Global Food Traceability Center

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1 Global Food Traceability Center Public-Private Partnership for Innovation

2 What is it? Recognizing gaps in the research, development and the need for implementation of systemwide food traceability, the Institute of Food Technologists (IFT) supported by international food system stakeholders - has launched the Global Food Traceability Center (referred to as Center within this document). The Center is a long term, collaborative, public-private partnership created to address one of the most significant issues facing the agriculture and food industry today: Traceability. Until now, there has been no single, public or private entity that brings together key stakeholders of the food system to join forces on product tracing. There is no single, global authoritative voice on food traceability. Industry and governments pursue their own interests in traceability with occasional collaboration. Most current traceability efforts focus on specific commodities, proprietary technologies, or a particular industry group s needs. The Center will serve as an unbiased, knowledgeable, science-based advisor that advances insight and understanding of food traceability. It will focus international stakeholder dialogue on addressing the very real issues and challenges of implementing improvements in food traceability and increasing transparency about food for consumers. Support for the Center was proposed via the IFT Traceability Improvement Initiative as well as during three Traceability Research summits and numerous consultations with food system stakeholders. This support was confirmed via generous funding commitments from our Founding Sponsors. Why a Global Food Traceability Center? Until now, there was no single entity, public or private, that brought together stakeholders in the food system (from farm to fork) to collaborate on food traceability. There was no go-to resource and authoritative, global voice on food traceability. This was a primary driver for creating the Center. Food traceability is becoming increasing important. The global food supply chain today has evolved into a tangled web. The pathway from primary production to the consumer is growing more complex as companies seek higher efficiencies to feed the world s growing population. While problems remain rare, when they do occur, time is the enemy as current traceability systems struggle to respond. Health and lives are at stake, as well as the livelihoods of industries, companies, and employees. The facts speak for themselves. For instance, in the USA the 3,000 deaths that foodborne illness causes each year, is very expensive. The cost of food poisoning comes to $14 billion a year, according to a July 2012 study published in the Journal of Food Protection, including the medical expenses of the 128,000 who are hospitalized annually. That figure does not include the millions of dollars that each food recall costs a company involved, the legal expenses from victims' lawsuits or losses incurred by other companies when consumers hear, Institute of Food Technologists

3 for example, about contaminated produce and then avoid that entire commodity, including that which is perfectly safe. Government regulators are increasingly concerned about the time taken to respond to food-related emergencies, as consumer trust in food becomes more fragile. However, food traceability is about more than recalls. Being able to ascertain the origin of products and their attributes from the farm through food processing, to retail and food service, and into the home is growing in importance. Increasingly, public health concerns are demanding traceability. But economic advantage, which rewards those who can more effectively and reliably track and trace product back and forth through each step of the chain, will eventually drive traceability. The Center will assist companies to more reliably trace the paths of products through the supply chain, improve food safety, and avoid (or at least mitigate) devastating economic impacts. Background At the second IFT Traceability Research Summit, stakeholders discussed the importance of a common goal, mission and vision for traceability. It was agreed that food traceability should become a collaborative effort to protect public health as well as encourage more effective and efficient food chains. By pooling and sharing the efforts behind traceability, all stakeholders will be in a better position to develop solutions and standards, and capitalize on opportunities. To maximize effectiveness and minimize costs, the Center will work collaboratively with public-private partners and use available infrastructure to offer services through physical and virtual facilities. From this discussion emerged the desire to have a single global, authoritative, scientific source on traceability; preferably an unbiased, neutral, not-for-profit entity. At the conclusion of the third Traceability Research Summit, it was agreed that IFT is the organization most uniquely and ideally positioned to bring together resources and serve as the lead scientific authoritative source for traceability knowledge and learning. After that summit, numerous individuals and key stakeholder groups expressed their support of this concept and stated their desire to see IFT organize and lead creation of the Center. Why IFT? IFT has been partnering with regulatory agencies, academia and industry to conduct research, education and outreach in food science since 1999; and it has been a visible leader in food traceability since Now that it has launched the Center, IFT is reaching out to engage food system stakeholders in this new program Institute of Food Technologists

