PROVE IT OR ELSE!
A ComTechAdvisory Whitepaper
THE ISSUES DRIVING TRACEABILITY
There are really two major groups of drivers for traceability at work in today’ s commodity markets,
/ Food safety and general safety practices, / Social and environmental concerns.
Food safety is one issue driving the traceability challenge. As trade in agri-food and commodities has and continues to increase, it has led to changes in the global production network with increasing fragmentation and complexity across multiple enterprises with global reach. Implementation of verifiable safety and quality compliance programs allows these businesses to better manage operational risks and allows faster reaction to emergencies, recalls, and withdrawals. It also allows for better brand protection by streamlining withdrawals of substandard products.
Meanwhile, an increasingly savvy and environmentally aware consumer is driving the development of the branding and labeling of products as sustainable, environmentally-friendly, produced by workers with proper working conditions and rights, and so on. The ability to prove these brand claims goes hand-in-hand with the ability to attract a premium price for the goods. Table 1 shows a number of examples of different environmental and social traceability drivers as they relate to different commodities.
Commodity Beef
Biofuels
Cocoa
Cotton
Palm Oil
Sugar
Timber
Drivers
Table 1: Traceability Drivers
- Preventing deforestation- Protecting land rights for indigenous peoples- Promoting animal welfare
- Working to protect human and labour rights through the supply chain- Working to preserve the functioning of local economies and small-scale producers- Managing the impacts of new feedstock farming and working to protect local food security and prevent deforestation
- Labour rights in terms of working conditions- Human rights – following the law and respecting children’ s rights- Sustainable livelihoods for farmers
- Environmental impacts – reduction of chemicals and water use as well as carbon footprint- Social impacts – workers rights, fair compensation for smaller farmers- Labour and children’ s rights
- Sustainable farming without deforestation- Prevent destruction of habitats and management of impacts of farming- Climate change issues with deforestation and water pollution issues- Respect for land rights of indigenous people and provide incomes to small farmers
- Working conditions and prevention of child labour- Management of environmental impacts and guarantee local food security
- Environmental – deforestation, water quality and CO2- Prevent illegal harvesting, promote sustainable harvest levels with replanting- Avoid destruction of biodiversity and habitats- Protect indigenous land rights and prevent land ownership conflicts
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