It’s a key component of food manufacturing and supply chain quality, but what are the key steps to developing an effective food traceability strategy? Here are our expert insights on how to track your business supply chain. 

It comes as no surprise that traceability is an ever-growing consideration in the food industry. At a time when food fraud is on the rise and sustainability is becoming ever more important, being able to see where our food comes from affects how businesses build brand trust with consumers and influences how customers spend their money. 

An effective food traceability strategy is vital for any food business that wants to thrive. But what procedures need to be in place to make this happen? We break down the essential elements of a robust in-house food chain traceability system. First, we’ll start with the basics…

What is food traceability and why is it important?

So why is food traceability so vital to your business and what does it entail? This industry-wide legal requirement ensures businesses can track food through every step of the supply chain with a higher level of transparency. Food fraud incidents are becoming more prevalent, and product recalls - estimated to cost the industry around the $10m mark - happen weekly (if not daily). The industry needs supply chain traceability to minimise risks and ensure a high level of food safety in these challenging times. 

Put simply, the more information your brand has on record about the items in your supply chain the better. This will impact the speed at which data can be accessed and will define how well you can protect your consumers, your reputation and your business in general. 

The relationship between traceability and food safety is complex and multi-faceted. A primary example of this is allergen management. Being able to trace how products have been handled and processed can alert manufacturers and distributors to risks associated with allergen contamination. If there has been a contamination then its origins must be pinpointed with the utmost accuracy so that products can be recalled and consumers can be made aware.

A proper traceability procedure also allows you to evaluate the overall safety profile of suppliers. If traceability data reveals inconsistencies or instances of non-compliance, you can initiate a supplier audit or begin searching for alternative vendors so that, going forward, you can be confident in the safety and quality of your products and ingredients.

What is forward and backward traceability in the food industry?

Effective traceability works in two “directions:” forward and backward.  

  • Forward traceability means that you can begin tracing an ingredient from when it was originally cultivated or produced and follow all the steps along the supply chain until it reaches retailers as a consumer-ready product.
     
  • Backward traceability works in the opposite food supply chain direction. From the supermarket shelf, it should be possible to trace ingredients all the way back to the original source of production.  

If you detect an issue with an ingredient, this data should allow you to pin point where in the supply chain where the problem arose.  

So, how does a food traceability system work?

The registration process for livestock and serial numbers for foodstuffs record and track products as they travel. This means that if an audit is required, you can run a trace on an item and access where it is in the supply chain, with full visibility of ingredients and their origins, should you need to recall any of them. 

Examples of food supply chain traceability 

  • Proving point of origin: Point of origin is a significant selling point for many retailers and brands. Therefore, being able to trace this with accuracy and granularity can fortify consumer’s confidence and safeguard companies’ reputations.
     
  • Tackling food fraud: Traceability is a vital asset in efforts to tackle food fraud, as it provides clear evidence of product safety and quality while also identifying potential risks or weak points in the supply chain. 
     
  • Tracing a source of foodborne illness: If there has been an outbreak of food poisoning or another food-related illness, traceability procedures can help to pinpoint the point where products may have been contaminated or mishandled.
     
  • Implementing effective product recalls: In 2023, a “gluten-free” peanut butter snack manufactured in the UK was found to contain gluten. It was possible to identify affected retailers as far away as Australia and recall the product thanks to traceability data. 

  • Ensuring consistent quality: Your suppliers may have a great track record for quality, but if their supply chain is compromised there could be ramifications for your business. Use traceability data to ensure consistent quality that consumers can trust. 
     
  • Enhancing sustainability: You’d like to know that your supply chain considers the environment and the welfare of the workers they employ. Traceability offers reassurance that ingredients have been sustainably and ethically produced, minimising any potential risks associated with greenwashing.
     

Industry benchmarks & regulations

Industry benchmark BRCGS operates as a global food safety standard, providing a framework to manage product safety, integrity, legality and quality for food and food ingredient manufacturing, processing and packing industries. One part of its remit is traceability - and in its most recent global standards update it included an expanded list of food ingredients that must be linked to traceability data.  

Unlike US regulation FSMA 204, BRCGS is not a legal requirement. But it does call for the implementation of “digital, interoperable and tech-enabled traceability systems” and in July 2023 was evaluated by the US Food & Drug Administration (FDA) against the requirements of the FDA regulations and recognised to be in alignment with FSMA.  

Under the FSMA 204 rule, standardised traceability records must be kept and maintained, allowing authorities to rapidly trace safety risks back to their source. For certain food products, records must incorporate Key Data Elements (KDEs) that are linked to Critical Tracking Events (CDEs). These include data related to the harvesting, cooling and packing of raw commodities, shipping and receiving food, and finally transporting finished products to retailers. 

Almost any business involved in the food industry is affected, and they will be required to produce detailed traceability plans. 

While not a legal requirement around the world, the BRCGS accreditation is recognised as indicating high food safety standards that inspire confidence and therefore confer advantages on businesses that attain it. In contract FSMA is a legal requirement and those doing business with or in the US will be subject to FSMA 204 with a full compliance date set for January 2026. 

What regulations govern food traceability?

