Food traceability is more than just a regulatory checkbox. It’s the foundation that makes the food industry safer and more transparent in an era of rising consumer expectations and stricter food laws.
The problem? It often feels like a burden to businesses in the food industry. From managing supplier data to complying with the US Food Traceability List (FTL), there’s plenty of ground for you to cover to stay compliant.
While it’s extra work, going the extra mile with your food traceability efforts is critical to the long-term sustainability of your business and reputation. That’s where a food traceability system can help.
In this guide, we explain everything you need to know about food traceability. We also dive into how the right system can help you reduce risk, improve efficiency, and meet evolving compliance requirements.
What is food traceability?
Food traceability is the ability to track food ingredients and products though the production, processing, and distribution stages of the supply chain, ensuring transparency, safety and compliance.
How does food traceability work?
Here’s an overview of how food traceability works:
- Raw material sourcing: The process starts with sourcing ingredients labelled with batch numbers, barcodes, or RFID tags from farmers and suppliers.
- Processing and manufacturing: Ingredients are tracked as they move through processing facilities. Software systems log processing methods, additives used, and quality control measures as products move through your production line.
- Packaging and labelling: Once a product is finished, it’s assigned unique tracking codes (a QR code or barcode) and packaged. The packaging must include information on ingredients, expiration dates, and storage conditions.
- Distribution and logistics: Sensors monitor conditions like temperature and humidity for perishable items while your inventory management system tracks products as they move through your warehouse.
- Retail and Point of Sale: After the finished product is shipped to retailers, they scan barcodes to log inventory and sales. Customers may be able to use QR codes on packaging to access product history.
Why is food traceability important?
Food traceability ensures food safety, regulatory compliance, and consumer trust in the food industry. It enables businesses to track food products across the supply chain, from farm to fork, and reduces the risks associated with contamination, fraud, and inefficiencies.
Let’s look at some key reasons why food traceability is non-negotiable in the food industry:
- Food safety and quality: Traceability helps quickly identify the source of contamination in case of foodborne illness outbreaks, helps maintain quality by tracking storage and transportation conditions, and prevents cross-contamination by monitoring processing environments.
- Speeds up product recall: Traceability reduces health risks by enabling rapid recalls of contaminated or mislabeled products and limits the financial impact of mass recalls by allowing you to target only affected batches.
- Meets regulatory compliance: Traceability is required by global food safety regulations, such as the EU General Food Law for European markets and the FDA’s FSMA (Food Safety Modernization Act) in the U.S.
- Builds consumer trust and transparency: Being able to view a product’s origins, ingredients, and sustainability practices makes your consumers feel more confident about consuming your products. Transparency is especially beneficial for organic, non-GMO, and ethically sourced foods because it provides concrete evidence of authenticity.
- Reduces food fraud and counterfeiting: Food traceability prevents the substitution of lower-quality or fake ingredients in premium products, protecting brands from counterfeiting in global markets.
Benefits of food traceability
Key benefits of food traceability include:
- Ensures safety: Quickly identifies contamination sources and prevents foodborne illnesses.
- Faster product recalls: Reduces health risks and financial losses by targeting unsafe products and preventing a mass recall.
- Increased consumer trust: Increases transparency by providing detailed product origin and ingredient information.
- Lower liability risks: Minimises legal issues and penalties by ensuring full traceability.
- Improved supply chain efficiency: Improves inventory management, reduces waste, and optimises logistics.
Examples of traceability in the food industry
You’ve probably seen examples of traceability when food shopping yourself. Here are some common examples:
- Farm-to-table produce tracking: Supermarkets like Tesco use QR codes to track fresh products from farms to shelves. Customers can scan codes to see farming locations, harvest dates, and sustainability practices.
- Processed food ingredient tracking: Nestlé is a great example here. In 2020, the company partnered with OpenSC to introduce blockchain technology for tracking products such as milk from New Zealand producers to Middle Eastern factories and warehouses.
- Seafood traceability: The Marine Stewardship Council (MSC), for example, labels seafood with certification numbers to verify sustainable fishing practices.
