Advanced Food Traceability: Challenges and Opportunities for the Chilean Agribusiness and Nut Sector

The following is a research paper that has taken quite some time, but it is a good starting point and rich in information associated with the subject. This research material led to my article: The silent revolution of traceability: From field to fork in a digitized world

Executive Summary

Food traceability has established itself as a key pillar in the global agribusiness, driven by increasing consumer demand for transparency, rising food safety incidents and the imposition of stricter regulations at the international level. This report comprehensively investigates the food traceability landscape, both globally and in the Chilean context, with a particular focus on the export nut sector. It analyzes key international standards, such as BRCGS and FSMA 204, and explores the transformative potential of innovative technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Blockchain and DNA markers.

For Chile, a nation with a robust export-oriented agribusiness, the adoption of advanced traceability systems is not just an option, but a strategic necessity to maintain and expand its competitiveness in demanding markets. The Chilean nut sector, recognized for its premium quality, faces both significant opportunities and considerable challenges in implementing these technologies. Benefits include improved market access, the ability to obtain premium prices, increased operational efficiency, and mitigation of risks associated with food fraud and product recalls. However, implementation costs, the digital divide in rural areas, the need to develop specialized skills, and data privacy concerns represent obstacles that need to be addressed.

The report delves into relevant international case studies, including initiatives from companies such as Olam (AtSource), Ferrero and Carrefour, to draw lessons applicable to the Chilean context. An adapted and scaled traceability model is proposed for the Chilean nut sector, ranging from basic implementations for regulatory compliance to advanced systems that integrate multiple technologies for value addition and sustainability verification.

Finally, recommendations for public policies aimed at fostering the adoption of advanced traceability in Chile are presented. These include the development of a national strategy for digital agricultural traceability, investment in infrastructure and training, the provision of financial incentives and technical support (especially for SMEs), the promotion of data standards and interoperability, the strengthening of the regulatory framework, and the promotion of public-private partnerships. The transition to advanced food traceability is crucial for Chile's agribusiness, and in particular its nut sector, to ensure a prosperous, secure and sustainable future in the global marketplace.

I. The Evolving Landscape of Global Food Traceability

The ability to trace food throughout the entire supply chain has transformed from a niche practice to a global business and regulatory imperative. This change is driven by a confluence of factors redefining expectations about food safety, quality and transparency.

A. Current Status, Market Dynamics and Growth Drivers

The global food traceability market is undergoing significant expansion. It is projected to reach USD 37.90 billion by 2029, at a compound annual growth rate (CAGR) of 10.30%. ¹while other estimates suggest that it could reach USD 44.2 billion by 2033, with a CAGR of 7.85%.² This robust growth is underpinned by several key drivers. Primarily, there is growing consumer demand for greater transparency and safety in the food supply chain.¹ Modern consumers are not only concerned about the final product, but also about its origin, production methods and the associated socio-environmental impact.

At the same time, the increase in the incidence of foodborne diseases at the global level ¹ has set alarm bells ringing for consumers and health authorities alike, underscoring the need for systems that can quickly identify the source of contaminations. This has led to the implementation of more stringent regulatory standards in many jurisdictions. ²The company has been forced to adopt more rigorous traceability practices.

Geographically, although North America currently holds the largest revenue share in the market due to its advanced regulatory framework and high consumer awareness, it is the largest market in the world. ¹The Asia-Pacific region is emerging as the fastest growing market. This dynamism is attributed to a growing population, an increasing demand for safe, high-quality food, and changes in consumer habits driven by a greater awareness of healthy and safe eating.¹

The convergence of consumer demand, which acts as a "pull" force, and regulatory mandates, which exert a "push" force, is accelerating the adoption of traceability systems at a pace that would be difficult to achieve if either of these factors acted in isolation. Increasingly informed and health-conscious consumers are demanding detailed product information.¹ At the same time, governments are imposing stricter food safety laws, such as FSMA 204 in the United States and various regulations in the European Union.² This combined pressure positions investment in traceability as a market necessity, rather than an optional competitive advantage.

Rapid growth in the Asia-Pacific region ¹ is particularly noteworthy, as it indicates that emerging economies are rapidly adopting these technologies. This could reshape the competitive dynamics for established exporters, such as Chile, which must continually innovate to maintain their edge. Traceability is becoming a global standard, not limited to Western economies, which imposes new competitive pressures. The magnitude of financial investment and the growth of the traceability market reflect a fundamental transformation in the food industry, moving from reactive risk management to a proactive approach that also seeks to create value through the data generated.¹

B. Key International Standards and Regulatory Imperatives (BRC, GFSI, ISO 22005, FSMA 204, EU Regulations, Codex Alimentarius)

The globalization of food trade has led to the development and adoption of various international standards and regulations designed to ensure food safety and traceability. Compliance with these is crucial for agroexporting companies.

• BRCGS (Brand Reputation through Compliance Global Standards): It is one of the main standards of the Global Food Safety Initiative (GFSI), widely accepted by retailers worldwide. It covers fundamental aspects such as Hazard Analysis and Critical Control Points (HACCP), quality management systems and, crucially, traceability.⁵ Clause 3.9 of the BRCGS standard focuses specifically on traceability, and is partially aligned with the requirements of regulations such as FSMA 204 in the USA.¹⁰ This standard is applicable to a wide range of food categories, including "Fruits, vegetables and nuts". ¹¹and its certification facilitates legal compliance and access to international markets.⁸
• GFSI (Global Food Safety Initiative): This industry-driven initiative seeks harmonization of food safety standards. GFSI-recognized standards, including BRCGS, IFS and FSSC 22000, are increasingly accepted as a means of verifying food safety management systems and all include traceability requirements.⁴
• ISO 22005: This International Organization for Standardization (ISO) standard focuses specifically on traceability in the food and feed chain. It provides general principles and basic requirements for the design and implementation of traceability systems.¹⁴
• FSMA 204 (U.S. Food Safety Modernization Act): This U.S. regulation imposes additional record-keeping requirements for foods on the Food Traceability List (FTL), which includes products such as nut butters.¹⁶ It requires the recording of Key Data Elements (KDEs) associated with specific Critical Traceability Events (CTEs), as well as a documented traceability plan. The deadline for compliance has been extended to July 2028.¹⁷ This rule has a direct impact on international suppliers exporting food to the United States.¹⁷
• European Union regulations: Regulation (EC) No 178/2002 establishes general food law in the EU and requires farm-to-table traceability for all food and feed businesses.⁴ There are also specific regulations for certain product groups, such as beef and dairy products.
• Codex Alimentarius: Established by FAO and WHO, the Codex Alimentarius defines traceability as "the ability to follow the movement of a food through specified stage(s) of production, processing and distribution".²⁶ Its standards and guidelines, including HACCP principles, implicitly require robust traceability systems.⁴

The proliferation of multiple international standards, while well-intentioned in its aim to ensure food safety, creates a complex compliance landscape for exporters. They are faced with the need to satisfy BRCGS requirements for UK and EU retailers, FSMA 204 for the US market, ISO 22005 for general traceability, as well as EU-specific laws. While GFSI seeks harmonization, differences remain.⁴ In this context, a sophisticated traceability system, capable of capturing and reporting data in a flexible manner to meet various requirements, becomes a competitive necessity and not just a compliance tool.

FSMA 204, with its Food Traceability Checklist (FTL) and specific requirements for KDEs and CTEs, acts as an important catalyst for digitization and standardization of data in supply chains, driving the transition beyond traditional paper-based systems. FSMA 204's requirement to submit a "classifiable electronic spreadsheet" within 24 hours. ¹⁰ de facto imposes the need for digital record keeping. The detailed KDEs and CTEs ¹⁷ require structured data capture, pushing companies towards integrated digital systems rather than manual, siloed approaches.²⁸ This represents a direct stimulus for technological adoption.

It is essential to recognize that, while standards such as BRCGS and ISO provide frameworks, the efficiency of traceability to prevent safety incidents or fraud depends critically on the integrity of the data entered at each stage and the interoperability of systems throughout the supply chain. Standards define with must be made (e.g., BRCGS clause 3.9 for traceability). ¹⁰). However, its successful implementation depends on accurate data collection ("spotty data" is a problem identified as a problem that is often not easily identified. ²⁹) and the ability of the different systems to share this information ("interoperability" challenges). ³⁰). Therefore, the standard itself is only part of the solution; technology and process integrity are equally crucial.

Table 1: Comparative Analysis of Key International Food Traceability Standards

C. Global Benefits and Challenges in the Adoption of Traceability

The adoption of food traceability systems globally offers a range of significant benefits, but also presents considerable challenges that companies, especially in agribusiness, must navigate.

Among the benefits The company's most important activities include the prevention of public health problems through the rapid identification and recall of contaminated products, and ensuring regulatory compliance, avoiding penalties and strengthening its market position.³ Traceability is critical to building and maintaining consumer confidence; providing a detailed product history builds customer loyalty and opens up new business opportunities.³ In addition, it improves inventory management, optimizes product rotation, minimizes food waste and can lead to reduced operating costs.³ In crisis situations, such as product recalls, traceability enables fast and accurate action, minimizing the economic and reputational impact.¹⁴

However, the implementation of robust traceability systems faces several challenges. challenges. One of the most commonly cited is the high cost of implementation, particularly for small and medium-sized enterprises (SMEs) in developing countries, which may lack the necessary capital or technical resources.¹ Data privacy and security concerns are also relevant, as sensitive supply chain information is handled.¹

Globally, the lack of unified requirements and data standardization is a major obstacle.³⁰ Companies often must comply with multiple regulations and buyer standards that may conflict or overlap, increasing complexity and costs. Interoperability between the different technology systems used by the various supply chain players is another critical technical challenge ³⁰Without it, information silos can be created that prevent complete visibility.

