Dynamism, Framing and Standards: Challenges and...
Transcript of Dynamism, Framing and Standards: Challenges and...
Dynamism,FramingandStandards:
ChallengesandOpportunitiesforLandProtectioninCEE
Prof.Dr.BerndHallier
EuropeanRetailAcademy/Roesrath,Germany
Abstract
LandProtectionhastoreacttothedynamicchallengesfortheeconomicsoffarminginaglobal
competitiondrivenbyconsumerdemand.Smartfarminghastoencludethetotalsupplychainbya
verticalintegrationofstandardsfromfarmtofork.Buttoday’seconomicshaveadditionallytobe
enrichedbysustainabilitygoalstosecureresourcesoveralong-termandtocounterparttheglobal
climatechange.Partofthetraditionalprofessionoffarmersshouldbetransformedtolandscape
rangersnottobemeasuredanymoreineconomictermsofagriculturaloutput,butintermsof
preservationoflandscapetosecurethepresentclimateinEuropeanditstraditionalculture.Lastbut
notleastethicsshouldunderlinethehighvalueoffoodandfood-securityandoptimizeafairsharing
oftheproduction-valuealongthechainfromfarmtofork;alsoreflectingbyanimalcarethe
conditionsofgrowing,transportingandslaughteringanimals.
Key-Words
EconomicsofFarming,ClimateChange,SustainabilityGoals,SmartFarming,TotalSupplyChain,
VerticalIntegrationofStandards.
Introduction
Takenthelong–basedtraditionininfra-structureCentralandEasternEuropehadbeenwithinthe
lastcenturiesstrongperformersinAgriBusinessforwood,cropsandcattle.Thesoilandclimateas
wellastheavailabilityoflandandlastbutnotleastofcheaplabourhadbeenkey-factorswithinthe
competitiononEuropeanlevel.
Withinthechangefromanagriculturalsocietytowardsindustry-orientationandeventowardsa
post-industrialerathetopicofLandProtectionisawell-selectedfieldforacademicdiscussionand
inputformaster-planswithincivilsociety.Willthegrowingcitiesofthe21stcenturyandshopping-/
distribution-centersinruralareaserodenature?Willthesustainabilityofagriculturebedestroyed
bynewlivinghabitsandglobalsourcingofconsumerproducts?Whateffectswillhavethisespecially
forcountriesofCEE?
TakentheabovescopeofEconomics-alsoinrespecttothe50yearsofsocialisminCEEafterWorld
WarII–anadditionalfactorhastobeseenbytheclimatechangewatchedwithinthelastdecade.
Ecologyisnotonlyanaspectofsustainabilitybutalsopartofconsumers‘expectationslikethe
growingmarket-shareoforganicsshowsinthesupermarkets.LastbutnotleastalsoEthicsisgaining
powerinthemindofthepeople:itisseeninrelationofFairTradeamongthehumanbeingsalong
theproduction/distributionchainbutalsoinrespecttothegrowing,transportandslaughteringof
animals.Thisessaywilldealthereforeinthebeginningwiththesub-chapters:
- NewEconomicChallengesforAgriculture
- TheHolisticTriasofEconomics,EcologyandEthics
DuetothelimitsofaConferencePaperthepointsofdiscussionhavebeenselectedandshouldbe
understoodasinputeitherfortheConferenceasakick-offtobeenlargedorchallengedbyother
contributorsortakenlaterasmaterialforfurtherresearch.
Neverthelessthisessaydoesnotwantonlytoremainintheacademicdescriptionofchangesbutin
thesenseofappliedsciencesandcross-fertilizationitislistingwithinathirdsub-chapterselected
solutionstooptimizetheTotalSupplyChain:
- SelectedStandardswithintheTotalSupplyChain
1. NewEconomicChallengesforAgriculture
SincethetheoryofThomasMalthusaboutthegrowthofthepopulationandthepotential
food-supplytheeconomicsofagribusiness(alsoinrespecttofoodsecurity)havebeen
interpretedasasectoranalysisofsinglecountries.Withintoday’ssituationhoweverthere
areimpactstobeconsideredlikebelongingtointernationalcooperationslikeinformer
timestoCOMECONornowtotheEU,worldwidevolatilitiesofchangingamountsofsupply
orvaluesofcurrencies,orclimatechangeleadingtolossesofproductionontheonehand
sideandpotentialopportunitiesontheotherhandtogrowcertainfruitsneverthoughtofin
thepast.