Food traceability types
There are eight types of food traceability:
- Backward traceability: Tracks the source of raw materials, ingredients, and food products back to their origin, such as a farm, supplier, or processing facility.
- Forward traceability: Follows food products from production through distribution to consumers.
- Internal traceability: Tracks movement of food within a company or facility.
- Chain traceability: Connects all supply chain stages, from raw material sourcing to the final consumer, using QR codes, RFID, or blockchain.
- Lot or batch traceability: Tracks specific batches or lots of food products based on manufacturing date, processing facility, or distribution details. This type of traceability is critical for targeted recalls and quality control.
- Genetic or DNA traceability: Uses DNA barcoding or genetic fingerprinting to verify food authenticity, especially for meat, seafood, and organic products.
- RFID and IoT-based traceability: Uses RFID tags, IoT sensors, and GPS tracking to monitor real-time temperature, humidity, and location during food transport.
- Blockchain-based traceability: Creates a tamper-proof digital ledger that records every step in the food supply chain. Large corporations like Nestlé and Walmart use it for transparent food tracking.
Food traceability requirements
The specific requirements for food traceability depend on the regulations in your specific country, but here are some general food traceability requirements:
- Record keeping: Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 requires businesses to track where food comes from (suppliers, farms, manufacturers) and where food goes next (distributors, retailers, consumers).
- Product identification and labelling: Food Information Regulations 2014 requires food products to be clearly labelled with batch/lot numbers, expiry or best-before dates, origin information, and allergen and ingredient details, among other things.
- Digital and paper record retention: In the UK, the Food Safety Act 1990 and Food Safety and Hygiene (England) Regulations 2013 lay down the guidelines to maintain digital and paper records for a specific duration. You’ll need these records to prove you’re compliant if you get audited.
- Rapid recall and food safety incident response: The UK’s Food Safety Act 1990 and the Rapid Alert System for Food and Feed (RASFF) require businesses to have a recall plan to remove unsafe food quickly, notify authorities, suppliers, and consumers in case of contamination, and conduct root cause analysis to prevent repeat issues.
- Compliance with supply chain traceability standards: As a best practice, businesses often use GS1 standards for barcode-based tracking, blockchain and AI solutions, or RFID and IoT tracking for perishable goods.
Who is responsible for food traceability
Food traceability is a shared responsibility. Each stakeholder in the supply chain plays a role in ensuring food safety, quality, and compliance. While the specific entities responsible for traceability differ, here are examples of stakeholders typically held responsible for traceability:
- Food producers and farmers
- Food processors and manufacturers
- Distribution and logistics companies
- Retailers and supermarkets
- Restaurants and food service providers
Who guarantees food traceability?
While food traceability is a shared responsibility, guaranteeing it falls primarily on:
- Government agencies: The government enforces traceability through laws, audits, and penalties. For example, the Food Standards Agency (FSA) oversees traceability laws, food safety, and recalls in the UK, while the FDA regulates traceability under FSMA in the U.S.
- Industry standards organisations: These organisations set global traceability standards and provide certification to ensure compliance. For example, the GS1-compliant barcodes, QR codes, and RFID tags are used for batch tracking, while the ISO 22005:2007 is the international standard for food and feed traceability.
- Third-party certification bodies: Companies often use independent auditors to verify traceability compliance and solidify consumer trust. The British Retail Consumption Global Standards (BRCGS) certification, for example, validates traceability compliance for food manufacturers and retailers, while the Safe Quality Food (SQF) Program is used globally to verify traceability, food safety, and supplier compliance.
Who is responsible for traceability in food manufacturing?
In manufacturing, the responsibility of traceability generally falls on:
- Food manufacturers and processors: The business owner is primarily responsible for traceability.
- Food safety and compliance officers: They maintain the documentation required for Hazard Analysis and Critical Control Points (HACCP) and work with third-party auditors to meet certification standards (such as ISO 22005 and SQF).
- Supply chain and logistics teams: They track ingredient and packaging suppliers, ensure barcodes, RFID tags, and QR codes are correctly applied for traceability, and monitor cold chain storage and transport conditions.
- Government and regulatory bodies: In the UK, for example, the FSA requires manufacturers to maintain “one step forward, one step back” traceability records for all ingredients and finished products. This oversight is the FSA’s responsibility.
