Risk Management in Bovine Spongiform Encephalophy Traceability Process and Tracing of Animals June 22, 2005 Paul Clayton U.S. Meat Export Federation

2 What is the function of Traceability, Source Verification and/or Process Verification? Control animal and zoonotic diseases –Only need live animals procedures –FMD, BSE, Scapies, PRRS, PMWS Food Safety –Chemical Antibiotics, Hormones, Pesticides GMO –Sanitary Microbiology GMP Physical Risks: Needles –Only need plant procedures Recall procedures Commercial purposes –Branded Programs Source Verification –Identity Preservation –Information Exchange Genetics Production Practices

3 Traceability System Traceability alone does not contribute to higher levels of safety or quality, it only transfers information along a supply chain. In order for traceability to affect quality it must be associated with some type of quality assurance mechanism that imposes a set of standards and procedures and specifies data to be recorded so that quality can be assured. It is the sharing of information recorded by firms, or by other institutions to which it is passed, which constitutes the bulk of any traceability system Souza-Monteiro and Caswell, Economics of Implementing Traceability in Beef Supply Chains: Trends in Major Producing and Trading Countries, June 2004

4 Definitions Identification: Identify animals and record their movement over their lifespan Traceability (Trace back): The ability to trace the history application or location of an entity by means of recorded identifications. (ISO 8402:1994) Product Tracing: The ability to identify by means of paper or electronic records a food product and it’s producer, from where and when it came, and to where and when it was sent. (CCFICS) Identity Preservation: Maintaining product integrity throughout production and processing cycles of a food system

5 World Standards World Trade Organization –Scientifically Based on Risk Assessment –Not Trade Restrictive –Importing country cannot enforce more rigorous standards for imported meat than those applied to the domestic industry or use these standards as trade barriers. Office International des Epizooties (OIE) –Agree to international codes and standards that will provide better guarantees and facilitate trade in animals and animal products. Traceability is a key element. Codex Committee on Food Import and Export Inspection and Certification Systems (Draft) –TRACEABILITY: The ability to trace the history application or location of an entity by means of recorded identifications. (ISO 8402:1994) Origin of food products and ingredients Product processing history Distribution and location of the product after delivery –TRACEABILITY/PRODUCT TRACING: The ability of a food business to identify for any food product under their control, where it came from, how it was changed by the producer (if appropriate) and where it was sent to. This is achieved by means of paper or electronic records, and implies a forwards and backwards tracing of the all relevant information regarding a food product. Records should be kept in a format allowing ready linkage and access by the appropriate authorities. (CCFICS)

6 Components of a Traceability System Breadth: Amount of information needed by the system (Safety, Quality, Animal Disease) Depth: How far forward and backward traceability is maintained. (Production, Processing, Market) Precision: Ability of the system to pinpoint the source of the problem (individual, Group) Verification: Third Party Audit, DNA, Laboratory Analysis –Golan et. al. Traceability in the U.S. Food Supply: Dead End or Superhighway, 2003

7 Traceability Supply Animal Disease Control Bio-security Fraud Prevention Production Improvement Branded Product  Cost Animal ID Record Keeping Third Party Audit  ROI  Liability  Infringement on Personal Financial Information Current Traceability Concerns

8 Types of Traceability Carcass Fabrication Packaging Distribution Retail / Food Service/Consumer Ranch Stocker Feedlot Plant (FSIS Inspection) Animal Disease Identification Food Safety Traceability

9 National Animal Identification System Goal: –The NAIS is to be able to identify all animals and premises that have had contact with a foreign or domestic animal disease of concern within 48 hours after discovery. –As an information system that provides for rapid tracing of infected and exposed animals during an outbreak situation, the NAIS will help limit the scope of such outbreaks and ensure that they are contained and eradicated as quickly as possible.

10 NAIS Guideing Principles Uniformity: The NAIS will be based on national data standards to ensure that a uniform and compatible system evolves throughout the United States. Flexibility: The NAIS must allow producers to use NAIS in coordination with production management systems, marketing incentives, etc., allowing for the transition to a “one number –one animal” system for disease control programs and other industry–administered programs. Inclusiveness: The NAIS is being developed to identify animals and poultry and record their movements over the course of their lifespans. Cooperation: The NAIS is a joint effort. Successful achievement of the 48–hour traceback goal will occur through State, Federal, and industry partnerships. Confidentiality: The NAIS will contain only information necessary for animal health officials to be able to track suspect animals and identify any other animals that may have been exposed to a disease

11 Essential Components National Premises Identification System Individual Animal Identification System Group / Lot Identification System Required infrastructure Time Line –January 2008: stakeholders to identify premises and animals according to NAIS standards –January 2009: full recording of defined animal movements.

