From Farm to Fork: The Growing Demand for Product Traceability in the Food Industry
Published on 19 March 2025
(Image by Stebnicki & Olsson from Pexels)
In today’s food industry, traceability—tracking food from farm to fork—is essential for safety, sustainability, and consumer trust. This blog explores how companies like Nestlé, McDonald’s, and Unilever are leading the way with innovative solutions to meet growing demands for transparency.
Introduction
Product traceability ensures food safety, sustainability, and trust, pushing businesses to adopt transparent tracking systems from farm to fork.
In today’s fast-paced food industry, consumers are more conscious than ever about the origins of their food. Product traceability has become a crucial factor in ensuring food safety, quality, and sustainability. From farm to fork, businesses are under increasing pressure to provide transparent supply chains that track food products at every stage. This demand is driven by growing concerns over foodborne illnesses, unethical sourcing, and environmental sustainability. Governments and regulatory bodies worldwide are also tightening their policies to ensure food safety and traceability, making it even more essential for businesses to adopt comprehensive tracking systems. In this article, we explore the key challenges, best practices, and benefits of product traceability, along with case studies of companies leading the way in farm-to-fork transparency.
Key Challenges in the Farm-to-Fork Supply Chain
The farm-to-fork supply chain struggles with complexity, inefficiencies, regulatory hurdles, and food fraud, underscoring the need for stronger traceability systems.
Without proper farm-to-fork traceability, perishable goods can be lost due to mismanagement, poor logistics, or inefficient supply chains. (Image by: Krukau from Pexels)
Despite its importance, product traceability faces several challenges in the food supply chain. Complex supply chains with multiple stakeholders make tracking food products from farm to consumer a logistical challenge. Many food products go through numerous hands—from farmers to processors, distributors, retailers, and finally consumers—making it difficult to maintain a clear record of origin and handling. A study conducted by Borens, Gatzer, Magnin, & Timelin (2022), states that up to 40% of food is lost or wasted globally every year. These losses can occur during harvesting, processing, distribution and consumption.
Data management issues, including inconsistent or siloed data, create gaps in traceability systems. Many companies still rely on outdated or incompatible tracking technologies such as manual data entry, leading to inefficiencies and errors in data recording. In a clinical workflow trial involving manual entry and interfaced result reporting by Mays and Mathias (2019), a manual transcription error rate of 3.7% was reported. Such human error can be detrimental to businesses, hence a modern automated traceability system is a necessity in most industries.
Regulatory compliance is another major hurdle, as different regions have varying standards, making it difficult for global food businesses to adhere to all requirements. Inconsistent regulations across international markets complicate traceability efforts, requiring companies to navigate a complex web of compliance requirements. In the United States, Food Safety Modernization Act (FSMA) Rule 204 governs food traceability, and non-compliance can result in fines of up to $500,000 (DFarm Inc., n.d.). This regulatory complexity increases operational costs and delays in implementation, as multinational companies must invest in region-specific compliance measures and adapt their traceability systems to meet diverse legal requirements.
Additionally, food fraud and counterfeiting pose serious risks, as products can be mislabeled or contaminated without robust tracking systems in place. The rise in counterfeit and mislabeled food products has raised health concerns and damaged consumer trust. According to the U.S. Food and Drug Administration (2024), food fraud impacts up to 1% of the global food industry, potentially costing the industry as much as $40 billion annually. Some affected products can include honey, olive oil, seafood and, etc. Without proper traceability measures, detecting and preventing fraudulent activities becomes nearly impossible, making it essential for companies to invest in secure tracking systems.
Best Practices for Implementing Product Traceability
Businesses can ensure transparent, efficient, and trustworthy farm-to-fork traceability by adopting QR, blockchain, RFID, and cloud-based systems.
Solid traceability solutions ensures full visibility into product’s journey from its origin to the consumer’s hands. (Image by: iMin Technology from Pexels)
To enhance farm-to-fork traceability, businesses should adopt best practices that improve transparency and efficiency. Modern traceability technology ensures immutable and transparent records of food production and distribution. A notable example is Walmart’s partnership with IBM to develop a food traceability system using Hyperledger Fabric, which reduced the time to trace the origin of mangoes from 7 days to just 2.2 seconds as reported by Sristy (2021). By providing a decentralized and tamper-proof ledger, Traceability solutions enable companies to track food products in real time and provide consumers with verified information about their origins.
The use of RFID and QR codes allows for scannable tracking systems, helping both consumers and businesses instantly trace food origins. By scanning a QR code on a product, consumers can access detailed information about its journey, including farming methods, processing, and transportation. High-quality product traceability solutions like SmartKood provide consumers with comprehensive product details beyond product origins, offering any relevant information businesses choose to share. According to a report by Food Industry Executive (2025), 48% of consumers regularly check ingredient lists and nutrition facts, while many others look for health claims, certifications and allergen information. This fosters trust and empowers consumers to make informed choices.
