Tag Archives: food processors

Waylon Sharp, Bureau Veritas
FST Soapbox

You Are What You Eat: Meeting the Demand For Sustainable Practices and Transparency

By Waylon Sharp
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Waylon Sharp, Bureau Veritas

A very volatile sector, there are always new trends, opportunities and challenges in the food space, as a multitude of factors—including global climate and geopolitical challenges—can cause supply chain disruptions. Sustainable audits are heightening in demand, in order to validate company claims and provide consumers with peace of mind, as the industry continues to evolve with new ingredients, processes and technologies in play.

Consumers Today Demand Sustainable Practices and Transparency

The shift towards sustainability has further been accelerated by COVID-19, as the pandemic has made for more ethical and conscious consumers. According to research from Forrester, 68% of highly empowered consumers plan to ramp up their efforts to identify brands that reduce environmental impact. While there are numerous audits to measure sustainability and social responsibility, trending focus areas in the food space today are around sustainable packaging, water usage and food waste.

Three Ways Food Processors and Manufacturers Can Reduce Their Footprint

Key players across the food industry are stepping up to the challenge and finding innovative ways to minimize their environmental impact. The following are three ways food processors and manufacturers can reduce their footprint.

  • Use Environmentally Friendly Packaging: Food packaging is a major source of waste and pollution. In fact, containers and packaging make up a major portion of municipal solid waste (MSW), amounting to 82.2 million tons of generation in 2018, according to the EPA. Unfortunately, most packaging is designed as single-use, and is typically thrown away rather than reused or recycled. Given the impacts of packaging on the environment, more manufacturers are looking into packaging options that reduce waste and boost sustainability, including wood- and paper-based alternatives. Other manufacturers are developing innovative alternative packaging from biodegradable materials. The same rings true for takeout and grocery delivery, as the demand for home consumption grows, retail and foodservice companies are considering utilizing more sustainable packaging or reduce the use of virgin plastics to offset their impact.
  • Increase Energy and Water Efficiency: Food processing and manufacturing are energy- and water-intensive. In fact, according to the World Resources Institute, the 1.3 billion tons of wasted food annually also includes 45 trillion gallons of water. Water conservation methods can be implemented throughout the entire food chain—from selecting more efficient crops, to using less water within processing facilities and ultimately reducing food waste on the backend of the chain.
  • Reduce Food Waste: According to the Food and Agriculture Organization of the United Nations (FAO), nearly one-third of food produced for human consumption gets wasted each year. In fact, the carbon footprint of food waste is greater than that of the airline industry. This also includes the waste of resources used to produce the food including water, soil, transportation and labor. By improving processing and manufacturing efficiencies, we can reduce waste and better manage resources. Implementing systems to categorize and assess food waste can help identify areas for improvement and enable your team to develop a plan to correct.

Value-Add of Sustainability

Sustainability provides benefits to the consumer, the manufacturer and society-at-large. The consumer feels better about making a purchase that is not only better for the planet, but that may also provide health benefits to themselves and their families. The Organic Trade Association’s 2021 U.S. Organic Industry Survey highlights this trend, as organic food has the reputation of being better for your health and more sustainable for the planet. Organic food sales were up 12% in 2020, the highest growth rate in this category in over a decade.

Intrinsically, manufacturers with sustainable programs in place feel better about the work they are doing, knowing that they are supporting a better world. Companies that publicize their green programs and back them up with the applicable certifications can also attract top employees, despite today’s talent wars. Employees are zeroed in on corporate social responsibility and desire to work for a company that aligns with their purpose.

As it relates to the bottom line, the common misconception is that the sustainable choice will cost more. However, as sustainable supply increases due to consumer demand, companies are able to source sustainable inputs more affordably. Furthermore, they can communicate their commitments via certification bodies, through public forums and by labeling products based on their certifications. These approaches help reach and educate consumers at different levels—from their initial research of products to purchases from the store shelves.

Key Certifications and Auditing Technology

To reduce their environmental footprint throughout the value chain and implement more sustainable business practices, food companies can move toward a circular economy business model. By renewing, reusing and recycling materials at every stage of the food supply chain, companies can preserve the critical resources that allow their business to flourish.

