Why
Companies Must Adapt Now
The year is
2024, a multistate Listeria outbreak linked to Boar's Head deli meats has
sickened 61 people across 19 states, hospitalised 60, and killed 10. The first
patient was identified on May 29. The recall was not initiated until July 26,
nearly two months later. In that interval, people continued consuming
contaminated products, right up until the plant was closed in September. The
same year, onions supplied to McDonald's Quarter Pounder hamburgers triggered
an E. coli O157:H7 outbreak spanning 14 states, causing more than 100
illnesses, four cases of hemolytic uremic syndrome, and one death. According to
data from the U.S. Public Interest Research Group, hospitalizations from
foodborne illness in 2024 more than doubled compared to the previous year —
from 230 to 487 — and deaths rose from 8 to 19 [1].
Neither of
these outbreaks was, at its core, a mystery. What they were was slow, where slow
to identify the contaminated lot and slow to trace it back through a supply
chain that still relies, in significant parts, on paper-based records,
incompatible software systems, and manual data entry. Slow to remove product
from the market with the precision that modern technology should allow. The
CDC's CORE Network data shows that, across 2020–2025, a food vehicle of illness
was identified for only 56 percent of outbreak investigations, meaning 44
percent remained unsolved [2]. This is not a new statistic. It is a stubborn
one. And it is precisely the number that the global push toward digital
traceability is designed to change.
The
transition is now happening at regulatory speed. The Institute of Food
Technologists (IFT) has identified digital tools expanding food safety adoption
as one of its top five trends shaping the global food system in 2026 [3]. The
Food Marketing Institute (FMI), representing the retail food industry, has
named traceability the number one food safety priority for 2026, placing it
ahead of produce safety, chemical safety, and sanitation controls [4]. At the
regulatory level, the U.S. FDA's Food Safety Modernization Act Rule 204, which was
one of the most consequential pieces of food safety regulation in a generation,
is rewriting the technical requirements for supply chain data across the entire
food industry. Further beyond the United States, the European Union, China, and
major trading blocs are simultaneously developing their own digital
traceability frameworks, raising fundamental questions about interoperability,
harmonization, and what it truly means to build a globally connected, digitally
transparent food system.
The article
examines what digital traceability is, why the industry is being compelled to
adopt it now, what the regulatory landscape looks like globally, what
technologies are enabling it, what barriers remain, and what food safety
professionals and businesses must do in the near term to position themselves on
the right side of a transition that is no longer optional.
What is Digital
Traceability
Before
examining the regulatory and technological landscape, it is worth being precise
about the term itself, because "traceability" is used loosely in
industry contexts in ways that can obscure meaningful distinctions.
Traceability,
in its regulatory and scientific sense, is the ability to identify and follow
the movement of a food product — or a substance intended to be incorporated
into a food or feed — through all stages of production, processing, and
distribution. The European Union's foundational General Food Law, EC Regulation
178/2002, established it as a legal requirement for all food and feed operators
operating in the EU, using what it describes as a "one-step-back,
one-step-forward" principle: each operator must be able to identify from
whom they received a product and to whom they supplied it [5].
What makes
digital traceability different from traditional traceability is the nature of
the data and the speed at which it can be exchanged, queried, and acted upon.
Traditional traceability systems relied on paper-based records, spreadsheets,
and proprietary software that managed internal business processes without
enabling real-time data exchange between supply chain actors. Digital
traceability, by contrast, uses a combination of technologies — barcodes, RFID
tags, QR codes, IoT sensors, electronic product code information services
(EPCIS), blockchain, and cloud-based platforms — to create a continuous,
machine-readable data trail that can be queried by any authorized party in real
time [6].
The
significance of the distinction becomes apparent the moment a recall is needed.
A food business that can identify the contaminated lot within minutes and trace
every downstream recipient within an hour is operating in a qualitatively
different risk environment from one that requires days of manual
record-searching. The FDA's vision, articulated in its New Era of Smarter Food
Safety Blueprint, is explicit: the goal is faster and more targeted recalls,
reduced scope of product removal, fewer illnesses, and ultimately lower costs
for both industry and the public [7].
The
Regulatory Architecture: What Is Being Required, and When
FSMA Rule
204: The United States
The FDA's
Food Traceability Final Rule, commonly known as FSMA 204, was published in
November 2022 and represents the most substantive expansion of federal
traceability requirements since FSMA itself was enacted in 2011. At its core,
the rule requires all persons who manufacture, process, pack, or hold foods
included on the Food Traceability List (FTL) to maintain records containing Key
Data Elements (KDEs) associated with Critical Tracking Events (CTEs), and to be
able to provide those records to the FDA within 24 hours upon request [7].
