Practical exercise. Practical exercise

Practical exercise Practical exercise

Top export products 2

World production Src: FAOSTAT 3

Red rice Bhutanese Red Rice is one of only three red rice varieties in the world Red hill rice from Phillipines (Coloured) red rice from the Camargue A premium product, mostly created by smallholders Main sales arguments One of the most select rice varieties in the world Traditionally farmed on small terraces in the highlands (2,000-3,600m) Watered with clear glacier water A fine rice grain, rich in healthy fibres, protein and unsaturated fatty acids More potassium than Gatorade, and a significant amount of magnesium Quick-cooking whole grain Nutritional and culinary superstar. Photos from siam-food.blogspot.com/2007/09/roter-reis-aus-bhutan-ein-kostbares.html 4

On offer now for 11USD/kg = 660 Nu. Was offered at 29 /kg = 2320 Nu. 5

Challenges Main challenges Guaranteeing supply Good agricultural practices Finding (and securing) market access Smallholder-based External help might be available 6

The winner: potatoes Top consumers 2005 http://www.fao.org/potato-2008/en/world/index.html 7

Exports to Europe? 1 Hg = 0.1 kg 1 Ha = 10,000 m 2 8

Ranking producer prices for selected countries FAOSTAT 2013: Producer price USD/tonne Areas Items 2008 2009 2010 2011 4y avg Netherlands Potatoes 126.8 127.2 167.6 183.5 151.28 Bangladesh Potatoes 210.5 211.5 108.8 111.8 160.65 Austria Potatoes 155.3 137.5 227.6 190.3 177.68 Germany Potatoes 200.7 179.2 218.4 263.9 215.55 United Kingdom Potatoes 272.1 184.4 206.2 235.5 224.55 Ukraine Potatoes 219.1 166.8 268.4 255.1 227.35 France Potatoes 268.6 222.6 332.9 260.6 271.18 China, mainland Potatoes 201.5 243 274.7 443.3 290.63 Bhutan Potatoes 266.6 310.1 396.6 439.6 353.23 9

Projected demand increase Src: 2020 Global Food Outlook - Trends, Alternates, and Choices (IFPRI, 2001, 28 p.) 10

Trade in potatoes 11

Major imports EU 12

Uses of traceability Traceability can be used to despatch advice and notifications to the appropriate persons at the appropriate time to increase the use of good practices in primary production and handling Farmers would register with this service on larger scale and record basic actions sowing, weeding, ploughing and harvesting per plot. Failure to record such an event will trigger a warning to be sent to the farmer, suggesting that an action needs to be performed. Together with the warning or independently, basic information ( tips ) can be sent to farmers. Data capture and reception of information would be through mobile phones. After harvest, the rice mill will record receptions as means for payment 13

SWOT analysis The main strengths of such a system are Addresses one of the main problems at the root Provides (anonymous) data about production throughout the country as a basis for indepth actuations by relevant bodies Can be linked to trading platform increasing the possibility of quality-efficient trading The main weaknesses of this proposal can be summarised as follows There is no evidence that farmers are indeed interested in receiving such information In order to have an effect, this system needs a critical mass of farmers on the system. This requires a certain amount of internal marketing and training While the technical complexity is low, there is a certain amount of implementation and operation budget required The main opportunities would be Help increase the productivity problem by distributing advice Improve understanding of the rice production as a basis for improved directed actions The main threats would be Lack of interest of farmers and pressers Lack of resource to implement the system on large enough scale 14

Uses of traceability Traceability can be used to supporting a luxury product by creating a story around it. The target would be selected exporters with an offering compatible with a luxury product. Traceability would here be the tool to create a story around the product that would differentiate it from other offerings. At the simplest level, it would provide basic production information, ), but the aim would be to use that information to create a differentiation from similar products from other locations. This can be achieved by using Name, up to date photo and location of farmer(s) and their families Media material from production villages, such as photos and movies A description of harvesting practices and timing of the involved producers A description of milling techniques A taste profile by village This might be connected to claims such as organic (if certified) or traditionally produced Fair trade certification is an option 15

SWOT analysis The main strengths of this system are Creates a novel product (rice + history ) Luxury goods fetch high premiums and could be an excellent target for the low productivity product Main weaknesses Overseas exports still a challenge Traceability not practised Total market volume of luxury market and potential penetration rate of Bhutan rice unknown The main opportunities would be Introduce a small number of exporters to a new market segment Provide farmers and rice mills with a way to promote themselves The main threats would be Quality of rice is difficult to measure It is unclear whether there is enough supply to make this worthwhile 16

Supply chain of fresh fruits and vegetables Local markets Supermarket Harvesting collector Collecting house Farmer Middleman Exporter Non-harvesting collector Waxer 17

Supply chain of XXX Farmer Middlemen Processor Exporter 18

The pomelo example Harvest + all dispatch events until next stock empty - all harvest events since last stock empty HARVEST *FarmerID or FieldID Quantity (pieces) Weight Dispatch - next dispatch for same MiddlemanID DESPATCH *MiddlemanID / name Is stock empty? Quantity Weight + next reception for same MiddlemanID Receive - all reception events since the last despatch + all pack events until the next despatch if none, the next despatch event Pack + next despatch event PACK *Type *Size *Boxes RECEIVE *CollectorID / name Type Size Quantity Weight Price - all pack events since the last despatch. if none, all reception events since the last despatch Despatch - the next export event for the exporter with the same containerid GAP Inspection GAP INSPECTION *FarmerID *FieldID *CertificateID Results ok? - the despatch event for the exporter with the same ContainerID DESPATCH *ContainerID *ExporterID Export EXPORT *ContainerID *ClientID 19

Exercise Groups GROUP A: Private sector GROUP B: Public sector Main objective Design an efficient traceability system that serves your needs Group presentation and discussion 20

Tasks 1. Determine your needs and how e-traceability can help you 2. Map the supply chain and identify the key steps 3. Define the scope of the traceability system E.g. food safety, legal compliance, social or environmental standards, 4. Design specific objectives 5. Map stakeholders 6. Design key indicators for specific objectives E.g. farm name or village name for origin 7. Determine identification system 8. Determine critical steps for each supply chain partner 9. Determine information flow 10. Determine data input methodology 11. Determine additional data elements to be recorded (standards?) 12. What is the added value for each stakeholder? 21

Stakeholder maps Spectators Enablers Directly involved 22

Think about both ways! Forward Trace Farm Processor Retailer Backward Trace 1. Delivery note / Invoice number 2. Plot Id, Farm ID 1. Delivery note / Invoice number 2. Product/Batch code Key mapping for external traceability 23

Thank you for your attention! ACKNOWLEDGMENTS: The author would like to acknowledge contributions by Francisco Blaha and Gwynne Foster, Xifrat Daten AG, FoodReg and Yakin IT Sdn Bhd. Financial support from the European Commission for research projects is gratefully acknowledged. This deck of presentations was made possible by SATNET and UN ESCAP and the author is very thankful for this opportunity. DISCLAIMER: this presentation expresses the view of the presenter only. In particular, it does not express necessarily the views of cited international bodies and firms. 24