eSporing
September 2009
The Norwegian National Food Traceability Project
A nation-wide collaboration
between the authorities and
the food industry in Norway
The national food traceability project
‘eSporing’ – a collaboration between
the authorities and the food industry
This project aims to ­position
Norway as a leader in the
field of food ­traceability
by the year 2010, and a
­national ­electronic infra­
structure will be established
in order to achieve this.
Norwegian food producers and ­retailers
are known for having good control
­systems in place. Still, new ­technology
and closer ­collaboration between the
actors in the food ­industry is ­crucial
in order to meet future challenges
as well as customer expectations.
The ­eSporing project will reinforce the
entire N
­ orwegian food sector.
The task of the authorities
In order to fulfill the ambitions of
the ­eSporing project, the Norwegian
­authorities have assumed the role of
­coordinator for a national, electronic
infra­structure for the tracing of food.
They will finance its development, while
each participating company will have to
invest in integration with their own
­systems and any internal measures
­required to raise their level of competence.
Project organization
The food traceability project is a
­collaborative effort between the
­authorities and the business ­community
of the entire Norwegian food sector.
The Ministry of Agriculture and Food,
The Ministry of Fisheries and Coastal
Affairs and the Ministry of Health and Care
Services are all involved in the ­project
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which is being ­managed by the Ministry
of ­Agriculture and Food and has drawn
wide ­participation from the ­organizations
of the ­Norwegian food ­sector. The
­undertaking ­includes a ­central, ­national
project aimed at ­developing the architecture and the data ­model for the
­national food traceability infrastructure.
In ­addition, seven pilot projects have
been set up by the business ­community:
three projects within fish, and one each
in the areas of meat, cereal, fruit and
vegetables, as well as dairy products.
The work done on the infrastructure and
in the pilot ­projects will lead to a food
traceability solution which will ­benefit
both the authorities and the ­actors of
the Norwegian food value chain.
The way to a shared solution
The development of such an ­infra­structure goes through several stages.
Each food industry, value chain and ­actor
has a unique starting point, and must
determine its own level of ambition and
pace in the implementation of electronic
­tracing. A shared solution will also shed light
on links between the required measures.
This is vital in order to achieve the set
targets.
What is traceability?
There are several definitions of ‘tracing’ and ‘traceability’. In the
­Norwegian regulation on the traceability of food and feed stuff,
traceability is defined as:
”The ability to trace and follow food, feed, animals for food
­production, or an ingredient expected to be added to food or feed,
though all parts of production, processing and distribution”.
The most precise definition of traceability has been formulated
by the International Organization for Standardization (ISO 8402):
Essential requirements of the eSporing
solution
The actors in this project have jointly worked
on specifying a number of requirements that
the eSporing solutions must fulfill.
It will have to:
•Build on existing systems within the
participating companies
•Adhere to international standards of
traceability
•Comply with the requirements of safe use
• Comply with the minimum requirements of
the Norwegian food law and its ­regulations
• Share traceability data across actors, with
­up-to-date information (in approximate
real-time)
• Give participating companies the opportunity
of closer collaboration through the interchange of quality data
•Take on any future requirements made by
the authorities and the market place
It has also been stated that the solution must
not impose any major financial ­investments
on the participating companies, or ­entail
large operational costs. In the draft for a
­solution that now exists (mid-2009), all these
­requirements are met.
”The ability to trace the history, use and localization of an entity
by means of recorded identification”.
‘Recorded identification’ means systematic recording; an ­essential
prerequisite for tracing a product / raw material / ingredient through
a value chain. Note that the terms ‘tracing’ or ‘traceability’ do
not apply to the specific information on products or processes;­
traceability is a tool that enables the tracing of products / raw ­materials /
­ingredients through the value chain.
‘Electronic’ traceability implies that information on tracing, ­products
and processes are recorded and stored electronically, i.e. in ­computer
systems. ‘Paper-based’ traceability means that the information is
stored on paper only.
Requirements of the Food Act
The Norwegian Food Act sets certain requirements for food traceability, but no specific conditions regulate how to comply with
these requirements.
The regulation of December 23, 2004 regarding the traceability of
food imposes tracing in all links of the food chain. Each participant in
the chain must be able to trace one step backward and one forward.
This means that each company must keep track of who they receive
the raw materials from, and who they send their finished products to.
This regulation does not specify any requirements regarding the
traceability within each company, that is the continuous ­recording
of ­divisions and mixes of raw materials and ingredients used in
the production process. However, companies are required to use
­systems and procedures for such traceability in order to be able to
give the authorities information on this at any given time.
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Collaboration
produces results
The eSporing project brings actors across the entire value chain together. Efficient
electronic traceability brings new business opportunities and enhanced competitiveness.
