It’s shocking to think that 1.3 billion tons of food are wasted globally every year. That’s right — one-third of all food produced for human consumption goes to waste, according to the Food and Agriculture Organization of the United Nations (FAO). In 2022, 345 million tons of meat and meat products were produced worldwide, but 20% of it was lost or wasted. This food waste doesn’t just harm the environment, but it also continuously costs us valuable resources like water, soil, energy, labor, and capital. And if we dig deeper, we find that 8 million tons — a staggering 12% — of meat and meat products are wasted owing to inefficient transportation and distribution.
The international transport of meat and meat products faces several challenges, including temperature and humidity control, the need for dedicated vehicles that meet food safety requirements, and a lack of information transparency throughout the supply chain. These factors can create a risky environment for transporting these perishable products, as any missteps can lead to spoilage and the growth of harmful microorganisms and bacteria, which can pose serious health risks to consumers. Proper transportation and storage are not just a matter of quality but also critical to reducing food loss and waste.
In the case of long-distance transportation, preventing mistakes by carriers and ensuring timely warnings to drivers when issues arise is essential. Delivering this type of cargo efficiently and on time is critical to maintaining its quality and safety. By implementing proper measures to address these challenges, we can minimize food waste, and ensure that consumers have access to safe, healthy, and delicious meat and meat products.
Picture this: a Mongolian meat exporter is in the business of regularly supplying mutton to Iran. To ensure the delivery of their products, the cargo is transported 355 km from Ulaanbaatar, the capital of Mongolia, in a specially insulated and lidded carrier straight from the meat producer’s warehouse. Everything seems to be going smoothly until they reach the border crossing procedures. That’s when things take a turn for the worse. Unfortunately, a mistake was made on the cargo documents during the border crossing procedures. The exporter realized that “Sheep” meat was mistakenly written together as “Sheep and Goat,” when it should have been specified as ”Sheep meat”. This seemingly small mistake caused the cargo to be sent back to the factory, causing delays and extra costs in shipment. What’s more, the problem was caused by only the carrier carrying the paper-based and single copies of documents during customs clearance.
But what if there was a reliable system in place that could digitally exchange documents with a unified information flow, allowing multiple stakeholders to monitor and accept each other? Such a system could have solved the above error without having to send the cargo back to the factory, even if the cargo was already on its way. All the documents could have been handled in the right way, making the entire process smoother and more efficient.
Nestled in a land of extreme climates where temperatures can fluctuate from -30 to +30 degrees Celsius year-round, Mongolia’s agriculture sector is vital to the livelihood of a quarter of its population. Here, traditional livestock husbandry and nomadic civilization blend with modern intensive livestock farming, making it a unique country in terms of agriculture. With over 71 million livestock as of 2022, which is 23 times more than the total population and contributes no less than 10% of the GDP, meat has always been a staple food for Mongolians, from ancient nomadic traditions to the present-day fast-paced lifestyle.
Mongolian meat has its unique flavor, because of the pasture grasses on which the livestock is raised in the vast plains of Mongolia. This is why it is not uncommon for locals to purchase meat directly from the herder family. However, the majority of meat for daily consumption is sourced by local meat traders in large quantities from herder family. These traders transport the meat to nearby slaughterhouses before distributing it to markets and shopping centers in the city. And then the meat factories process their meat in processing and packing facilities that meet international standards. To ensure traceability and accountability, Mongolia has implemented various internal tracking systems for live animals and meat for food. These systems are also linked to international barcode systems. However, there are still limitations in terms of accessibility and transparency of the supply chain for end users, also known as the end consumers.
Commissioner Phil Hogan, European Commissioner for Agriculture and Rural Development: “ We are currently witnessing major developments in technology with agriculture benefitting from advancements in enhanced data analytics, robotics and with scope for further exploration in artificial intelligence and Blockchain. These technologies can help our agri-food sector to maintain the highest levels of efficiency, quality, safety and sustainability, thereby supporting continued growth and competitiveness.”
The food industry is evolving to meet the changing needs and expectations of consumers, who are demanding more transparency about the food they eat. In recent years, consumers have become increasingly health-conscious and interested in knowing where their food comes from. In addition to traditional value drivers such as taste and price, consumers are now prioritizing transparency and traceability, as well as the history of their food and its transport conditions.
To meet these growing demands, it is crucial for product labels to provide clear and transparent information about the origin, history, and transportation of food products. This will not only help consumers make more informed decisions about what they eat, but also promote greater accountability and transparency throughout the food supply chain.
Obortech’s SMART HUB system offers a solution to the challenges faced in the food supply chain. It enables food products to be traced and transparent to consumers, providing clear information on their origin, history, and transportation.
To demonstrate how we can trace products in real life, we partnered with the “Mongolian Beef” brand and conducted a trial. Through the trial, we were able to track every stage of the process, from the purchase of cattle from the herdsman of Khutag-Ondur Sum in Bulgan Province, to the 6–12 months of feeding on the farm, operations at the processing plant, and transportation. With the help of IOT devices, we monitored and recorded information in real-time during transportation, which was then delivered to a packaging factory that meets international standards. By scanning QR codes, users were able to access all the information we had recorded throughout the supply chain, providing them with complete transparency about the products they were purchasing.
By providing complete transparency and traceability, Obortech’s SMART HUB system not only benefits consumers but also promotes accountability throughout the food supply chain. With all actors in the supply chain able to share information and collaborate in a decentralized ecosystem, SMART HUB makes it easy to maintain a clear and transparent record of every stage of the process. Our system was easy to use and customizable during the trial, allowing businesses to adapt it to their unique business model or supply chain needs. What’s more, it is accessible to every actor in the supply chain, regardless of their technical capacity and knowledge, allowing SMEs to adapt to the high-tech and changing food sector without the need for upfront investment.
By providing proof of the value and quality of their products, the “Mongolian Beef” brand was able to boost their sales and broaden their market access to the international market. With the ability to track and trace the origin and history of their products, they were able to establish trust with their customers and stand out in a competitive market. Obortech’s SMART HUB system provided a competitive advantage for the “Mongolian Beef” brand and can do the same for other businesses in the food industry.
Through our successful trial with the “Mongolian Beef” brand, we have demonstrated the power of Obortech’s SMART HUB system to digitize and monitor every activity in the food supply chain, from the origin of the beef to the moment it reaches consumers. Overall, our successful trial has shown that digitization and transparency are the keys to a sustainable and efficient food supply chain, also to reduce food waste and loss. Obortech’s SMART HUB system is the solution to achieve it, let’s build a connected supply chain together!
To see the use case, scan the QR code above. 👆