BUSINESS ENVIRONMENT AND

ETHICAL PRACTICES PROJECT-

SUPPLY CHAIN OF ORGANIC
PRODUCTS

NAME – ADITI SINGH AND BHUVAN GOEL

BATCH – BBA LLB
ROLL NO. -00316503518 AND 01316503518
ACADEMIIC YEAR – 2018-2023

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 ACKNOWLEDGEMENT

We would like to express our special thanks of gratitude to our teacher Ms.
Anuradha Jha who gave us the golden opportunity to do this insightful project on
the topic Supply Chain Of Organic Products , which also helped us in doing a lot of
research and we came to know about so many new things we are really thankful to
her. We would also like to thank our parents and friends who helped us a lot in
finalizing this project.

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 INDEX

S. NO. TOPIC PAGE N0.

1 INTRODUCTION 04

2 EVOLUTION OF ORGANIC PRODUCTS 06

3 WHY ORGANIC 08

4 11
CHALLENGES IN ORGANIC FARMING

5 EMERGING TRENDS IN ORGANIC FOOD 15

TRENDING
6 CONCLUSION 19

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 INTRODUCTION

Agricultural development still remains at the centre of the overall developmental

effort as vast majority of people still depend on agricultural and related activities for
livelihood and income. The new economic environment has further necessitated that
agriculture as a sector should not only sustain its own growth and development but
also lead other sectors through new dimensions like agro-processing, agro-exports
and other linkage effects. Organic produce has emerged as an important area of
interest both globally as we all as a domestic policy option due to various problems in
the conventional agro supply chains like chemical residues, environmental pollution,
rising costs of cultivation and so on.
Agri-food supply chains have undergone important structural changes since the 1990s
that have altered the ways in which food firms do business. Supermarkets have
become major actors in the domestic food supply chain worldwide (Reardon et al.,
2003). It is widely recognised that patterns of food consumption have followed these
changes over the past few years/decades as result of concerns on environmental
sustainability, development, nutritional aspects and also health issues. Along with
these trends, organic agriculture has been expanding quickly around the world
(Willer and Kilcher, 2011).
The Green Revolution and the context in which it took place assured and enabled
farmers to increase their production of wheat and paddy among other crops. Along
with its positives, it had its own trade-offs. Today’s consumer, however, is not living
in an economy burdened by shortages anymore. The consumer can afford to choose
products based on variety, quality, safety and convenience. Inspection of consumer
goods through all these lenses places organic products in an advantageous position.
The transition from a “production-driven supply chain” to a “demand-driven value
chain” has been phenomenal, especially in the last five years with the organic market
growing significantly. In the organic food and beverages segment alone, India has
witnessed a market growth of INR40,000 million in 2016-17 from INR675 crore in
2009-10, with an annual growth rate of 25%.1 2 3While, the growth rate for

1
India Organic Food Market Forecast and Opportunities, 2020. August 2015. Tech Sci Research.
https://www.techsciresearch.com/report/india-organicfood-market-forecast-and-opportunities-2020/449.html
accesses on March 10, 2018
2
Dilip Kr. Jha. India to treble export of organic products by 2020. Business Standard, April 27, 2017 website
http://www.business-standard.com/article/ markets/india-to-treble-export-of-organic-porducts-by-2020-
117042600455_1.html accesses on March 10, 2018
3
Potential for Trade of Organic Products from India, Occasional Paper No. 174, Export Import Bank of India,
November, 2015. Website https://www.eximbankindia. in/Assets/Dynamic/PDF/Publication-
Resources/ResearchPapers/57file.pdf accessed on March 10, 2018

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conventional food processing industries is 10-15%4, 97% of the companies surveyed
by ICRIER in 2017 reported 10%-40% higher profit margins on organic products.
Therefore, of late many key players such as ITC and Cargill have ventured back into
the organic food segment.5E-commerce retail chains like Big Basket and Godrej
Nature Fresh are also attempting to capitalize on this growth spurt, whereas food
companies like Elite Food have planned to launch their organic foods including
sugar, spices and pulses.6 Established players in the organic market segment are
optimistic about their growth trajectory. For instance, Organic India aims at achieving
a turnover of INR500 crore by 2020.7
WHO IS A FARMER?
A farmer (also called an agriculturer) is a person engaged in agriculture, raising
living organisms for food or raw materials. The term usually applies to people who
do some combination of raising field crops, orchards, vineyards, poultry, or
other livestock. A farmer might own the farmed land or might work as a labourer on
land owned by others, but in advanced economies, a farmer is usually a farm owner,
while employees of the farm are known as farm workers, or farmhands. However, in
the not so distant past, a farmer was a person who promotes or improves the growth
of (a plant, crop, etc.) by labour and attention, land or crops or raises animals (as
livestock or fish).