Data quality ("spotty data" or irregular data) and lack of end-to-end visibility along the chain are persistent problems, often exacerbated by insufficient coordination and collaboration between trading partners.²⁹ Consumer preferences change rapidly, and the industry must be agile to adapt, which can be difficult if traceability systems are not flexible.³⁰ Finally, in many cases, there remains a reliance on manual or paper records, which are prone to human error, difficult to analyze quickly and can hamper readability and speed of response in the event of a traceability investigation.³⁰

The tension between the "high cost of implementation for small operators" and the "high cost of implementation for small operators". ¹ and the benefit of "access to new markets". ³ is critical. If access to lucrative markets depends on costly traceability systems, and there are no supportive policies or scalable and affordable solutions, traceability mandates could inadvertently disadvantage smaller players. This could encourage market consolidation, where only the largest and most well-resourced companies can compete effectively.

The "lack of unified requirements" and "interoperability problems". ³⁰ are not merely technical problems; they act as significant economic brakes. They increase compliance costs and reduce the overall efficiency gains that harmonized systems could offer. If each major export market or buyer has slightly different data requirements or system preferences, companies must invest in multiple systems, highly adaptive systems or costly manual solutions. This increases complexity and dilutes the potential return on traceability investment.

The benefit of "consumer confidence ³ is increasingly linked not only to safety, but also to sustainability and ethical claims. Traceability is evolving from a mere safety tool to become a platform for validating broader value propositions. As mentioned in ¹Consumer concerns about animal welfare and environmental impacts are intensifying demands for traceability. In addition¹⁴ points out that traceability promotes sustainability. This indicates that systems need to capture more than just lot numbers and dates; they need to incorporate data on ethical sourcing, environmental footprint, etc., to truly generate the kind of trust that discerning consumers are now looking for.

II. Innovative Technologies Transforming Food Traceability

The evolution of food traceability is intrinsically linked to the development and implementation of innovative technologies. These tools not only improve the accuracy and efficiency of traceability systems, but also open up new possibilities for supply chain management, quality assurance and consumer communication.

A. Internet of Things (IoT) and Advanced Sensors: Real-Time Monitoring and Data Capture

The Internet of Things (IoT) and advanced sensors are key technologies that are revolutionizing data capture in agribusiness. IoT-based sensors enable real-time monitoring of critical environmental conditions such as temperature, humidity and location during food cultivation, storage and transportation.² This capability is especially valuable for perishable products, where deviations from optimal conditions can compromise quality and safety. Technologies such as Radio Frequency Identification (RFID) tags and GPS trackers provide continuous information on the status and location of products throughout the supply chain.²

An example of a specific application is the Biological WMS (Biological Warehouse Management System), which integrates traceability into warehouse management for perishable products, meticulously recording each batch and adjusting storage conditions to maintain freshness.³ In addition, automatic labeling with QR codes allows consumers to access detailed information about the product's origin, harvest date, growing and storage conditions, and even its carbon footprint, creating a direct bridge between producers and consumers.³ International case studies demonstrate the successful use of IoT in smart supermarket refrigeration, seafood traceability and agricultural monitoring (with examples such as CropX, Muse-Tech, SugarCreek and Zest Labs) and even in smart greenhouses.⁴⁴

The true value of IoT in traceability lies not only in location tracking, but in monitoring the condition of the product (temperature, humidity). These parameters directly impact quality and safety, especially in sensitive products such as nuts, which are prone to spoilage or aflatoxin development if not stored correctly.⁵⁴ IoT sensors provide the continuous data stream needed to verify these conditions, transcending the simple "where?" to answer "how?" a product was handled.

While the IoT offers an immense volume of data, the challenge shifts to effectively managing, interpreting and securing this vast flow of information to gain actionable insights and ensure data integrity. Continuous data generation ⁴⁴ requires robust data management platforms ⁵⁶The volume of data can be overwhelming without the right systems in place, analytics capabilities (such as AI and Big Data) and security measures to prevent data breaches or tampering, which could undermine the trust that IoT seeks to build. The volume of data can be overwhelming without the right systems in place.

Combining IoT with consumer-oriented interfaces, such as QR codes ³democratizes traceability information. This empowers consumers and creates a direct feedback loop with producers, potentially influencing production practices. If consumers can easily access data collected by IoT devices (e.g., on storage conditions or origin), they become active participants in verifying claims, which can drive producers to maintain higher standards.

B. Artificial Intelligence (AI) and Big Data Analytics: Predictive Insights and Efficiency.

Artificial Intelligence (AI) and Big Data analytics are transforming raw traceability data into strategic intelligence. AI has the ability to analyze huge data sets from diverse sources-sensors, IoT devices, blockchain, existing databases-to provide a holistic and predictive view of food supply chains.⁵⁸ Their applications are vast and include predicting crop yields, optimizing the allocation of resources such as water and pesticides, monitoring environmental parameters ⁵⁸early detection of crop pests and diseases ⁵⁹the forecasting of consumer demand ⁶⁰ and automated quality control using computer vision.⁶⁰

For its part, Big Data analytics is critical to improve demand forecasting, increase visibility throughout the supply chain, optimize inventory levels and logistics, and manage risks more effectively.⁵⁷ Leading companies such as Nestlé and Cargill are already using AI to improve product traceability and ensure quality.⁶⁰

The predictive capabilities of AI ⁵⁸ mark a paradigm shift in traceability, transforming it from a reactive tool (used mainly for product recalls) to a proactive one. By analyzing historical and real-time data ⁵⁷AI can identify patterns and predict potential problems - such as the risk of deterioration based on sensor data. ⁵⁶- allowing interventions formerly of these problems escalating. This anticipation is crucial to prevent losses and ensure safety.

Integrating AI with computer vision for quality control ⁶⁰ can significantly improve the accuracy and efficiency of grading and sorting processes for products such as nuts. This ensures consistency and compliance with quality standards, crucial elements for premium brand positioning. For example, in the nut industry, where visual quality (color, absence of defects) is a determining factor, AI-assisted visual inspection can automate and overcome the efficiency of manual processes, resulting in higher quality products and reduced labor costs.⁶¹

However, the effectiveness of AI as an analytical tool is highly dependent on the quality, volume and diversity of data collected by other traceability technologies (IoT, sensors, blockchain). If the input data is incomplete, inaccurate (such as the "irregular data" mentioned in ²⁹) or are not standardized, the predictions and insights generated by AI will be poor. Therefore, a robust underlying data infrastructure is an indispensable prerequisite for the successful application of AI in traceability.

C. Blockchain Technology: Transparency, Security and Immutability.

Blockchain technology has positioned itself as one of the most promising innovations to transform food traceability, offering a secure, unalterable (immutable) and transparent method for recording and sharing data across the entire supply chain.² Its decentralized and distributed architecture allows each transaction or relevant event to be recorded in "blocks" that are cryptographically linked, forming a chain that, once written, cannot be modified without the consensus of the network.

This intrinsic characteristic of immutability is crucial to generate trust among consumers, as it allows them to verify the origin and route of products with a high degree of certainty.²⁸ In addition, blockchain can significantly contribute to the reduction of food fraud, improve the efficiency of product recalls in case of safety incidents, and optimize transactions through the use of "smart contracts," which are self-executing agreements that are triggered when predefined conditions are met.³⁸ Major retailers such as Carrefour and Walmart have pioneered the adoption of Blockchain to track the origin of fresh produce, meat and dairy products, demonstrating its feasibility and benefits in real-world scenarios.²

Blockchain's fundamental value in food traceability lies not only in the technology itself, but in its ability to foster the trust in shared data between various actors in the supply chain.²⁸ This is especially relevant in complex chains where trust between participants may be limited. Unlike traditional, centralized systems, where each entity maintains its own records (often siloed and susceptible to discrepancies), Blockchain offers a distributed, shared ledger, acting as a "single source of truth."⁶⁸ This controlled transparency and the immutability of the records ²⁸ are those that drive different stakeholders to rely on the same information, which represents a fundamental change from legacy systems.

It is crucial to understand that, while Blockchain guarantees the immutability of the data once they have been registeredThe "garbage in, garbage out" concept is often summarized as "garbage in, garbage out", but does not inherently ensure the accuracy of the initial information being fed into the system. Therefore, its effectiveness is highly dependent on the existence of robust verification processes at the point of data entry.⁶⁸ This "oracle problem" - how to get real-world data into the blockchain accurately and reliably - is often addressed by integration with other technologies, such as IoT sensors, that can automate data capture and reduce human fallibility.⁸⁹

The "permissioned" nature of most of the blockchains used for food traceability (e.g., IBM Food Trust ⁸⁶) offers a pragmatic balance between the desired transparency and the commercial sensitivity of the data.²⁸ Unlike public blockchains such as Bitcoin, private or permissioned blockchains allow companies to share traceability data with trusted partners (such as regulators or specific buyers) without exposing all of their operational information to competitors or the general public. This addresses a key business concern that could otherwise hinder widespread adoption of the technology.

D. DNA Markers: Verification of Origin and Authenticity

DNA markers have become a powerful scientific tool for food traceability, providing a biological method to accurately verify the origin, species and variety of agricultural products.⁹² They act as a unique identifier intrinsic to the product, which cannot be manipulated externally.⁹² This technology is used in meat traceability to verify origin and even to audit conventional traceability systems, as well as to link individual animals to their parents.⁹²

At the plant level, specific markers, such as SSRs (Simple Sequence Repeats), have been developed for DNA fingerprinting of products such as peanut oil. ⁹⁶ and for the identification of walnut and pistachio nut varieties.⁹⁹ These techniques are crucial for detecting adulteration, for example, the substitution of a high value product with an inferior one, and for verifying the authenticity of origin or variety claims.⁹⁴ A Chilean study also explored the use of DNA markers to facilitate the designation of origin of products such as the Sevillana del Huasco olive and chañar.⁹⁸

DNA markers provide the ultimate "ground truth" for origin and authenticity claims, acting as a powerful deterrent against sophisticated food fraud (e.g., substitution of inferior varieties) that other traceability methods might not detect. While barcodes or RFID track the packaging, DNA markers can be used to track the origin and authenticity of food products. ⁹² verify the product itself. For high-value nuts, where varietal integrity or geographic origin command a premium, DNA testing can confirm these claims at the biological level, offering a higher degree of assurance than traceability based on records alone.⁹⁴

Integrating DNA marker data with Blockchain-based traceability systems could create an exceptionally robust system. In this scenario, the Blockchain's immutable records ²⁸ would be supported by scientific and biological evidence of identity and origin.⁹² If the DNA profile of a batch of Chilean walnuts is recorded on a blockchain at origin, this could be verified against samples taken later in the supply chain, providing irrefutable proof of provenance and protecting against substitution or false claims of origin. In fact, companies such as Farmonaut are already mentioning the integration of DNA identification with PCR testing in their Blockchain traceability solutions.⁸⁸

The main challenges to widespread adoption of DNA-based traceability are the cost of analysis, the need for specialized laboratories, and the development of comprehensive DNA databases for all relevant varieties and origins. Although methods are being optimized to make DNA extraction less costly ⁹⁶the development of SSR markers and genomic libraries ⁹⁹ requires significant scientific effort. For this to be effective, for example, for all Chilean nut exports, it would require the establishment and maintenance of extensive databases of DNA profiles of Chilean nuts, and the availability of cost-effective and rapid testing methods.