There are a wide range of services help food producers make the transition to a more sustainable business model. This includes the GHG emissions verification, and management system auditing and certification or training to standards like ISO 14001 (Environmental Management System), ISO 24526 (Water Efficiency Management System), AWS (Alliance for Water Stewardship), ISO 50001 (Energy Management System) and SA8000 (Social Accountability standard), as well as SMETA (Sedex Members Ethical Trade Audit) audits. There are also a range of food sustainability-related product certifications including Organic, MSC, ASC and RSPO.

Auditing technology supports a range of requirements and helps teams set achievable targets. It can be used to analyze packaging materials, categorize and assess food waste, and monitor water usage. Newer auditing technology is now blockchain enabled to assess raw materials and packaging, and to ensure third party partners are also socially responsible. This information is packaged into a blockchain solution so that food companies can be confident that the auditing information is correct and secure. Furthermore, this technology provides the added visibility into their network should they have a recall.

How To Initiate or Ramp Up Your Sustainable Programs

For companies interested in kicking off a sustainability program, or branching into new levels of sustainability, a great place to start is training, in order to understand the audit standard. Early on in this process, ensure all parties are onboard and aware of the certification process and related costs—from managers who will be implementing the program daily to board level executives providing the final sign off. Doing this helps allocate sufficient time and resources and avoids surprises down the road.

It’s helpful to work with a third-party consultant through this process, as they are able take a birds-eye-view look to identify gaps in the program and help you achieve specific certification requirements that meet your unique food product needs. If your team works with a consultant to put together a plan that includes auditing, testing, inspection and certification, the right partner can verify that the program meets all the requirements necessary for the certification.

To keep your program running efficiently, arrange regular trainings for employees to stay up to date on the latest requirements and fill any gaps. For more specialized programs, it’s also a good idea to set aside standalone training sessions to avoid information overload.

As the industry continues to innovate, there will be more ways to reduce waste throughout the entire supply chain and build more efficient business models that are better for the company, consumers and the planet. Looking ahead to next year and beyond, the trend towards sustainability and transparency will press on. Ultimately, companies that take the extra steps to be more sustainable are setting a higher standard for industry and supply chain partners and building a pathway for long-term success.

Scott Deakins, Deacom
FST Soapbox

Billions of Dollars Lost to Food Waste, Tech Exists to Reduce It

By Scott Deakins
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Scott Deakins, Deacom

Food waste is a massive global problem led by the United States. According to the USDA, an estimated 30–40% of the country’s food supply ends up in landfills—most of it at the retail and consumer levels. This amounted to approximately 133 billion pounds and $161 billion worth of food wasted in 2010 alone, which prompted the USDA and the Environmental Protection Agency to launch the U.S. Food Loss and Waste 2030 Champions initiative in 2016. Businesses and other organizations can join the ranks as champions by committing to a 50% reduction of food loss and waste by 2030.

That’s a noble goal, but those businesses will only be able to achieve their objective with technologies that reduce food waste in production and the supply chain. Food lost in this medium is hardly insignificant. At least 10%—or billions of pounds of food—is wasted in acts as small as over-ordering or in transport. This is, in short, the result of errors in resource planning.

After an extremely difficult year, food process manufacturers can no longer afford to generate that level of waste. Fortunately, technologies already exist to help the industry regain control of its production, storage and forecasting, and can facilitate leaner businesses and less waste.

Eliminate Human Error and System Inconsistencies

There have been a lot of changes in the way food is grown, harvested, delivered and sold over the last few decades, yet little progress has been made when it comes to unnecessary waste. The Commission for Environmental Cooperation reports that food loss and waste can occur post-harvest due to inaccurate supply and demand forecasting, grade standards for size and quality, and deficiencies in refrigeration. Even the packaging can cause problems if it is inefficient or ineffective.

These and other problems lead to waste—some up front before the product is ever sold to consumers, others down the line after an item has been purchased, leading to a recall. If inventory records are anything less than 100% accurate from formulation through shipment, additional challenges will follow. Though it is not heavily considered in an FDA audit, manufacturers still need the ability to instantaneously report on any aspect of their inventory history, regardless of the ERP software from which data is pulled. ERP systems with bolt-on modules often fail in this regard. If functionalities of the sub-systems are not designed for strict lot tracking, or if those sub-systems are not designed exactly the same, errors are inevitable.