1.1 SocialismversusMarketEconomy
AgriculturalproductioninSocialismwasplannedbythenationaladministrationand
operatedforexampleinEastGermanyvia15regionalareasinatop-downapproach
towardsthelocalproductionunits.Ingeneraldemandwasbiggerthansupply–and
importedproductslikeforexamplebananasexceptions.Theauthorofthisessay
remembersalsothecaseofbarter-tradewheretheexportof1x1bananasfromthe
Bremenbasedcompany(WestGermany)ScipiotoHungaryhadbeenenabledbyan
orderoftheBremenCityAdministrationforHungarianbuses.
Thissituationchangedthendramaticallybytheintroductionofthemarket-economy.
Thenationalagriculturalproductionwasnolongeratop-downprocess–butabottum-
upprocessstartingatthedecisionlevelofconsumersatthepointofsales.Insofarretail-
technologiesanddata-miningbecamepartofAgriBusinessalsointheformerCOMECON
countries.
Anotheraspectofmarket-economyisthatthedemandedoutputisnolongeran
algorithmoftheavailabilityofland,butthatduetoglobalcompetitionthedemandfor
nationalproductionhasalsotobeseeninrespectofinternationalqualityandprices.
Especiallyduetotheempowermentofretail-/wholesalecompaniesthedemand-sideis
notonlyfocusedon„thenetto-valueofaproduct“concerningqualityandpricebutalso
onfactorslikeprovengoodagriculturalpractice,tracing/tracking,packagingandterms
oftransportanddeliverydatesforexample.
1.2 RFID,SmartphonesandQR-Codes
SmartAgriculturewillbetheeconomickeyformodernAgriBusinessManagement:
basedonRFIDandCloudsfertilizationofthefieldswillbedeterminedbylaptoporeven
smartphones–ripingprocesseswillartificiallyslowedorspeededup–fieldswillhaveto
beconnectedwithcooling/ripingdepots,packagingandtransport-systems.QR-Codes
andtheInternetofThingswillbepartofthemarketingfromfarmtofork.
Volumeofstandardizedproductsfittingintothisschemeofmassmarketingwillbeof
biggerimportancethantheabsolutenumberofsquaremeters.Itwillbecomeamore
holisticchallenge–alsoincross-ferilizationofhumanbrain!Learninghastobeonall
levelsalongtheTotalSupplyChain–andStandardshavetobeagreedonacrossallsteps
oftheproduct-flow.
1.3 Riskfactors
EconomicsofAgriBusinesssuffermorebyrisksthanothersectors.Awholesaleror
retailerveryquicklycanchangethesourceofhissupply–afarmerhastothinkinseveral
life-cyclesofcroporanimalsastheincreaseofhisvolumeisnotinfinitelyonshortterm;
oncehavinginvesteditisdifficult(oronlybyheavylosses)todevestandtoshiftthe
capitaltoothermarkets.
Globalizationoffersbigchancestoincreasemarkets–butunfortunatelyagri-culture
quiteoftenisalsotargetofpoliticalpressure:examplesintherecentpastaretrade
embargoeswithRussiaorthreatswiththeUSA–anduncertantiesabouttheBREXIT.
2. TheHolisticTriasofEconomics,EcologyandEthics
Theauthorofthisessaypromotesalreadyforseveralyearstheideaof„aGlobal
HouseofHarmonybasedonabalancebetweenEconomics,EcologyandEthics“.
Themainpointistogiveeachofthosebig„E“weightinanoptimizationmodell–but
tofitittonational,regionalorlocalabilities.
SuchanewFrameofThinkingisalsoreflectedbythedefined17SustainabilityGoals
oftheUnitedNationsfortheyear2030.Itisaninterdisciplinarybench-marking
whichcanbeappliedasasetofmosaicstonesindividuallyoptimizedatlocal,
nationalorsupra-nationallevels.The17goalsare:nopoverty;zerohunger;good
health/wellbeing;qualityeducation;genderequality;cleanwater/sanitation;clean
energy;decentwork/economicgrowth;infrastructure/innovation;reducedin-
equalities;sustainablecities/communities;responsibleproduction/consumption;
climateaction;lifebelowwater;lifeonland;justice/stronginstitutions;partner-
shipstofulfillthesustainabilitygoals.
Takenthetopic„CentralEuropeanInitiativeonAgriculturalLandProtection“this
couldbeinterpretedasapartnershiptofulfilltheUN-sustainabilitygoals:dealing
withinfrastructure/innovation,lifeonland,responsibleproduction/consumption,
sustainablecommunities,decentwork/economicgrowth,goodhealth/wellbeing.
