Some things never change. In the food industry, the need to ensure the safety of all products is one of those things. With the rising number of large-scale food recalls, diminishing consumer confidence, and increasing scrutiny from regulators and the food industry marketplace itself, the need to ensure the safety of the domestic and global food supply, coupled with demands for brand-protection assurance, have never been greater.
Explore this issueDecember/January 2010
The costs associated with large-scale recalls, both human and financial, can be staggering. In 2008, Maple Leaf Foods, Inc., incurred a direct cost of about $19 million from a recall of contaminated meat linked to a food poisoning outbreak that killed four people in Canada. Earlier this year, Peanut Corporation of America filed for Chapter 7 bankruptcy after peanut products produced in their plants led to nine deaths, a massive recall, and mounting lawsuits. Many industry experts believe the total costs associated with this recall may exceed $1 billion.
These recalls, and many others, have left consumers seriously questioning the safety of the foods they consume. According to a recent IBM study, less than 20% of consumers trust food companies to develop and sell foods that are safe and healthy. The study also revealed that 60% of consumers are concerned about the safety of food they purchase, and a strong majority of respondents, 83%, were able to name a food product that was recalled in the past two years due to contamination or other safety concerns. Nearly half of survey respondents—46 percent—named peanut butter, the staple of school lunches for children nationwide, as the most recognizable recall. This study further validated what many industry experts have asserted: Consumer confidence in food safety has plummeted.
According to a recent IBM study, less than 20% of consumers trust food companies to develop and sell foods that are safe and healthy.
Many industry experts have attributed the growing number of large-scale food recalls to the expanding size and complexity of the food industry supply chain. From growers and harvesters through ingredient manufacturers, intermediates, and packaging food processors—including storage and delivery by warehouses and transporters—each supply chain link actively contributes to the ultimate delivery and consumption of food products worldwide. Efficiency improvements in lean manufacturing, faster inventory turns, increased product offerings, and the sheer volume of fresh and processed food product quantities manufactured, stored, and transported, have become complicating factors in food safety incidents. Automated traceability systems have become a necessity to ensure the safety and quality of the products being stocked on the shelves.