A Framework for Traceability and Transparency in the Dairy Supply Chain Networks

Food processing industries are assuming greater importance and processed food is now not a matter of choice but it is a necessity. As a result there is greater awareness of safety concerns, emerging risks and challenges in the context of food products. Consumers want guarantees for food characteristics, thus, calling for transparency and effective response in case of any food related health problem. This paper presents a framework for transparency, traceability and information flow for management of dairy supply chain networks. This paper follows a case study approach and presents findings from three types of dairy supply chains as prevalent in India. The paper analyses complexity of dairy products as well as processes in terms of intrinsic and extrinsic factors and their effects on the underlying dairy supply chain networks (DSCN). Governance mechanisms dovetailing various stages of the DSCN are presented in terms of their gaps and adequacy. Key components of the presented frameworks are harmonization of national standards with codex standards, hygiene control, strengthening quality control systems, enhancing information flow across stages, animal health care, disease free zones and formation of cooperatives of small dairy processors (CSDP) in line with the present dairy cooperative society (DCS). CSDP aims at collective action and public-private partnerships by the unorganized sector units to face the competition from large organized processors of dairy products in terms of quality, transparency, traceability and information flow. Transparency of a DSCN is the extent to which all its stakeholders have a shared understanding of and access to the product related information without loss, noise, delay and distortion. Given the perishable nature of dairy products, an effective traceability system is an important tool not only to manage food quality and safety risks, but also to promote the development of effective dairy supply chain management. This paper contributes to the nascent literature on transparency and traceability issues of dairy supply chain networks. Findings would be useful for policy makers in framing standards and effective regulations. Analysis of complexity would be useful for dairy industry managers.