Electronic traceability initiatives and smallholder integration in Bangladesh : Challenges and opportunities

Electronic traceability initiatives and
smallholder integration in Bangladesh
: Challenges and opportunities
Dr. Md. Kamal, National Expert,
BEST-BFQ, UNIDO
Shrimp farms
Black tiger of Bangladesh
DRESSING THE SHRIMP
What is traceability?
• Traceability’ means the ability to trace and follow a food,
feed, food-producing animal or substance intended to be, or
expected to be incorporated into a food or feed, through all
stages of production, processing and distribution (Regulation
(EC) N° 178/2002).
• The International Standardization Organization (ISO)
considers it to be “the ability to trace the history, application
or location of that which is under consideration” and “when
considering a product, traceability can relate to the origin of
materials and parts, the processing history, and the
distribution
and
location
of
the
product
after
delivery”(Petersen 2004).
THE PROBLEM
• To ensure continuing access to export markets for
Bangladesh seafood, and in particular to the EU
(EC Regulation N° 178/2002), Bangladesh needed
a proven traceability system.
• It is particularly difficult in Bangladesh and other
similar shrimp exporting countries, due to the
large number of very small suppliers and a
complex and irregular system of intermediaries.
Many sources for a single product
Possibility 1
Many sources –
1 product
source
source
source
Process/
product
source
Single source for a single product
Possibility 2
1 source – 1 product
source
Process/
product
Single source for many products
Possibility 3
1 source – various
products
source
Process/
product
Process/
product
Process/
product
What should be recommended traceability systems
in shrimp value chains in Bangladesh?
• There is little or no possibility to produce one
product or many products from one source of
raw materials . In this situation it is difficult to
establish traceability system from single pond
to single product.
• Is there any possibility of developing the
system through zoning of shrimp area?
Is zoning solution?
Monirampur (4642)
Ovoynagar
Jalalabad processing
industry
Keya Fishing
(6200)
Dumoria (8775)
Rupsa (2159)
Phultala (6985)
28,761 farms will be associated
Option for recommended traceability systems
in shrimp value chains in Bangladesh
• The only possibility is to develop area
coding system for the farms and bring all
the farms under registration.
• This is very similar to the European dairy
traceability system
Gher Registration with Code. no.
01
02
03
04
06
05
07
08
09
10
Depot
Record the farm code
of collected shrimp
(01-10)
Record receiving in
processing plants
License no.
Record product
information
Recommended Traceability System in Shrimp Value Chain
Depots
Processing Industry(270)
Products(01.05.09-S1-270)
in value chain of three upazillas
• Tested
Table: Registration of Shrimp and Prawn
District
Khulna
Satkhira
Bagerhat
Jessore
Narail
Gopalgonj
Chittagong
Cox,s Bazar
Barisal
Jhalokati
Barguna
Firozpur
Bhola
Patuakhali
Bagda (P. monodon)
No. of
gher
20616
33285
30047
954
0
0
204
4358
0
0
0
0
0
1317
Area (ha)
35850.62
58679.9
46923
825
0
0
1948.04
62907
0
0
0
0
0
5323
Avge size
(ha)
1.74
1.76
1.56
0.86
0.00
0.00
8.65
15.20
0.00
0.00
0.00
0.00
0.00
2.04
90,781
(A)
212,456
4.544
Galda (M.rosenbergii)
No. of
Area (ha) Avge size
gher
(ha)
29515
13005.99
0.44
7753
7202.51
0.93
37855
18023
0.48
14070
14479
1.03
5158
2198
0.43
3494
1339.52
0.36
0
0
0.00
0
0
0.00
623
623
1.00
117
32.52
0.28
1111
225.73
0.20
3448
1557.93
0.45
96
43.65
0.45
0
0
0.00
103,240 58,730.85
0.55
(B)
Total (A+B)= 194021
Traceability Training
Trainees
2007 2008 2009 2010
Farmers
779
5310 3715 3
Depots
61
754
510
Industries
---
94
Ice
Factories
----
DoF
Officials
----
2011 2012 Total
348
175
10330
114
53
35
1527
58
-
96
13
231
--
48
10
12
13
83
308
293
51
94
746
Processors
----- 222
187
Workshop/
Meeting
----
192
419
Grand
Total
840
6880 5230 127
409
560
66
677
396
14033
Government Role
• GOB approved the Traceability
Framework and ordered for
countrywide implementation.
• About 95% farms were already
registered.
• All the shrimp processing plants
started traceability system
• FVO mission during their last
visit acknowledged the
traceability system in place.
