enabling precise product tracking. Traceability involves the systematic identification and tracing of a product’s history, location, distribution, and application. Digital traceability offers a multitude of benefits, particularly in mitigating risks associated with the agri-food industry, such as ensuring swift corrective actions to address issues related to food safety and fraud. Additionally, traceability systems optimise resource utilisation, promoting sustainability and cost-efficiency, aligning with the United Nations’ (UN) Sustainable Development Goals, which emphasise sustainability within supply chains.
Contemporary consumers are increasingly vocal about their desire for greater transparency in the food supply chain. The EIT Food Trust Report of 2020,4 based on a survey of 20,000 consumers across 18 European countries, underscores this demand for transparency from farm to market, natural product sourcing, and enhanced product labelling. As the world advances into an era of artificial intelligence and advanced technologies, the future of industries, including agriculture, hinges on the universal integration of digital systems encompassing data collection, sharing, authentication, and storage.
Scrutinising the impact of government regulations
Considering the above, a recent study by Dalhousie University in Canada,5 sponsored by the World Bank, embarked on a comprehensive analysis and comparative examination of traceability regulations, information dissemination, stakeholder collaboration, and regulatory frameworks concerning agri-food products within the member countries of the Organisation for Economic Co-operation and Development (OECD). Largely inspired by Charlebois et al,6 a pivotal objective of this research is to scrutinise the influence of government regulations on the adoption and integration of digital traceability systems within the agri-food industry, encompassing an exploration of how national regulations shape the trajectory of digital traceability. The study also endeavours to develop an encompassing analytical framework for categorising and evaluating OECD member countries based on their unique implementations of digital traceability, facilitating cross‑country comparisons, and yielding valuable insights. Ultimately, this research aims to provide pragmatic recommendations and insights tailored to policymakers, businesses, and other stakeholders in the agri-food supply chain, facilitating the effective implementation of digital traceability systems while addressing any identified challenges.
Setting a gold standard
In the evolving landscape of food safety and traceability, the European Union (EU) has emerged as a trailblazer, setting the gold standard for regulatory frameworks. Its comprehensive traceability regulations not only uphold the integrity of food products but also provide consumers with the assurance they need. With meticulous implementation and continuous monitoring, the EU has created a model that ensures transparency and accountability throughout the agri‑food supply chain. As a result, all OECD countries affiliated with the EU have diligently adhered to these stringent rules and have also introduced electronic databases to bolster transparency in the industry.
The success story of digital traceability is not confined to the EU alone. Across the Atlantic, both Canada and the US have made significant strides in implementing traceability systems. Canada’s focus on livestock movement traceability has resulted in the effective tracking of beef cattle, bison, sheep, and goats along the entire food supply chain. Meanwhile, the US, with its stringent requirements for ear tags and comprehensive Food and Drug Administration (FDA) registration, has fortified its traceability efforts. These North American countries have rightfully earned a ‘Superior’ ranking for their unwavering commitment to digital traceability.
Australia, too, has proven itself as a frontrunner in traceability regulations. Its National Livestock Identification System database and adherence to the Standard Australia New Zealand Food Standards Code – Standard 1.2.1 exemplify its dedication to ensuring that both domestically produced and imported foods meet rigorous requirements. This ‘Superior’ ranking is well-deserved.
In contrast, New Zealand, while sharing some similarities with Australia’s approach, has not quite reached the same level of traceability, meriting an ‘Average’ ranking. Japan, with its array of traceability laws and innovative initiatives like the Edomae Fish Passport Fair, strives for excellence but faces some challenges in fully realising its traceability potential, earning an ‘Average’ ranking.
Chile and Colombia, however, find themselves trailing in the pursuit of digital traceability, each restricted to specific food sectors. Chile’s focus on shellfish and Colombia’s emphasis on coffee leave them with room for improvement, resulting in a ‘Poor’ ranking. As for Costa Rica, a lack of sufficient data hampers our ability to gauge its progress in digital traceability, warranting an ‘Insufficient Data’ ranking.
Keeping an ear to the ground
While this study provides valuable insights into the digital traceability landscape, it is vital to recognise its limitations. Relying primarily on official reports from organisations and government agencies has its constraints, particularly in countries with limited information access. The absence of primary data sources, such as surveys or interviews with farmers and regulatory authorities, highlights the need for future research to employ more diverse methodologies, including quantitative analyses and primary data collection.
As we move forward, future research endeavours should extend their focus to encompass developing and low‑income countries in Asia and South America. Moreover, embracing a holistic approach that examines not only the benefits but also the potential drawbacks of digital traceability is essential. This includes assessing its impact on farmers’ livelihoods, privacy concerns, job displacement, and other unforeseen consequences. Such a comprehensive understanding is imperative to equip all supply chain actors with the knowledge and insights needed to navigate the transformative journey that digital traceability promises.
The digital traceability landscape is evolving rapidly, with technological advancements poised to revolutionise agri-food supply chains. As countries continue to enhance their traceability systems and embrace automation, the path ahead promises increased efficiency, transparency, and safety for all stakeholders. The collaborative efforts of governments, regulatory bodies, and industry players will undoubtedly shape the future of food safety and traceability, ensuring that consumers can trust the integrity of the products they consume.