Electronic traceability through the ­entire
value chain gives more control over food
stuffs and any ­withdrawals of these.
In ­addition, a shared ­i nfrastructure
­facilitates ­value-adding ­services that
may ­benefit the participating ­companies.
For the ­authorities, the main motivator
is society’s gain in added value and
­improved preparedness when dealing with
unsafe food. For the consumers, ­reliable
traceability means better safety since
companies can withdraw ­p otentially
unsafe food more quickly. Consumers
will also get access to more — and more
­reliable — information about their food.
Broad participation
It is crucial that all the main value chains
are adequately represented in the
­development of the eSporing solution.
The chains ­supplying grain, red meat,
fish, milk and dairy products, fruit and
vegetables, are all participating in
­pilot projects to ensure that a broad
­spectrum of needs are being met.
A value chain mainly consists of the
­following actors:
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• Producers of feed / raw materials /
ingredients: these form the first link
of the value chain by delivering input
factors and ingredients to the chain.
• Primary producers: these produce
raw materials for the value chain,
e.g. milk, meat, grain, fruit and
­vegetables.
• Industrial producers: these produces
products made by one or more ­primary
products and/or ingredients, and
­prepare them for sale to the consumer.
• Distributors: they distribute products
between the various actors of the
value chain.
• Retailers: these form the final link
of the value chain, and are mainly
the ones dealing directly with the
­consumer (the grocery trade).
The eSporing project is carried
out in close collaboration with its
­f uture ­owners and consumers, i.e.
the ­individual ­companies, industries
and organizations of the food sector.
­During project develop­ment, the main
­industries ­participate through the ­pilot
projects. More actors will join in at a ­later
stage. It is ­important to identify ­common
­d enominators that will enable the
­business community and the ­authorities
to find joint solutions.
New infrastructure, better collaboration
The new eSporing solution will ­enable
value-adding services and improved
sharing of information, and also lead to
closer collaboration between the ­actors
in the ­supply chain and ­between the
­actors and the consumers. To achieve an
efficient eSporing solution, collaboration
is required both during ­its development
stage and when it is to be utilized in an
appropriate manner.
Traceability along value chains is ­nothing
new. Some information always ­accompany
products shipped between actors, if only
for billing purposes. This type of ­information
is sent sequentially; from one enterprise
to another. In addition, this eSporing
solution must be able to handle ­flexible
tracing; through the ­entire value chain,
within and between all ­a ctors, and
through the entire life-span of a product.
What is new with this
­eSporing solution?
An important and unique feature ­regarding
the new eSporing solution is its ­emphasis
on chain traceability, which means that
each product moved ­between ­enterprises
is identified as a global, unique ­logistics
unit or ­trading unit, and is assigned its
own ­‘identifier’. The identifier works as
a kind of ‘social security number’ for
the ­product, and is recorded in the joint
­eSporing ­solution along with the ­minimum
amount of data required to ­ensure
­c omplete ­traceability ­between all actors.
­Sensitive data will ­remain confidential and
not leave the ­actor’s site. The solution
­connects ­various trading units and enables
­traceability through all links within and
across value chains.
Instant tracing
When needing to trace a product, the
new traceability system will be able to
­reconstruct the product flow and give an
­up-to-date graphic presentation of what
has ­happened to the product ­between the
various producers, called a ­‘traceability
graph’. This may be done in approximate
real-time — while the product moves along
the chain — which is a feature unique to
this solution.
Efficient link between internal and
external data
Input factors and products in a ­company’s
product flow are defined as ‘batches’, and
form the basis for the company’s ­internal
traceability. Information on ­batches often
contain data regarding ­product, quality and
production, and this ­information is ­essential
when creating a ­detailed trace­ability graph.
The eSporing solution is designed to
­ensure an easy link-up between the chain
­traceability system and the ­participating
­companies’ internal traceability ­systems.
Such links are completely under the ­control
of the individual company. This leads to a
­system with flexible traceability through
each ­value chain as well as across chains.
The close ­association between internal
and ­external traceability illustrates the
­importance of ensuring close collaboration
­between actors.
Value-adding services
Companies in the food industry want to
know how the eSporing solution may
­contribute to their own value creation. This
­solution is unique by expanding their ability
to develop and use value-added ­services.
Through the solution’s superstructure,
each company may make data and/or
­information available to other actors ­within
or outside of their own value chain.
Efficient labeling and identification
The infrastructure of the eSporing solution requires the presence
of a minimum set of information given by the company in order
to achieve chain traceability. In addition, the company must have
good work routines for recording information and for internal
traceability.