Workarounds can be implemented, but they cannot account for processes that still need to be performed manually, which increases the likelihood that lot tracking accuracy will fall short. Inefficiencies are further exacerbated by sub-systems that handle actions differently, but the challenges don’t end there.

Problems can also develop when data has to be shared across more than one module, database or even system, which may inspire the use of outside solutions, such as an Excel spreadsheet, compounding the issues at hand. Makeshift solutions increase the risk that an incorrect lot number will be entered or that someone will forget to delete a number after a lot was de-issued and re-issued. Any of these cracks in the operational foundation will inevitably deduct from the 100% inventory accuracy that’s necessary for a smooth recall process—anything less will lead to a greater impact on the business.

The only real solution is to eliminate the potential for human error and system inconsistencies altogether—and that can only be accomplished with a configurable ERP solution that handles all business processes from one system and one database and can easily adapt to changing regulation and recipes. Without it, true strict lot control—meaning 100% inventory accuracy with perfect record keeping and the ability to instantly report on any aspect of the inventory history—cannot be achieved.

Reduce Inventory Variance and Grow without Unnecessary Expansions

There are aspects of food waste that can be controlled, including inventory variance, which occurs when items are lost, misplaced or miscounted. This is particularly problematic for packaging and ingredients, causing issues at the production level—finished products cannot be made if there aren’t enough items to complete the process, which is also bad for the bottom line. Inventory variance may occur if deliveries are not verified to confirm that ordered ingredients were actually received or may happen if items are entered incorrectly or simply misidentified.

Variance is more than a nuisance—it can be quite costly. For example, Silver Spring Foods encountered this firsthand when it discovered that its inventory variance commonly reached between $250,000 and $300,000. The company, which debuted in 1929 when founder Ellis Huntsinger started growing horseradish and other vegetable crops, now produces the number-one horseradish retail brand in the United States. With more than 9,000 acres of prime Wisconsin and Minnesota farmland, Silver Spring realized that it had outgrown its outdated ERP solution.

The company initially thought that it had reached capacity and could only grow further by physically expanding its building with an additional manufacturing line that would require new hires to come aboard. In reality, the company needed an ERP solution that could keep up with its impressive level of growth.

More specifically, Silver Spring Foods wanted an ERP system that could tie together several elements, including customer service, accounting, manufacturing, purchasing and shipping within a single tool. The company needed a solution that offered strong data mining and reporting functionality, as well as strong sales reporting, sustainable tech support capabilities and would not exceed ERP budget allocations. It was equally important to have an ERP solution that was configurable without customization, prioritizing speed and efficiency while offering predictable quality and cost of ongoing IT support and maintenance.

After upgrading to a solution that met all of its requirements, Silver Spring Foods was able to gather all data in one system that brought together multiple software integrations, including CRM. This allowed the firm to fine-tune its material purchases to match current production needs, sales forecasts and production schedules. More importantly, inventory variance was reduced to $90,000 during the first year and now falls within a range of just $1,800 to $2,500. By improving inventory management, unearthing new efficiencies and proving that Silver Spring had not yet reached capacity, the company was now able to grow without adding additional square footage.

Don’t Let Waste Cut into Productivity

Food growers, processors and supply chains cannot afford to let waste cut into their productivity or their bottom line. They need to be able to keep track of everything, achieving true strict lot control to limit the damage caused by a recall. They also need to be able to improve food management and reduce inventory variance. These and other advantages can only be attained with the right ERP technology, however, so businesses must choose wisely before making an investment.

Chris Keith, FlexXray
FST Soapbox

COVID-19: We’re In This Together

By Chris Keith
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Chris Keith, FlexXray

It’s no secret that the COVID-19 pandemic had a major impact on industries and individuals around the world. According to the World Health Organization, as of June 21, 2020, there have been 8,708,008 reported cases of COVID-19 globally, including 461,715 deaths. In a recent article by Forbes, healthcare contributor William Haseltine stated that we are gathering personal stories and statistics right now around COVID-19 survivors who have suffered permanent injuries from the virus. Many experts believe that COVID-19 is also an economic downturn trigger. Author and financial planner Liz Frazier says that even as recessions are a normal part of the U.S. economic cycle, lasting about five and a half years on average, the possibility of a recession starting due to the outbreak would be unprecedented.1 The COVID-19 pandemic is a natural disaster that rocked the world and is a reminder of how connected people are in a global economy.