4
March 2018 2 The World of Organic Agriculture Statistics and Emerging Trend 2018, FiBL and IFOAM –
Organics International FIBL & IFOAM website
https://shop.fibl.org/CHen/mwdownloads/download/link/id/1093/?ref=1 accessed on March 10. 2018
5
Arpita Mukherjee, et. Al., Promoting Organic Food Products and Exports – Status, Issues and Way Forward.
ICRIER. July 2017. Website http://icrier.org/pdf/ Working_Paper_342.pdf accessed on March 10, 2018
6
Elite Foods to expand organic products range, targets Rs 1,000-cr turnover. Business Line, Kochi, December 8,
2017. Website https://www.thehindubusinessline. com/companies/elite-foods-to-expand-organic-products-
range-targets-rs-1000cr-turnover/article9986615.ece accessed March 10, 2018
7
Organic India eyes Rs 500 crore turnover by FY20 end. Business Today. December 25, 2017 website
https://www.businesstoday.in/pti-feed/organic-india-eyes-rs500-cr-turnover-by-fy20-end/story/266741.html
accessed on March 10, 2018

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 EVOLUTION OF ORGANIC PRODUCTS
The food that our ancestors consumed for thousands of years was grown with
virtually no artificial chemicals. Natural methods and nature itself assisted farmers in
maintaining soil fertility.
However, to address the needs of an increasing population, artificial fertilizers and
pesticides were used starting in the 1920s to increase crop production. Later,
genetically modified seeds (or genetically modified organisms — GMOs) were
developed to increase resistance to weather, pests and soil conditions. The results of
using such chemicals and GMO seeds were remarkable. The total area of cultivated
land worldwide increased 466% from 1700 through 1980; yields increased
dramatically, due primarily to selectively-bred, high-yielding varieties, fertilizers,
pesticides, irrigation and machinery.2 However, over the course of decades, the
negative impact of such farming practices — called conventional farming — has far
exceeded its positive results. Apart from degraded soil, resistant pests, expensive
clean-ups, rampant human diseases, water contamination and dead zones in the ocean
are thought to have resulted from conventional farming.
Fortunately, as organics have become more mainstream, more farmers are learning
about the environmental and economic impact of their conventional methods. Some
are even making the switch to organic farming.
According to the USDA, (United States
Department of Agriculture) organic farms
and processors:
•Preserve natural resources and
biodiversity.
• Support animal health and welfare.
• Provide access to the outdoors so that
animals can exercise their natural
behaviours.
• Only use approved materials.
•Do not use genetically modified
ingredients.
Figure 1. Organic food lifecycle
• Receive annual onsite inspections.

Classification of Organic Farming Classification of Organic

Farming Organic farming has been classified in three categories for reducing the
inorganic system

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1. Pure Organic Farming: In this method application of synthetic fertilizers and
pesticides has been completely replaced by organic fertilizers and bio-pesticides.
2. Integrated Green Revolution Farming: Defined as a method in which production
yield has been increasing by application of hybrid varieties of seeds, sufficient
irrigation, mechanized field operation and skilled labour involvement and consider
the minimum damage to the environment and human health. Integrated Nutrient
Management (INM) and Integrated Pest Management (IPM) both are coming under
this farming.
3. Integrated Farming System: Farming is totally depending upon the local and
natural resources like recycling of agricultural wastes, tree leaves, crop residues,
food wastes etc. for improving the quality of produces without depleting the
ecosystem.

WHY ORGANIC?

The consumers are increasingly becoming aware of the food safety issues and
environmental issues because of their increased concern about health, the
environment’s health and its global implications. Organic food now has become a

