Tag Archives: food waste

Jordan Anderson, PAR Technology Corp.
FST Soapbox

How Proper Record Keeping Can Help Reduce Food Waste in the Supply Chain

By Jordan Anderson
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Jordan Anderson, PAR Technology Corp.

One stringent component of FSMA and the Final Rule on Sanitary Transportation of Human and Animal Food is record keeping. Depending on the type and size of business, the FDA can demand proof of record anywhere from under one year and upwards to two years, all while needing to address their inquiry within 24 hours. Failure to do so will be considered a “prohibited act” and violators can be tried for civil and criminal penalties.
This new rule, put in place by the FDA, will put immense pressure on the food transportation industry, not only to make food safety a priority, but also to ensure that proper food safety practices and measures are being properly implemented, by way of record keeping.

While the litany of rules and regulations pertaining to record keeping best practices is intense, let us break down the basic requirements applying to records in layman’s terms:

  • If HACCP procedures aren’t documented, it didn’t happen
  • Records must be verbatim accounts of what happened
    • The need for real-time recording is paramount
  • Corrective actions must be executed immediately if an issue occurs
    • If not, liability risk increases exponentially

Companies must determine the most efficient and plausible manner by which they will comply. Traditional storage of records in filing cabinets and input of data in spreadsheets is antiquated, and leads to errors and the potential for misplaced records. Now, more than ever, is the time for businesses along the food chain to deliver value to their organization via digital technologies and automated data gathering solutions. This will ensure constant visibility and ensure quality control throughout the process from farm to fork.

Where Does Waste Happen?

While covering a lettuce farm in central California, National Geographic discovered that numerous loads were dumped each day due to procedural mistakes , including improperly filled, labeled and sealed containers.1 Due to the mishaps, the loads were then dumped. Between April and November that year, the local Waste Authority landfilled 4–8 million pounds of fresh vegetables from those fields.

The Food and Agriculture Organization (FAO) estimates that:

  • 54% of world food waste occurs during production, handling and storage
  • 46% occurs during processing & distribution

These numbers are not only staggering, but they illustrate the seriousness of this issue.

Many of these mishaps occur when standard recording procedures are done manually, which leads to improper documentation that invalidates the integrity of shipments—to which the above figures illustrate and corroborate.

But can shippers, loaders, receivers and the like secure their procedures and eliminate wasted product by implementing stricter digital HACCP solutions?

Lost Food

While improper execution of best practices can lead to FDA imposed sanctions and profit loss, it also perpetuates the problem of food waste globally. This issue has become an epidemic and one that greatly affects the lives of many.

In a recent National Geographic article, The Food and Agriculture Organization (FAO) suggests the following:1

  • One-third of food produced for global human consumption is annually lost or wasted along the supply chain
  • Food waste equates to 2.8 trillion pounds each year, which is enough to feed 3 billion people per year

Consider this: The World Food Programme estimates that nearly 795 million people in the world do not have access to the proper amount of food needed to live a healthy, active life, which equates to roughly one in nine people on earth.

The amount of waste created along the supply chain each year is enough to feed the hungry and malnourished people of the world three-times over. While waste is inevitable, even a 50% improvement would be able to feed those most in need.
We understand the nature of business is overcoming competition while expending the least capital possible, ultimately leading to profit. However, food-related businesses along the supply chain must ask themselves whether or not they are their own competition. Are best practices being properly executed? How can they ensure this in order to mitigate waste?

Ultimately, however, it becomes a human issue. Companies must be responsible and possess the empathy to understand this. While domestically we may not feel the effects of global hunger as much as other third-world countries, these businesses must be aware of the epidemic in order to elucidate this topic while simultaneously maximizing its businesses potential.

By leveraging new food safety solutions such as mobile devices, the cloud, IoT, sensors and more, you can better protect your customers while also gaining a tangible ROI. Wherever consumers purchase and shop for food today, they are likely to find a larger selection than ever before. From the bread aisle to the cheese counter to the produce section, food options and manufacturing processes today are more diverse than ever. While variety is positive on a consumer and cultural level, it can create challenges for food safety from farm to fork.

