1

Organic certification

Individual countries and trade groups around the world have defined standards for food and products that may be considered, and consequently labelled, as organic under general concepts that combine best environmental practices, a high level of biodiversity, the preservation of natural resources, the application of high animal welfare standards and a production method.

In order to determine if an agricultural product has been farmed following said standards, certification bodies have been set up to verify if they have indeed been produced in strict adherence to organic regulations. Most jurisdictions employ third party certification bodies.

3

Non-GMO

To date there is no worldwide regulation or internationally recognized agreement on different levels of genetic manipulation of food. However, it is generally considered that Genetically Modified Organisms are those that have slices of genetic material from other organisms artificially bonded to their own genetic code.

The most widely used standard is the “Non GMO project standard” that grants a label of GMO free to products with GMO contamination below what they consider to be “the applicable action threshold”:

  • Seed and other propagation materials: 0.25%
  • Human food and products ingested or used directly on skin: 0.9%
  • Cleaning products, textiles, and products not ingested or used directly on skin: 1.5%
  • Animal feed and supplements: 5%

2

Gluten Free

According to the US, Canadian and EU regulation a product may be labelled as “gluten free” if it contains up to 20 parts per million (PPM) of the monomeric gliadins and polymeric glutenins that make up the gluten proteins. This applies to foods that naturally contain gluten and also to cross contamination.

EU regulations also has a label for “Very low gluten” foods containing between 21 and 100 ppm of gluten.

4

Fair trade

Acording to Fair Traid International, Not all trade is fair! Farmers and workers at the beginning of the chain don’t always get a fair share of the benefits of trade. Fairtrade enables consumers to put this right.

Fairtrade is an alternative approach to conventional trade and is based on a partnership between producers and consumers. When farmers can sell on Fairtrade terms, it provides them with a better deal and improved terms of trade. This allows them the opportunity to improve their lives and plan for their future. Fairtrade offers consumers a powerful way to reduce poverty through their everyday shopping.

Traceability system

In 2016, the Regulatory Council and its members began working on the development and implementation of a sophisticated traceability system aimed at creating trust and a direct link between consumer and producer.

This system, -now in its pilot phase- is a fully independent and can determine the origin of the product history from the field of the producer to the destination and final labeling for the consumer.

This has many benefits for the market and the all of the production chain, such as an improved inventory control system at each point of the production chain and in each transaction.

One of the many advantages this new traceability system gives producers the ability to identify bottlenecks in logistics processes and improve delivery times, as well as giving the consumer information in real time of wear exactly, the food they have on their plates, came from.

1. Why is traceability important for Bolivian Royal Quinoa?

– to guarantee the origin of the product
– to create trust and a link and between consumer and producer

Purpose & objectives

The system initially will have a clear B2B focus, B2C aspects will be aggregated in future years. This approach is suitable to establish the initial stages of the value chain well prior to a strong communication and interaction with consumers.

What is the software supposed to do?

  • Technically back the positioning of Bolivian Royal Quinoa with D.O. (designation of origin) in the international market
  • Fulfill the requirements of the regulation of use of the D.O.
  • Fulfill clients’ requirements, organic norms and laws in practice
  • Determine the origin of the product history from the field of the producer to the destination and final labeling for the consumer
  • Enable to quickly remove products with defects from the market
  • Effectively take corrective measures to the cause of the defects that may occur in order to continuously develop qualities
  • Identify points of entry of contamination
  • Avoid fraud
  • Monitor traded volumes and compare them with the potential production volume
  • Facilitate access to centralized certificates in real time
  • Create access for buyers to information on the certification status of own suppliers in real time
  • Facilitate that laboratory results are considered throughout the supply chain and by this way avoid expenses for multiple analysis
  • Reassure the producer that his product is not mixed with inferior qualities not meeting the requirements of the regulation of use of the D.O.
  • Avoid double data entries by C.R. and the traceability system
  • Create an improved inventory control system at each point of the production chain and in each transaction of the Bolivian Royal Quinoa value chain.
  • Manage inventories throughout the chain.
  • Improve the classification and verification of Bolivian Royal Quinoa.
  • Reduce risk for buyers of Bolivian Royal Quinoa.
  • Monitor with information technology tools (thematic database) about performance per ha (traceable to the origin that contributes to improved performance per ha).
  • Automated control processes traditionally paper-based.
  • Reconciliated stock levels between the control points in the value chain.
  • Increased transparency in the production chain, improving visibility for clients.
  • Identify bottlenecks in logistics processes and improve delivery times.
  • Generate updated information in real time according to user needs.
  • Monitor the certification process in the value chain of the Bolivian Royal Quinoa.
  • Automated communication of relevant information.