2.1 Sustainabilityinaclosersense
WhilethebroaderwayofsustainabilitydefinedbytheUNcouldbecoveredfor
theSlovakRepublicorbyacomparisonofapanelofCEE-countriesbyapotentialPhD-
candidatewithinthisConferencepaperonlyselectedexamplesofsustainabilityina
closersensearelisted.
2.1.1 FoodLosses
WithinaConferenceinNairobi/KenyainMarch2017aboutfoodlossesandfood
wastelocalreportsshowedthatabout60percentofthemango
harvestwaslostduetoalackofrighttransportationandstorage–and
fluctuationinthedemand.Forinvestmentforprocessingthemangofor
juicesorcanningalternativelydryingtherewasnotenoughcapitalorknow-how
available.Similarstudieswerepresentedabouttomatoes.
2.1.2 WaterWaste/Spoiling
TheEcologicalFootPrintofcattleshowsusthatbeefisanenemyto
waterresourcesandclimateifpushedtothemaximumofproduction
andconsumption.InSpainthegreenhousesfortomatoescausedwater
problemsforwholeareas.Connectingthisfactwiththespoiledover-
productioninAfricathequestionmakessensewhytosubsidizetomato
greenhousesinSpain:andwhynottochannelthecapitaltoAfrica.And
oneexamplefromGermany:whereNorth-RhineWestfaliaisEurope’s
biggestpork-industry.Thewaterinseveraldistrictsisspoiltalreadyfrom
excrementsoftheGermanporkindustry–butstillworsenedbytheimportof
excrementsfromtheborderingNetherlandswhichhavehigher
environmentallawsconcerningthewaterqualityincontextwithfarming.
2.1.3 Mono-cultureversusBio-diversity
Mass-demandandconcentrationwithinfarming(changingsometimesalsointo
„industries“)promotemono-culturecomparedwithfarminginWesternEurope
inthe50/60ies.Thesizeofthefarm/numberofanimalsinselectedcategories
pushedfarmsintheeconomiesofscale/concentrationonproducts/animals.
Bio-diversitywasneglectedorlost.Thelackofbeesnowbecomessoevident
thatinBavaria/Germanywithinsixweeks1.8millionpeoplesignedtoput
pressureontheregionalgovernmenttoimproveenvironmentallawstoshelter
beesandotherinsects.
Also(well-intended)initiativeslikechangingcarsfromtraditionalfuel
towardsbio-fuelpushedfarmersintomono-cultureasitwassubsidizedheavily
inthebeginninganditturnedouttobemuchmoreprofitabletofarmforfuel
insteadoffood.
2.2 Ethics
Aswellasinthecaseof„sustainability“alsoconcerning„ethics“themain-streamis
definedwithintheUN-Goals:reducinginequalities,nopverty,zeroHunger,decent
work/economicgrowth,qualityeducation.Butalsoforthissectionthreeselected
exampleswilldemonstratetherelevanceofEthicswithinaconceptofagriculturalland
protection.
2.2.1 FoodSecurity:asplitofrichandpoor
Alreadytodaymigrationshowsthatmillionsofpeoplelackoftheright
amountoffoodorthenecessaryproteins–whileotherpartsofthe
populationoftheglobewastefoodupto30percentormore.Iflandfor
growingfoodisdecreasingduetoinfrastructureorachangeoftheclimateprices
offoodwillincreasewhichwillhitthosewhohavealreadynowproblemswith
livingcosts.Thoseobservationsfitaswellthenationalasalsotheinternational
levels.
InGermanyinthe19thcenturypoorpeopleinindustrialareasstartedgardening
(„Schrebergärten“),inRussiatheprivateowned„datcha“providessomebasic
stuff–andnowadays„urbangardening“istopicatalotofconferences.
InterestinginthiscontextmightbealsotheconceptofFairTrade:con-
sumersspendanadditionalfeeontopoftheoriginalpricetobepassedonto
theproducersinAfricaasakindofdevelopingaid.Similarlyamilk-
productcompanyinGermanyraisesadditionalmoneytosupportsmall
farms.
LastbutnotleastFoodBankshavetobementionedwhichasvolunteers
collectoversupplyinsupermarketsanddistributeittounderpriviledgedgroups
ofthesociety.FoodBankscanbewatchednotonlyalloverEurope
butalsonowadaysalloverthedevelopedworld.