E. Synergies and Technology Integration

The most effective and robust food traceability rarely relies on a single technology. Instead, there is a growing trend toward the integration of multiple innovative tools, creating synergies that leverage the individual capabilities of each.⁵¹ For example, IoT devices are ideal for continuous real-time data capture from the field or during transportation and storage. This data can then be analyzed by AI algorithms to extract insights, predict problems or automate decisions. Subsequently, Blockchain technology can be used to securely and immutably record critical events and verified data, transparently sharing it with authorized supply chain stakeholders.

An example of this integration is Farmonaut's platform, which combines RFID/NFC and DNA identification with a Blockchain-based traceability system.⁸⁸ Another example is Wiliot's initiative with its "ambient IoT", which seeks to facilitate connectivity and large-scale data collection.² This combination of technologies allows for more complete tracking, from monitoring environmental conditions to verifying product authenticity and creating an auditable and reliable record of its path.

The convergence of IoT, AI and Blockchain creates a "sense-think-act" paradigm for supply chains. IoT devices feel environmental conditions and product status in real time.² The AI thinkThe data is analyzed to identify patterns, predict results (such as remaining useful life or contamination risks) and optimize processes.⁵⁸ Finally, Blockchain allows shares reliable and record keeping, facilitating secure and transparent transactions between chain partners, and even the automatic execution of smart contracts based on AI triggers or IoT data.⁶⁸ This interconnection results in a more intelligent and responsive traceability system than any single technology could achieve.

The key challenge in technology synergy is to ensure seamless interoperability and data standardization between disparate systems and data formats generated by different technologies.³⁰ When combining IoT data, AI analytics platforms and Blockchain ledgers, it is critical to ensure that these systems can "talk" to each other and understand the data exchanged. Lack of standardization can create new data silos even with advanced technologies, limiting end-to-end visibility and efficiency.

In addition, the integration of multiple technologies increases the complexity and potential cost of traceability systems. While large companies can afford comprehensive and sophisticated systems, this complexity can widen the technology adoption gap for smaller producers.¹ Therefore, it is essential to develop modular and scalable solutions that allow SMEs to adopt these technologies incrementally, according to their needs and capabilities, so that they are not excluded from the benefits of advanced traceability.

F. International Case Studies: Cross-cutting Technology Successes

The practical application of innovative technologies in food traceability is evidenced in numerous cases at the international level, covering various sectors and demonstrating tangible benefits.

• Walmart: This retail giant has been an early adopter of Blockchain, using the IBM Food Trust platform to track products such as pork in China, mangoes in the United States and leafy greens.² One notable achievement was the reduction of the mango tracking time from 7 days to just 2.2 seconds.³⁸ Walmart also integrates IoT for real-time data capture, improving visibility and incident response.
• Nestlé: The multinational food and beverage company employs a combination of technologies. It uses QR codes so that consumers can know the origin of their coffee. ⁶⁵ and has implemented Blockchain and AI to track dairy products, ensuring their quality.⁶⁰ In addition, Nestlé uses IoT to improve traceability and food safety in its processes.¹⁰²
• Carrefour: The European supermarket chain has implemented Blockchain through IBM Food Trust for a variety of products, including chicken, milk and fruit. Consumers can access traceability information via QR codes on packaging, which has resulted in increased sales for products such as Blockchain-traceable chicken.²
• Unilever: This global company uses satellite mapping technology to monitor deforestation in its palm oil supply chain. ⁶⁵demonstrating a use of technology for sustainability. It is also exploring AI for supply chain optimization.
• European Dairy and Norwegian Fisheries (IoT): A European dairy producer implemented IoT solutions for cold chain monitoring, reducing product spoilage and ensuring regulatory compliance.⁴⁸ Similarly, a Norwegian fishing company used IoT tags on fish boxes to record temperature, location and handling data from catch to consumer.⁴⁸
• MTR Foods (India - Chili peppers): The company used Blockchain traceability solutions to track the path of the Byadgi chili in its products, with the objective of ensuring trust and transparency for its consumers.¹⁰³
• Ferrero (Hazelnuts): In collaboration with Sourcemap, Ferrero is working to achieve farm-level traceability for its hazelnuts, having already achieved 90% traceability. The company has "agrifarms" in Chile to develop and share good agricultural and social practices.¹⁰⁴
• Olam Nuts (AtSource Platform - Nuts): Olam has developed the AtSource platform, which uses data analytics and insights to provide transparency into the supply chain of various nuts, seeds and superfoods, with a strong focus on sustainability.¹⁰⁵
• Alphonsa Cashew (India - Cashew nuts): This company implements a farm-to-home model and farmer management system for cashew nut traceability, enabling transparent tracking of sourcing, processing and traceability at the box level to the source of raw cashew nuts in India and East Africa.¹⁰⁵
• Importaco (Spain - Dried Fruits): It uses IoT platforms and sensors in its production and storage facilities to monitor the condition of nuts in real time, ensuring freshness and quality, which has improved quality control and efficiency.¹⁰²

These case studies demonstrate that successful traceability implementations often start with a clear business driver, whether it is food safety (as in the case of Walmart's leafy green vegetables ³⁸(Carrefour's chicken, heavily motivated by E. coli outbreaks), consumer confidence (Carrefour's chicken ⁸⁷linked to the demand for transparency) or sustainability verification (Unilever's palm oil, linked to the demand for transparency) or sustainability verification (Unilever's palm oil ⁶⁵). Technology acts as an enabler to achieve these objectives, it is not an end in itself.

Public-private partnerships or industry collaborations, such as the IBM Food Trust platform that involves multiple retailers and producers ²⁸or the Produce Traceability Initiative (PTI). ⁴⁹are often key to achieving broader adoption and interoperability, especially for complex technologies such as Blockchain. These examples show that individual company efforts can be magnified through collaboration, helping to establish common standards and share costs and risks.

Although many high-profile case studies focus on large corporations, the underlying principles of data capture, management and exchange are scalable. Platforms and solutions are emerging that seek to make these technologies more accessible to Small and Medium Enterprises (SMEs). While giants such as Walmart and Nestlé lead the way in some respects, platforms such as TE-FOOD (used by Alcampo ⁶⁶) or solutions from companies such as Farmonaut ⁴⁰ aim to provide more accessible tools. The persistent challenge is to close the gap for smaller players, but technology itself is not exclusive to large companies.

Table 2: Overview of Innovative Traceability Technologies for the Agribusiness Industry

III. Food Traceability in Chilean Agribusiness: A National Perspective

Chile, with its robust and diversified agribusiness, has progressively recognized the importance of food traceability, not only as a requirement for access to international markets, but also as a tool to guarantee the quality and safety of food for domestic consumption.

A. Overview of the Chilean Agroindustrial Sector and Relevance of Exports

Chile has a long and solid tradition in food production, which has resulted in a high level of food security for its population.¹¹¹ The Chilean food industry is the second most important sector of the national economy, representing approximately 23% of the total value of the country's exports. Chilean food products reach more than 150 countries, covering about 63% of the world's population and 86% of the global GDP.¹¹¹ Historically, the value added of the exporting food agribusiness (EPA) has shown steady growth, from representing 20% of food agribusiness value added in 1996, to 31% in 2018.¹¹²

Exports of fresh fruit are particularly significant, reaching values of around US$5 billion FOB.¹¹² In addition, a trend is observed where the food processing sector is growing at a faster rate than the primary sector. Exports of agricultural products with some degree of processing are estimated to have exceeded 70% of the value of agricultural products exported as fresh for the period 2012-2016, compared to 45% in the period 1990-1994.¹¹² In this context, Chile is an outstanding producer and exporter of nuts, especially walnuts, being the third largest producer in the world and recognized for the high quality of this product.⁵⁵

The strong export orientation of Chilean agribusiness, especially for high-value products such as fruits and nuts destined for highly demanding markets, makes the adoption of advanced traceability systems not only a beneficial factor, but a strategic imperative. These systems are essential to maintain and expand access to these markets, comply with international standards and mitigate the risks inherent in global food trade.

The growth of the agribusiness sector processed in Chile ¹¹² means more complex supply chains and thus a greater need for robust traceability systems, both internal and external. The management of multiple ingredients, various processing steps and compliance with specific regulations for processed products require detailed control. Internal traceability, which keeps track of products within the company itself ²⁶The need to manage these complex processes and ensure the safety and integrity of the final product becomes even more critical.

B. Current Traceability Ecosystem: Practices, Levels of Adoption and Gaps

Chile has a base of experience in traceability, particularly developed in key export sectors such as salmon and fruits. ¹¹⁸as well as in the meat industry.¹¹⁷ Since 2004, molecular (DNA-based) traceability projects have been initiated for the animal sector. ¹¹⁸This indicates an early incursion into advanced technologies. Currently, there is a progressive adoption of smart farming tools, IoT, drones and Blockchain in the Chilean agricultural sector.⁴¹

However, the adoption of these technologies is not uniform and faces significant challenges. These include the digital divide in rural areas, the initial costs of the technology and the shortage of personnel with the necessary skills to operate and manage these new systems.⁴¹ Small-scale producers, in particular, may lack the financial and technical resources to meet stringent traceability standards and adopt advanced technologies.³⁹ This suggests a disparity in adoption levels, where large exporting companies tend to be more advanced compared to small producers.¹¹⁹

Despite the fact that Chile has areas of excellence in traceability, especially in export-oriented sectors such as salmon and fruit, the country is still a country with a high level of traceability. ¹¹⁸In addition, there is likely to be a considerable disparity in adoption levels between large exporting companies and smaller producers. This situation could be creating a "traceability gap". While large companies are able to invest in sophisticated systems, small farmers face barriers such as initial cost and lack of digital infrastructure in rural areas. ³⁹This suggests that advanced traceability is not implemented uniformly throughout the agricultural sector.

