Another technology for managing product identification is radio frequency identification (RFID)- system. In radio frequency identification, a transponder or ‘a tag’ is attached to a product. The tag consists of two parts: a microchip with memory and other electronics, and an antenna that
enables the electromagnetic coupling between the microchip and a reader device. The tag memory is typically used for storing product information; either direct information in readable format or a product code, in which the information can be retrieved from a database.
RFID systems (e.g. car tolls, DVD hire, library books, tags on clothing etc.) reduce labour costs as no manual scanning operations are required. RFID readers can scan numerous tags at the same time. Identification is very simple and rapid, and additionally more effective resulting in reduction of profit losses caused by e.g. employee and customer theft, vendor fraud or administrative error. For especially food industry, RFID provides improved management of perishable food items.
In the wider food industry, many companies have implemented their own traceability systems by effectively automating paper-based traceability records (such as Muddy Boots50 and Theta Technologies51 InformationLeader). Others have extended their existing enterprise software
applications and a growing number of users of the Systems, Applications and Products in Data Processing (SAP) Enterprise Resource Planning (ERP) system have also adopted the SAP traceability module.
The ‘Smart-Trace System’ is currently being developed by the Australian company, Ceebron Pty Limited, in partnership with Meat and Livestock Australia (MLA), Motorola Inc., and Minorplanet Asia Pacific. Smart-Trace™ is not a traceability system per se, but provides a source of
enhanced information to feed into a traceability system proper. 52
Smart-Trace™ provides its consignor customers with a near real-time, continuous trace of their perishables during delivery. The system uses low-cost, disposable, wireless sensors and mobile phone technology. It gives consignors continuous access to the identity, temperature, and location of their consignments at pallet load level via a web or mobile phone interface. The system provides customers with the 'first to know' advantage in the event of product abuse.
Dr Silvia Estrada-Flores principal of Food Chain Intelligence looked at the emergence, adoption and cost benefits of traceability systems being implemented in the horticulture industry in their report VG08087 “Opportunities and challenges faced with emerging technologies in the Australian vegetable industry”53.
Case Study – Traceability in the New Zealand kiwifruit industry
The New Zealand kiwifruit industry is export driven, built on consistent and timely delivery of quality fresh fruit. With growth in the volume of trade and rising consumer awareness of food safety guidelines, the kiwifruit supply chain encapsulates major logistical challenges that must be met to ensure the New Zealand kiwifruit industry’s competitive position in the marketplace. Europe is one of the key markets for New Zealand-grown kiwi fruit, accounting for over 90 million trays of exported kiwifruit every year. Kiwifruit continue to be a key export for New Zealand, with exports accounting for 60.6 per cent of all fruit and nut exports and 27.3 per cent of all
horticultural exports in the year to December 2007.
As early as 2001, European customers began to focus on fresh produce logistics and traceability, requesting GS1 UCC.EAN-128 Barcode at pack levels to ensure fast and accurate tracking of inventory and other specific data in the supply chain. Kiwifruit operators in New Zealand needed to be able to guarantee a high level of traceability for tracking their cartons and pallets.
Mandatory labeling would also protect the investment that New Zealand industry participants were making in improved quality processes.
Istari Systems Ltd54, a leading New Zealand developer of supply chain management systems who specialise in the labeling and tracking of products, were well placed to research and develop a system that would ensure full traceability of fruit from orchard to final customer given their well- established reputation in supplying specialist solutions to the domestic kiwifruit industry.
RECOMMENDATIONS
This document has looked at the level of MARRS developments that are occurring in Australia’s Horticulture Industry’s as well as those internationally. This report is not meant to be a definitive review of the current usage and development of MARRS technologies in horticulture, but rather a high level review of key developments. As the extent of MARRS developments are vast, varied and the horticulture industry consists of many crops from lettuces and carrots through to grapes, apples and bananas this approach was adopted to enable the project to gain a broad
understanding of progress globally in relation to developments and barriers to successful commercialisation. In Australia the horticulture industry is made up of 47 separate sectors. The development and application of remote sensing technologies is maturing and its implementation and usage increasing. Advances in the technologies and increases in their applications will continue. There are less challenges to the application of remote sensing
technologies due to the fact application of the technology is non-contact. This is not the case with development of automated harvesting, pruning and plant management systems.
This report shows that for applications of MARRS technologies where plant contact is required such as harvesting there are significant challenges to be overcome. For example the
development of robotic harvesting systems will require developments in agronomy to be
undertaken in parallel. The elements of agronomy that in many cases will be critical in successful development and implementation of automation solutions will be plant structure and size through both variety selection as well as growing structure. For example the development of robotic apple harvesting may require apples to be grown under a trellis system. The orientation of these trellis systems will also be important in terms of maximizing the sunlight exposure for plant growth and fruit ripening.
Under Australian conditions, the main drivers for adopting high density trellis systems for fruit orchards are as follows,
• Earlier production, aiming for commercially acceptable yields from the third year, • Higher overall yield potential per hectare,
• Easier canopy management, as pruning systems are simplified, • Higher and more uniform fruit quality,
• Earlier return on investment,
• Ease of management of workers, as less training is required for key tasks such as pruning,
• Ease of picking, as fruit is easy to see, and ease of access to the canopy, and
• Layout and structure is more compatible with the implementation MARRS technologies such as automated harvesting.
A further example of the importance of integrating automation and agronomy developments is demonstrated by the Case Study - Automated Broad Acreage Harvesting of Broccoli: Matilda Fresh Foods (Page 15). This Case showed the importance of developing an automated
harvesting system that matched the crop agronomy system to ensure commercially production rates and harvest yields. The agronomy system required the selection of the appropriate broccoli varieties that were tall enough for the harvester and growing practices that involved planting the seeds and seedlings in rows relative to the sun, to encourage further tall growing plants.
This report has also highlighted the critical importance of developing an appropriate business models for successful commercialisation of any MARRS technology. The business model can be seen as the way in which the commercialiser of the technology will make money in the market place.
Companies can create and capture value from their new technologies in three basic ways: through incorporating the technology in their current businesses, through licensing the technology to other firms or through launching new ventures that exploit the technology in new markets.
The functions of a business model are as follows:
8. Articulate the value proposition (the value created for users by the offering based on the technology)
9. Identify market segments. Users to whom the technology is useful and the purpose for which it will be used.
10. Define the structure of the company’s value chain which is required to create and distribute the offering and determine the assets needed to support the firm’s position in this chain.
11. Specify the revenue generation mechanism for the company
12. Describe the position of the company within the value network, linking suppliers and customers
13. Formulate the competitive strategy by which the company will gain and hold over rivals. 14. Assess capability required to achieve commercialisation.
For companies implementing new MARRS technologies the critical issue is the payback period on their investment and on-going maintenance: servicing and spare-parts.
Maintenance and service infrastructure in the future is the third critical dimension to successful implementation of MARRS solutions. The development of a support infrastructure is crucial to successful deployment of MARRS solutions as the horticulture industry is located in rural and regional Australia and traditional skill levels in these regions are not based around MARRS technologies although this is rapidly changing in this age of computers and the Internet. Going forward, thought will need to be given to the development of this infrastructure.