2.2.2 SustainableCitiesandCommunities
Duetodifferentlivingstandardsincitiesandinruralcommunitiesthereis
worldwidethemega-trendtowardscities.Lessandlesspeoplewanttoliveinthe
country-side.InGermanyinthebigcitiesthereisalackofspaceforlivinginflats
orownhouses–whileinthecountry-sideinvillagesorsmalltownsthereisa
lackofpeople.
Thereisabigscopetocreateprogramsforpeopletomakeholidaysinthe
country-side,tobuildweekend-homesoreventoreturnpermanentlytothe
country-side.Newtechnologieswhichenablehome-officesmightbesuch
strategictoolstomakelivinginthecountry-sidemoresexy.
2.2.3 LandscapeRangers
Toacertaindegreefarmingcouldbeorganzednotasa„profit-center“butasa
„landscapeprotection“.Equivalenttomasterplansforcitiesalsoruralareas
couldbeprotectedtoserveassustainablecounter-partsforrecreationor
„climate-channels“fornatureandhumanbeings.FaunaandFloraarethe
naturalpartnerstodeescalatethedangerofclimatechange.
EspeciallytheClimateChangeshouldteachhumanbeingshowimportantwoods
aretocooldownthesummer-heatatnight.Farmsandfarmanimalscanbepart
ofrecreationconcepts.TheValueofLandscapehastobere-discovered.Itisan
ethicaltasktoimprovetheimageoffarming.
Duetothemacro-economicdevelopmentofthestagesagriculture–industry-
trade–servicestheprofessionofthefarmersdeclinedinimagevalues:the
farmersstatusshouldbeimproved–histaskforthelocalsocietiesmore
honored.Perhapsthenameandcontentoftheprofessionofsomepartofthe
farmerscouldbechangedto„LandscapeRangers“:beingpotentiallytoacertain
degreesomekindofUN-culturalheritage!
3.0SelectedStandardswithintheTotalSupplyChain
TakenthefactthatfarmingispartoftheTotalSupplyChainManagementand
thatweliveinacenturyofmassproduction/massconsumptiononehastounder-
standthatSTANDARDSarethedriversoftheeconomicsofTSCMandthat
standardshelptooptimizeefficiencyandareexdefinitionebythissustainable–
andlastbutnotleastitisethicaltodevelopthosestandardsjointlyaroundthe
globeandtoteachallparticipantshowtousethemfortheirownandthejoint
sake.
Likeinpart1and2ofthisessayselectedexamplesarealsolistedinpart3–
startingwithAgricultureandendingwithbar-coding/scannersatthesuper-
markets.
3.1Globalgap
Oneoftheimportantinternationallyrecognizedstandard-providersintheAgro-Sectoris
Globalgap.ItscompetencesfortheTotalSupplyChainisreflectedinitssplitofmembersin
12percentcomingfromretail,46percentfromthesupplysideand42percentassociated
member.
3.1.1History
TodaysGlobalgapwasfoundedin1997asaProactiveFoodSafetyinitiativerespondingtoa
decadeoffood-scandals:notinsolvingconcretecrisesaftertheirappearance–butinlooking
inadvancetoriskfactorswithintheTotalSupplyChainfromfarmtofork.Inthe80iesin
Germanythepublicbecameincreasinglyawareofinsufficientfoodcontrolsandsometimes
evencriminalacts.ln1994intheUKtheMadCowDesease(BSE)culminatedinthethreat
thatapossibleepidemicmightcause10.000people'sdeath.Britishretailersestablisheda
work-grouptoanalysetheirbuying-sourcesoftheagro-sectortomakesurethatonthose
farmsbeingsuppliersforretailnodangerouscross-oversofdeseasesmighthappen.Thefirst
informalinter-nationalget-togethertookplacein1996inAlmeria/Spaintovisitthesprawling
plasticgreenhouses.Theworkshopwasinsearchof,,goodagriculturalpractice(GAP)"for
fruitandvegetables.GermanretailersandstaffoftheEHIRetaillnstitutejoinedthose
meetings.IntheUKtheretailerSAFEWAYhostedthegroup.Quicklyitbecameclear,thaton
theonehandsideabenchmarkwasneeded;secondlythatthebenchmarkhadtobeshared
bymorethanoneretailer/supplierbecausefarmershavetobeabletosupplydifferent
retailers/markets;thirdlythatthecostsofcontrolwasatoohighburdenforthepartnersto
betakenindividually.Tobeefficientasasystemtheworkshophadtobeinstitutionalized
andthecontrolcostshavetobeshared.ItwastheEHI-CEOofthattime(Prof.Dr.B.Hallier)
whoofferedfreespaceforacoordinatingofficeinCologneandDr.K.Moellerasa
coordinator.AtthisstageretailerslikeAhold/Netherlands,Migros/SwitzerlandandTesco/UK
joinedtheEHItohelptofinancethekick-offoftheEurepGap(EuropeanRetailProduceGAP).