Reference

  1.  Royte, E. (October 13, 2014). “One-Third of Food Is Lost or Wasted: What Can Be Done”. National Geographic. Retrieved from http://news.nationalgeographic.com/news/2014/10/141013-food-waste-national-security-environment-science-ngfood/.
Dagan Xavier, Label Insight

Food Transparency Movement Driving Changes in Labeling

By Maria Fontanazza
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Dagan Xavier, Label Insight

Recently the Grocery Manufacturers Association (GMA) and the Food Marketing Institute (FMI) announced an initiative to reduce the amount of confusion that consumers experience regarding the “sell by”, “use by” and other date-specific labeling on food packaging. It is also part of an effort to reduce food waste.

The new initiative is completely voluntary, but GMA and FMI are hoping that retailers and manufacturers adopt the standard by the summer of 2018. It streamlines the labeling terminology to two simple phrases:

  • BEST If Used By”. Describes product quality, indicating the date by which the product may not taste or perform as expected but it is still safe to consume
  • USE By”. Applies to highly perishable products and/or products that have a food safety concern over a period of time that warrants a date by which the products should either be consumed or discarded

A variety of factors well beyond “sell by”/”use by” dates contribute to consumer confusion. The following Q&A is a brief discussion with Dagan Xavier, co-founder and vice president, customer intelligence at Label Insight on the impact of incorrectly labeling products (erosion of brand trust) and the challenge food companies face in providing transparent information on their products.

Food Safety Tech: How is the demand for transparency both from consumers and regulators changing the food product labeling landscape?

Dagan Xavier, Label Insight
Dagan Xavier, Label Insight

Dagan Xavier: Transparency sounds easy, but in reality, it is complex. For companies, managing compliance and consumer demands is not cut and dry.

Thankfully, brands and consumers are usually on the same page. But there are times when it’s not the case—and that causes trust issues. For one, brands need to use specific, compliant wording. That wording can sometimes be more complex than a preferred consumer-friendly phrasing. For example, USDA’s proposed labeling of GM-containing products refers to them as “genetically engineered.” Except, consumers are far more familiar with the term “genetically modified.”

Regardless of these nuances, regulations around transparency are in place to help consumers. The regulations set clear definitions about what products or ingredients can or cannot qualify for a labeling claim.

We currently live at a time where there is a general distrust of the food industry from consumers. Having strict regulations in place that add factual meaning behind claims is incredibly important. Meaningful and understandable claims, logos, and certifications are slowly beginning to help build trust back up from consumers.

FST:  What challenges are food companies facing in labeling their products?

Xavier: One of the biggest hurdles companies face in labeling is fitting as much information as possible on the package. Between mandatory components (like allergens, nutrients, ingredients) and desired content (marketing copy and images), something almost always gets left off. What gets left off? It tends to be sourcing facts, “Made in America” logos, and other data that consumers find valuable but rank lower on a brand’s priority list.

In reality, 100% complete product information is nearly impossible to fit within the confined space of most product packaging.

The good news is that according to a recent study by Label Insight, most consumers (88%) say they would be interested in accessing a complete set of product information digitally.

SmartLabel (an initiative by the Grocery Manufacturers Association) is an easy solution. SmartLabels save companies space on their packaging, while still allowing them to communicate all product information with consumers digitally.

Most consumers (79%) say they are very likely or somewhat likely to use SmartLabel technology if it was offered by a brand. 44% say they would trust a brand more if it participated in the GMA SmartLabel initiative.

FST: Related to labeling, what are the complicating factors when a company is producing organic, GMO-free, gluten free, etc.—especially when working with suppliers?

Xavier: Having a trusting relationship and open communication with suppliers is key.

Because regulations around organic and gluten-free are so stringent here in the United States, brands need to rely on their suppliers to have ongoing robust certification audits, inspections, documentation and renewal programs.

We expect regulations around GMO-containing products to follow suit.