- Third-party auditors and certifiers: Auditors conduct traceability audits and certify manufacturers under GFSI-recognised programs such as SQF and BRCGS. They approve organic, Fairtrade, or allergen-free labelling based on traceability records.
Who is responsible for traceability in food eCommerce?
Ensuring traceability in food eCommerce is complex because online food sales involve DTC models, third-party fulfilment, and cross-border shipping, but it’s still legally required. Here are entities that share the responsibility of traceability in food eCommerce:
- Online food retailers and marketplaces: They must ensure real-time inventory traceability in warehouses and fulfilment centres, provide accurate labelling and allergen information online, and keep digital records to support food recalls and regulatory audits.
- Third-party sellers and suppliers: They must maintain traceability records for ingredients, production, and shipments, provide QR codes, barcodes, or RFID for tracking, and ensure compliance with food safety laws.
- Logistics and fulfilment providers: They must ensure proper cold chain traceability for perishables, track product movements from warehouse to delivery, and maintain digital tracking logs for recalls.
- Regulatory agencies and compliance bodies: The FSA in the UK enforces traceability regulations for online food sales, conducts audits and issues fines for non-compliance, and oversees food recalls and consumer safety alerts.
Challenges in food traceability
Food traceability can pose multiple challenges for all involved entities. Here are common challenges you might face:
- Fragmented supply chains: Ingredients and products pass through multiple suppliers, manufacturers, and distributors, which makes tracking difficult. Moreover, cross-border trade adds multiple regulations to the mix, increasing complexity.
- Lack of standardised data: Your suppliers may use paper-based records or inconsistent labelling, tracking systems, and data formats. For example, one supplier might use batch numbers, while another uses barcodes. This creates a challenge for tracing a recalled product.
- Technology and integration issues: Legacy systems—whether your inventory management system or ERP—that don’t integrate with modern traceability solutions are a major problem.
- Compliance with multiple regulations: Different food safety laws can make compliance costly and time-consuming if you operate across counties.
- Inconsistent supplier transparency: Some suppliers lack full transparency about sourcing and processing. Food fraud (such as counterfeit ingredients and mislabeling) is also an issue.
- Recall and crisis management failures: Slow or incomplete product recalls due to poor traceability can spiral into a much bigger problem. Recalling the wrong batches is even worse—the financial and reputational damage can take a long time to recover from.
Best practices for traceability in the food industry
Following these best practices ensures you’re complying with traceability requirements in the most efficient and effective way:
- Standardise data and labelling: Use GS1 barcodes, QR codes, or RFID for consistent tracking.
- Digitise records: Replace paper logs with cloud-based traceability systems.
- Implement “one step forward, one step back”: Maintain records of where food comes from and where it goes.
- Ensure supplier compliance: Require batch-level traceability and conduct regular audits.
- Improve cold chain monitoring: If you store any temperature-sensitive food products in cold storage at any point, use sensors to monitor and log temperature in real time.
- Train staff on traceability protocols: Ensure employees understand tracking requirements and compliance rules.
What’s a food traceability system?
A food traceability system is a digital tool that tracks and records the movement of food products through the supply chain, from sourcing to distribution. It ensures safety, compliance, and transparency by enabling real-time tracking of ingredients, batches, and shipments.
Why are food traceability systems essential?
Here’s why a food traceability system is essential:
- Faster and more accurate recalls: Pinpoints affected batches instead of forcing you to recall entire product lines.
- Regulatory compliance: Helps you comply with global safety laws and standards such as FSMA, FSA, and ISO 22005.
- Supply chain transparency: Enables you to track ingredients and their origins, which helps prevent food fraud and mislabeling.
- Cold chain monitoring: Food traceability systems can help you monitor temperature-sensitive foods and ensure they stay within safe limits.
- Reduces waste and costs: Prevents unnecessary recalls and optimises inventory management.
- Food safety and contamination control: Quickly identifies and removes contaminated products from the market.