4 In 2009, IFT delivered a key report to the U.S. Food and Drug Administration (FDA) on the status of food product tracing, and provided guidance on improvements and recommendations on future work. IFT also conducted technical and cost evaluations for the state of the industry for food product tracing. Partnering with Harvard University in 2009, IFT also conducted a mock traceback exercise with the tomato industry under contract with the FDA. The National Center for Food Protection and Defense (NCFPD) provided a grant to IFT as well to conduct a two-year study analyzing the capabilities of technologies in food product tracing ( ). As a testimonial to IFT s expertise and leadership in traceability, IFT recently completed a landmark report (released in March 2013) for the FDA food product tracing pilots as mandated by the Food Safety Modernization Act (FSMA). IFT also conducted three Traceability Research Summits in 2011 to bring together leading minds in the industry to tackle the challenges related to traceability. These summits were a part of the Traceability Improvement Initiative (TII) launched by IFT in summer 2011 with seed funding support from BASF Chemical Company, Underwriters Laboratories, and National Fisheries Institute Seafood Industry Research Fund. The industry views IFT as an unbiased visionary capable of managing conflicting viewpoints by focusing on science and not endorsing one particular solution. Current and former IFT Board Members along with other IFT members have provided verbal, financial and/or time to support many of IFT s on-going traceability initiatives. More information on IFT s food product tracing efforts can be found at Vision and Mission The Vision for the Center is To become the global resource and authoritative voice on food traceability. IFT is creating a focal point where industry, academic, government, foundations and consumer groups can hold dialogue, collaborate, conduct research, adopt best practices and implement pragmatic and actionable traceability solutions for the food system. The Center will enable long-term collaboration that provides traceability knowledge, advice, and expertise through solutions, programs, and initiatives that lead to development of a global agriculture and food traceability system. Figure 1 Key Stakeholders in the Food System Institute of Food Technologists

5 The Mission of the Center will be To serve all aspects of the food system - from agriculture to the consumer - by generating knowledge in research gaps, delivering applied research, objective advice and practical expertise about data collaboration and food product traceability for private benefit and public good. Through its work, the Center will build links across food traceability and food safety initiatives around the world. Collaboration will encompass the entire food system from the farm to point of consumption. The Center will serve as an unbiased, knowledgeable, science-based advisor that will advance insight and understanding of food traceability in order to improve the effectiveness of foodborne outbreak investigations and raise the efficiency and competitiveness of the global agriculture and food industry. It will focus industry and government dialogue across the food system for the first time and address the very real issues and challenges of enhancing data transparency and implementing improvements in our food traceability capabilities. This will include addressing technology solutions, protocols and standards, knowledge and research, as well as helping industry and government improve the effectiveness of food recalls. Business Model The Center is using a collaborative approach for its work. It is developing public-private partnerships to share in the costs and benefits, and offer specific assistance and expertise. The Center is reaching out to other nations and international organizations (such as Food and Agriculture Organization (FAO) of the United Nations (UN) and European Food Safety Authority (EFSA), World Bank, World Health Organization (WHO), and United States Agency for International Development) to gather knowledge, share findings and: Access and enhance ideas, global research, and food traceability accomplishments in an efficient and affordable manner Convert important findings into practical, cost-effective traceability tools and data collaboration practices that can be used by agriculture and food stakeholders Communicate the availability of these tools and their use to stakeholders Publish the outcomes and benefits of its work Assist with implementing solutions and transferring technologies The Center has four primary business areas, each with strategies and priorities that deliver value and fit within the context of global traceability requirements and programs. It is focusing industry s and government s commitment to food traceability and reducing duplication of efforts. Most importantly, the Center is helping stakeholders translate its work into practical solutions that bring real benefits to industry, government and consumers. Facilities and services include offices, pilot and test locations, research capacity, commercialization and marketing expertise, and knowledge and education centers Institute of Food Technologists

6 Figure 2 Four Business Platforms Business Platforms Based in the expressed needs and interests obtained from stakeholders through the consultation process, the Center is undertaking the following: 1. Research is being launched and extended from current IFT efforts regarding food traceability and data collaboration, to encourage and support investigation of technologies and innovations in traceability. The Center has started its work in this area by assessing global food traceability regulations and requirements. The purpose is to assist in the discussion and development of harmonized food traceability requirements around the world. The Center will also investigate traceability technologies, practices, and support programs in future projects. 2. Protocols & Standards are immediate concerns for many stakeholders because of the risk that disparate technical systems and traceability guidelines and regulations are overwhelming the food system. Recognizing that there already is significant progress by global standards organizations, this business area will act as a focal point for stakeholders to consider, endorse, and adopt common traceability requirements across the entire food system. Its initial project is to assess current food industry best practices and shortcomings in traceability and develop and deliver a guidance document. This will be a reference document from the industry for government authorities that can guide and promote compliance to uniform regulatory requirements. Longer term, this business area will be a focal point for the discussion and recommendation of international food traceability policies Institute of Food Technologists