As quarantine regulations and temporary closures happened across the United States, businesses had to mobilize quickly, pivoting their strategies, distribution efforts, products and beyond to accommodate the new safety measures and external pressures. The food and beverage industry was no different. Although food manufacturers were deemed essential in the United States by Cybersecurity & Infrastructure Security Agency (CISA), manufacturers had to adapt to a new normal during the shutdown.2 Some of the biggest changes that occurred in the food manufacturing industry include fluctuating customers, prices, product and ingredient availability, packaging, distribution, and food quality and safety.

Shifting Demand, Customers and Food Pricing

Sharp changes in food prices and product availability shocked supply and demand and impacted the entire food supply chain across the United States. According to the USDA, there were record levels of demand for food at grocery stores, and, on the supply side, there has been a reduced supply of meat products over the period of quarantine as meatpacking plants faced temporary closures, decreased slaughter pace, and slower production due to COVID-19 regulations.3 Poultry prices took a sharp dip and have been rebounding, hot dog prices are at an all-time high due to increased demand, and beef prices have been climbing due to scarce supply and limited fresh production. Food pricing fluctuation is one of the largest food industry impacts felt directly by the general public and the on-premise sector. Restaurants and bars were crushed by the skyrocketing ingredient prices and mandatory temporary closures due to COVID-19.

As restaurants, school cafeterias and hotels were temporarily shut down due to quarantine restrictions, the food manufacturing industry’s most prominent customers practically disappeared. Before COVID-19, the USDA reported that in 2018, restaurants provided approximately 50% of meals consumed on a daily basis, up from 41% in 1984.4 When COVID-19 hit, consumer trends showed a monumental shift to eating at home. During the height of the pandemic, more people ordered take out from fast-casual dining places and ate from home. A recently published study reveals survey findings that suggest American’s food habits are shifting, as 54% of respondents confirmed they are cooking more, and 46% of respondents, baking more.5 As customers and demand changed, products and packaging had to follow suit.

Scores of manufacturing facilities had to rapidly respond with different products to meet changing consumer demand, despite already being in mid-production for products for restaurant kitchens, cafeterias, and the like. Most of these large-scale and wholesale products would never make it to their original, intended destinations. Manufacturers swiftly adapted their production, creating retail-ready goods from product made or intended for restaurant or fast food supply. These food production facilities had to creatively find ways to change product packaging sizes, salvaging good product with take-home cartons and containers. Some processors pre-sliced deli meat for grocery stores around the country, as markets were unable to slice the meat in-store, dealing with restrictions on the number of people who could work at any given time. The food manufacturing industry showed great ingenuity, repurposing food and getting creative in order to keep the country fed and bridge the gap in convenience shopping that consumers have grown used to.

New Distribution Pressures

There were also disruptions in the food industry’s distribution channel, and the logistics of distribution were adversely affected. Facilities faced increased pressure to have tighter production turnarounds from new consumer behavior and out-of-stock situations as many markets dealt with temporary panic shopping at the beginning of the crisis. Food manufacturing facilities have always faced tight deadlines when dealing with fresh and refrigerated product. However, COVID-19 introduced new critical, immediate needs to the food supply, and, more than ever before, facilities were pressed for time to deliver. Some facilities didn’t have enough dock loading time, and certain cold storage facilities could not meet the raised demands for dock times, making it harder to get product through the distribution channel to consumers. Shipping and logistics came at a premium. Drivers and logistics companies were at capacity with their service offerings, and unable to mobilize to meet the needs of every manufacturing company.

