Applicability of supply chain integrity devices: incentivising cooperation

⁠⁠⁠MLA’s Rural R&D for Profit Insights2Innovation project identified “Food without Fear” as being an important global concern. Consumers in all markets have limited methods to judge the integrity of the products they consume. Adding to confusion, the supply chain is often complicated, and supply chain participants are unclear about how to implement a traceability system, who generates value from this and therefore if it is ‘worthwhile’. For a traceability system to work effectively and mitigate the risk of intentional and unintentional traceability compromises, the supply chain partners need to be appropriately incentivised to participate. Furthermore, it can be difficult to identify which are the most promising products and markets (or market segments) where value can be derived from implementing an integrity system for various attributes.

For a traceability system to work effectively and mitigate the risk of intentional and unintentional traceability compromises, the supply chain partners need to be appropriately incentivised to participate. There are strong anti-fraud systems within the Australian meat processing systems. Meat leaving Australia in a carton (majority of product, though some carcases, and large carcase parts are exported) has a unique GS1-compliant barcode (per carton). Transfers of product destined for export from one registered establishment to another are controlled. Once product leaves Australia, any number of opportunities for fraud present themselves.

Ultimately, industry needs to have an approach to protecting its reputation and status in market at a profit, which, in part, involves providing the level of assurance that the consumer needs and expects. Using 3-4 supply chains as case studies, this project will investigate where and with whom consumer trust resides. These case studies need not be red meat specific, though should be comparable to the complexity of Australian red meat export supply chains. This project assumes that a track and trace integrity system will deliver price premiums to supply chain participants and/or other benefits such as social licence from proven provenance and managing downside risk.

Please note that the timing for this project is non-negotiable due to other activities depending on the outcomes of this project.

For more information, please contact:

Julie Petty
Project Manager, Food Innovation and Integrity
Phone: 0411 680 516
Email: jpetty@mla.com.au