Traceability systems are record-keeping systems that are primarily used to help keep foods with different attributes separate from one another. When information about a particular attribute of a food product is systematically recorded from creation through marketing, traceability for that attribute is established. Recently, policy makers in many countries have begun weighing the usefulness of mandatory traceability for managing such diverse problems as the threat of bio-terrorism, country-of-origin labelling, mad cow disease, and identification of genetically engineered foods. The question before policymakers is, When is mandatory traceability a useful and appropriate policy choice?