TodemonstatetheinternationalcharacterEHIappointedNigelGarbuttfromtheUKto
becomethefirstChairmanofEurepGapandthegroupusedEnglishastheworkinglanguage
oftheworkshop.
ln1999morethan15retailersofEurepgapdidgoonstageinafirstGlobalConferencebeing
visitedby300fruitandvegetablesupplierstowhomtheideaofthird-partycertificationwas
sold.Asthefirstglobalinterprofessionalorganizationofitskindinthefreshproducesector,
EurepGapestablishedacomprehensive,simpleandclearstructurecoveringallrelevant
marketparticipantsandstakeholders.TheEurepGapCouncilandCommitteesstartedwith
-Standardsetting
-Technicalissues
-Scientificlssues
EurepGapwasregisteredasaTrademarkinthefunctionofaCertificationBody.After
trialAuditsinltalyandSpainthefirstCerificateswerehandedoverattheBologna-
Conferencein2001.OnceitbecameclearthattheGap-visionwouldbeabletosurvive
throughitsownMembershipandcontrolfees-theworkinggroupwastransformedintoan
ownlegalentitybythenameofFoodPLUS-withEurepGapasitsfirstTrademark.BUTitwas
clearfromthebeginningthatitwasnottobeusedasaBrandintheeyesoftheconsumers:
itisatrademarkoffoodsecurity-abenchmarkwhichkeepstheopportunitiesopenforadd
onsforrealbrands.
Thepyramideoffoodsecurityis:
-Legalstandardsasthelowestcategory
-EurepGap/GlobalGapasabenchmark
-lndividualBrandingasanaddon
Thesuccess-storyofEurepGapculminatedin2007whenattheBangkokConferencethenameof
theorganizationwasshiftedfromtheEuropeanperspectivetoaGlobalfocusandacceptance;
fromnowonitworksunderthetrademarkGlobalGap.Morethan155.000producersfollowed37
Globalgapstandardsandprogramsoperatingin119countries.Globalgapisbackedupby48
NationalTechnicalWorkingGroups,36accreditationbodies,145certificationbodies,morethan
1.000inspectorsandmorethan700auditors.
3.1.2 Certification
FollowingtheannouncementinParisin1999withinthenexttwoyearstwoaccreditationbodies
(UKASandRvA)aswellastwocertificationbodies(SGSAgroControlandCMICheckmate
lnternational/NSF)shapedthefirstfulloperationalEurepGapconceptandcontrolledthepilot
system.IthastobekeptinmindthatEurep-Gap/GlobalGapisappliedsciencesandthatlocal
circumstancesandexperiencesdoshowdiscrepanciesbetweentheoryandpractical
implementations.Furtheronthewholesystemisinpermanentadaption/improvementduetothe
demandsofthemarkets.ThosechangescouldbesegmentedintothreeVectors.
-Vector1istheenlargementsintermsofproduct-categories.ltallstartedin1997withCitrus
fruits-followedin2003byFlowers&Ornamentals,andAqua-culturein2004.Livestockwas
addedin2005andCompoundFeedManufacturing(CFM)in2009.Butalsothedevelopmentof
RiskAssessmentforSocialPractices(GRASP)in2004andthelntegretyProgramin2008couldbe
accountedintothisVector.
-Vector2isstandingfortheglobalizationprocessinwhichregionaldifferencescouldbe
balancedbymodificationsintoChinaGap,ChileGapetc.–showinginprotocolsthediffence
measuredbythebenchmark-system!InthisVectorspecialhighlightshadbeentheChina
NationalCertificationin2004andtheNorthAmericaChapterin2010.
-ThethirdVectoristhePermanentEvolution.Thelocal/nationalbutalsointernational
experienceisconsideredbyEurepGap/GlobalGapbyapermanentdevelopmentofthe
benchmarks:thelaunchoftheZero-VersionwasfollowedbyimprovementsbyVersion1,
Version2etc.Partofthisvectorarealsothelicensedconsultantstofacilitatethepreparationof
farmsforcertification(FarmAssurers)in2011,theGlobalGapAcademyin2012,aswellasthe
AbuDhabiDeclarationforfoodsecuritywiththeSAIPlatformin2014,thefirstConsumer
CommunicationChannelin2016andtheFuturebyDigitalizationDiscussionin2017.