On top of the pressures from consumer demand, manufacturing facilities had to procure PPE (personal protective equipment) in mass for all employees and adjust employee schedules to meet new national and state-wide quarantine restrictions that strained the system. The PPE requirements are part of the distribution logistics, as plants are unable to distribute safe product without adhering to the system’s regulations. Senior Vice President of Regulatory and Environmental Affairs for the National Milk Producers Federation, Clay Detlefsen, said in an article for Food Shot Global that the whole food industry’s system has been turned on its head, as manufacturers are concerned that if they start running out of PPE and sanitation supplies, they would ultimately be forced into shutting down their food processing plants.6

Regulating Food Quality and Safety

Perhaps one of the biggest concerns surrounding the food supply chain during the height of COVID-19 for both producers and consumers was food safety. While safety and quality are always a high priority in the food industry, rising concern around the transmission of COVID-19 became a new and unprecedented challenge for food quality experts. In February the FDA declared that COVID-19 is unlikely to pass through food or food packaging, but that didn’t stop public concern.7 It was critical for food manufacturers and producers to ease public fear, keep the food supply stable and eliminate foreign material contamination that would adversely affect consumers and brand reputation. A mass recall due to foreign material contamination would have dire consequences for the strained food supply chain during this historic crisis. At the same time, the pandemic limited quality and food safety teams, as key teams had to work remotely, shift schedules had to drastically change to meet new safety regulations, production lines cut in half, and quality and safety teams had to make rushed decisions when it came to reworking product.

Some plants that faced potential foreign material contamination risked sending their product into distribution without a thorough rework, up against tight deadlines. And some plants adopted a multifaceted strategy and did something they’ve never done before: Reworked product on hold for potential foreign material contamination themselves. Many of these companies reworked product with their extra available lines, to keep as many of their workers as possible, despite the fact that food production employees are untrained in finding and extracting foreign contaminants. Inline detection machines are also typically limited to metal detection, often incapable of consistently catching many other types of contaminants such as glass, stones, plastic, bone, rubber, gasket material, container defects, product clumps, wood and other possible missing components. Food safety is of the utmost importance when a crisis hits as the food supply chain is crucial to our success as a nation and as an interconnected world. Facing new pressures on all sides, the food industry did not neglect food safety and quality, even while adopting new strategies. There was never a doubt that the industry would overcome the new challenges.

Looking Forward

The food industry has rapidly switched business strategies, swiftly turned around new products, found new ways to align product traceability and work remotely while still meeting industry standards and production expectations. Manufacturing facilities repackaged and repurposed food to keep the country fed, maintained job security for many employees and procured PPE in mass. The food industry is also full of manufacturers and plants that accomplished things they’ve never done before. There are shining examples of heroism in the food and beverage space as a growing list of food businesses, restaurants and delivery services have donated to healthcare workers on the front lines. Many large companies donated millions of dollars and pounds of food to feed their teams, their communities and the less fortunate.8 In the midst of a large obstacle, we have reached new heights and discovered new capabilities.

The challenges aren’t over. The food industry is still facing the effects of COVID-19 shutdowns on businesses even during this period of re-opening in different parts of the country. A lot of places and companies have been hit hard, some even closing their doors for good. Forbes reported at the onset of the pandemic that Smithfield Foods shut down one of its pork processing plants after hundreds of the plant’s 3,700 employees tested positive for coronavirus.8 Tyson Foods also shut down several meat processing plants under threat of the virus.8 Smithfield and Tyson were not the only ones. Food Dive has a compiled tracking system for coronavirus closures in food and beverage manufacturing facilities, recording reduced production, temporary closures, and permanent shutdowns across the industry. We expect some of the COVID-19 challenges to alleviate over time and hope that business will slowly return to normal and previously closed facilities will be able to re-open. However, we strongly hope some changes to the industry will remain: Creativity, ingenuity, resilience, adaptability, and a strong commitment to customers and partners. The bottom line is we’re in this together––together, we’re resilient.

References

  1. Frazier, L. (April 21, 2020). “How COVID-19 Is Leading The US Into A New Type Of Recession, And What It Means For Our Future.” Forbes.
  2. Krebs, C. (May 19, 2020). “Advisory Memorandum on Identification of Essential Critical Infrastructure Workers During COVID-19 Response.” Homeland Security Digital Library.
  3.  Johansson, R. (May 28, 2020) “Another Look at Availability and Prices of Food Amid the COVID-19 Pandemic.” USDA.
  4. Stewart, H. (September 2011). “Food Away From Home.” The Oxford Handbook of the Economics of Food Consumption and Policy. 646–666. Oxford University Press. doi: 10.1093/oxfordhb/9780199569441.013.0027
  5. The Shelby Report. (April 17, 2020). “New Study Reveals Covid-19 Impact On Americans’ Food Habits.”
  6. Caldwell, J. (April 16, 2020). “How Covid-19 is impacting various points in the US food & ag supply chain”. AgFunderNews.
  7. Hahn, M.D., S. (March 27, 2020). Coronavirus (COVID-19) Supply Chain Update. FDA.
  8. Biscotti, L. (April 17, 2020). “Food And Beverage Companies Evolve, Innovate And Contribute Amid COVID-19 Crisis.” Forbes.
Colleen Costello, VitalVio
FST Soapbox