12 National Premises Identification System Provides a nationally unique number for each premises (location) involved in animal agriculture 7-character ID States to define and identify premises using national “premises allocator” to assign number Example: A123R69

13 Premises System State Premises System Premises Allocator A23L449 National Premises Repository A23L449

14 Individual Animal Identification System National system to provide unique numbers for individual animals Will follow ISO code structure standard for Radio Frequency Identification (RFID) Lifetime number imprinted and encoded with individual number Example:

15 Group / Lot Identification System Will consist of National Premises Identification Number of location where group established Plus: six-digit number reflecting date group was formed Format will result in unique number Example: A234L

16 Individual Identification A23L449 USAIN Manager National Premises Repository

17 Required Infrastructure National Premises Allocator National Premises Database Individual ID Database “Reader” technology in order to “track” animal movements –Markets, collection points, expositions, slaughter facilities, feedlots, etc.

18 Individual Animal Tracking Between Premises A23L DW31 Livestock Auction SB3T552

19 Animal Tracking Animal Number DatePrem. #Code A23L DW SB3T TR TH84S G3D DW3110 Tag is allocated to premises Sighting Movement in Sighting Movement out Movement in Slaughtered

20 New Technology Computer Software and Hardware for Data Collection RF Ear Tags, Chips and Ruminal Boluses GPS Tracking Biometric Identification –Voice Recognition, Face Recognition, Palm Printing, Vein Printing, Iris Imaging, Retinal Scanning, Nose Printing EAN/UCC Bar Codes DNA Verification

21 Food Safety Traceability Class I – A Class I recall involves a health hazard situation where there is a reasonable probability that eating the food will cause health problems or death. Class II – A Class II recall involves a potential health hazard situation where there is a remote probability of adverse health consequences from eating the food. Class III – A Class III recall involves a situation when eating the food will not cause adverse health consequences. Product Withdrawal: A Market Withdrawal involves removal of a product from the market for a reason other a potential health hazard.

22 Connections!!!

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25 Traceability Demand Trade and consumer pressure to show that livestock and meat has been produced and processed in a safe and hygienic manner. The trade and consumers want to be assured that: –Judicious use of compounds with responsible application have been exercised in the production of meat products. –Good Production Practices (GPP) and Good Manufacturing Practices (GMP) have been applied throughout the production and processing of the animal and meat. Proof of these practices and procedures can only be accomplished through traceability systems, source or process verification.

26 The New Era of Better Informed Consumers Consumers, both domestic and international are demanding assurances of food safety In addition to safety, consumers want to know where the product was produced, who produced it and is it fresh Dickson and Bailey, Meat Traceability: Are US consumers willing to pay for it? 2002

27 Modern Animal Agriculture Uniform Inputs –Genetics –Feed –Production Practices Animal Health Feed Animal Welfare Variable Inputs –Carcass Sorting (Premium Programs) –Carcass Fabrication Production – Genetics – Feed – Production Practices Animal Health Feed Animal Welfare Processing – Food Safety Enhancements – Quality Enhancements Value Attributes

28 Commercial Traceability Carcass Fabrication Packaging Distribution Retail / Food Service/Consumer Ranch Stocker Feedlot Plant (FSIS Inspection) Animal Disease Identification Food Safety Traceability Source Verified Value Attributes

29 “ Story Meat ” Voluntary Marketing Tool Shows Producer, Farm and Livestock Let’s Consumers Know Someone Stands Behind Products

30 USDA Processed Verified Programs PM Beef Group Ranch to Retail Red Angus Assoc. of America Cargill Meat Solutions –Value Pork –Verified Pork Farmland America’s Best Pork Murphy Brown LLC American Berkshire Association Premium Standard Farms Seaboard Farms

31 USDA AMS Certified Brands Certified Beef ProgramsCertified Pork Programs Montbello Premium Pork

32 USDA AMS Brand Name Beef Programs Nolan Ryan All Natural Tender Aged Beef –Natural –Yield Grade 1&2, Carcass Weight, sq. in. Ribeye –Marbling Slight 0-100, A Maturity –Fat ¼ inch –Electrically Stimulated –14 days of Aging –Smart Vision Beef Cam USDA AMS Certified

33 Brands Natural BrandsStore BrandsPrivate Brands –Branding will grow because a brand represents a promise of quality –A tremendous amount of marketing and dollars will be placed behind a brand –A brand can build customer loyalty & repeat buyers

34 Summary Regulatory Traceability –Animal Disease Control –Product Recall Commercial Traceability –Value Attributes –Source / Process Verification