Online grain passports could bring rapid buyer feedback
© Tim Scrivener The process of completing a paper grain passport and attaching a crop assurance sticker for each load moved is time-consuming and increasingly looks increasingly outdated.
That could all change if a new online system is adopted, possibly within the next two years.
AHDB Cereals and Oilseeds is consulting on plans to introduce an electronic grain passport system following a 12-month trial during 2014-15.
The online system promises to ease the administrative burden of handling paper forms and improve information flow and traceability across the supply chain from farmers to processors, says eGrain Passport project manager Derek Carless.
See also: Combine protein meter monitors grain quality on the move
“The electronic system offers a two-way data flow that allows passports to be sent to processors in advance of delivery. Then load weight and quality information can be fed back to merchants, hauliers and farmers immediately after delivery,” he explains.
This could address a common criticism of the existing system where some farmers feel there is a lack of feedback from end users about deliveries and quality-based deductions, says NFU chief arable adviser Guy Gagen.
“Although many farmers have a good relationship with their grain buyer, consolidation across the supply chain means farmers often don’t know the people they are trading with as well and feel there’s less exchange of information.
“Many parts of the food industry already communicate electronically, so there is no reason why it shouldn’t work. It’s another tool to take waste out of the supply chain and help us stay competitive.”
The total supply chain cost saving is an estimated £1.9m/year.
Live links to crop assurance schemes such as Red Tractor and Scottish Quality Crops and haulier assurance databases also allow real-time assurance checks, which improves traceability confidence among end users, Mr Gagen adds.
While he is confident the technology will work, he and others acknowledge a number of issues must be resolved and farmers are being urged to take part and respond to the consultation.
“It’s not a yes or no vote,” says the Agricultural Industries Confederation’s seed sector head Paul Rooke. “Members involved in the pilot are cautiously supportive and we want to move it forward, but it’s a question of how we do this.”
Deciding how the process works in practice and who drives it (farmers or processors) is one of the biggest questions, together with the cost and time required for merchants and processors to integrate computer systems, he says.
How will the system work?
Details of how the scheme will work are up for discussion and several options are proposed. Mr Carless says the favoured approach is two workflows.
The main one is buyer-initiated, as outlined below:
- Buyer (such as miller or processor) creates a reference number and blank passport(s) for an order
- Passport(s) allocated to merchant
- Merchant automatically checks assurance details and selects the haulier(s) and farm(s) to source grain from – merchant also selects collection site, usually agreed with the farmer by phone (farmers have flexibility to change collection site)
- Passport(s) then available to farmer – can be completed online several weeks before collection or on the driver’s smartphone on the day of collection
- On collection day farmer checks lorry is suitable and enters a four-digit PIN on the driver’s phone to authorise collection
- Farmers can access load data as soon as it is logged by the end user – speed depends on individual testing and data systems.
The second process is farmer-initiated and may be needed where grain is sent to central stores at, or soon after, harvest. The farmer, rather than buyer, is therefore, best placed to determine the quantity and timing of grain movement.
In this situation, the farmer creates a load batch via the website and assigns a haulier, stipulating how many loads/passports are required. Assurance checks, authorisation and load feedback are done in a similar way to the first system.
Have your say
View the full eGrain pilot report and consultation (PDF). Consultation closes 16 September 2016.
In both cases farmers must complete a one-off registration for the scheme via a new website (requires name, address and contact details, plus assurance number). Separate logins can be generated for each staff member and there is an option to download a mobile app (Apple and Android only).
The link to crop-assurance databases automatically downloads assured grain storage locations for that account.
Who will run and fund the scheme?
AHDB ran the pilot, but plans for the full scheme are to be decided.
If AHDB run the full scheme, Mr Gagen believes it should be done at “arm’s length” in a similar way to the Red Tractor assurance scheme model, which is a not-for-profit company owned and funded by the farming and food industry.
Several eGrain funding options are proposed, including a user subscription, website advertising, AHDB levy or a combination.
When will it be introduced?
There is no firm timeline, as it depends on the outcome of the consultation which closes in September.
Mr Carless says a positive industry response to the proposals could see firmer proposals being drawn up when the Cereals Liaison Group meets in November, with a view to launching in 2018 at the earliest.
However, he acknowledges a number of issues must be addressed, which may require a revised plan, delaying any launch. If no agreement can be reached, the project could be shelved.
Will data be secure?
Data security is a key concern across the supply chain, but Mr Carless is confident the use of a secure site, data encryption, plus PIN and password protection makes the system robust.
Independent security testing highlighted no significant weaknesses, although some improvements and further testing will be done.
He suggests there may be opportunities to use aggregated anonymous data to help improve grain marketing among farmers, merchants and the rest of the industry.
Will it be compulsory?
No. “Nobody will be forced to change and farmers can stick with paper passports, providing the merchant is happy,” says Mr Carless.
“Ultimately it is likely to be driven by whether end users want to use an electronic or paper system.”
‘Helps manage what we send out’
Thurlow Estate Farms in Suffolk took part in the eGrain pilot and farms manager Jonathan Drury was pleased with how it performed.
He and grain store operator Tom Fenner found the website and phone app easy to use and recognise the value of being able to prepopulate passports with assurance and mycotoxin details ahead of collection. All that was required on collection day was to enter a PIN into the lorry driver’s phone.
Tom Fenner
“Even for the less technologically minded, the app is surprisingly easy to use,” says Mr Drury.
With about 35,000t of produce to unload each year – 22,000t of which is wheat – any system that improves efficiency and traceability is worthwhile, he says.
“We only did two loads, but can see it would be quicker than writing out individual passports from scratch on the day. As people get more familiar with the system the process should get quicker.
“We also appreciated getting results back within about 30 minutes of the lorry tipping. It helps us manage what we are sending out when there are several loads to do in a day and reduces the risk of rejections.”
Connectivity was not an issue, as the farm has broadband and a laptop at the grainstore, allowing admin to be done on the site. Those without this can still use the system via mobile connection though.
Mr Drury’s main concern is whether electronic passports will be adopted across the industry to avoid the need for separate systems for different buyers.
Mr Fenner rated the system 9/10 overall.
Two workflows ‘confusing’
FenGrain was one merchant in the pilot and supports the electronic passport concept.
However, as well as concerns over the cost and resources needed for IT integration, the firm also suggests separate processes for grain going to central stores or mills could be confusing where both types of delivery take place at harvest.
“We also have reservations about hardware performance, especially in rural locations. Retrospective synchronisation will help, but not if the first buyer has created new orders and these can’t be accessed by the haulier and grower on farm,” says the co-op in the AHDB report.
It recommends a further trial reflecting current manual processes.
The eGrain passport |
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Benefits |
Concerns |
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Quick feedback of grain quality from processors – helps manage grain supplies, especially where close to contractual limits. For example, change which stores grain is taken from depending on quality |
Time required to understand new systems – needs IT literacy |
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Improves traceability – no need for separate assurance stickers. Easily adapted to new requirements/standards in future |
Poor rural broadband and phone/mobile data signal in many areas |
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Multiple identical passports can be completed quickly – no need to write the same information repeatedly |
Data security – ongoing threat from hackers. Who owns the data and how may it be used? |
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Passports can be completed ahead of grain collection – limited responsibility for the person loading the lorry (reduces risk of errors) |
Who owns and operates the system? How will it be funded? |
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Mobile app works offline so does not need a signal at collection point |
Cost and resources required to integrate computer systems across the supply chain |
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Long-term saving from reduced admin burden and quicker processes |
Will everyone adopt it? |