Certificationbodiesareselectedbasedon:
-Strictindependence
-Competenceandstructurethatmeetdemandsfromaccreditationbodies
-AuditorandlnspectorMinimumQualification
-ParticipationinAnnualcompulsoryGlobalgaptraining
-SigninganagreementwithGlobalgapreflectingthecriteriaandGeneralRegulation.
3.2 Tracing/Tracking
Tracing/Trackingofanimalsstartedwithcows;itbecameonlyrelevantinGermanyduringand
aftertheBSE/MadCowDiseasein1994/96.AsanactofCivilSocietytheWorkshopMeatof
theEHIRetailInstitutecreatedtogetherwiththeCentralMarketingAssociationofthe
AgriculturalSector(CMA)thestandardproviderOrgainvent.In1997theEUAgriculture
CounciladaptedtheEHI/OrgainventproposalsandinitiatedtheEURegulations820/97and
latertheEURegulation1760/2000tostandardizetracing/trackingforcowsandbeefwithin
theEUaswellasforsuppliersfromoutsideoftheEU.
3.3.HACCP
HACCP is standing for Hazard Analysis and Critical Control Points; its principles are required
to be put in place, implemented and maintained permanently by food business operators
according to the EU Regulation No. 852/2004 of the European Parliament and of the Council
on the hygiene of foodstuffs. There are seven main steps of HACCP: Hazard analysis –
Identification of critical control points – Critical limits at critical control points – Monitoring
procedures at critical control points – Corrective actions – Verification procedures –
Documentation and record keeping.
3.4IFS
The IFS (International Featured Standard) was created in 2003 by the German Trade
Association HDE and its French counterparts FCD; later Italian Trade Associations joined.
Today IFS is acting worldwide.The basic idea of IFS is the fact that on the one hand side the
European Law and National Laws require from food companies or food outlets to implement
all relevant actions to secure food safety and on the other hand also individual
suppliers/retailers develop marketing profiles with „add-ons“ to the legal requirements to gain
higher margins. Those companies then need a control/audit for their claims. IFS’s ambition is
to harmonize those individual demands to one level of control to get more efficiency via an
unified standard. The IFS-standard is benchmarking the individual steps and partners of the
Total Supply Chain by an evaluation system which has four main categories:
- A: full compliance with the requirements (20 points)
- B: almost full compliance – but small deviations (15 points)
- C: only a small part of the requirements are implemented (5 points)
- D: the requirements are not implemented
All scorings are reported and explained in an IFS Audit Report. Based on the first evaluation
all enterprises have the chance to secure and improve their market position by an action plan
of continuous optimization of their products and services.
3.5ISO
The International Standardization Organization (ISO) was founded in 1947 and is
headquartered in Geneva/Switzerland. More then 150 countries are member bodies,
corresponding members or subscriber members. ISO standardization needs the following
seven procedures: preliminary work item – new work item proposal – working draft –
committee draft – draft international standard – final draft international standard – publication
international standard. Those standards are descriptions - they are not a guarantee for a quality
itself.
Since the 80ies Prof. B. Hallier pushed within the food business the ISO Packaging norms as a
rationalization tool: based on the module 400 x 600 mm sales-cartons and palettes by 1200 x
1000, 1200 x 800 and 600 x 800 can flow most easily from production via transportation units
and depots finally into the shelves of retail. Not only efficiency was increased by this system
but also damage in the transportation flow decreased: saving food waste too.
3.6CircularEconomy
In December 2015 the European Commission published a Circular Economy Package to
encourage more sustainability in the UN reflected by the UN Sustainability Development
Goals for 2030. In 2018 the Association EuroCommerce discussed the status quo in Brussels
and the plans to revise various waste directions and to minimize waste and losses. The motto
was typical for applied sciences: "Scaling up market solutions in Retail & Wholesale".
That EuroCommerce meeting of 250 experts was attended also by high level administration
officials like Dr. J.Potocnik/UN International Resource Panel and former EU-Commissioner,
D.Calleju Crespo/ General Director DG Environment, B.Poisson/ French Ministry for
Ecology, MEPs like A.J.Valean or K. van Brempt. Retail was represented among others by
Carrefour, IKEA, METRO, BGA, FCD, Virke and Prof.Dr.B.Hallier , EuroCommerce
President Regis Degelcke and Christian Verschueren Managing Director EuroCommerce.
