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
© Commodity Technology Advisory LLC , 2017 , All Rights Reserved .