Prevention Takes Center Stage to Address Food Recalls

By Colleen Costello
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Colleen Costello, VitalVio

In the complex food supply chain, a single product travels a long journey before reaching consumers’ plates. It’s no wonder that it has become so difficult to control the quality and safety of food. As food moves from trucks to conveyor belts and through grocery store shelves and shopping carts, the risk for harmful bacteria to contaminate products rises immensely. What’s worse is pinpointing the source of contamination can be nearly impossible, leaving food manufacturers scrambling to “fix” the error without even knowing the cause.

In recent recalls, processing plants completely shut down operations in an effort to resolve the issue and thoroughly sanitize their entire facilities. While this is good news for consumers, this type of reactive response will undoubtedly have a long-term, irreversible impact on the business—both financially and potentially for the brand’s reputation. Consumers remember the name of the company they heard on the evening news that had to pull thousands of pounds of products from shelves in their city or region. Then, when they make their weekly trip to the grocery store, they likely make sure to avoid that company’s products in fear of potential quality issues that could make them and their families sick. It’s a deadly cycle for consumers and public health, as well as business livelihood.

Product and consumer safety must continue to be the top priority for the food industry. The success of these companies literally depends on it. With so much on the line, the food industry must come together to spark a shift in how they operate to prevent food recalls rather than having to respond to them.

Stopping Recalls to Save Lives and Businesses

To move in the direction of mitigating pathogens from ever coming into contact with food and therefore preventing recalls altogether, processors must develop and deploy new strategies that keep facilities consistently clean. The U.S. government is stepping in with regulations such as FSMA that urge companies to shift from reactively responding to safety issues, to proactively working to prevent them. This is the fundamental shift that is needed across the food supply chain in order to protect consumers and food producing businesses.

Important new technologies have emerged in recent years that can add new layers of meaningful protection to continuously combat contamination across the supply chain. When coupled with existing disinfection and cleaning practices, these new technologies can help mitigate the introduction of harmful pathogens as food moves from point A to point B, with all the stops made in between.

One example is the advent of a new class of technology that incorporates antimicrobial LED lighting, which enables food processors to take an “always on” approach to keeping surfaces free of harmful pathogens. Since these lights meet international standards for unrestricted and continuous use around people, they’re able to irradiate large places and the smallest of spaces, all while workers are present.

However, simply deploying these new technologies isn’t enough. For new prevention strategies to be truly successful, food processors should consider the bigger picture. A large percentage of food processors focus primarily on bolstering their sanitation approaches in the areas that have the highest likelihood of coming into contact with food products. This is logical, as Zone 1 and Zone 2 are typically the highest risk for contracting and spreading harmful pathogens.

Environmental Safety Zones
Environmental safety zones. Figure courtesy of Vital Vio.

However, processors are leaving holes in their sanitation strategies by not taking measures to keep areas, such as Zone 3 and Zone 4, also well protected. To ensure food remains free of contaminants, plant managers must ensure the entire environment is fully protected, including the belts and vessels that the food touches, as well as the break rooms where employees rest and offices where management holds meetings. If these areas aren’t kept equally as clean, facilities are risking outside contaminants to enter Zone 1 that can ultimately compromise their food products.

Food recalls have become eerily common, putting a strain on public health and businesses. To stop what seems to be rising to crisis level, all companies involved in the food supply chain need to take a proactive stance toward prevention. This means deploying advanced technologies that continuously prevent harmful pathogens from taking root anywhere in their facilities. Simple yet thoughtful solutions, such as antimicrobial LED lighting, ensure food companies are one step closer to keeping all of us and their businesses safe.