Such a mix of experts guarantee the penetration of the ideas not only as theoretical points but
also as a kick for trial and error applications in the real world of business.
3.7Barcoding
Massdistributionviaself-servicelikesincethe70iesofthelastcenturyintheUSAand
WesternEuropewouldhavebeennotpossiblewithoutproduct-identificationbybarcodes
andscanninginthecash-zonesofsupermarkets.Since2005thenationalbar-code
institutionsareharmonizedtowardsaGlobalStandard(GS1)worldwide.Barcodesandin
futureQR-codesaredrivingforcesformoderndistributionfromfarmtofork.
3.7.1HistoryofProductldentification
Mass-distributionstartedinWesternEuropeinthemiddleofthe50iesandwasdefinedby
pre-packedproducts,brandedgoods,advertising-allundertheleadershipofthe
manufacturers-whileretailcontributedbyself-service/super-markets,increasingproduct
rangesandbiggerstores.lntheendofthe60iesthecontroloftheitemsbecameaproblem:
productidentificationviabar-codeswastestedbypioneersIikeDoderer/Augsbu
rg/Germany,Migros/SwitzerlandandAhold/Netherlands.ltwastheproposalofAlbertHeijn
(Ahold)inthebeginningofthe70iestomergethenationaltest-systemstostartonajoint
EuropeanlevelwithastandardizedEuropeanArticleNumberingSystem(EAN}.lnGermany
theretail-institute'sworkshop(atthattimeRGH/nowEHI)wasout-sourcedandbecamein
1974anational50/50jointventurewiththeAssociationoftheBrandedGoods
Manufacturers.Thetaskwasreflectedinthenameofthecompany:,,Centralefür
CoorganisationGmbH(CCG)".OthercountriesinEuropealsocreatedEAN-organizations-
eachcountrywithitsownnationalflavour–butconnectedviaakindoffranchise
coordinatedbyaheadquarterinBrussels/Belgium.Similardevelopmentshappenedinthe
UnitedStates,whichcreatedtheUniformCodeCouncil(UCC)withtheUniversalProduct
Code(UPC).SimilareffortsstartedinJapan.Whilethefirsttestsmainlystartedattheshelves
inthesupermarkets-therealroll-outwastheconnectionwithscannersatthecash-zone.
Neverthelessittookabout25yearsfromthepilotinstallationsuptoanationalfull-scale
penetration.Butitwasbesidethesystemofself-servicethesecondrootoforganized
modernretail–seenasabenchmarkalsoforthedevelopingcountriesanduptillthefallof
thewallbetweenEastandWest.Withinthatevolutionprocessthekey-wordsmassdata
collection,datamining,consumer-basket-analysis,EfficientConsumerResponse(ECR)
brandedthestateoftheartofretaildistribution.ln2005duetotheongoingglobalization
theinternationalsuppliersandretailerssupportedtheharmonizationofthe
American/EuropeanandothernationalbarcodeinstitutionstowardsaGlobalStandard(GS1)
worldwide-andinsofaralsoCCGGermanywasrenamedtoGS1Germany-liketheAustrians
arenowGS1Austria.
ln2018GS1had111memberorganizationscomprizing1.300000membercompaniesand
canofferserviceswithin150countries.TheGS1standardscreateacommonfoundationfor
businessamongsupplynetworksbyuniquelyidentifying,accuratelycapturingand
automaticallysharingvitalinformationaboutproducts,locations,assetsandmore.
3.7.2TheBar-Code
Thebar-codehavingstartedinEuropein1974asEANduetothechangetoGS1nowsince
2009isrenamedtoGlobalTradeltemNumber(GTIN).Butthebar-codesystemisstillthe
sameandconsistsoutof8oralternativelyof13sections:
-intheexampleoftheGTIN13thefirstthreebarsidentifythecountryoftheproducerlike
400-440forGermany
-thenextbarsarethenameoftheproducer
-nextthearticleisidentified
-andfinallyamathematicalcross-checksecuresthecode.
Thebar-codesarehandedoutbythenationalGS1organizations-whichalloperateasnon-
profitinstitutions.
Historicallythefirstinnovationofbarcodesisthechip-technology.Theadvantagesaretobe
abletostoremanymoredataintoachipthanontoabarcode-andthepossibilitytoreadthe
datafromabiggerdistance.ThesecondinnovationistheQR-codebywhichconsumerscan
intertwinetheirsmartphoneAppstobeabletoreadadditionalinformationbeyondthe
normalbarcodeortoorderelectronicallyforexampleproductsbeenseenatshelvesorat
posters.