For companies with dozens of suppliers, it can get tricky managing the documentation of certifications. This is especially complicated if suppliers are overseas and their audits are not delivered through the same certifying agencies that retailers or importers would like.

Adding logos and certifications to packages can be expensive and add risk to brands if a supplier falls out of compliance. In the end, it is important for both brands and suppliers to have robust documentation and a good communication channel. This ensures that all information on-pack is always the most accurate information for consumers and retailers.

Sustainability and Food Waste: Would You Eat Expired Food?

By Aaron G. Biros
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“Food waste, if it were a country, would be the third largest emitter of carbon dioxide and methane, behind the U.S. and China,” says Doug Rauch, former president of Trader Joe’s. How can innovation in food safety technology and systems help reduce food waste?

Nearly half of all food produced throughout the world is lost to waste every year. Such an enormous amount of waste should motivate food companies to look for innovative ways to reduce waste and become more sustainable.

Food waste is an issue that encompasses the entire food industry, occurring at all stages of food production including harvesting, processing, retail, and consumption. Therefore food safety and quality professionals, because of their connection to the entire food production process, have an opportunity to mitigate waste by introducing a number of sustainable and innovative practices for utilizing otherwise unused food.

Discarded byproducts and material lost throughout the food production process should be viewed as opportunities worth exploiting for every company. Extracting value from normally wasted material allows businesses to increase efficiency dramatically. Incorporating sustainable practices like food waste reduction can present very marketable opportunities to increase margins.

Former president of Trader Joe’s and keynote speaker at the 2014 IFT Conference in New Orleans, Doug Rauch, is a prominent advocate for addressing food waste on a national scale. During his keynote address, he spoke of the immediate need for food waste reduction: “Food waste, if it were a country, would be the third largest emitter of carbon dioxide and methane, behind the U.S. and China.” 

As the global population continues to rise, and developing countries emulate developed countries’ unsustainable production practices, Rauch believes we will begin to see a change of pace. “The next food revolution is going to be about what we’re not eating; it’s going to be about the food we throw away.”

One in six people in the United States are food insecure and obesity has reached record numbers across the country, with some states reaching over 40 percent. In his keynote speech, Rauch cites these figures, correlating poor nutrition to lower socioeconomic status. Rauch launched the Urban Food Initiative to combat poor nutrition with solving the food waste crisis in mind. His idea involves getting expired (or soon to be expired) food to fight poor nutrition in low-income neighborhoods at fast food prices.

Quality and safety play an integral role in the use of food that would normally be discarded. Brian Turner, Senior Manager of Food Safety Information Services at Sodexo, is on the advisory board for the Food Recovery Network, which is an organization that works with college campuses in reducing food waste and hunger. While these programs are very innovative on paper, Turner emphasizes the “concern for procedures and protocol to minimize quality and food safety issues.”

This highlights an opportunity for food safety professionals to help innovate along the way in the processes of reducing waste and hunger, while implementing key quality and safety practices. Organizations and initiatives like these are helping to emphasize the importance of mitigating waste, while addressing other key social and economic problems. In addressing food waste alone, sustainable practices throughout the value chain can be versatile to extend across markets.

Robert Evans, of the Diana Food Division, was a speaker on a food waste panel at the 2014 IFT conference who discussed extracting value from byproducts. Evans believes that “extracting byproducts in the natural food ingredients industry can provide functional solutions around the world and minimize upstream losses to food waste.”

Through involving the entire value chain, from sustainable agricultural practices and raw material sourcing to safe extraction methods, Evans believes that we can bring functional molecules to the market and reduce carbon footprints. Larger food companies are beginning to take action in the reduction of food waste, but innovation needs to occur at a system level across the supply chain to curb wasteful and unsustainable practices. Extracting value from byproducts along with smart sourcing are just some of the sustainable practices being introduced. Food safety and quality oversight at every step along the way is crucial to reducing food waste by ensuring that otherwise wasted products are held to the same quality standards as other ingredients. With that being said, we will continue to see innovation in food safety technology and systems play a dominant role in reducing food waste and utilizing byproducts.