EU food hygiene inspectors
Verifying the system
Training Trainers
Training farmers
Success!
Reflection
• Visited most of the industries in Khulna and Chittagong area and
evaluated traceability.
• The result is really very good. Most of industries have their own
supply chain and they have records of depot licence and farm’s
registration number.
• After receiving shrimp from suppliers/depots industry people
prepare traceability documents such as farm and depot information
in prescribed forms since they know their farmer’s registration
numbers and depot licence numbers.
• Visited many depots and farms in Satkhira, Khulna, Bagerhat and
Cox’s Bazar region.
• The farmers and depot owners do not keep traceability documents
and they do not feel any obligation of keeping traceability
documentation since monitoring from LCAs or FIQC is more or less
absent
27
Constraint to implement traceability
• inadequate manpower in SUFO/UFO office and they are also busy with many
other activities;
• poor official control of FIQC and LCAs on farm and depot activities due to
shortage of manpower;
• inadequate logistic support for enforcement in depots/auction centers in
case of any violation of law;
• large number of farms in a upazilla where official control from the LCA is
difficult;
• very long and complicated shrimp value chain and sometimes information
obtained are not reliable;
• majority of shrimp farmers still not yet received traceability training;
• many depots are still out of licensing system because they are functioning
seasonally and their activities are not visible round the year;
• more than 20-30% farmers do not know how to read and write and they are
reluctant to fill up farm information forms and maintain it while selling their
raw materials to depots/auction centers and
• distance of farms areas from depots/auction vcenters and many farmers sell
their catch to farias (middlemen) who normally do not keep records of raw
materials collected from farmers.
Piloting of Computer Based Traceability
• BEST-BFQ, UNIDO has a plan to start E-traceability in
shrimp value chain, initially in pilot scale jointly together
with DOF and BFFEA.
• In the meantime, two workshops on developing models of
electronic traceability system for shrimp value chain of
Bangladesh were organized by BEST-BFQ, UNIDO.
• Mr. Reinhard Pichler, International Consultant presented
concept note and models of different approaches of
electronic traceability with their advantages and
disadvantages in shrimp value chain of Bangladesh;
• A framework for computer based traceability was already
developed
Goals
• The project goal is to have a computer based traceability system for the
shrimp farms, depots/auction center and the associated processing industry
– Centralized data storage and online analysis tools by a central data base
system
– Person-independent organizational structures by standardizes processes
and applications.
– Optimization of collection and receiving of shrimps.
– Better quality monitoring along with complete traceability of the
product and data capturing of Quality Management data
– Paperless Food safety management System in place by digital archiving
functions
– Savings in administration through elimination of double data entries
and more flexible labour
– Reduction of internal and external logistics costs in the areas of product
labelling and picking through improved performance and reliability
Existing Situation
Pure paper based documentation and lot of
papers need to keep
Reluctant of farmers in documenting farm
information
Poor official control on the supply chain
Data manipulation is possible
 Poor on time information
Pros & Cons of Systems
advantages
Paper
based
-
cheap
fast in implementation
no hard ware required
Digital
-
continuous control
fast information (information got by
pressing a button)
link to LIMS possible (Laboratory
information system – export certificates
can be printed automatically)
Manipulation not possible
simple handling
good control at any time
continuous information on quantity
statistics possible
-
-
Disadvantages
-
Not good control
very slow system
paper can be lost
paper can be changed after filling
much paper after some years
-
expensive
complex installation
annual maintenance cost
Possibilities
Approach
Computer based integration
Farm
1: Chip- or barcode cards
to all farmers and hand
hold devices for auction
centers; for depots
desktop computers.
2: paper based recording
and electronically
registration only at
industry level
3: Business card on farm
level, hand hold devices
for the depots
4: Business cards on the
farmer level and mobile
devices for Auction
Centers, Depots and the
Industry
No
No
No
No
Auction
Center
Yes
No
No
Yes
Depot
Yes
No
Yes
Yes
Advantages
Disadvantages
Industry
yes
yes
Yes
Yes
Maximum number of
computer based data
capturing.
Possibility checks on the
traceability system
possible (to evaluate
potential miss-use).
Reliable IT
infrastructure at the
depots necessary
 Very cost
intense solution
Very simple and low cost
solution.
Not reliable and not
online information
available.
Reduces number of
computer based data
capturing.
Information gap on
the auction center
level.
Highest degree of
flexibility
Two applications on
a single device
needed (collect and
supply).
