Traceability is often perceived by food industry executives as an additional cost of doing business, one to be avoided if possible. However, a traceability system can in fact improve supply chain and marketing performance, as well as increase food safety and recall performance. This research was undertaken to understand how variables related to regulations, recall improvement, market response and supply chain improvement impact the perceived net benefits of traceability. Analysis of the results of a plant level survey of the Canadian dairy processing industry revealed that processors generally perceived net benefits from traceability and those who were looking for broader benefits than simply meeting regulatory requirements or reducing number of recalls actually perceived higher net benefits than those who only adopted for those reasons. The results of the study indicate that there is reason for food industry managers to re-evaluate their perceptions of the true costs and benefits of traceability and to take greater advantage of the benefits of such systems.
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