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viable alternative for an increasing number of consumers, who are worried about the
presence of chemicals residue and the negative consequences on the environment
caused by intensive production methods. Many farmers also now see organic farming
as a way to stabilize or even increase their income due to public policy support and
growing market demand. The benefits of organic products are threefold as
summarized below:
1. Health: Organic agriculture regulates how food is grown and processed. In addition
to meeting the health and safety requirements of conventional food, organic food
must also meet the additional safety standards of organic farming such as tougher
regulations on manure use. Studies have shown that organic food contains a lower
concentration of pesticides as compared to conventionally grown food 8. Hence, there
is a good reason to believe that organic farming reduces health risk 9. The health
benefits of organic products are as follows:
• Toxin and GMO-free: Organic products are the most heavily regulated food
products in the US. Only organic products come with a guarantee that no toxic
persistent pesticides, synthetic fertilizers or GMOs are used in their production.
Additionally, no antibiotics or growth hormones are given to livestock. Organic
producers and processors are subject to rigorous announced and unannounced
certification inspections by third-party inspectors to ensure that proper due diligence
procedures and protocols are being followed.
• Higher nutritional content: Recent studies have found that organic fruits, vegetables
and grains have fewer nitrates and cadmium and fewer pesticide residues than non-
organic crops, making them safer to consume.
• Environment: Organic farming primarily focuses on eco-friendly agriculture
practices. It might not eliminate the negative environmental impacts wholly, but it
can help reduce water pollution and improve the soil quality. Organic cultivation
promotes conservation of biodiversity, enhances ecological functions and ecosystem
services. It is a self-reliance system that improves the economic productivity of crops
and livestock. The stringent organic certification standards enable several measures
like mulching, crop rotation, crop residual management, rules on carrying capacity
defining a number of heads of livestock are allowed per hectare. Improved organic

8
Effects of organic food consumption on human health; the jury is still out! Marcin Barański, Leonidas
Rempelos, Per Ole Iversen, and Carlo Leifert. March 6, 2017.
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5345585/ accessed on March 10, 2018
9
upply chain management of locally grown organic food: A Leap towards sustainable food. Cognizant. 2014.
website https://www.cognizant.com/whitepapers/ Supply-Chain-Management-of-Locally-Grown-Organic-
Food-A-Leap-Toward-Sustainable-Development-codex928.pdf accessed on March 10, 2018

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soil carbon biding significantly reduces green gases helps in mitigating climate
change.10
2. For economic reasons: Organic food usually costs more than conventional food.
While the price of organic food is a deterrent to many consumers, for most farmers
the high prices of organic commodities are very attractive.
3. For other social and ethical reasons: Many consumers and farmers think that
organic agriculture does a better job of supporting small and family farms. Areas with
numerous small- and medium-sized farms tend to have more stable and prosperous
communities than rural areas dominated by very large farms. Some people favour
organic agriculture’s consideration of animal welfare. Although organic agriculture
has historically been practiced by small and medium farms, the standards do not
address farm size; as the organic market has grown, so has the percentage of large
organic farms.

10
Organic Farming, Climate Change Mitigation and Beyond. IFOAM. FiBL. 2016. http://www.ifoam-
eu.org/sites/default/files/ifoameu_advocacy_climate_change_ report_2016.pdf accessed on March 10, 2018

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 Figure 2 Benefits of Organic Products

CHALLENGES IN ORGANIC FARMING

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The organic farming sector in India is entering a transformation stage due to an
increase in new ventures that have begun to disrupt the market with their one-of-a-
kind offerings. In an effort to promote a healthier lifestyle, these players are playing a
pivotal role by providing consumers with wholesome organic produce.
Since the organic food segment is still at a nascent stage in India, both the
Government and private players need to develop a strong policy framework that can
benefit all involved. The organic farming industry in India holds immense potential to
grow, provided it receives steady investment and benefits from both existing and new
initiatives like incentivizing organic cultivation, food processing, certification and
regulatory ease and tax benefits. Some of the challenges faced by the organic sector
today can be grouped into three heads:
Producer-level challenges:
• Certification process: Issues like high certification costs, lengthy procedures,
international validity, inadequate certifying agencies and inadequate supporting
infrastructure facilities for verification are rampant in the certification process for
pursuing organic farming. It costs between INR50 and INR500 per farmer per year
for certification and the cost of internal audits and documentation is approximately
INR2,500 per farmer. Although the cost of certification has reduced, it is expensive
for many small groups of farmers or individual farmers.
• Certification standards: There is also a gap in the understanding of the
certification standards and labelling requirements. Additionally, key trading partners
have traditionally demonstrated a lack of willingness to sign equivalence
arrangements.
• Lack of market for the pre-certification produce: The harvest prior to
certification or during the certification process of the farm or crop cannot be placed in
the organic niche market due to the lack of an organic certificate. This harvest is sold
as conventional crops, thereby causing the farmer to incur a loss.
• Lack of standardization for the certification of different commodities: Dairy
products have a different standard while meat has a different standard. The process of
standardization of organic coconut will be different from that of the value-added
products of coconut. Therefore, a company having multiple commodities needs to
obtain multiple certifications and maintain multiple records as per the applicable
standards.
• High dependency on agriculture: India has the highest number of producers in the
world yet they cultivate less than 1% of the organic area. The conventional
production system is more lucrative given the land fragmentation.