In addition to the company name and address or other unique
identification, the following information must be recorded by
each actor in order to achieve efficient tracing:
For each unit received:
• Name and address or unique identification of the sender of the unit
• Date and time of receipt
• Unique identification of the traceable unit (e.g. a box)
• List of the unique identifiers of the units comprising a logistics unit
(e.g. 20 boxes on a pallet)
• List of the unique identifiers of the produced units containing
the received units
For each unit produced/repackaged:
• Unique identification of the unit
• List of the unique identifiers of the received units that have been
used in the unit produced
For each logistics unit:
• Unique identification of the unit
• List of the unique identifiers of the received units that have been
combined into a logistics unit
For each unit delivered:
• Unique identification of the unit
• Name and address or unique identification of the recipient of the unit
• Date and time of shipping
The recording of this information is required in order to coordinate, integrate
and automate the retrieval of information from the databases of the various
industries.
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2009 - an important
development phase
The main development of the eSporing solution for chain
traceability takes place in 2009, with implementation ­starting
in 2010. Several pilot projects currently underway are
­d esigned to take into account the needs of actors along
the entire value chain.
In the main strategy and ­planning ­process,
the eSporing project is ­currently at the
stage of setting goals, ­selecting ­strategies
and designing an action plan for the
­introduction of the ­eSporing ­solution.
A shared infrastructure for electronic
tracing will provide enhanced ­business
opportunities for the ­p articipating
­companies, as long as a corresponding
strategy process is also carried out at the
company level.
The main task for the companies ­during
this process is to develop ­business plans
with concrete ­measures that conform
to the chosen national ­strategy as a
means of preparing for and utilizing the
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eSporing ­solution. This ­process may in
­itself be very ­significant for the company,
as it will ensure ­adequate managementlevel understanding and support for
the solution, both of which are ­v ital to
success in achieving the ­a nticipated
­business gains.
Such a process of strategy and ­planning will
bridge business-related goals and ­strategies
with technology-related ones, but will not
replace normal ­business ­planning. Still,
­eSporing may in itself prove to be very
important for the participating ­companies
by ­presenting new business ­opportunities
and possibly improving the companies’
­existing strategies and priorities.
Source: Sintef
Potential gains by the introduction
of the new eSporing solution
There is an increasing demand for traceability in the food sector. In the future, ­consumers
may want to know more about the origin, the properties and the history of their food.
The food producers themselves wish to utilize special
­qualities about their food to create market advantages or to
develop new markets. Various incidents regarding ­unsafe
food in Norway and abroad show that the availability of
­correct information at the right time is absolutely crucial
for managing complex emergency situations in a rapid and
reliable manner.
Gains for the business community
• Reduced financial consequences of a withdrawal/recall
• Improved efficiency in the supply chain and reduced
overall logistics costs
• Market advantages giving improved turnover
A cost-benefit analysis shows that the business areas likely
to improve involve better control of production, storage
and distribution through the sharing of data and better
transparency regarding variations in demand and available
­resources.
Furthermore, such a solution will:
• Facilitate cost-efficient electronic traceability between
all parties within all food chains
• May be used internationally
• Provide opportunities for increased value creation
The costs of establishing and connecting to a national infrastructure for electronic tracing will be considerably less that
if a number of companies on their own — or an ­isolated
­industry — were to establish a traceability solution on
their own.
This is because a national traceability solution will provide:
• Minimal link-up costs and fast connection without
having to do any major local adaptations (if the
company already has an internal tracing solution)
• Low transaction costs (many actors share the same
infrastructure)
• Low costs of future development of the solution
Improved transparency in the value chain
may lead to
• Reduced number of returned goods
• Fewer urgent orders
• More precise retrievals from storage
• Optimal short term planning
Mutual value
Establishing a shared infrastructure for the traceability
of food will act as a locomotive for industries and actors
who see the advantages of connecting to this. The infra­
structure will provide a framework for the work that needs
to be done within industries and the individual actors, and
­clarify priorities and decisions to be taken along the way.
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eSporing:
Simpler
and more
efficient
Smart use of IT should make life easier. The improved sharing of data and new models
for ­collaboration will simplify the work of both small and large actors. A common tool
for food suppliers may lead to improved preparedness and enhanced value creation.
For authorities and consumers, the strongest incentive for implementing a central eSporing solution will be enhanced
­preparedness through the more rapid tracing and withdrawal of harmful products. A common tool reduces costs and
improves competitiveness at both the national and international levels.
Obvious financial gains will motivate many of the business actors. Such gains may come from improved efficiency and
optimization of processes and logistics. The eSporing solution may also reduce the financial costs of product withdrawals.
Published by:
TheNorwegian
eSporing
Project
www.esporing.no