The experience accumulated in specific sectors, such as the salmon industry that has implemented robust systems, or the fruit sector that meets the stringent demands of export markets, provides a valuable knowledge base. This experience, together with the potential infrastructure and technology providers already in place, could be leveraged or adapted to drive the adoption of traceability in other agricultural products, including nuts. Rather than starting from scratch, the nut sector could benefit from lessons learned and capabilities developed in these other areas.

The "skills gap in the operation of new technologies". ⁴¹ identified in the Chilean agricultural sector is a critical bottleneck. To ensure that investments in traceability technology reach their full potential, it is essential to address this gap through targeted training and skills development programs. Technology alone is not enough; trained personnel are required to effectively manage, interpret and use the data generated by traceability systems. Without this, systems run the risk of being underutilized or prone to errors, diminishing their value and effectiveness.

C. Chilean Regulatory Framework and Key Institutional Roles (SAG, MINAGRI, ACHIPIA, ODEPA)

The regulatory framework and the institutions that administer it are fundamental for the development and effective implementation of food traceability in Chile.

• Agriculture and Livestock Service (SAG): It plays a central role in animal traceability through the Livestock Information System (SIPECweb).¹²⁰ It is responsible for phytosanitary certification for export products. ¹²²the regulation of genetically engineered (GE) seeds ¹²³ and is working on new fertilizer regulations that include record keeping and monitoring.¹²⁴ Recently, SAG has been involved in initiatives to combat the illegal pesticide market through digital traceability.¹²⁵
• Ministry of Health (MINSAL): Through the Food Sanitary Regulation (RSA, Supreme Decree No. 977/96) ¹¹¹The RSA establishes sanitary conditions for the production, importation, processing, packaging, storage, distribution and sale of food for human use. ACHIPIA has proposed amendments to the TTF to incorporate a definition of traceability based on the Codex Alimentarius and require companies to have traceability systems.¹²⁶
• Chilean Agency for Food Safety and Quality (ACHIPIA): It plays a coordinating role in the national food safety and quality system. It has promoted the modification of the RSA to strengthen traceability. ¹²⁶ and has been a key player in the development of the National Food Safety and Quality Policy 2018-2030, which considers traceability as a fundamental element.¹²⁷
• Office of Agricultural Studies and Policies (ODEPA): Provides analysis, studies and statistics on the agricultural sector.¹¹² Its reports and white papers often highlight the growing consumer demand for traceable foods ¹¹² and analyze industry performance and trends.
• National Regulations: In addition to the RSA, there are specific Chilean Standards (NCh), such as NCh2983.Of2011 on general principles and guidelines for the design and development of food traceability systems, and NCh2997.Of2006 for traceability of cattle, goats, sheep, pigs and their meat products.¹¹⁷
• Labeling Laws: Law No. 20,606 on the nutritional composition of foods and their advertising (known as the Front Labeling Law). ¹³⁰ establishes requirements for nutrition labeling. In addition, there are general labeling requirements for imported and consumer products, such as the Spanish language, the use of the metric system and the indication of the country of origin.¹³⁰

Chile has a fundamental regulatory structure for food safety and specific areas of traceability, such as animal and export certification. However, a more cohesive, comprehensive and mandatory framework for food safety and traceability appears to be still under development. digital food traceability The aim is to establish a system that covers all fruit and vegetable products, including nuts, both for the domestic market and for export. Although there are regulations and proposals ¹¹⁷The FSMA 204, a unified requirement with specific technological expectations, similar to FSMA 204 in the U.S., is not as explicitly defined for the fruit and vegetable sector in general.

The roles of the different agencies (SAG, MINSAL, ACHIPIA, ODEPA) in food traceability, although distinct, require strong inter-institutional coordination. This is vital to avoid regulatory gaps, overlapping or contradictory requirements that may affect producers and exporters. SAG handles agricultural inputs and export certification. ¹²²MINSAL, MINSAL, RSA ¹¹¹ACHIPIA is responsible for policy and coordination.¹²⁷ Effective national traceability requires that these entities work in concert, especially in data exchange and control. The National Food Safety Policy ¹²⁷ precisely seeks this intersectoral approach.

Government push towards digital traceability of pesticides ¹²⁵ is indicative of the recognition of the role of technology in the control of agricultural inputs. This principle can be extended and reinforced for the traceability of food products themselves. This initiative not only sets a precedent, but also contributes to building the infrastructure and knowledge that could underpin broader efforts in food traceability, demonstrating a political will towards modernization and transparency in the agricultural chain.

Table 3: Chilean Regulatory Overview of Food Traceability

D. National Policies and Support Initiatives (CORFO, FIA, Chile Digital 2035)

The Chilean government, through various agencies and strategic initiatives, seeks to foster innovation and digital transformation in key productive sectors, including agribusiness.

• CORFO (Corporación de Fomento de la Producción): This agency plays a crucial role in promoting innovation and entrepreneurship in Chile. It offers a variety of programs including grants, training, guarantees and venture capital.¹³⁴ Specific programs such as "Innova Región para la Agroindústria". ¹³⁴ and the "Strategic Technology Programs" (e.g. TTGreenFood, which deals with the valorization of fruit and vegetable discards, and Agroclimatic Tools and Regenerative Agriculture). ¹³⁵ are aimed at supporting the adoption of AgTech. CORFO is actively promoting investment in Agriculture 4.0. ¹³⁶ and launches calls for projects in strategic technology sectors, such as the development of electrolyzers. ¹³⁷This reflects a focus on high potential areas. It is common for CORFO to co-finance projects with a contribution of up to 70% of the total cost.¹³⁸
• FIA (Foundation for Agricultural Innovation): Under the Ministry of Agriculture, FIA's mandate is to foster a culture of innovation in the agricultural, agri-food and forestry sectors.¹³⁹ It provides financial incentives, information and training programs. Its current strategic lines include sustainable water resource management, climate change adaptation and mitigation, and the development of sustainable food systems.¹⁴¹ FIA supports projects at various stages of technological maturity, from Technology Maturity Level (TRL) 3 to TRL 8.¹⁴¹ An example of its work is the co-financing of a study led by Chilenut for the control of mycotoxins in nuts.⁵⁵ FIA also supports projects that seek to add value to discards from nut and seed production.¹⁴²
• Chile Digital 2035: This is a long-term national strategy designed to guide the country's digital transformation, with the goal of achieving a connected and digitized Chile.¹⁴³ Its main pillars are "Chile connected without gaps" and "Chile digitized". The strategy focuses on the digitalization of the economy, support for the adoption of technologies in the productive sectors and the inclusion of SMEs in the digital economy.¹⁴³ Agriculture is recognized as a sector where 4.0 technologies (such as IoT, Big Data, AI and Blockchain) are starting to be applied, although their adoption by smallholders is still limited due to barriers such as lack of information, insufficient cost-benefit analysis and digital skills gaps.¹⁴⁴
• InvestChile: Chile's Foreign Investment Promotion Agency plays a role in attracting foreign capital to the AgTech sector, highlighting the country's dynamic agricultural technology innovation ecosystem and existing institutional support.¹³⁶
• General Government Initiatives: There is general support from the Chilean government for the adoption of AgTech ⁴¹This is manifested in R&D incentives, programs to facilitate the access of agricultural SMEs to new technologies and training programs.⁴¹ The National Strategy for Food Security Sovereignty "Together We Feed Chile". ¹⁴⁷ can also frame efforts related to the modernization and safety of the food chain.

Although Chile has several programs to support innovation and digitalization managed by entities such as CORFO and FIA, the available information does not explicitly identify the existence of lines of financing or large-scale programs. specifically dedicated to improving digital traceability systems (beyond animal traceability) for horticultural products such as nuts. Most programs offer broader support for innovation or adoption of AgTech in general. The documents ¹⁸³ and ¹⁸⁴which could have contained more specific information, were inaccessible.

The "Chile Digital 2035" strategy ¹⁴³ provides a high-level framework for the digitization of the country. However, its successful translation into tangible benefits for agricultural traceability will depend on the formulation and implementation of sector-specific action plans. These plans will need to address identified barriers, such as poor connectivity in rural areas and the need to develop digital skills among farmers and workers in the sector.¹⁴⁴

Existing public-private collaboration models in Chile, often facilitated by CORFO or FIA ⁵⁵The new technologies offer a framework that could be effectively leveraged to co-develop and implement industry-wide traceability solutions for the nut sector. This approach would allow sharing the costs and risks associated with the adoption of new technologies, as seen in the U.S. experience with FSMA 204. ¹⁴⁸ and Chile's success with Public-Private Partnerships (PPP) in infrastructure.¹⁴⁹ Such a collaboration would be vital to develop shared traceability platforms or common standards for the nut industry, especially benefiting SMEs.

IV. In-Depth Study: Improving Traceability in the Chilean Nut Sector (Walnuts, Almonds, Hazelnuts)

The Chilean nut sector, which includes star products such as walnuts, almonds and hazelnuts, is a vital component of the country's export agribusiness. The implementation of advanced traceability systems in this area not only responds to regulatory requirements, but also offers strategic opportunities to consolidate its prestige and competitiveness.