Cloud-based data integration enables seamless information sharing across supply chain partners, reducing the risk of data fragmentation. Centralized databases allow all stakeholders to access up-to-date information, improving efficiency and communication throughout the supply chain. This also enhances the ability to respond swiftly to recalls or contamination incidents. International Trade Centre (2015) claims that traceability can significantly reduce the scope of product recalls, ranging from 50% to as much as 95% in some cases.
Moreover, fostering supplier collaboration promotes transparency and guarantees that food products meet safety and quality standards. Companies should work closely with their suppliers to establish traceability requirements and verify compliance. Implementing third-party audits and certifications can further strengthen trust and accountability within the supply chain.
Benefits of Strong Product Traceability in the Food Industry
Strong traceability systems improve food safety, build consumer trust, and reduce waste, creating a more sustainable, efficient, and trustworthy food supply chain.
Improving inventory management with strong traceability solutions can be crucial for businesses. (Image by: Lily from Pexels)
A well-implemented traceability system offers numerous advantages. Improved food safety is one of the most significant benefits, as rapid identification and recall of contaminated products help reduce health risks. In a WHO estimation, about 10% of people fall ill after eating contaminated food globally. In the event of a foodborne illness outbreak, traceability systems allow companies to quickly identify affected products, minimize harm, and prevent further distribution of unsafe items.
Enhanced consumer trust is another key outcome, as transparency in food sourcing fosters brand loyalty and confidence. Consumers today are increasingly interested in knowing where their food comes from and how it is produced. According to a Transparent Path Food Decisions Study (2020), 68% of respondents believe it is extremely important for the information about the food they purchase to be credible and trustworthy. Companies that provide detailed and accessible traceability information gain a competitive edge by appealing to conscious consumers. Brands that emphasize ethical sourcing, sustainability, and traceability can differentiate themselves in the market and build a loyal customer base.
Reduced waste and losses result from effective tracking, minimizing food spoilage and loss in the supply chain. By closely monitoring inventory and expiration dates, companies can optimize stock management and reduce unnecessary waste. According to GS1 Sweden (2023), adopting GS1 standards can reduce food waste by up to 40%, highlighting the critical role of effective traceability in the food industry. Reducing food waste not only benefits the environment but also enhances profitability.
Case Studies: Companies Leading in Farm-to-Fork Traceability
Nestlé, McDonald’s, and Unilever lead in farm-to-fork traceability using blockchain, GPS, and sustainable practices for transparency and trust.
Modern companies are prioritizing supply chain transparency through advanced product traceability systems to ensure safety, sustainability, and consumer trust. (Image by: Koval, Pixabay &Tobi from Pexels)
In today’s food industry, transparency is no longer optional—it’s a necessity. As consumers demand greater accountability, farm-to-fork traceability has emerged as a critical tool for ensuring food safety, sustainability, and trust. From blockchain to GPS mapping, innovative companies are setting new standards for traceability. Here are a few standout examples:
Nestlé: Blockchain for Transparent Supply Chains
Nestlé is leveraging blockchain technology to enhance transparency across its supply chain. Through its OpenSC platform, the company tracks ingredients like palm oil and milk, allowing consumers to scan a QR code and access detailed information about the product’s journey. This initiative aligns with Nestlé’s sustainability goals, including achieving net-zero emissions by 2050. By embracing blockchain, Nestlé is building consumer trust while reducing its environmental impact.
Read more here: Nestlé pilots blockchain to bring transparency to the food supply chain
McDonald’s: Sustainable Beef Sourcing
McDonald’s is committed to ensuring the traceability of its beef supply chain. Through its Sustainable Beef Program, the company tracks beef from ranchers to restaurants, promoting ethical sourcing and reducing environmental impact. McDonald’s also collaborates with suppliers and NGOs to support sustainable farming practices. This initiative not only aligns with the company’s sustainability goals but also resonates with eco-conscious consumers.
Read more here: Investing in beef sustainability
Unilever: Tech-Driven Traceability in Tea
Unilever, the parent company of Lipton and PG Tips, is using advanced technology to ensure transparency in its tea supply chain. By employing GPS and satellite mapping, Unilever tracks tea leaves from certified sustainable farms to its factories. This ensures responsible sourcing, fair labor practices, and environmental conservation. Unilever’s efforts demonstrate how traceability can align with both ethical and business objectives.
Read more here: How we’re using tech for more transparent, traceable supply chains
Conclusion
SmartKood for Transparency: Nothing to hide, everything to gain. SmartKood for Transparency.
As consumer demand for food transparency rises, product traceability has become a necessity in the food industry. Overcoming challenges through technology, compliance, and collaboration can help businesses enhance food safety, build consumer trust, and gain a competitive edge. By adopting best practices and leveraging innovative solutions, the industry can ensure a more sustainable and reliable farm-to-fork supply chain, paving the way for a safer and more transparent food system.
Author: Chung Kai Foong, Team SmartKood.
Looking to enhance your supply chain visibility and product traceability? Ready to transform your supply chain? Learn how SmartKood can help your business stay competitive!
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