Process steps
Farmer
Shrimp Farming (no System integration)
Farmer Registration
Depot
At the depot the operator scans the source
tag and the target bin where he puts the
shrimps in. He can scan multiple bins. He
can select the quantity per bin if needed.
The Ice-Lot Numbers can be captured as
well.





Bin#
Quantity of Shrimps
Supplier# (= Farmer#)
Depot#
Ice-Lot#
Auction
Centre
At the auction center the operator scans
the source tag and the target bin where he
puts the shrimps in. He can scan multiple
bins. He can select the quantity per bin if
needed. The Ice-Lot Numbers can be
captured as well.





Bin#
Quantity of Shrimps
Supplier# (= Farmer#)
Auction Center #
Ice-Lot#
Process steps
Receiving
The Product will be received by scanning the 
external label or if this is not possible by creating a 
new label with an EAN128 barcode. This Product 
will store into the dry inventory.
Shrimp
As the shrimps are already merged into Lots and labels 
Receiving and are printed, the shrimp receiving can be done by
Sorting
scanning.
OPTION: if needed, the lot information can be sent from
the depot before the delivery arrives at the factory.
Therewith the factory knows the expected delivery and
can adjust the production base on the planning figures
even more just in time.
In the case where the farmer delivers the shrimps directly
to the factory, the process will be the same as for the
depots and the auction centers.
While receiving a shrimp sorting according grade and size
happens at the same time.
Supplier Lot#
item information
delivery
information
Shrimp Lot number
per item per delivery
(barcoded on label
for scanning)
Process steps
Grading
The shrimp grading process needs 
to be discussed in more detail.
Shop floor integration capabilities
can be provided at any level of
detail. Grading equipment could be
integrated directly into the system.
In a first step a simple grading
module can be used so the grading
information can be attached to the
lot.
Panning
No system integration
Freezing
For product costing purposes n/a
the freezing process can be
integrated into the system
based process.
Batch number/lot
number (barcoded on
label for scanning and
grading information
n/a
Process steps
Production
Exit
Once the lot exits production a  Production Batch
production lot can be created. This
number/lot number
production lot is directly linked to all
(barcoded on label for
shrimp lots and dry lots that where be
scanning)
used.
Order Entry
The order entry process is based on n/a
the planning figures and/or manual
order entry/modification. Specific
Production Lot Numbers could be preassigned if needed (e.g. for export).
Shipping
The shipping process ensured, that a  Shipping/export Lots
certain lot, that is pre-assigned to an  Customer#
order is scanned to this order.
Production Lots could be merged to
shipping/export Lots.
Ice producers
• Only official ice producers are
allowed to deliver ice to the depots
or auction centers
• ice receiver needs to communicate
the ice lots they have been used
R.Pichler / 2012
digital traceability - final
38
Maintenance – Soft- and Hardware
• Software & Hardware Maintenance for the mobile
devices can only be done at the registration points.
• Online Software updates on the devices is not
recommend due to technical knowledge of device
users.
• System Maintenance on the central computer system
can be done remotely or on site by trained
personnel.
R.Pichler / 2012
digital traceability - final
39
Traceability Reporting
• Traceability reporting needs to be the result of the data
capturing. Any entry point for the traceability information
needs to be possible.
• The Track and Trace reporting will be implemented on the
central computer system. It will be possible to search and
select by any parameter such as:
– Date
– Farmer
– Depot
– Auction Center
– Factory
– Cargo
– Customer
Duration
#
1
2
3
4
5
6
7
8
9
10
Phase
Duration in weeks
Dependeces Time Delay
Detailed Concept
8
Partner Determination
12
System Design
12
1
8
Mobile SW Design
12
1
8
Networking and Server Design
8
1
8
Lab Set Up and Tests
12
3, 4, 5
15
Change Management
8
6
27
Local Set Up an Tests
12
7
27
Training and Documentation
8
7
33
Live Run
4
9
41
Total: approximately 45 weeks
0
10
20
Detailed Concept
Partner Determination
System Design
Mobile SW Design
Networking and Server Design
Lab Set Up and Tests
Change Management
Local Set Up an Tests
Training and Documentation
Live Run
R.Pichler / 2012
digital traceability - final
30
40
50
Consequences of timing
• It is absolutely important, that the paper based
traceability system needs to be fully
implemented up to the moment, when a
switch to a digital system on nation-wide basis
can be done
• Current system with controls must go on
R.Pichler / 2012
digital traceability - final
42