Different countries follow different regulations. In the UK these regulations are overseen by the FSA, in the US this is monitored by the FDA and the USDA, while in Australia, the Australian Agricultural Traceability Alliance is working to promote traceability in the food industry. 

A good traceability system must always have access to the following information:

  • The business name and address

  • An itemised list of the products bought and sold

  • The size and scale of business transactions

  • The dates of sale

A business must also be able to trace any item one step back and one step forward; have a system in place, so that the data can be accessed on demand when requested; and ensure that items are individually labelled to make traceability possible.  

How does food traceability relate to HACCP?

Hazard Analysis Critical Control Point - or HACCP for short – are the principles by which every business should build its food safety and hygiene procedures. The system is designed to help companies identify potential food hazards and then remove or reduce them in order to produce foodstuffs that are safe for consumers to eat. Having an effective food traceability system in place will help you stay HACCP compliant.

Who is responsible for food traceability?

The short answer of course is everyone in the supply chain. From the manufacturer to the retailer and the food service provider, a weak link at any point will result in an ineffective system that ultimately doesn’t deliver the right standard of food safety.

But there are always risks that a business might act in their own self-interest, jeopardising the integrity of the supply chain transparency. This can lead to food fraud, such as beef mislabelled as British, an event which happened earlier this year. That is why having an effective food traceability procedure in place is so important, as it can help flag any issues before they become a safety concern. 

Now let's look at the how, what and when of food traceability procedures. 

How to run a food traceability procedure

Your food traceability procedure needs to track any specified product from raw material to finished product - and you can be called upon to run one at any time. The request can come from a regulatory body running checks, a retailer or supplier in your supply chain concerned about transparency or a specific item.

That's why it's so important to have a traceability plan in place. Then if a food recall or withdrawal does need to be issued the procedure should run smoothly. 

The recommended records for your traceability procedure

You'll want receival records that catalogue everything that comes into the business including batch codes and expiry dates. 

A raw materials issue record that tracks the raw material as it is split up and used within the manufacturing process.. 

A product formulation record that catalogues the batch number and quantity of the raw product in any recipe. 

An in-process record that records all the different processes a product goes through. Each process needs its own batch number and quantity, as this will be needed for traceability and mass balance (more on that in a minute). 

A packing report, which time stamps the moment the product was packed and links it to the entire manufacturing process. Don't forget this one as it links the raw product with the finished item. 

A  dispatch record that gives you visibility around the next step in your product's supply chain journey. This is an essential part of the trace forward process, and should include product name, quantity, use by and/of product date.

A waste record that will help you calculate mass balance and track all the waste associated with any production process - from discarded products to items that ended up in the bin by accident. Again, batch number and destination are key parts of this data record, as is any waste that may end up in animal feed. 

A record of any raw materials or finished products you return or that are returned to you. Again you are looking to ensure you have the quantity, batch code and name of the supplier on record. 

What is mass balance in food traceability?

Traceability doesn’t just apply to what you receive and what you dispatch. It requires detailed reporting of what happens to ingredient inputs at any point in time by mass. You must therefore be able to account for the following: the mass of raw materials received, the amounts (by mass) that become part of your waste output, are still in storage or are part of production, and the amounts forming part of finished products.  

Why is mass balance important in food traceability?

Correct calculations ensure that, in the event of a recall, you can account for all potentially affected raw materials and finished products. Mass balance helps you keep track of how your raw product is used. In essence, mass balance records are much like financial balance sheets. Just as you balance financial records, mass balance reports present a full picture of where ingredients are deployed at any given time. You should run a mass balance exercise as part of your traceability procedure.  

According to the BRC requirements, this is how to carry out a mass balance exercise:

1. Start by selecting a batch code of a particular raw material

2. Identify the amount of raw material used in that batch code

3. Find the recipes where it has been used

4. Use production schedules and batch make-up sheets to work out the weights of the batch of ingredients used in the finished product

5. Refer back to warehouse records to identify the quantity of the ingredient from the batch that has gone unused

6. Reconcile the quantity delivered against the amounts used plus any residual unused stock

How often should you run a traceability procedure?

This is customer dependent. For some, running a traceability procedure once a year will suffice, for others a bi-annual procedure is required, while some assurance schemes will require monthly back-to-farm traceability. Red Tractor Meat Processing standards and BQAP (Pork) require evidence of monthly tracing, including verification of product claims and annual mass balance exercises. 

The data collected should include all the records above, covering the raw materials, processing aids used during the work-in-process and production, as well as the food contact packaging materials and the finished product itself. The documentation covering these processes and the distribution associated with them is also vital.  

To do this effectively, traceable lot numbers are essential, with some raw materials used in more than one production run. Each run and its production and distribution needs to be recorded as part of the procedure, as well as all the individual codes assigned to each product and material along the way. 

How does a food traceability procedure handle safety risks and recalls?

Having a food traceability procedure in place helps businesses manage risk and be prepared for recalls, saving money and brand reputation further down the line. Without one, effective mock recalls are impossible to run, leaving companies open to the risk of missing issues in their supply chain. You can read more about managing a food recall here.  

Read more about the evolution of traceability in food and drink in our whitepaper, or alternatively, find out more about Foods Connected's award-winning food traceability software solutions.

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