How to choose the best food traceability system
The best food traceability system for your business depends on the size, supply chain complexity, and compliance needs. Here are some general guidelines on the best way to choose your traceability system:
- Step 1: Define your needs. List the capabilities you want in your traceability system. Based on your product's compliance requirements, you might want capabilities like end-to-end tracking, recall management, or cold chain monitoring.
- Step 2: Map your current processes. This is part of laying the groundwork before you implement the traceability system. Document your existing traceability workflow to identify gaps and inefficiencies in data collection, record-keeping, and supplier tracking.
- Step 3: Set a budget. Based on your business size, decide on a realistic budget.
- Step 4: Research and shortlist vendors. Sure, the expensive systems have more bells and whistles, but do you really need those features? If not, don’t pay for features you don’t need. Shortlist systems that meet your needs and are within your budget, book a demo or sign up for a free trial, and compare the shortlisted systems to find one that best suits your needs.
- Step 5: Get feedback and decide. Involve key stakeholders from operations, IT, and quality control, gather feedback from suppliers if they’re also supposed to use the system, and then choose one of the shortlisted systems based on consensus.
Functions to look for in a food traceability system
The feature set is one of the most critical things you’ll evaluate when choosing a traceability system. Let’s look at a few non-negotiable features you need in a traceability system.
Barcode scanning
Barcode scanning minimises the role of humans in data entry, which translates to fewer errors and improved efficiency of warehouse operations.
When choosing a traceability system, make sure it supports global barcode standards like GS1.
Also, assess the scanning speed and accuracy under different conditions. Can it handle high-volume scanning in a fast-paced warehouse?
Look for a traceability system that logs scanned data instantly and syncs it across cloud-based databases. This prevents discrepancies between inventory records and physical stock. Some systems may also support mobile scanning via smartphones or tablets, which reduces the need to invest in dedicated scanning hardware.
Serialisation
Serialisation goes beyond batch tracking. It involves assigning a unique identifier to each item to allow item-level traceability.
When evaluating a traceability system’s serialisation capabilities, consider how well it assigns and maintains unique product identifiers across multiple supply chain stages.
Choose a system that supports industry-recognised serialisation standards.
Flexibility of serialisation is another critical aspect of a traceability system. Ideally it should adapt to different regulatory requirements across markets and allow for hierarchical tracking (linking item-level serialisation to batch of pallet-level tracking).
Effective serialisation also requires seamless recall capabilities. The best systems allow you to trace a single defective item back to its origin within seconds, which helps minimise disruption and reduce waste.
Batch tracking
Batch tracking is foundational to food safety, but unfortunately, not all systems handle it at the same level of granularity. A good system must provide end-to-end visibility and the ability to link raw materials to finished products. This enables backward as well as forward tracking.
It’s also essential to assess how well the system automates batch tracking. Does it rely on manual data entry or automatically assign batch numbers based on predefined rules?
Choosing the right system is critical to effectively batch-tracking items across the supply chain. Unleashed, for example, offers extensive batch-tracking capabilities. Take a look:
What is the Food Traceability List, and why is it important?
The Food Traceability List (FTL) is a set of high-risk foods that require enhanced record-keeping and traceability measures under the FSMA Section 204 issued by the U.S. FDA. The list includes foods more prone to contamination, spoilage, or foodborne illness outbreaks, such as leafy greens, fresh-cut fruits, soft cheeses, and seafood.
Case study: How Food Manufacturer Brandini Toffee Maximizes Performance with Unleashed
Brandini Toffee, a California-based gourmet confectionery company, was scaling well. Their 30% year-on-year growth was great for the company but brought inventory management and traceability challenges.
The company’s heavy reliance on paper documentation and rapid expansion led it to consider Unleashed. After implementing Unleashed, Brandini Toffee was able to centralise its operations, and allowed it to track raw materials from production to distribution.
One of the most critical features in finding success with Unleashed was its batch-tracking capabilities. It enabled Brandini Toffee to trace products precisely. This is essential for meeting food safety regulations and facilitates faster product recalls if necessary.
Read our case study on Brandini Toffee’s success with Unleashed to learn how they were able to streamline inventory management, ensure compliance with food safety standards through effective traceability, and position themselves for sustained growth in the competitive food manufacturing industry.
