Dynamism, Framing and Standards: Challenges and...

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Dynamism, Framing and Standards: Challenges and Opportunities for Land Protection in CEE Prof.Dr.Bernd Hallier European Retail Academy / Roesrath, Germany Abstract Land Protection has to react to the dynamic challenges for the economics of farming in a global competition driven by consumer demand. Smart farming has to enclude the total supply chain by a vertical integration of standards from farm to fork. But today’s economics have additionally to be enriched by sustainability goals to secure resources over a long-term and to counterpart the global climate change. Part of the traditional profession of farmers should be transformed to landscape rangers not to be measured any more in economic terms of agricultural output, but in terms of preservation of landscape to secure the present climate in Europe and its traditional culture. Last but not least ethics should underline the high value of food and food- security and optimize a fair sharing of the production-value along the chain from farm to fork ; also reflecting by animal care the conditions of growing, transporting and slaughtering animals. Key-Words Economics of Farming, Climate Change, Sustainability Goals, Smart Farming, Total Supply Chain, Vertical Integration of Standards.

Transcript of Dynamism, Framing and Standards: Challenges and...

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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.

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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

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- 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.

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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

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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;

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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-

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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.

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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

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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

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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

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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.

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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.

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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

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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-

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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.

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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.

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-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

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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

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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.

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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.

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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

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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.

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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.

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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

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-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.

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Conclusion

TakenthetopicofLandProtectionithastobeseenthatthefactor„Land“isneverabsoluteand

insofarcannotbediscussed„ceterisparibus“butitseconomicsaredependentonchangesbytime–

periodsandvaluesofsocieties;andespeciallyinCEEalsointhedynamicchangesafterthe90iesof

thelastcenturytransformingfromsocialismtoglobalmarketeconomies.

Theoptimizationoftheuseoflandfurtheronshouldnotbejustlimitedtoeconomicaspectsbutthe

frameshouldbeenlargedtoencludealsoecologicalaspectsliketheUNgoalsofsustainabilityand

ethicsforaglobalhouseofharmonybasedoneconomics,ecologyandethics.Inthissenseland

protectionhasalsoavaluetocounteractbyfaunaandflorathedangerofclimatechange.

Lastbutnotleastwithinthatoptimizationstandardscouldhelpwithinthedailyprocessestobemore

efficientineconomictermsbutalsobyreducingwasteofresourcesbeingmoresustainable.Needed

isaninterdisciplinaryverticalintegrationofstandards.Thewealthearnedbythosesavingscouldbe

sharedamongallparticipantsofthetotalsupplychainfromfarmtofork-helpingbythisnationalor

internationalgroupsofunderpriveledged.