A. Importance of the Sector, Export Markets and Quality Requirements

Chile has positioned itself as a relevant player in the world nut market. It is the third largest producer of nuts in the world, and its nuts are internationally recognized for their light color and high seed quality.⁵⁵ Chilean almonds and hazelnuts are also increasingly important products; for example, the Ferrero company has hazelnut-growing operations in Chile. ¹⁰⁴and almond production is incorporating technology to improve productivity.¹⁵³ Chilean nut exports are targeted to highly demanding markets in Europe, Asia, the Middle East and North America.¹¹⁴

Quality demands for these products are strict and include attributes such as color, flavor, durability and caliber.¹⁵⁰ The absence of contaminants, especially mycotoxins such as aflatoxins, whose control is a challenge for the industry, is essential.⁵⁵ Exporters must also adhere to specific Maximum Residue Limits (MRLs) for pesticides in each country of destination.¹⁵⁴ In a broader context, consumers are increasingly demanding foods that are not only healthy and safe, but also traceable, with clear information on their origin and production processes.¹¹²

The perception of "premium quality" of Chilean nuts, such as the reputation of Chilean walnuts as "the best in the world". ⁵⁵is a key competitive advantage. Advanced traceability can protect and enhance this advantage by providing verifiable evidence of quality attributes and adherence to production standards. For example, recording data on drying processes, storage conditions, and handling, can be a key competitive advantage. ⁵⁴The company's premium quality claims, which directly impact these characteristics, can substantiate claims of premium quality beyond a simple statement.

Access to and retention in diverse and demanding export markets ¹⁵¹ require not only high intrinsic product quality, but also demonstrable compliance with a complex web of international food safety and traceability regulations. Each major market (EU, USA, Asia) has its own import requirements.⁴ Chilean nut exporters ¹⁵⁰ must navigate these regulations. A robust traceability system then becomes a passport to these markets, providing the necessary documentation and security. Indonesia's recent approval for the importation of Chilean walnuts ¹¹⁵ underlines the continued need for sanitary compliance and traceability.

B. Current Traceability and Technological Maturity Practices in the Dried Fruit Value Chain

The level of adoption of traceability practices and technologies in the Chilean nut sector varies. Larger processors and exporters, such as Prize Nuts, claim to have "full traceability from raw material to finished product", using "modern production control systems" and "state-of-the-art technology".¹⁵⁰ Multinationals such as Ferrero, with hazelnut growing operations in Chile (agrifarms), are implementing farm-level traceability systems in collaboration with specialized platforms such as Sourcemap.¹⁰⁴ In fact, the Chilean hazelnut industry is described as having "very high traceability" due to its particular production characteristics.¹⁵⁵

However, traceability in the nut sector in general can be complex. This complexity is due to factors such as the multiplicity of suppliers (especially if sourcing from small producers), the variability of international regulations to be complied with and the inherent risks of contamination along the chain.⁵⁴ At the broader level of AgTech in Chile, challenges such as the digital divide in rural areas, the initial costs of technology adoption and the lack of qualified personnel persist. ⁴¹This suggests that technological maturity is not homogeneous. Small producers, in particular, face resource constraints to implement advanced systems.³⁹

There is likely to be a staggered system of traceability adoption within the Chilean nut sector. Large companies with a strong export focus and those supplying multinationals (such as Ferrero) are likely to have more advanced systems in place.¹⁰⁴ On the other hand, smaller producers or those serving less demanding markets may rely on more basic or paper-based methods. This heterogeneity is an important consideration when designing sector strategies.

The presence of international players such as Ferrero in the Chilean hazelnut sector ¹⁰⁴ can act as a catalyst for technology transfer and the adoption of higher traceability standards among their local suppliers. By implementing global traceability systems such as Sourcemap's ¹⁰⁴ and establish "agrifarms" in Chile that serve as models of best practices. ¹⁰⁴These companies inevitably introduce and promote advanced practices and technologies within their Chilean supply chain. This can generate a positive spillover effect, raising standards and capabilities in the local ecosystem.

C. Adherence to BRC and Other Export Oriented Standards (GlobalG.A.P., Organic, Fair Trade)

For Chilean nut exporters, certification to international standards is often a prerequisite for accessing premium markets and meeting buyer specifications. Traceability is a fundamental and intrinsic component of all these certification schemes.

• BRCGS (Brand Reputation through Compliance Global Standards): This standard is internationally recognized and is particularly relevant to food manufacturers supplying retailers in the UK and other European and global markets.⁵ Covers product categories including "Fruits, vegetables and nuts".¹⁰ Traceability is a core element of the BRCGS standard, with specific requirements to be able to trace products back and forth in the supply chain, perform traceability testing and manage incidents and recalls effectively.⁵ BRCGS certification helps companies comply with legal requirements and facilitates access to new markets.⁸
• GlobalG.A.P.: It is the world's leading standard for safe and sustainable agriculture. It covers crucial aspects such as food safety, environment (including biodiversity), worker health, safety and welfare, and traceability.³³ IFA (Integrated Farm Assurance) is its most comprehensive standard, while PFA (Primary Farm Assurance) offers a phased approach for small farmers.³⁴ GlobalG.A.P. certification is a common requirement for many retailers.³⁵ Traceability is ensured through the use of GlobalG.A.P. identification numbers (GGN) for producers, the segregation of certified and non-certified products, and the maintenance of detailed records that allow the product to be traced back to the farm.³⁴
• Organic Certification: Organic certification standards (such as the USDA's NOP for the U.S. or the EU organic regulation) require strict verification of the organic status of suppliers and products along the entire chain, as well as practices to prevent organic fraud and clear and accurate labeling.¹⁵⁶ Traceability is key to meeting these requirements, involving the ability to trace products "one step forward and one step back" and maintain records linking products to the fields or suppliers of origin.¹⁵⁷ For exports to the U.S., NOP Import Certificates are required.¹⁵⁶
• Fair Trade Certification (Fair Trade USA): This type of certification focuses on ensuring ethical sourcing, fair compensation for producers, safe working conditions and environmental protection.¹⁵⁸ Traceability is an essential component in maintaining the integrity of Fair Trade certified products, ensuring that the benefits effectively reach the producers and communities involved.¹⁵⁸

For Chilean nut exporters, these standards are not simply "quality seals," but represent end-to-end business processes. Adopting advanced digital traceability systems can significantly simplify the collection, management and reporting required to obtain and maintain these multiple certifications. This not only reduces the audit burden, but also improves compliance accuracy.³³

Traceability requirements inherent in these standards, such as GlobalG.A.P.'s GGN for product identification ³⁷ o lot tracking in organic certification ¹⁵⁶provide a solid foundation. On top of this existing structure, more advanced technology layers, such as Blockchain or IoT, can be layered to further enhance verification and transparency. For example, IoT sensors can monitor growing and storage conditions to ensure GlobalG.A.P. compliance, while Blockchain can be used to securely share audit certificates. This represents an evolution on top of the existing foundation, rather than requiring a complete overhaul of systems.

Increasing consumer and retailer demand for verifiable claims of sustainability and ethical sourcing, often an integral part of Organic and Fair Trade certifications ¹⁵⁸makes robust traceability essential. These systems allow substantiation of such claims and prevent greenwashing. Traceability systems that can track and document specific practices (e.g., pesticide use for organic certification, or labor conditions for Fair Trade) provide the evidence needed to make credible claims, which is crucial to maintaining the value and integrity of these certifications.

D. Strategic Application of Advanced Technologies (IoT, AI, Blockchain, DNA Markers) for Chilean Dried Fruits:

The strategic adoption of advanced technologies can transform the Chilean nut value chain, improving crucial aspects from production to the final consumer.

1. Improving Product Quality, Safety and Sourcing

• IoT and Sensors: The implementation of IoT sensors in orchards allows monitoring the microclimate, soil moisture and other environmental parameters. During storage and transportation of nuts, these sensors can track temperature and humidity in real time.⁴¹ This continuous monitoring is vital to maintain optimal conditions, prevent the development of molds and the production of mycotoxins (such as aflatoxins, a known risk in nuts and dried fruits). ⁵⁵), and ensure the desired freshness and texture of the final product.⁵⁴
• Artificial Intelligence (AI): AI can analyze data collected by IoT sensors to perform predictive maintenance of processing equipment, avoiding unexpected downtime and ensuring production continuity.⁵¹ Computer vision, a branch of AI, is especially useful for automated quality control, making it possible to sort nuts, detect defects, foreign matter or signs of mold with high accuracy and speed.⁶⁰ AI can also be used to predict pest or disease outbreaks in orchards. ⁵⁹ and optimize processing parameters to improve product quality.⁶¹ Companies such as Nestlé already use AI to analyze and improve quality attributes in nuts such as taste, texture and appearance.⁶¹
• Blockchain: This technology can create immutable and transparent records of all quality checks, certifications obtained (organic, GlobalG.A.P., etc.) and handling procedures along the chain.²⁸ This information can be securely shared with buyers, regulators and, selectively, end consumers. Agricom in Chile is an example of a company using Blockchain for fruit traceability. ⁷⁶a model applicable to nuts.
• DNA markers: For high-value products such as Chilean nuts, DNA markers offer a scientific tool to verify the specific variety (for example, to confirm whether a nut is really of the Chandler variety), the geographical origin (linked to terroir, fundamental for Denominations of Origin or Protected Geographical Indications) and to detect adulterations with nuts of lower quality or of other origins.⁹²

A synergistic application of IoT (for real-time condition monitoring) and AI (for predictive quality assessment and defect detection) can create a dynamic quality assurance system for Chilean nuts. This would allow moving from spot tests at the end of the process to continuous quality optimization throughout the production chain. IoT sensors provide data on storage conditions ⁵¹AI can analyze this data to predict possible quality deterioration or degradation before it becomes severe.⁵⁸ AI vision systems can then inspect the nuts during processing.⁶¹ This integrated approach ensures that quality is actively managed and verified, not just controlled at the end.

Genetic fingerprinting using DNA markers, when linked to a Blockchain record, can offer unparalleled provenance verification for Chilean nuts. This is especially valuable for establishing or protecting high-value geographical indications or specific varieties, directly combating fraud. DNA markers confirm origin and variety. ⁹⁴Blockchain provides an immutable record.²⁸ If the DNA profile of a batch of Chilean walnuts is recorded on a blockchain at origin, it can be verified against samples taken later in the supply chain, providing irrefutable proof of provenance and protecting against substitution or false claims of origin.

