1) Traceability systems allow the tracking of goods throughout the supply chain and are important for food safety. They help facilitate recalls and identify production issues. 2) Countries have implemented various traceability systems for food, including the EU, Australia, India, and Uruguay. 3) The Philippines is working to establish traceability systems for its pork industry to meet standards of importing countries and enhance trade. A new meat laboratory in Mindanao supports these efforts.

1. ｱﾊﾞｵﾗﾘｰﾈﾙﾋﾞﾙﾊﾞｵ February 1,
2010
Food Safety Economics かなやま先生
Traceability Systems: The Case of the Philippine Pork Industry
According to Wikipedia, traceability refers to the completeness of the information
about every step in a process chain. It is the ability to chronologically interrelate
uniquely identifiable entities in a way that is verifiable. Also, it is the ability to verify
the history, location, or application of an item by means of documented recorded
identification. In logistics, traceability refers to the capability for tracing goods along
the distribution chain on a batch number or series number basis. Traceability is an
important aspect in the food industry where it contributes to food safety.
In food processing (e.g. meat processing and fresh-produced processing), the term
traceability refers to the recording through means of barcodes or Radio Frequency
Identification (RFID) tags and other tracking media of the movements of product and
the corresponding steps within the production process. This is a critical point in
instances where an issue of contamination arises and a recall is required. Where
traceability has been closely adhered to, it is possible to identify (by precise date/time
and exact location) the goods which must be recalled and which are safe. This could
potentially save millions of dollars in the recall process. Traceability within the food
processing industry is also utilized to identify key high production and quality areas of
a business (versus those of low return) and where points in the production process
may be improved.
In food processing software, traceability systems imply the use of a unique piece of
data (e.g., order date/time or a serialized sequence number, generally through the
use of a barcode/RFID) which can be traced through the entire production flow. The
system links all sections of the business, including suppliers and future sales,
through the supply chain. Messages and files at any point in the system can then be
audited for correctness and completeness, using the traceability software to find the
particular transaction and/or product within the supply chain.
As a result of globalization and international trade, countries all around the world are
implementing traceability systems especially in food processing. In Europe, the
European Union's (EU) General Food Law came into force in 2002, making
traceability compulsory for food and feed operators and requiring those businesses to
implement traceability systems. The EU introduced its Trade Control and Expert
System, or TRACES, in April 2004.1 The system provides a central database to track
movement of animals within the EU and from third countries. Meanwhile, Australia
has its National Livestock Identification System to keep track of livestock from birth to
slaughterhouse.
In India, the country has started taking initiatives for setting up traceability systems at
Government and Corporate levels. Grapenet, an initiative by Agriculture and
Processed Food Products Export Development Authority (APEDA), Ministry of
Commerce, Government of India is an example in this direction. GrapeNet is an
internet-based traceability software system, for monitoring fresh grapes exported
from India to the EU.
1
http://ec.europa.eu/food/food/foodlaw/traceability/factsheet_trace_2007_en.pdf
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2. GrapeNet is a first of its kind initiative in India that has put in place an end-to-end
system for monitoring pesticide residue, achieve product standardization and
facilitate tracing back from pallets to the farm of the Indian grower. These are done
through the various stages of sampling, testing, certification and packing. Grapenet
won the National Award (Gold), in the winners announced for the best e-Governance
initiatives undertaken in India in 2007. It was designed and developed by Logicsoft,
an award-winning traceability solutions company, based in New Delhi, India. In Latin
America, Uruguay has also designed a system called Traceability & Electronic
Information System of the Beef Industry.2 It is expected to be fully developed by this
year.
In the Philippines, food safety and quality has become a necessity especially in its
effort to enhance international trade. Major importing economies like the EU, Japan,
and the United States have imposed strict sanitary and phytosanitary standards for
exporting countries. Because of these, the Philippines is forced to establish a system
for food traceability and certification system on good agricultural practices covering
crop protection, product handling, and chemical use.
