This was the warning in the lastest issue of the World Apple Report published by Washington-based Belrose Inc this month.

On the eve of the Eurep-Gap conference in Madrid next week, the respected monthly report said there is an urgent need for a philosophy on traceability.

"The whole concept of traceability has exploded without being subjected to adequate business, economic or social analysis," warned the report. "In every economic endeavour there is an optimal point where the marginal benefits of an action exactly offset the marginal costs. That point, or a reasonable approximation of it, must be found soon or the whole food system will sink into economic chaos."

The report mentions Eurep-Gap specifically calling on the consortium to recognise that the resources of agriculture and horticulture are limited. It suggests prioritising the five precepts behind its traceability protocols. "For example, which is more important, the safety of food or conserving nature or worker health?"

The potential benefits of tracing attributes are much less easily measured that the costs associated with them, finds the report and it also points out that while a supplier may gain a commercial advantage in becoming the first to trace a particular attribute, once traceability becomes mandatory, requirements are just another cost heaped on business which it is difficult to pass on to those who benefit most from it: retailers and consumers.

The report argues that the food chain must develop a policy on when traceability is justified and take into account offsetting risks. "If an additional regulation leads to an increase in the price or a reduction in the availability of fruits, that in itself may increase health risks, especially to the poor," it warns.

Subscription to the report is available from belrose@pullman.com