The Produce News
Traceability offers opportunity for success
by Anthony Totta

10/20/2008
We have the product, now we need to protect it.

We are at a crossroads in the produce industry and we must act now if we are to ensure the stability and profitability of our industry. In light of tough economic times, it is more important than ever to consider technologies with the potential to affect our bottom lines.

Over the years, we've developed new seed varieties to extend the shelf life of fruits and vegetables, but all too often we've done so at the expense of quality, taste and even nutrition. We've shipped products along the supply chain only for them to be misplaced and mishandled. And our profitability has suffered because we've been unable to monitor variables such as the temperature or condition of shipments as they travel along the supply chain.

But times have changed, and we can move beyond the problems of the past. I have worked in this industry for more than 35 years, and I believe tracking and traceability technology offers producers an opportunity for success like none I've ever seen. This technology provides not only a path to substantially greater grower returns and consumer satisfaction, but full supply chain visibility. We can actually track shipments from the point of harvest to the point of sale, constantly monitoring variables affecting their quality at every step of the supply chain.

Tracking and traceability uses high-tech information-gathering technologies such as GPS field mapping, real-time temperature monitoring and wireless, automated inventory management and tracking systems to eliminate waste in the supply chain and to ensure that produce is at its best when it reaches the grocer's shelves.

A more efficient supply chain allows us to return to the produce varieties that eat the best, not just those that are hardy enough to withstand the abuse of the supply chain. And a better-tasting product results in increased consumer demand, which, in turn, generates higher producer returns.

Unfortunately, the produce industry has been slow to adopt these technologies. All too often, producers wait for a mandate from a retailer, a foodservice company, or the government to work on process improvement. Why? Because they do not see the path to a return on investment. What they fail to recognize is that their inaction is costing them money in product shrink and liability hits.

Early adopters of tracking and traceability systems will enjoy tremendous financial benefits. Those who fail to implement new technologies will face a serious competitive disadvantage. The cost of inaction is too great. I challenge our industry to seek out proactive strategies rather than continuing our familiar pattern of reactive management.

(Anthony Totta is the chief executive officer of Grow My Profits LLC in Lee's Summit, MO.)