The FTL
covers a broad range of high-risk commodities: soft and semi-soft cheeses,
shell eggs, nut butters, leafy greens, fresh herbs, cucumbers, peppers,
tomatoes, sprouts, melons, tropical tree fruits, fresh-cut produce, certain
finfish and molluscan shellfish, smoked finfish, crustaceans, and refrigerated
ready-to-eat salads [7]. The scope is deliberately wide — these are the
categories most frequently implicated in large, multi-state outbreaks, and they
represent a substantial share of produce and protein consumption across the
United States and for the global exporters who supply the U.S. market.
The rule's
original compliance deadline of January 20, 2026, has been extended by 30
months to July 20, 2028, following an FDA announcement in March 2025 that
acknowledged both the complexity of the rule and the significant technical
preparation required across a diverse supply chain [8]. The 30-month extension
was subsequently codified by Congress in the Continuing Appropriations Act of
2026. The FDA has been clear that this extension is a window for technical
preparation, not a signal that the requirements are being relaxed. The agency
hosted a major public stakeholder meeting on lot-level tracking as recently as
June 15, 2026, and has actively solicited input on implementation flexibilities
while holding firm on the fundamental requirement for digital, lot-level data
capture and exchange [9].
One
consequential development that underscores how the industry is not waiting for
federal compliance dates: Walmart's supplier traceability requirements,
mandating Advance Shipment Notices with KDE data, SSCC-18 pallet labels, and
GS1-128 case labels, which took effect in August 2025, with chargebacks for
non-compliant shipments already being assessed [8]. For the large proportion of
food manufacturers serving mass retail, the federal compliance date is no
longer the operational driver. Their largest customer's requirements already
are.
The
European Union Framework
The EU's
approach to food traceability is embedded in a layered legislative architecture,
where EC Regulation 178/2002 provides the foundational requirement for
traceability across all food and feed operators [5]. On top of the given
general framework sits sector-specific regulations for beef and beef labelling,
fish and aquaculture products, genetically modified organisms, and organic
produce. The EU Food Safety Authority (EFSA) and the German Federal Institute
for Risk Assessment (BfR) have been actively developing a Universal
Traceability data eXchange (UTX) format and an interoperable multi-actor
tracing software ecosystem to support outbreak investigation and rapid alert
systems [10].
The EU's
Rapid Alert System for Food and Feed (RASFF) is one of the most mature food
safety alert networks in the world, and the push toward digital traceability is
in part designed to allow RASFF to function at the speed that modern supply
chains demand. A 2024 editorial in the Journal of Consumer Protection and Food
Safety makes the point directly: food safety authorities worldwide must
intensify their efforts to collect and utilize digital traceability data,
because as supply chains advance toward Industry 4.0, incorporating IoT sensors
and digital twins, the volume of data will grow exponentially and authorities
must keep pace [10].
The EU
Deforestation Regulation (EUDR), which entered into force in 2023 and applies
to a range of food commodities including soy, beef, palm oil, and cocoa, adds a
further dimension to the EU's traceability requirements: companies must
demonstrate that their products are free from deforestation, which in practice
requires geolocation data and supply chain documentation down to the production
plot level [11]. This represents a significant escalation in what traceability
means in the EU context, which is not merely lot-level identification for
recall purposes, but verifiable origin data at the level of individual farms
and geographic coordinates.
China and
the Broader Global Context
China has
been actively developing national food traceability systems to address domestic
food safety concerns and to support export competitiveness. The Chinese
government has implemented a series of traceability platforms, including
systems specific to pork, dairy, and infant formula, following high-profile
food safety scandals that severely damaged consumer trust in domestic
producers. A 2025 review in ScienceDirect notes that China's national food
traceability architecture is evolving rapidly, though integration across
regional systems and harmonization with international data standards remain
works in progress [5].
The global
picture, then, is one of multiple regulatory frameworks converging on a shared
direction, “mandatory digital traceability”, while diverging in their specific
technical requirements, covered commodities, and timelines. Thus, given divergence
has significant practical implications for exporters operating across multiple
regulatory environments. A company exporting leafy greens to the United States,
fresh fish to the European Union, and dairy products to China must navigate
three distinct traceability frameworks simultaneously, and the data formats,
identification standards, and information disclosure requirements may differ
materially between them.
The
Technology Layer: What is Enabling Digital Traceability
The
technologies underpinning digital traceability form an integrated ecosystem
rather than a collection of isolated tools. Understanding how they work
together is essential for food businesses making investment and implementation
decisions.
GS1
Standards: The Universal Language
GS1 is the
international, not-for-profit standards organization responsible for the global
identification and communication standards that underpin product traceability.