The information in the system is highly confidential and must be handled by an outsourced entity with competent personnel and penalty contracts.

2. Progress of the work until today

Analysis

Aug 2015 – May 2016

  • Workshops held:
  • Sep 9-10 2015
  • Mar 21-23 2016
  • May 11-13 2016

Research stage completed

  • Diagnosis in the Southern Altiplano of Bolivia.
  • Analysis of the current strengths and weaknesses.
  • Identification of bottlenecks and possible solutions.
  • Terminology, concepts and description of levels of traceability.
  • Structure for specifying requirements for the traceability system.

Design

Jun 2016 – Dec 2016

  • Workshops held:
  • Jun 28-29 2016
  • Jul 25-27 2016

Stage of global design &
detailed design completed

  • Definition of the Traceability System Architecture
  • Approval of the specifications for the traceability system.
  • Online presentation of two software providers
    – CHECK LIST design, for the “Rules of Use”
    (consultation document)
  • Launch of the application form for the pilot phase.
  • Definition of the pilot phase (in several stages).
  • Reception of applications and selection of organizations for the pilot phase.

Pilot Phase

Dec 2016 – May 2017

  • Workshops:
  • Dec 09 2016
  • Mar 16 2017

Pilot Phase started

A) Traceability system and

B) “Rules of Use”

  • Approval and Implementation of the Annual Plan for the Pilot Phase.
  • Approval of Check list for primary production.
  • Check list draft for the level of processors and traders.
  • Definition and approval of TORs concerning the traceability software tender according to IDB procedures.
  • Description of the job description & activities of the technicians of the C.R. during the pilot phase.
    – Commitment of the Bolivian actors to employ a local technician.
  • BIOFACH Launching
  • Meetings with international clients
  • Technical meetings

Implementation

As of May 2017

  • Workshop:
  • Mar 16 2017

Start of Implementation phase

  • Tender process to invite software service providers for proposals.
  • Demo Access for Bolivian actors.
  • Trainings are coordinated (for users incl. certifiers).
  • Harmonizing procedures.
  • Adjustments to software before
  • Implementation with all actors.
  • Preparing a first traceable harvest in the 2017/2018 D.O. campaign
    (From georeferenced, organic plots).
  • Upload of first transaction data.
  • Training.
  • Initial issuing of certificates for O.D. and participants of the pilot phase using the label.

– Stakeholder workshops were held with producers and their organizations, companies, processors and exporters and private and public entities like the exporter association CABOLQUI, National Service of Intellectual Properties SENAPI, Ministry of Agriculture, Ministry of Internal and External Commerce.

From an export prospective it is very relevant to have a strategy. The Export Value system shows the key players that are necessary to make exports from developing countries possible.

The CBI focuses on several aspects of the export value system. We cannot do everything but what we do, we do well. Our main focus is on producing exporters and importers. Taking in account that also supply, fiscal, transport, export policies and business support services are aligned to support sector performance.

– The architecture of the envisaged traceability system is designed

Scope and area of application of the envisaged software system:

Administration:

The software should be organized as a service for the C.R. of the D.O. and maximally outsourced / subcontracted to minimize expenses / staff and the risk of data abuse. A quite limited access to sensitive data should be considered and at the same time the possibility for the C.R. needs to be generated to efficiently create analyses, reports and statistics for the strategic management of the organization.

Some Bolivian authorities mentioned interest in receiving certain information from the software e.g.:

SENASAG / SNCPE: In case of serious irregularities SENASAG / SNCPE / the competent authority for the control of organic certification, needs to receive alerts / notifications (e.g. by email).

The application process for the use of the label must be supported by the system.

SENAPI: During the process of registration of new actors, SENAPI needs to receive notifications (e.g. by email).

A request to participate in the D.O. and to use the label is made by the interested market actors directly to their certification body and this will be an additional service to their organic inspection and certification process with a maximized harmonization between both processes. As soon as the interested actor meets the prerequisites (organic certification + georeferenced fields included in the system geo-referencing FAUTAPO), the certification body (via email sent by the system) submits the application to the C.R. and to SENAPI and these organizations respond to the certifier to initiate the first inspection for D.O. and the certification granted the certificate on behalf of the C.R. if there are no major non conformities.

This process of application/registration/authorization/certification between the organizations and certification bodies should be facilitated by the centralized software to save time, personnel and bureaucracy.

 

Involved parties:

In addition to the C.R. (and SENAPI and SENASAG / SNCPE) the traceability software will include Bolivian and international actors in the supply chain of QROAS as well as their certification bodies. The market actors are the primary producers, producer associations and Bolivian companies (both collect and process quinoa and export) and international clients (often with subsequent clients).