2. Value Addition: Consumer Confidence, Premium Pricing and Access to New Markets

• Blockchain and Trust: Blockchain technology is a powerful tool for improving consumer confidence by providing transparency about the origin and production practices of food.³ The use of QR codes linked to records in Blockchain allows consumers to easily access the full history of the product, from farm to table.³ This transparency can justify premium prices, as consumers are often willing to pay more for products whose quality and origin they can verify.⁷²
• Traceability and Market Access Systems: Robust and verifiable traceability systems facilitate access to demanding export markets that impose high standards of safety and traceability.³ Chilean nut companies such as Prize Nuts are already highlighting the importance of traceability to access these competitive markets.¹⁵⁰
• Value of Traceability: Various studies and market experiences indicate that consumers value and are willing to pay a premium for traceable food.¹⁶⁵ Traceability not only serves an assurance function, but can also differentiate products in the marketplace and build a strong brand reputation.³

For Chilean nuts, "adding value" through traceability is not just about getting a higher price; it is about building a resilient brand identity, rooted in verifiable quality, safety and, potentially, sustainability. This fosters long-term customer loyalty and preference in saturated markets.³ A brand that can consistently demonstrate its premium attributes through traceability (e.g., origin, processing standards) is more resilient to price fluctuations or the emergence of new competitors than those with unverified claims.

The ability to provide granular and verifiable data through advanced traceability can open up high-value niche markets for Chilean nuts. These markets cater specifically to consumers who demand deep transparency, such as those concerned about health, environmental impact or ethical practices.¹ If Chilean nuts can provide verifiable data on, for example, efficient water use, organic practices or fair labor conditions (through integrated systems), they could access these specific premium segments and further differentiate themselves.

3. Sustainability, Ethical Sourcing and Denomination of Origin Verification

• Blockchain and Sustainability: Blockchain can be used to record and verify sustainability practices, such as efficient water use, organic certification or compliance with fair trade standards and proper labor conditions.⁶⁸ Olam's AtSource platform, for example, focuses on the collection and presentation of sustainability metrics.¹⁰⁵ Ferrero also aims to verify sustainability in its hazelnut supply chain.¹⁰⁴
• DNA markers and Denomination of Origin (DO): This technology is crucial for scientifically verifying Denominations of Origin (DO) or Protected Geographical Indications (PGI) by confirming the genetic identity of a variety and its link to a specific region.⁹⁸
• Certifications (Organic, Fair Trade, Rainforest Alliance): Traceability is an integral component in maintaining the integrity of these certifications. It allows certified products to be traced back to their origin and ensures that the required standards have been met at each stage.¹⁵⁶ The Rainforest Alliance, for example, uses traceability systems to validate the volumes of certified products traded.¹⁶¹
• IoT/Sensors and Sustainability: Sensors can collect data on key environmental parameters, such as water use and soil health, to substantiate claims of sustainable agricultural practices.⁴¹

Advanced traceability enables Chilean nut producers to move from mere declarations of sustainability or specific origin to verifiable statements. This significantly strengthens its credibility and value proposition in markets where greenwashing is a growing concern.⁸⁴ For Chilean nuts claiming, for example, to be "sustainably grown nuts from the Aconcagua Valley," a system combining IoT data on water use, organic certification records on Blockchain, and perhaps even DNA markers for varietal/regional confirmation would offer robust, multi-layered proof.

The convergence of traceability for sustainability with traceability for quality and safety creates a holistic "premium" profile for products such as Chilean nuts. This holistic approach appeals to a broader range of consumer values. A consumer might initially be attracted to a Chilean nut for its taste (quality). Scanning a QR code and discovering that it is also sustainably grown (verified by traceability) and comes from a specific, trusted origin (verified by DNA/Blockchain) adds layers of value that reinforce the purchase decision and willingness to pay a premium price. This combined effect is more powerful than any single attribute alone.

E. International Case Studies: Advanced Traceability in Dried Fruits and High Value Fruit and Vegetable Products

The analysis of international experiences in the implementation of advanced traceability systems for nuts and similar fruit and vegetable products offers valuable lessons for the Chilean sector.

• Olam Nuts (AtSource Platform): This global platform focuses on sustainable sourcing, providing traceability to the source and transparency on sustainability challenges in the supply chain through data and insights.¹⁰⁵ It offers a carbon and water footprint calculator and collects data on Good Agricultural Practices (GAP) and social practices. While specific details on the use of Blockchain, IoT or AI for nuts are not made explicit in the snippets available ¹⁸⁰the emphasis on data and sustainability is clear. Reported benefits include improved due diligence, risk management and the ability to report on sustainability commitments. The applicability for Chile lies in the adoption of similar data-driven platforms to demonstrate sustainability efforts, a growing demand in export markets.
• Ferrero (Hazelnuts): The company aims for full traceability at the farm level for its hazelnuts, using the Sourcemap platform, and has achieved a 90% of traceability.¹⁰⁴ Its focus includes responsible sourcing, human rights and environmental protection, with "agrifarms" in Chile serving as centers for the development of best practices. Key technologies are supply chain mapping (Sourcemap) and third-party audits. Challenges include the complexity of fragmented supply chains, especially with small family farms and intermediaries, the diversity of data systems, and the limited availability of technology in some areas.¹⁰⁶ Ferrero's presence in Chile offers a direct model, and its partnership with Sourcemap demonstrates the usefulness of specialized platforms.
• Alphonsa Cashew (India - Cashew nuts): It implements a farm-to-home model and a farmer management system for transparent sourcing, processing and full traceability at the cashew nut level to the raw cashew source.¹⁰⁵ Its 'Safe Cashew' program tracks food safety, social, environmental, labor, human rights and economic metrics. Although the specific technology of the farmer management system is not detailed, the benefits focus on transparency of sourcing and quality assurance. This case is relevant for Chile if traceability covering multiple ethical and safety dimensions is sought.
• Importaco (Spain - Dried Fruits): It uses IoT platforms and sensors in production and storage for real-time monitoring of conditions, ensuring freshness and quality of nuts.¹⁰² This has improved transparency, food safety compliance, inventory optimization and cost reduction. It is a direct example of IoT application in the nut sector, and Chilean processors can adopt similar sensor-based systems to improve quality and efficiency.
• California Almonds: They keep records at the orchard level to trace each almond to its origin, following strict compliance from planting to distribution.¹⁰⁵ The main benefit is high consumer confidence and a strong regional brand. This model emphasizes the value of traceability at the origin level to build a strong regional brand, something Chile could emulate for its nuts.
• Ziba Foods (Afghanistan - Various Nuts): Their approach to traceability seeks integrity, allowing consumers to know the origin and growing conditions. They have implemented a phased traceability program for almonds, working with farmer associations, and have HACCP certified facilities.¹⁶⁶ Benefits include product quality, reputation, reliable income for farmers and informed consumers. Despite operating in a challenging environment, they demonstrate that traceability can be implemented and benefit smallholder farmers through collective models.

Successful international traceability initiatives in the nut sector often combine technology with a strong commitment to farmers and a focus on broader sustainability and ethical metrics, not just product movement.¹⁰⁵ This suggests that, for high-value nuts, traceability is increasingly intertwined with proof of responsible sourcing.

The "complexity of supply chains ⁵⁴ is a recurring challenge in the nut sector, often involving many small producers and intermediaries. Solutions must be adaptable and potentially collaborative to overcome this obstacle. This implies that a single, highly centralized technological solution could be difficult to implement; approaches involving farmer cooperatives ¹⁶⁶ or platforms designed for multi-stakeholder participation ¹⁰⁴ are more likely to succeed.

Table 4: International Case Studies in Advanced Traceability of High Value Dried Fruits/High Value Fruit and Vegetable Products

F. Specific Challenges for Technology Adoption in Chilean Dried Fruit: Cost-Benefit, Infrastructure, Scalability, Data Privacy and Digital Skills

The adoption of advanced traceability technologies in the Chilean nut sector, while promising, faces a number of specific challenges that must be addressed for their successful and equitable implementation.

• Cost-Benefit: High initial investment is a widespread barrier to the adoption of traceability technology.¹ In the case of Chilean nuts, investment in technology for quality control is necessary, but impacts production costs.⁶¹ Given that the establishment of orchards, e.g. walnut trees, can have a long payback period (e.g. 7 years), it is important to consider the following ¹⁶⁷), the additional costs of traceability technology must have a clear and convincing return on investment (ROI). Although there are co-financing programs such as those of CORFO, which can cover up to 70% of projects with significant amounts of money, it is not always possible to obtain a clear return on investment (ROI). ¹³⁸In the case of the latter, cost-benefit perception continues to be a decisive factor.
• Infrastructure: The digital divide in Chile's rural areas is a fundamental obstacle.⁴¹ Advanced traceability systems depend on reliable internet connectivity and stable power supply, especially at the farm level for data capture at source.⁶⁸ While Chile has an extensive fiber optic network and a growing 5G coverage ¹³⁶The penetration and quality of these services in all nut producing areas can be variable.
• Scalability: Traceability systems must be adaptable and scalable to meet the needs of a diversity of stakeholders in the nut sector, from small producers to large exporting companies.³⁹ Complying with regulations such as FSMA 204 can be difficult to scale using manual methods, underscoring the need for flexible technology solutions.²³
• Privacy and Data Security: Managing sensitive supply chain data is a general concern in food traceability.¹ In Chile, SAG's SIPECweb system for animal traceability handles reserved and confidential information.¹²⁰ Blockchain solutions that interact with markets such as the EU must consider regulations such as GDPR.⁶⁷ Data accuracy and security are both opportunities and market challenges.⁵⁰ Farmonaut identifies data privacy and security as a challenge in the adoption of AgTech in Chile.⁴¹
• Digital Skills: There is a skills gap in the operation of new technologies in Chilean agriculture.⁴¹ Specific training is required for farmers and technical personnel to effectively use these tools.²³ In some cases, such as with certain Blockchain applications for farmers, digital or functional illiteracy can be a barrier.⁹¹

The "digital divide ⁴¹ in rural Chile represents a fundamental barrier. Advanced traceability systems that rely on real-time data from farms will fail if basic connectivity and digital literacy are deficient in the first link of the nut supply chain. IoT sensors on farms ⁴¹ and mobile data input by farmers ⁴⁰ require reliable internet access and a certain level of familiarity with the technology. If these elements are absent, especially among small nut producers, the data chain is interrupted at the source, making the entire system incomplete.¹¹⁹

For the Chilean nut sector, which includes many SMEs, the perceived high cost of advanced traceability solutions versus uncertain immediate financial returns can be a major deterrent.³⁹ Although the long-term benefits such as access to markets, such as ¹⁵¹ are evident, the initial investment for a small nut producer or processor needs to be clearly justified. Demonstrating a favorable cost-benefit analysis through pilot projects and offering scalable and modular solutions are key. CORFO funds ¹³⁸ and FIA ¹⁴¹ show avenues of support, but the solutions themselves must be cost-effective or demonstrate a rapid ROI.¹⁶⁹

Data ownership and governance will become increasingly critical as more sensitive data (farming practices, quality metrics, sustainability data) is collected and shared through traceability platforms. Clear frameworks and secure technologies are needed to ensure the privacy of farmer and business data while meeting demands for transparency.¹ Blockchain offers some permissive access solutions ²⁸but clear agreements and national guidelines (potentially from SAG or similar bodies) are needed. ¹²⁰) to build trust and encourage participation, especially from smaller stakeholders wary of misuse of their data.