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• Lack of incentives for farmers: The transition from conventional to organic
farming is accompanied by high input costs and low yields in the initial years. The
cost of going completely organic is quite high, due to the high cost of organic
manure. The commercially available bio-manure products may not be completely
organic, and therefore the products sometimes get disqualified at the certification
stage. This is one of the many reasons why farmers are sceptical when it comes to
shifting from conventional to organic farming. In such cases, the farmers choose to
play it safe by practicing conventional methods of farming.
• Lack of standardized organic agriculture inputs and subsidy on organic
inputs: Farmers also face an acute shortage of quality standardized organic
agriculture inputs, which are often much more expensive than conventional
agricultural inputs. There are no subsidies from the Government on agriculture
inputs, especially biofertilizers and biopesticides, making the cost of cultivation for
organic farming quite high. Unless the farmers use their own farm grown manure in
large quantities, they are unable to meet the expenses. Lack of proper organic inputs
often results in low yield making organic farming unsustainable for the farmers.
• Lack of organic cultivation research and extension: The current research and
extension on organic farming are much lesser than that on conventional farming.
There is a lack of quality non-GMO seeds that are fit for organic cultivation. Strong
government support for producing non-GMO high yielding varieties and niche crops
for organic farming under different agro-ecological zones across India require
investment in organic research and extension. The extension services are very limited
for organic, for example, the ATMA scheme focuses more on conventional farming.
There is no timely advisory available for organic pest and disease control measures.
Processor-level challenges
• Supply chain issues: Many farmers are apprehensive of organic farming since it
involves high production costs. The emphasis on collection, transportation and
storage of fresh organic produce is very high. Due to relatively low volumes, the
marketing and distribution chain of organic food products is relatively inefficient and
the costs involved are very high. For example, organic produce cannot be stored in
government warehouses that practice chemical treatment of storage areas. High
demand and low supply further create inflationary pressure on organic food products.
Therefore, these products have higher price mark-ups than conventional products.
Additionally, many sellers mix the produce from different geographical regions to
help attain a competitive price, thus compromising the geographical origin norm.

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 • Lack of a proper organic supply chain is felt more acutely in hilly, tribal and
remote areas that have a high potential for organic farming but have difficult terrain
or underdeveloped infrastructure.
• Global competitiveness: A major challenge India faces is that of increasing its
share in the global organic food export market, in lieu of global competitiveness.
There often exists a dichotomy between international quality and safety standards and
Indian organic stands, which puts Indian produce at a disadvantage.
• Lack of proper branding and packaging: Promotion and sale of organic products
require separate packing material that is natural and requires distinctive branding that
distinguishes organic from conventional products. At present, there is an absence of
regulations on labelling standards. There is also lack of standards and clarifications
regarding labelling and certification requirements for the domestic market and import
market leading to malpractices such as mixing organic with conventional produce. 11
The Indian certification agency plays an important role in branding. Since it requires
financial assistance, the Government and private sector should come to a common
understanding of organized export, brands development, and promotion with
incentives from the Government.
Consumer-level challenges
• Lack of awareness among consumers: Many consumers in India are still unaware
of the health benefits of organic food products. The situation is worse in non-metro
cities where consumers do not know the difference between conventional farming
and organic farming. They are buying products labelled as natural assuming them to
be organic12. Organic food products are produced, manufactured and handled using
organic means defined by certifying bodies, whereas, natural food simply refers to
food items that are not chemically altered or synthesized in any form. Therefore,
companies can only expand their consumer base by increasing the awareness levels
among consumers in non-metro cities.
• The high cost of organic food products: The cost of organic food products in
India is currently higher than that of conventional food items. Specialized farmer
training cost, processing and inventory holding cost (without chemical additives), and
increased packaging, logistics, and distribution cost (due to low volumes), contribute
to the high price of organic food products. The switch to organic food is likely to cost
an additional INR1,200–1,500 per month for a family. Therefore, the purchase of
organic food is restricted to the affluent class of consumers residing in large cities.