3.7.3loTforAgriculture
FortheAgro-SectortheidentificationwithGS1standardsplayanimportantroletogether
withthelnternetofThings(loT).AnEPCIS-(ElectronicProductConsumerlnformation
System)forsharingproductinformationacrosssupplychainshelpssmallfarming
entrepreneursaswellasbigagro-companiestobecomestateofthearttodayandbeing
alreadyconnectedwithfutureperspectivesjointlydevelopedbythebigstandardproviders
andtheirglobalpartners.TheloTistransformationaltosystems,devices,technologiesand
applicationsacrosstheinvolvedindustryandaroundtheworld.TheloTisdrivenbythe
followingfacts:
-anexpectationbybusinessesandconsumersthatallthingswillbe,,connected",
-increasingtechnologicalcapabilitiescombinedwithlowercostofmicrocontrollerand
communicationstechnologies,
-anexplosionofcloud-baseddatagathering,processingandsharingplatforms.
WithinthatcontextGS1isplayingtheroleoftheGlobalLanguagebetweentheinvolved
partners;GS1connectsthephysicalanddigitalworlds.Theidentificationofobjects,assets,
locations,etc.andautomaticdatacapturearepoweredbyGS1bar-codesandEPC/RFID.
Thosestandardsfordata-sharingenableinteroperable,trustedandtransparantdatathatare
foundationaltounleashingloTcapabilities.ThecooperationwithGS1isanenablerforthe
agro-entrepreneurs:
-theGlobalLanguageofGS1providestheagro-sectorwithanaccessbeyondtheownsector
-local/nationalfarmersgetgloballyrecognizednumbersinaninternationaltradeworld
wheretracing/trackingofproductsisessentialforlistingbyglobalplayersofwholesale/retail
-besidethosebasicsalsootherinformationsofpotentialrelevanceforprocessors,retailers
andconsumerslikerearing,antibiotics,specialtreatment,animal-welfareandotheraspects
canbeaddedfortheTotalSupplyChainfromfarmtofork.
-Lastbutnotleastthecooperationdoesalsodecreasecostsforotherwiseown
developmentswhoalternativelywouldhavetodealwithachaosofindividualsolutions.
OneofthefuturetechnologiesbeingpotentiallyusedfromfarmtoforkistheQR-Code.In
Germanythekick-offbetweentheagro-sectorandthedistributionusingQR-codesstartedin
2011withananti-crisisactionforpork.Afteradioxin-scandalthetaskwastocreate“trust”
byrevealingthelocalsourceoftherawmaterialformeat-products.ThediscounterAldi
SouthtogetherwithitssupplierToenniesasacutting-houseandseveralproducersof“meat-
brands”placedontheirpackagesQR-codeswhichcanbereadbytheconsumers’
smartphones.ThesmartphonesguidethecustomertowardsanAppcoordinatedunderthe
Label“f-trace”(FstandingfortheGermanwordFleisch=meat)–wherefortheraw-material
thelocalsourceoftheanimal,thelocationsofslaughtering,cuttingandprocessingcanbe
found.
Conclusion
TakenthetopicofLandProtectionithastobeseenthatthefactor„Land“isneverabsoluteand
insofarcannotbediscussed„ceterisparibus“butitseconomicsaredependentonchangesbytime–
periodsandvaluesofsocieties;andespeciallyinCEEalsointhedynamicchangesafterthe90iesof
thelastcenturytransformingfromsocialismtoglobalmarketeconomies.
Theoptimizationoftheuseoflandfurtheronshouldnotbejustlimitedtoeconomicaspectsbutthe
frameshouldbeenlargedtoencludealsoecologicalaspectsliketheUNgoalsofsustainabilityand
ethicsforaglobalhouseofharmonybasedoneconomics,ecologyandethics.Inthissenseland
protectionhasalsoavaluetocounteractbyfaunaandflorathedangerofclimatechange.
Lastbutnotleastwithinthatoptimizationstandardscouldhelpwithinthedailyprocessestobemore
efficientineconomictermsbutalsobyreducingwasteofresourcesbeingmoresustainable.Needed
isaninterdisciplinaryverticalintegrationofstandards.Thewealthearnedbythosesavingscouldbe
sharedamongallparticipantsofthetotalsupplychainfromfarmtofork-helpingbythisnationalor
internationalgroupsofunderpriveledged.