Table 5: Cost-Benefit Considerations for Advanced Traceability in the Chilean Dried Fruits Sector

V. Strategic Benefits of Advanced Traceability for the Chilean Agribusiness Industry

The adoption of advanced traceability systems goes beyond mere regulatory compliance, offering a range of strategic benefits that can strengthen the position of Chilean agribusiness in the competitive global marketplace.

A. Reinforcing Export Competitiveness and Market Access

Advanced traceability is a key tool for boosting the competitiveness of Chilean exports. By providing a verifiable record of the origin, production processes and chain of custody of products, it increases the confidence of international buyers, which can open up new trade opportunities and consolidate the reputation of Chilean exporters abroad.³ Compliance with regulations such as FSMA 204 in the United States is crucial for access to the North American market. ¹⁷and certifications such as BRCGS facilitate entry into European and other markets that demand high standards.⁵ Traceability systems allow Chilean exporters to reliably demonstrate compliance with international quality and safety standards. ¹⁴This is an increasingly important factor for importers of products such as nuts, which are destined for demanding markets.¹⁵⁰

Advanced traceability is evolving from a simple compliance requirement to a proactive tool for market differentiation and strategic positioning of Chilean agricultural exports. While complying with regulations such as FSMA ¹⁷ o BRC ⁵ essential, the ability to provide more in-depth and verifiable information on provenance, quality and sustainability ⁸⁰ allows Chilean products to stand out in markets saturated with competitors. It's about telling a verifiable story that resonates with discerning buyers and consumers.

The ability to respond quickly and accurately to traceability requests from importing authorities (e.g., the FDA's 24-hour rule under FSMA 204 ¹⁷) can significantly reduce the risk of shipment delays, detentions or rejections. This not only safeguards export revenues, but also maintains the confidence of importers. Efficient digital traceability systems are crucial to meet these demands for rapid response, which directly impacts the flow of goods and exporters' bottom line.²⁸

B. Risk Mitigation: Food Fraud, Product Recalls and Reputational Harm

Robust traceability systems are a critical defense against food fraud and safety incidents, which can have devastating financial and reputational consequences. Traceability enables the rapid detection and removal of potentially hazardous products from the supply chain, preventing public health problems.³ Technologies such as Blockchain, with its immutability feature, offer significant protection against fraud and data manipulation.²⁸ Effective traceability minimizes the economic damage associated with product recalls by enabling accurate and rapid identification of affected lots.⁴⁹ Food fraud is a global problem affecting a variety of products, including olive oil, fish and honey. ³⁰Traceability helps to verify authenticity and combat mislabeling.⁸⁰ In Chile, there are also concerns about mislabeling of organic products and other types of fraud.¹⁷¹

Advanced traceability systems, particularly those incorporating technologies such as Blockchain and DNA markers, offer a multi-layered defense against food fraud, which is becoming increasingly sophisticated. This protects both consumers and the integrity of Chilean brands.³⁸ For high-value Chilean exports, such as nuts, which could be targeted for substitution or counterfeit origin/quality, a combination of these technologies provides much stronger protection than traditional methods.

The speed and accuracy of recalls, enabled by advanced traceability, not only reduce direct costs (e.g., the value of the recalled product), but also significantly mitigate indirect costs associated with brand damage and loss of consumer confidence.³ A quick and selective recall demonstrates control and accountability, which can help preserve consumer confidence even when an incident occurs, in contrast to a slow and broad recall that denotes a lack of visibility and control.

C. Boosting Operational Efficiency and Supply Chain Optimization

Beyond risk management and compliance, the data generated by traceability systems can be leveraged to improve daily operations and reduce costs. Traceability technology helps minimize human error, optimize inventory management and streamline audit and compliance processes.³ Systems such as the Biological WMS enable predictive inventory management, optimizing product rotation and minimizing waste.³ IoT and AI integration can optimize the use of resources such as water and fertilizers in primary production.⁴⁶ Blockchain technology, meanwhile, has the potential to reduce the need for intermediaries and lower transaction costs in the supply chain.⁶⁷ In addition, the adoption of standards such as BRCGS promotes efficient practices and waste reduction.⁵

Granular data collected for traceability purposes (e.g., by IoT sensors ²) can be reused for operational analysis. These analyses can generate insights that improve yields, reduce input costs and optimize logistics, thus creating a dual benefit from the traceability investment. For example, soil moisture data collected for traceability can be reused for operational analyses that improve yields, reduce input costs and optimize logistics, thus creating a dual benefit from the traceability investment. ⁴¹ can also inform precision irrigation, saving water and improving crop health. Data on transport times and conditions ³ can identify bottlenecks or inefficiencies in logistics. This "data dividend" improves the return on investment of traceability systems.

Real-time supply chain visibility, enabled by advanced traceability, can improve demand forecasting and inventory management. This leads to reduced spoilage and waste, particularly for perishable or semi-perishable products such as nuts.³ For nuts, which have a limited shelf life and are susceptible to quality degradation ⁵⁴By better matching supply with demand through increased visibility, losses can be significantly reduced.

D. Meeting the Evolving Demands of Consumers and Regulators for Transparency and Sustainability

Consumer expectations and regulatory requirements are constantly evolving, with an increasing emphasis on transparency and sustainability. Consumers are increasingly demanding more information about the origin of their food, processing methods, animal welfare and the environmental impact of their production.¹ In parallel, regulations worldwide, such as FSMA in the U.S. and various regulations in the EU, are becoming more stringent in terms of traceability and food safety requirements.² Sustainability has become a central concern, and traceability plays a key role in verifying product sustainability claims.¹⁴ Traceability systems help companies demonstrate compliance with these increasing demands.¹⁰⁵

The convergence of food safety, quality, authenticity, sustainability and ethical sourcing demands means that future traceability systems must be holistic. They must be able to capture and verify a diverse range of data points that go beyond simple lot tracking. Consumers want to know "where their food comes from." ³⁸but also if they are organic ⁶⁶of ethical origin ¹⁰⁵ and environmentally sustainable.¹ This requires traceability systems to integrate data from a variety of sources - farming practices, certifications, environmental sensors, labor audits - creating a complete product passport.

Greenwashing or unsubstantiated sustainability claims represent a significant risk to a brand's credibility. Advanced traceability offers a mechanism to provide verifiable evidence of sustainable practices, turning claims into reliable credentials.¹⁰⁸ In an era of consumer skepticism, traceability systems that can transparently demonstrate, for example, water efficiency in Chilean walnut orchards or fair labor practices will be highly valued and may justify a premium positioning in the marketplace.

VI. Proposal for Traceability Models Adapted for the Chilean Dried Fruit Sector

In order for the Chilean nut sector to capitalize on the benefits of advanced traceability, it is necessary to consider implementation models that are adaptable to the diversity of stakeholders and that are built on solid foundations.

A. Fundamental Elements: Data Standards, Interoperability and Governance

Prior to the adoption of specific technologies, it is crucial to establish fundamental elements that underpin any effective and scalable traceability system. The adoption of common data standards, such as those proposed by GS1, is vital for the unique identification of products, locations and events along the value chain.¹⁴ These standards facilitate interoperability between different systems and technology platforms, an aspect that has been identified as a key challenge but also as a pressing need.²⁸ Without interoperability, even the most advanced technologies can end up creating new information silos.

In addition, a clear governance framework for traceability data management is required. This includes defining rules for access, sharing, ownership and security of information, especially considering the sensitivity of commercial and production data.¹ A well-defined traceability plan, as required by FSMA 204, describing procedures, data management and points of contact, is an essential component of this governance.¹⁰

For the Chilean nut sector, establishing common data standards (e.g. based on GS1) to identify products, locations and events along the value chain is a critical first step. This would achieve interoperability and enable traceability at the industry level, especially if multiple technology providers are involved. If Chilean nut exporters, processors and growers adopt common identifiers, it simplifies the exchange of data between their respective systems, even if those systems are from different suppliers. This helps to avoid the problem of information "silos".²⁸

A clear governance model is needed, which could involve industry associations such as Chilenut ⁵⁵ and regulatory agencies such as SAG.¹²⁰ This model should define the rules for data access, sharing, ownership and security within a sectoral traceability ecosystem for nuts. As traceability data becomes more complete and valuable, questions arise about who owns this data and who can access it.¹ A governance framework, agreed by industry players and regulators, can provide clarity and build trust, encouraging participation, especially from smaller players who may be wary of misuse of their data.

B. Tiered Technology Models: From Basic to Advanced Deployment

Considering the diversity of companies in the Chilean nut sector, a staggered technology adoption model is proposed, allowing companies to advance according to their capabilities and market needs.