Its standards — particularly the Global Trade Item Number (GTIN) for product
identification, the Global Location Number (GLN) for location identification,
and the SSCC-18 for serialized shipping unit identification — are explicitly
recognized by the FDA as a mechanism for meeting the KDE requirements of FSMA
204 [12]. The GS1-128 barcode encodes the GTIN, lot code, expiry date, and
quantity on each case, and when combined with GS1's EPCIS (Electronic Product
Code Information Services) standard for event data sharing, creates a
foundation for interoperable, multi-actor traceability that does not require
all parties in a supply chain to use the same software platform [12].
The
practical significance of GS1 standards is that they represent the closest
thing the industry currently has to a universal language for traceability data.
A farm that captures harvest data using GS1-compliant identifiers, a processor
that records transformation events using EPCIS, a distributor that generates
GS1-128 case labels, and a retailer that scans those labels can all exchange
traceability information without custom integrations — provided they are using
standards-compliant systems. The "provided" clause is doing
significant work in that sentence, because adoption of GS1 standards across the
full supply chain is still uneven, particularly among smaller operators and
producers in low- and middle-income countries [9].
Blockchain:
Immutability and Multi-Party Trust
Blockchain
technology in food traceability has attracted considerable attention since
Walmart's landmark 2018 partnership with IBM Food Trust demonstrated that the
time required to trace a food item from store to farm could be reduced from
approximately seven days to 2.2 seconds using a blockchain-based system. By
2025, a systematic literature review in Business & Information Systems
Engineering found that blockchain was the most frequently studied technology
for food traceability, appearing in more than 40 percent of selected studies,
typically deployed in combination with IoT sensors, RFID tags, or QR codes
[13].
The
fundamental contribution of blockchain to traceability is immutability — once
data is entered into a distributed ledger, it cannot be altered retroactively
without detection. Such property is valuable in the context of food fraud and
in supply chains where multiple parties need to trust each other's records
without placing complete confidence in any single actor's database. A 2024
research implementation reported in the blockchain literature showed fraud
incident reductions of 80 percent and a rise in fraud detection rates from 70
to 95 percent, with consumer satisfaction index scores rising 12.5 percent
[13].
However,
blockchain's limitations are as important to understand as its benefits. The
technology cannot protect against fraud that occurs before data is entered into
the system, and the integrity of the physical-digital link depends entirely on
the accuracy of the labelling and scanning processes at the point of data
capture. As a Frontiers review noted, blockchain integration also requires the
combination with IoT sensors and smart tags that automatically collect data,
reducing the risk of human error or falsification; without this combination,
the immutability of the ledger is only as strong as the honesty of the person
entering the data [5]. Cost and scalability remain significant barriers,
particularly for smaller operators.
IoT and
Real-Time Monitoring
Internet of
Things sensors: temperature loggers, GPS trackers, RFID readers, and humidity
monitors, provide the data capture layer that converts physical events in the
supply chain into machine-readable records. Under FSMA 204, the FDA's concept
of Critical Tracking Events includes not just growing, receiving, transforming,
and shipping, but the conditions under which food is held and transported. IoT
sensors can automatically log these conditions in real time, generating
continuous data streams that can populate KDE records without manual data entry
and trigger alerts when conditions deviate from safe parameters.
The FDA's
own Low/No-Cost Traceability Challenge, a program designed to identify
accessible traceability solutions for smaller operators, recognized both
blockchain and IoT as breakthrough solutions precisely because of such
automation potential [12]. The cost of IoT sensor hardware has fallen
significantly over the past decade, and cloud-based data platforms that
aggregate sensor data from multiple supply chain actors are increasingly
accessible. For cold chain management specifically, a critical dimension of
traceability for fresh produce, seafood, and dairy, where IoT monitoring is
rapidly transitioning from a value-added feature to a baseline expectation
among major retailers and regulatory bodies.
Rapid and
Digital Testing Integration
A dimension
of digital traceability that is sometimes overlooked is its integration with
rapid testing at production and processing points. Next-generation sequencing,
rapid immunoassay platforms, and digital PCR systems are generating pathogen
detection data in hours rather than days, and the ability to link that testing
data directly to lot-level traceability records creates a closed loop between
quality control and supply chain documentation. Whole genome sequencing (WGS),
already used by FDA and CDC in outbreak investigations to match environmental
strains to clinical isolates, is being positioned as the epidemiological
backbone of the next generation of foodborne illness surveillance, but its
value is amplified when the supply chain records it needs to cross-reference
are digital, lot-level, and rapidly accessible [2].
The
Interoperability Problem: Why Standards Alone Are Not Enough
The single
most consequential structural challenge facing digital traceability
implementation is interoperability, the ability of different software systems
used by different actors in the supply chain to exchange and analyze data
accurately and efficiently. The point at which good intentions most frequently
collide with operational reality.