11
“Organic Foods: The New Revolution,” BW Business World Magazine, August 2016, via EMIS.
12
“Is the two-certification system harming India’s organic food market,” The Economic Times website,
http://economictimes.indiatimes.com/industry/cons-products/ food/is-the-two-certification-system-harming-
indias-organic-food-market/articleshow/59826481.cms, accessed on March 10, 2018

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• Limited availability of organic food products: The limited availability of organic
food products in the market is also posing a serious challenge to the growth of the
Indian organic food industry. There are very few retail shops in India that store and
sell organic food items. Many fake organic products are also available in the markets,
which are diminishing the profits of genuine vendors. Therefore, the limited
availability of organic food products is driving consumers to look for other options
available in the market.

EMERGING TRENDS IN THE ORGANIC FOOD MARKET

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The key trends in the Indian organic food industry are as follows:13
• Increasing demand for organic food: The current market size for organic food
products is US$533 million, exhibiting 17% growth in 2015. According to
ASSOCHAM, metropolitan cities have witnessed a 95% increase in demand in the
last five years.
• Increasing use of online marketing channels: Many organic food companies
are adopting the online route to expand their consumer base. The brick and mortar
organic stores are usually located in metro and mini metro cities 14. These
companies are reaching out to the rest of the consumers through online channels.
Some of the players that have established their own online website include
Farm2Kitchen, Organic Shop, Naturally Yours and Organic India. Premium food
retail chains such as Godrej Nature’s Basket also sell organic food brands such as
Navdanya and 24 Mantra online. The online vegetable and fruit store I Say
Organic sells five tons of vegetables and fruits a week and has a customer base of
around 10,000 households in the National Capital Region (NCR).
• Increasing number of organic food restaurants and cafes: With increasing
incidence of health problems such as diabetes, anxiety and stress plaguing urban
India, many entrepreneurs are venturing into the area of organic café and
marketplace. For example, Devang House is a fully organic café located in New
Delhi which organizes the Organic Living Festival every fortnight. It also sells
herbal lifestyle products like dental powder and digestive tonics and uses natural
and organic produce in its menu. The Trident, Gurgaon, has a separate organic
menu that uses organic produce only.
• Increasing awareness regarding organic foods: Many events are taking place
throughout the country to generate awareness about the benefits of organic farming
to farmer and consumption of these products among consumers. For example, a
three-day organic food Mela was organized by the Institute for Cultural Research
and Action (ICRA) in November 2015. Additionally, an organic food festival
Praktrut-2016 took place in which organic farmers from across the country

13
“Sequoia and CDC eye organic food brand, Shrestha Natural Bio products,” The Economic Times website,
http://brandequity.economictimes.indiatimes.com/news/ business-of-brands/sequoia-and-cdc-eye-organic-food-
brand-sresta-natural-bioproducts/56412964, accessed 8 August 2017.
“Organic food market to treble in 4 years: Study,” Business Standard, May 2016, via EMIS.
“India Organic Food and Beverages Market Outlook,” Ken Research, October 2015, via EMIS;
“Organic Foods: The New Revolution,” BW Business World Magazine, August 2016, via EMIS.
“Organic Foods: Good Food, Few Takers,” BW Business World Magazine, August 2016, via EMIS.
“Organic Food for Healthy Thought,” New Indian Express, March 2016, via EMIS.
“Organic food festival begins in Rajkot today,” Times of India, December 2015, via EMIS.
“Organic food brand Naturally Yours receives seed funding,” Business Standard, October 2015, via EMIS.
“Organic market,” The Telegraph, May 2016, via EMIS.
14
“Organic food market to treble in 4 years: Study,” Business Standard, May 2016, via EMIS.