 

Source of information:

The certification bodies of these actors provide the certification data and afterwards the market actors provide their transaction data.

 

Product flow:

The software system must cover the supply chain of the QROAS from the fields of primary production to companies that place the final label on the consumer packaging in the Bolivian and international markets. Therefore, several companies must be included because most of the export is done in form of semi-processed grains, this means washed, dried, assorted (washing serves to remove the saponin). Subsequent stages of value addition currently are mostly performed within international companies (importers, processors and packers abroad).

Structure brief
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Product functions / Use cases

A: Certification body delivers / uploads data via xls (for large amounts of data) or a web portal (for small amounts of data) into the system.

B: Certification body can see all data submitted (by itself) in the system.

C: Certification body changes / adjusts the certification status of an actor.

D: Buyer / Seller delivers / uploads data of bill of delivery / Transaction Certificate into the system. (Options: xls, portal, interface)

E: Buyers / Sellers can see data of own suppliers in the system (in a web portal). Buyers / Sellers are authorized to see data from own suppliers in the system, but not the data from suppliers of their own suppliers.

F: Certification body monitors and adjusts the status of transactions in the traffic light system (e.g. turns transaction batches that are red into green where applicable).

G: Regulatory Council receives notifications / alerts for monitoring purposes which are automatically sent by the system

H: Regulatory Council downloads reports / general statistics from the system

I: SENAPI requires information in the moment that the authorization for an actor to use the label must be removed (by notification / email to SENAPI).

I: SENASAG / SNCPE the competent Bolivian authority for the control of the organic sector needs to receive information online in real time in the case that a non-conformity puts at risk the organic certificability of a certain actor.

J: Laboratories only authorized laboratories deliver/upload data about results of analyses via web portal.

K: Consumers receive direct information about farmers that produced his product (at a later stage).

 

– The pilot phase is planned and participating organisations and companies are engaged

 

For the pilot phase we received applications of 14 organisations with 1500 selected farmers producing on 22.000 ha.

3. Stepwise implementation of traceability guarantees in the next years

Analysis

Aug 2015 – May 2016

  • Workshops held:
  • Sep 9-10 2015
  • Mar 21-23 2016
  • May 11-13 2016

Research stage completed

  • Diagnosis in the Southern Altiplano of Bolivia.
  • Analysis of the current strengths and weaknesses.
  • Identification of bottlenecks and possible solutions.
  • Terminology, concepts and description of levels of traceability.
  • Structure for specifying requirements for the traceability system.

Design

Jun 2016 – Dec 2016

  • Workshops held:
  • Jun 28-29 2016
  • Jul 25-27 2016

Stage of global design &
detailed design completed

  • Definition of the Traceability System Architecture
  • Approval of the specifications for the traceability system.
  • Online presentation of two software providers
    – CHECK LIST design, for the “Rules of Use”
    (consultation document)
  • Launch of the application form for the pilot phase.
  • Definition of the pilot phase (in several stages).
  • Reception of applications and selection of organizations for the pilot phase.

Pilot Phase

Dec 2016 – May 2017

  • Workshops:
  • Dec 09 2016
  • Mar 16 2017

Pilot Phase started

A) Traceability system and

B) “Rules of Use”

  • Approval and Implementation of the Annual Plan for the Pilot Phase.
  • Approval of Check list for primary production.
  • Check list draft for the level of processors and traders.
  • Definition and approval of TORs concerning the traceability software tender according to IDB procedures.
  • Description of the job description & activities of the technicians of the C.R. during the pilot phase.
    – Commitment of the Bolivian actors to employ a local technician.
  • BIOFACH Launching
  • Meetings with international clients
  • Technical meetings

Implementation

As of May 2017

  • Workshop:
  • Mar 16 2017

Start of Implementation phase

  • Tender process to invite software service providers for proposals.
  • Demo Access for Bolivian actors.
  • Trainings are coordinated (for users incl. certifiers).
  • Harmonizing procedures.
  • Adjustments to software before
  • Implementation with all actors.
  • Preparing a first traceable harvest in the 2017/2018 D.O. campaign
    (From georeferenced, organic plots).
  • Upload of first transaction data.
  • Training.
  • Initial issuing of certificates for O.D. and participants of the pilot phase using the label.

– International tender

– Selection of software service provider

– Pilot phase with selected Bolivian actors

sourcing from georeferenced farms

– Evaluation and adjustment of the system

– Implementation with all Bolivian and international clients

– Evaluation and continued adjustment of the system

– Audit of the system

4. A look into the future of the system

– The system will support the administration of the Regulatory Council of the D.O.