• Level 1 (Fundamental - Focus on Compliance):
  • Objective: Comply with basic regulatory requirements (e.g. "one step back, one step forward" traceability, batch traceability for recalls, basics of FSMA 204 FTL).
  • Technologies: Standardized bar coding (GS1), basic inventory management software, digital record keeping (from spreadsheets to simple databases). Manual data entry with clear protocols.
  • Data Points: Lot numbers, supplier/customer information, dates received/shipped, product identification. Farm maps according to requirements.¹⁰
  • Focus: Traceability internally and with immediate business partners.
  • Relevance for Chilean Dried Fruits: Essential for all exporters, especially SMEs, to meet minimum export requirements.²⁶
• Level 2 (Enhanced - Focus on Quality and Efficiency):
  • Objective: Improve quality control, operational efficiency and provide more detailed traceability for key buyers.
  • Technologies: IoT sensor integration for critical control points (e.g., temperature in storage/transportation) ⁵⁴), mobile applications for field data capture/processing, cloud-based platforms for data exchange with selected partners. Basic AI for data analysis (e.g. trend identification).
  • Data Points: Level 1 data + CCP monitoring data (temperature, humidity), processing parameters, quality inspection results, detailed harvest data (gang, specific plot).
  • Focus: Full internal traceability, deeper integration with key suppliers and customers.
  • Relevance for Chilean Dried Fruits: For exporters seeking certifications like BRCGS/GlobalG.A.P. ⁵ and supplying quality conscious retailers. It helps to verify the quality attributes of Chilean nuts.
• Level 3 (Advanced - Focus on Transparency and Value Added):
  • Objective: Provide full end-to-end transparency to consumers, verify sustainability/ethics claims, obtain premium pricing and build strong brand loyalty.
  • Technologies: Blockchain for immutable record keeping and multi-stakeholder participation.²⁸ Advanced AI for predictive analytics, supply chain optimization and personalization. DNA markers for origin and variety verification.⁹⁴ Full IoT integration for real-time data. Dynamic QR codes for consumer access to detailed information.
  • Data Points: Tier 2 data + sustainability certifications, carbon/hydric footprint data, labor practices information, DNA profiles, producer histories.
  • Focus: Full chain visibility, from farm to consumer, with a strong emphasis on storytelling based on verifiable data.
  • Relevance for Chilean Dried Fruits: For companies seeking to lead in premium markets, differentiate their products based on provenance and sustainable practices, and build a direct and trusted connection with the end consumer. This level allows them to capitalize to the maximum on the reputation for quality of Chilean nuts.

The transition between these levels must be gradual and adaptable. Not all companies will need or be able to reach Level 3 immediately. However, having a tiered model allows for a clear roadmap for continuous improvement and adaptation to increasing market demands.

C. Implementation Roadmap: Phased Approach and Pilot Projects.

The adoption of advanced traceability models in the Chilean nut sector should be a strategic and gradual process. A phased roadmap is proposed:

1. Diagnosis and Awareness Phase:
   • Conduct a comprehensive diagnosis of the current state of traceability practices in the nut sector, identifying gaps, needs and levels of technological maturity by type of stakeholder (producers, processors, exporters; large, medium and small).
   • Awareness and training campaigns for all actors in the chain on the importance of traceability, the requirements of international markets and the benefits of new technologies. Involve associations such as Chilenut.
2. Pilot Projects and Validation Phase:
   • Implement pilot projects with a diverse group of companies in the nut sector (walnuts, almonds, hazelnuts) to test different technologies and traceability models (Levels 1, 2 and 3).
   • These pilots should focus on solving specific problems or capturing clear market opportunities (e.g. traceability for a specific Denomination of Origin, verification of organic practices for a niche market, improvement of the cold chain for export).
   • Evaluate the technical, economic and operational feasibility of tested solutions, documenting costs, benefits, challenges and lessons learned.
3. Capacity and Infrastructure Development Phase:
   • Based on the results of the pilots, develop massive training programs in digital skills and traceability systems management.
   • Invest in improving digital infrastructure in rural areas (connectivity) in collaboration with the telecommunications sector and the government.
   • Encourage the creation of centers of competence or technical assistance that can support companies, especially SMEs, in technological adoption.
4. Scalability and Promotion Phase:
   • Establish lines of financing and specific subsidies (e.g. through CORFO and FIA) for the adoption of proven and validated traceability technologies, with a focus on scalability and accessibility for SMEs.
   • Promote the adoption of common data standards (e.g. GS1) at the sector level to ensure interoperability.
   • Encourage the creation of collaborative platforms or consortiums that allow for secure cost and data sharing.
5. Monitoring, Evaluation and Continuous Improvement Phase:
   • Establish a monitoring system to evaluate the progress of traceability adoption in the sector.
   • Periodically review and update the national strategy and support programs based on technological advances, changes in market demands and lessons learned.

Collaboration between the public sector (MINAGRI, SAG, ACHIPIA, CORFO, FIA), the private sector (producers, processors, exporters, unions) and the academic/technological sector will be fundamental in each of these phases to ensure the success of the transformation.

VII. Public Policy Recommendations to Encourage Advanced Traceability in Chile

For Chile to take full advantage of the benefits of advanced food traceability, especially in its vital nut agro-export sector, a set of coordinated and proactive public policies is required.

• A. Development of a National Strategy for Digital Agricultural Traceability:
  • Formulate and implement a comprehensive, long-term national strategy, similar to "Chile Digital 2035" but with a specific focus on the digitization of traceability for the agricultural and agri-food sector. This strategy should define clear objectives, measurable goals, institutional roles and intersectoral coordination mechanisms (involving MINAGRI, SAG, ACHIPIA, ODEPA, CORFO, FIA, Ministry of Economy, etc.). It should consider the particularities of the different subsectors, including nuts.
• B. Investment in Digital Infrastructure and Human Capital Development:
  • Prioritize and accelerate investments to close the digital divide in rural areas, ensuring access to high-speed internet and reliable electricity, essential for the operation of traceability systems based on IoT and real-time data.⁴¹
  • Implement national training and certification programs in digital skills applied to agriculture and traceability, aimed at farmers, technicians, operators and managers. These programs should address everything from basic digital literacy to the use of specialized software and data analysis.⁴⁰
• C. Financial Incentives and Technical Support for Technology Adoption, Especially in SMEs:
  • Create specific lines of financing and direct subsidies (through CORFO, FIA, INDAP) for the acquisition and implementation of traceability technologies (hardware, software, consulting), with preferential conditions for small and medium-sized producers and cooperatives in the nut sector.¹
  • Establish decentralized technical assistance and technology extension centers that offer expert advice, technology demonstrations and support in the implementation of traceability systems adapted to the needs of SMEs.
• D. Promotion of Data Standards and Interoperability:
  • Actively encourage the adoption of internationally recognized data standards (e.g. GS1) for product, lot and location identification throughout the nut value chain.¹⁴
  • Support the development of platforms or interfaces that ensure interoperability between the different traceability systems that can be adopted by the sector's stakeholders, avoiding the creation of information silos.²⁸
• E. Strengthening the Regulatory Framework and Oversight Mechanisms:
  • Review and update the Food Sanitary Regulation and other relevant regulations to explicitly incorporate modern digital traceability requirements, aligned with international best practices and the demands of export markets (considering ACHIPIA's proposals). ¹²⁶).
  • Strengthen the control capacities of SAG and other competent entities, providing them with the tools and trained personnel to verify compliance with traceability regulations.
• F. Promotion of Public-Private Partnerships and Sector Collaboration:
  • Encourage and facilitate the creation of public-private partnerships for the development and implementation of traceability solutions at the sectoral level or for specific nut value chains. These partnerships can help share costs, risks and knowledge.¹⁴⁸
  • Support sector associations (such as Chilenut) to lead initiatives for standardization, training and promotion of advanced traceability among their members.
• G. Support for Research, Development and Innovation (R&D&I) in Traceability Technologies:
  • Allocate research funds (through ANID, FIA, CORFO) for R&D&I projects focused on the development and adaptation of traceability technologies (AI, IoT, Blockchain, DNA markers) to the specific conditions and needs of the Chilean agribusiness and nut sector.
  • Promote collaboration between universities, research centers and companies to accelerate innovation and technology transfer in this area.

The coordinated implementation of these recommendations can create an ecosystem conducive for Chilean agribusiness, and in particular the nut sector, to adopt advanced traceability as a strategic tool for success in the 21st century.

VIII. Conclusion

Food traceability has transcended its traditional role of simple product tracking to become an essential strategic component of modern agribusiness. For Chile, an agro-exporting powerhouse, and specifically for its highly valued nut sector, the adoption of advanced traceability systems represents a crucial pathway to greater competitiveness, safety and sustainability on the global stage.

Analysis of international standards, such as BRCGS and FSMA 204, reveals a landscape of increasing demands where the ability to demonstrate the origin, quality and safety of food in a verifiable manner is non-negotiable for access to key markets. Innovative technologies - IoT, AI, Blockchain and DNA markers - offer unprecedented tools to meet these demands, transforming data into transparency, trust and added value. From real-time monitoring of growing and storage conditions to scientific verification of varietal authenticity and creation of immutable supply chain records, the potential is immense.

The Chilean nut sector, with its reputation for premium quality, can capitalize on these technologies to protect and enhance its brand, justify differential pricing, access more demanding niche markets and respond to growing consumer demand for sustainable and ethically produced products. International success stories on a variety of products, including nuts, illustrate the tangible benefits in terms of operational efficiency, risk reduction and confidence building.

However, the transition is not without its challenges. Implementation costs, the need for robust digital infrastructure (especially in rural areas), the digital skills gap, data privacy concerns and the need for clear governance models are obstacles that require attention and coordinated solutions. The proposal for tiered traceability models and a phased roadmap, starting with basic compliance and moving toward integrated, high value-added systems, offers a pragmatic path for technology adoption.

The success of this transformation will depend on a concerted effort between the public and private sectors. Government policies must go beyond general encouragement of innovation by creating specific national strategies for digital agricultural traceability, investing in infrastructure and human capital, offering targeted incentives (particularly for SMEs), promoting standardization and interoperability, and strengthening the regulatory framework. Public-private partnerships and the leadership of industry associations will be critical to drive adoption and ensure that the benefits of advanced traceability are distributed equitably.

In short, advanced food traceability is not an end in itself, but a means to build a more resilient, transparent and competitive agribusiness. For the Chilean nut sector, investing in these capabilities is investing in its future, ensuring that the quality and prestige of its products continue to be recognized and valued on tables around the world.