A 2024
editorial in the Journal of Consumer Protection and Food Safety, authored by
Marion Gottschald of the German Federal Institute for Risk Assessment, made
this structural problem explicit: while the food industry uses numerous tracing
software systems, they are mostly focused on managing internal business
processes rather than facilitating data exchange between actors [10]. Food
safety authorities have access to some inter-agency tools, including RASFF and
FoodChain-Lab, but the widespread adoption of genuinely interoperable software
is limited by the lack of available digital traceability data and the limited
standardization of tracing data formats across the industry.
A 2025
Frontiers systematic review of digitalization in European agri-food supply
chains echoed that finding: most studies in the peer-reviewed literature
describe conceptual frameworks or pilot implementations rather than fully
realized systems, and real-world deployment is hampered by interoperability
challenges, scalability issues, regulatory uncertainties, and high costs [14].
The review found that to ensure interoperability across processing and retail
stages, harmonized standards, shared APIs, and common data taxonomies are
needed, which is a recommendation that has been made many times and implemented
unevenly.
The
practical implication for a food business today is that investing in a
traceability system that works internally but cannot communicate with the
systems used by suppliers and customers upstream and downstream does not fully
deliver on the promise of digital traceability. The value of traceability data
is a network effect, which increases with the number of actors who can access,
contribute to, and act on it. A manufacturer who has invested in GS1-compliant
systems and EPCIS event sharing but whose primary fresh produce supplier is
still using paper manifests is operating with a significant gap in their data
chain.
The FDA
stakeholder meeting of June 2026 on lot-level tracking heard exactly the concern
from food industry representatives: traceability data today comes in many
formats (paper, spreadsheets, and incompatible software systems), which creates
both inefficiencies and compliance risks. Participants broadly identified GS1
standards as the most practical common language for global supply chains, while
acknowledging that adoption is uneven and that the costs and technical barriers
for smaller and less capitalized operators are real [9].
TO BE CONTINUED
References
[1] U.S. Public Interest
Research Group (PIRG) Education Fund. (February 2025). Food for Thought
2025: How safe is our food?. https://pirg.org/edfund/resources/food-for-thought-2025/
[2] Prabhukhot, G. (2026).
Regulatory responses to foodborne illness outbreaks in the United States and
their implications for food safety. Frontiers in Nutrition, 12, 1717980.
https://doi.org/10.3389/fnut.2025.1717980
[3] Niemira, B. (December 2025).
What's on the Menu for 2026? IFT's Top Five Food Trends. Institute of
Food Technologists. https://www.ift.org/news-and-publications/blog/2025/whats-on-the-menu-for-2026
[4] Eisenbeiser, A. (February 9,
2026). Building the Safest Food System Together: FMI's 2026 Food Safety
Priorities. FMI – The Food Industry Association. https://www.fmi.org/blog/view/fmi-blog/2026/02/09/building-the-safest-food-system-together--fmi-s-2026-food-safety-priorities
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Agri-food traceability today: Advancing innovation towards efficiency,
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[6] Frontiers in Sustainable
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[7] U.S. Food and Drug
Administration. FSMA Final Rule on Requirements for Additional Traceability
Records for Certain Foods (Food Traceability Final Rule). https://www.fda.gov/food/food-safety-modernization-act-fsma/fsma-final-rule-requirements-additional-traceability-records-certain-foods
[8] INECTA. (2026). FSMA 204
Compliance Guide: KDEs, CTEs & July 2028 Deadline. https://www.inecta.com/blog/fsma-204-compliance-guide
[9] OFW Law. (June 23, 2026).
FDA's Next Steps on Traceability: Challenges and Solutions in Lot-Level Food
Traceability. https://ofwlaw.com/fdas-next-steps-on-traceability-challenges-and-solutions-in-lot-level-food-traceability
[10] Gottschald, M. (2024).
Advancing food safety through digital traceability, interoperability,
harmonized data and collaborative partnerships. Journal of Consumer
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[11] Natural Trace. (2024).
Recent Regulations Driving Traceability in Food and Agriculture Sectors. https://natural-trace.com/recent-regulations-driving-traceability-in-food-and-agriculture-sectors/
[12] GS1 US. Food Safety
Modernization Act (FSMA 204): How GS1 Standards Can Help. https://www.supplychain.gs1us.org/standards-and-regulations/food-safety-modernization-act
[13] Vasileiou, K., et al.
(2025). Digital Transformation of Food Supply Chain Management Using
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[14] Frontiers in Blockchain. (October 2025).
Digitalization in the European agri-food supply chain: a scoping review of
traceability, transparency, and sustainability. https://www.frontiersin.org/journals/blockchain/articles/10.3389/fbloc.2025.1701872/full




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