In general, the country’s food safety, quality, and traceability systems are currently
underdeveloped. These are due to the following reasons:
• Complexity of food system or supply chain;
• Lack of coordination or cooperation among government agencies and
production sectors;
• Poor application of modern and science-base knowledge and of appropriate
management concepts or practices;
• Ineffective institutional infrastructure;
• Lack of physical infrastructure and suitable facilities; and
• Inadequate human resource capability.
Fortunately, progresses already are being done especially in the pork industry. In
2008, Department of Agriculture (DA) Secretary Arthur C. Yap spearheaded the
opening of the state-of-the-art US$1 million meat laboratory in Polomolok City (in
southern Philippines) as the swine industry stakeholders brace for the country's firs
ever shipment of pork meat products to Singapore. The facility is a big boost to the
livestock industry not just for South Cotabato, but for the whole country as well.
Mindanao has been chosen by the Philippine Government to initiate the country's
pork export since the island has been certified as free from the dreaded foot-and-
mouth disease. Secretary Yap is bullish that pork meat from the Philippines can
penetrate the Asia-Pacific region, starting with Singapore.
Singaporean investors visited the processing plant of Matutum Meat Packing
Corporation and which is also located near the meat laboratory in Barangay
Glamang. They had evaluated the facilities of hog farms, farm inspection system
implemented by the government, good husbandry practices, cleaning, disinfecting,
biosecurity measures and the animal traceability.
2
http://www.inac.gub.uy/innovanet.
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3. The laboratory's establishment has the full support of private hog growers in the
province, with the South Cotabato Swine Producers Association (SOCOSPA)
donating the 1,500 square meter lot in the process. He said the facility has the
capability to conduct microbial analysis, chemical level analysis, veterinary drug
residue analysis, and other meat-related examination and inspection.
With this development, DA expects the pork meat export to enhance the growth of
the swine industry in the area. With a successful penetration of the Singaporean
market, demand for pigs would eventually surge. Local officials expressed optimism
that the facility will likewise generate more jobs and opportunities to the province and
the city as businessmen would surely invest in livestock. DA Secretary Yap is happy
to note that Mt. Matutum Hybrid Corn Trading Center is now expanding its area of
corn planted to 5,000 hectares. This he said is another development in the corn and
livestock industry and to complement, the government is putting up a corn processing
and trading center to cater the post harvest operations and marketing needs of the
farmers here.
In a related development, swine producers in South Cotabato have urged DA for
funding assistance that would expand accredited piggeries output by as much as
twenty (20) percent as Mindanao gears to the looming shipment of cut pork meat
products to Singapore. A refrigerated container van of cut pork meat products is set
to be shipped to Singapore soon, the first foreign foray for the country's swine
industry. Mr. Emilio V. Escobillo Jr., president of SOCOSPA, said they are targeting
to capture around twenty-five (25) percent of the Singaporean demand for pork meat
products without hurting the domestic market.
Mr. Escobillo noted that Singapore's daily pork meat requirement reportedly reaches
4,000 per day or 120,000 heads a month. However, he added that Mindanao could
only so far supply about five percent or 6,000 heads a month to Singapore to avoid
shortage in the domestic market. He noted that Singapore is strict on the no anti-
biotic requirement of pork meat products, but that participating swine farms are
complying with the standards, including adhering to traceability system that shall
determine culpability.
Mr. Stephen G. Castillo, Matutum Meat general manager, hopes to penetrate other
markets in Asia now that his company has been accredited by Singapore. He added
that Singapore's standards would serve as the barometer to prick other markets in
the Asian region. Matutum Meat3 was earlier identified by DA to pioneer the
country's venture in the foreign pork market. Matutum Meat had invested around
US$4 million for its state-of-the-art processing plant in Polomolok town, about 15
minutes from General Santos city.
In conclusion, improving the food safety and control systems in the country is a huge
task that requires a holistic approach that includes interventions that would establish
or the strengthen regulatory system, build the capacity of relevant institutions and
human resource, and encourage government and industry participation. DA believes
that food safety, quality, and traceability are important to make the country’s key
agribusiness industries globally competitive. It advocates for the development of a
food safety and traceability program to strengthen the country’s capability to ensure
food safety and quality.
3
http://www.matutummeats.com/
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