7 3. Education & Training includes activities relating to the marketing and promotion of traceability and information about the Center itself. One early project is to create specialized food traceability knowledge and learning events. This area will incorporate reference access to lessons learned about food traceability policies, methods, technologies, and tools. Hosting international conferences will become another part of this segment of business. Over time, it will expand to include on-line access to research materials developed by the Center and its partners. 4. Technology Transfer is a critical part of the longer term plan since it incorporates the availability of intellectual property and solutions developed by the Center. The objective of this business will be to help build a common approach to traceability technology solutions. In the short term, we propose to provide tools that help understand customer needs and economic potential for interoperable traceability solutions. For example, what are the economic value drivers that will encourage more rapid implementation of food traceability solutions and strengthen data transparency? Longer term, this business could grow to incorporate license fees and/or royalties from intellectual property developed from projects that the Center supports. The number of projects carried out will depend on the funding secured from sponsors and partners. Priorities for initial projects were identified via dialogue and consultation with the Advisory Council (see below) and other key food system stakeholders. Advisory Council As mentioned, the Center is a public-private partnership for innovation, addressing public sector needs and private sector objectives. This partnership will extend and accelerate research, education and knowledge, and the dissemination of information in diverse and creative ways. The first step was completed when key stakeholders and leaders in both the public and private sector voiced their support and willingness to contribute to the success of this Center. In addition, common issues and opportunities on food traceability were identified, which led to further collaboration, cooperation, and communication. A Steering Committee provided direction and support to the development of the Center and its business plan. This group was composed of the following recognized traceability experts and leaders: Douglas Bailey USDA AMS Frank Busta University of Minnesota Jack Guzewich retired FDA Brenda Lloyd YUM! Brands Institute of Food Technologists

8 Joseph Scimeca Cargill Inc. Hilary Thesmar Food Marketing Institute Frank Yiannas Wal-Mart An Advisory Council has been constituted for the Center based on the support of Founding Sponsors, Contributing Partners, and recognized traceability leaders. The Center will work with these partners and maximize use of available infrastructure to offer physical and virtual facilities and services. The purpose of the Advisory Council is to provide guidance and support to the Center s management team and help ensure that the Center focuses on long-term value for the agriculture and food industry sectors, and public agencies. The membership of the Advisory Council is intended to reflect a balanced perspective from key food system stakeholders. We continue to seek additional Founding Sponsors and Contributing Partners for the Center. Partnering organizations are considered to include, but are not limited to the following: Industry organizations/ trade associations representing the food chain Global leaders recognized for traceability expertise and experience Academic and research institutions and public or private foundations Government and regulatory agencies around the world International organizations Resources Required Seed funding from public-private partnerships has helped kick off the Center. The Center will continue to conduct a vigorous communications and outreach program to encourage support from other stakeholders. The first three years of operation will be subsidized by IFT and public-private partnerships. Although the complete financial picture continues to evolve, the plan is to become selfsustaining by the end of the third year of operation. Staffing will be modest to keep costs lower and will be decided based on project and program activities. In order to generate business revenue, the Center will work with IFT and its partners to deliver fee-based services, such as traceability training and education, consulting, online reference subscriptions, food recall consulting, verification services, and technical advice on traceability best practices and protocols Institute of Food Technologists

9 Parameters for Success It will be important to measure how effective the Center is performing and this will be done through measuring the following key indicators: Recognition of the Center as the go-to resource and authoritative voice in the world on food traceability by key stakeholders (measured by citations and invitations to assist these stakeholders). Acceptance and utilization of resources, tools, education and training programs by all stakeholders (as measured by number of attendees, downloads, views, webinars, uses). Recognition of the Center as a valuable partner for food regulatory agencies around the world as evidenced by invitations to participate in consultations, simulations, recalls, and providing services to these authorities. Brand awareness of the Center is significantly increased at the local, national, and international level (measured through marketing tools and public relations). Measurable improvement in product tracing capabilities of participating international industry stakeholders when responding to a foodborne outbreak or other emergency. Self-sustaining business operations. For More Information: William Fisher Vice President, Science & Policy Initiatives 1025 Connecticut Avenue NW Suite 503 Washington, DC Phone: (202) wfisher@ift.org Institute of Food Technologists