Dramatic increase in use of RFID in food supply chain

The use of RFID technology in the food supply chain will rise dramatically to $5.8 billion in 2017, according to a new report by Cambridge, U.K.-based research firm IDTechEx. The amount includes the money spent on on RFID systems plus the tags in 2017. RFID use in the food sector will become more important than any other application of the technology the analyst firm forecasts.

RFID technology allows tracking and tracing individual products throughout the supply chain. Regulations on traceability and mandates from such giant retailers as Wal-Mart and Metro are forcing processors to make investments in the technology. “In due course, the tagging of individual items will attract the most investment, benefiting all in the supply chain but tagging of conveyances, pallets, cases, vehicles and equipment will also be important,” IDTechEx stated in a summary of the report.

The use of RFID on animals and in farming is similarly rising rapidly in the amount of money spent, to $2.6 billion in 2017, from an expected $462 million in 2007, the firm estimates. “There are many reasons for the growth of both of these markets, because RFID is increasingly used to track, monitor condition, prevent errors and theft, and even locate from a distance,” IDTechEx stated. “This increases sales, improves customer satisfaction and reduces costs.”

In addition to mandates by large retailers, legislation, too, is driving the use of RFID for safety, especially with livestock and pets, and for the rapid response to disease outbreaks.

RFID uses a wireless system that helps enterprises track products, parts, expensive items, and temperature-and time-sensitive goods. Transponders, or RFID tags, are attached to objects. The tag will identify itself when it detects a signal from a reader that emits a radio frequency transmission.

Each RFID tag carries information on it such as a serial number, model number, color, place of assembly, or other types of data. When these tags pass through a field generated by a compatiblereader, they transmit this information back to the reader, thereby identifying the object.

According to Natick, Massachusetts-based research group Venture Development Corporation, the world-wide market for RFID systems was $2.3 billion in 2006, with hardware accounting for nearly 59 percent of sales.