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participated and exhibited organic produce and traditional food recipes. The idea
was to connect the farmers and consumers in the city.
• Increasing investment in organic food companies: A large number of investors
are investing in organic food companies as the Indian organic food market is
growing exponentially. Many online organic food retailers such as Naturally
Yours, Pavitra Retail, Organic Shop, Natural Mantra and Nature land Organics
food have attracted investors aplenty. Mumbai based online organic food brand
Naturally Yours has recently raised funds from angel investor Sanjay Mehta. With
this investment, Naturally Yours plans to expand into new product categories and
increase the product range.15
• Increasing retail shelf space for organic products: The increasing demand for
organic food has led to an increase in its retail shelf space in organized retail stores
across India. To increase the penetration of organic food, companies are
introducing new types and varieties of organic food items. For instance, in March
2016, an organic food market was inaugurated in Gangtok that has 17 outlets
allotted to farmers attached to self-help groups (SHGs) and farmers’ clubs from
Sikkim.
• Introduction of new product categories and varieties: Many organic food
companies are coming up with new product categories and varieties to provide
consumers with sufficient choices. Apart from fruits, vegetables, teas, pulses and
spices, companies have also introduced ready-to-eat snacks, cookies, medicinal
plants and herbs, and juices. Additionally, increased organic alternatives can be
observed in established product categories.
•Accountability and traceability: It is interesting to note that the consumption
of organic food seems to be directly linked to consumer values and trust
orientations. Two major trends in consumption deserve special mention: regular
organic food consumers using standard distribution channels (supermarkets),
and hardcore consumers adopting alternative channels. The trends, described
above, are omnipresent in organic food distribution. Direct channels (such as
farmers markets) address consumers that want to interact with the producers and
inquire about their production methods. This avenue satisfies consumer
curiosity about food origin and their desire for some additional food handling
and cooking tips. The conventional distribution channels, as we know, are
characterized by longer channels, where consumers do not feel connected with
producers and where the consumers have limited knowledge of the origin of
their food. By ensuring better tracking and traceability of organic produce, food
15
Sequoia, CDC may seal Rs 680 crore deal for organic foods brand 24 Mantra. Jan 2017
https://timesofindia.indiatimes.com/deals/-ma/sequoia-cdc-may-seal-rs680-crore-deal-for-organic-foods-brand-
24-mantra/articleshow/56412443.cms

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retailers can build trust among consumers. As a result, consumers buying from
the big box retailers will have as much visibility into the origin of their food as
those buying from farmers markets. So how do grocery shoppers examine
produce or meat items and trace their sources? Apart from the traditional bar-
code and radio frequency identification (RFID) technologies, which have been
widely adopted to improve tracking and traceability of food items, other related
technologies have emerged recently. For example, a system called Harvest
Mark, developed by Yotta Mark, is a specialized tool for tracking and
authenticating products. The Harvest Mark is a code printed on the label of a
product. The code can be scanned by a shopper with an iPhone or Android
smartphone, and data is then immediately available showing the grower,
growing methods used and other pertinent product information. In the case of
animal products, the methods employed in raising and feeding can be checked.
Another popular technology not widely known about in this context is speech
recognition. Practically any application can be easily modified to accept speech
input because of the recent development of terminal emulation-based speech
recognition technology. Speech recognition has been implemented widely for
various warehousing functions such as picking, put-away, replenishment and
shipping to increase efficiency and productivity.
• Minimizing lead time from farm to shelf: Sometimes, retailers store
produces in their food warehouses for as long as 12 days, on top of which is the
transit time from the distribution center to the store. In the case of alternative
food systems, this step is greatly reduced (e.g., box delivery) or even eliminated
(e.g., farmers markets). Based on our survey of local farms, it takes less than 48
hours (from the time the crop is harvested) for the farmers to sell their produce
to customers and about seven days for some of the efficient food co-ops to do
the same.
• For a retailer to minimize the lead time from farm to shelf and thereby
increase the shelf life of fresh food, a holistic approach is required to
revamp warehouse management, order management and transportation
management: We can help assess potential areas of rework for a retailer and
further assist in the implementation of integrated automated storage/retrieval
systems, automatic identification products, conveyors, order-picking systems,
RFID, sortation equipment and software and systems integrations.
• Streamlining logistics to minimize food mileage: With the increasing
emphasis on sustainability, a large number of food retail giants are conscious of
the miles their food travels before reaching the customer. Food miles is a major
factor used to assess the environmental impact of food, including the impact on

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global warming. By promising to improve the logistics associated with their
food network, these companies can exercise corporate social responsibility for
creating a greener environment.
• Airline food industry’s green field: Apart from chain restaurants and the
regular retail industry, one particular industry that needs a special mention is
airline food. In-flight catering represents an important multi-billion-dollar
segment of the aviation industry today. Due to the problems with quality
control, ground transportation and timeliness of food service subcontracted from
hotels and restaurants, more airlines are moving toward creating airport-based
flight kitchens around the country.

CONCLUSION
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Thus, it can be concluded from the above data research that organic products are very
important for the better health of the people. The organic product industry is presently
facing numerous problems and what steps need to be taken by the government in
helping farmers increase the production of organic product has also been studied. Also,
from the evidences collected it can be concluded that even the people who are selling
the food products are not having full knowledge about the products they are selling.

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