With the COVID-19 pandemic continuing to take a toll on live events, Innovative Publishing Company, Inc. has made the careful decision to convert the Food Safety Consortium, which historically has taken place in Schaumburg, IL, to a virtual conference. This move takes into consideration Illinois’ COVID-19 plan to reopen its economy, which is a Five-Phase Plan. Phase 5 occurs when groups larger than 50 (conferences and conventions specifically mentioned) will be allowed. The state enters Phase 5 only when a vaccine or an effective treatment is in place. The decision to take the Food Safety Consortium virtual is based on the Illinois reopening plan, along with considering the safety and well being of staff, attendees, speakers and sponsors.
Every Thursday, beginning on September 10 through November 12, the Food Safety Consortium Virtual Conference Series will host two presentations and two sponsored Tech Talks, followed by a panel discussion with attendees. Food Safety Tech is the media sponsor.
“This will be much more than a bunch of webinars. We are excited to offer a virtual platform that facilitates greater human interaction,” says Rick Biros, president of Innovative Publishing and director of the Food Safety Consortium. “Whether it’s a random connection in a hotel lobby, a stroll by a booth at a trade show, or a seat next to a new friend in a learning session, we recognize that human connection is important for events. That’s why we’ve invested in new tools for the FSC Conference Virtual Platform to ensure those discussions, discoveries and connections can go on whether our event is offline or online. The new platform provides attendees with a way to keep track of live sessions, connect with sponsors and engage with peers, all in a familiar way. It will also include an event App that offers interactive features.”
Frank Yiannas, FDA deputy commissioner for food policy and response, will remain a keynote speaker, with the new presentation date to be announced.
Call for Abstracts
We are accepting abstracts for participation in the Food Safety Consortium Virtual Series. On the Submit an Abstract page, select Food Safety Consortium 2020 in the drop-down menu.
Categories include:
Food safety
Food defense
Food integrity
Food safety supply chain management
Lessons learned COVID-19
Regulatory compliance
Facility design
C-suite executive forum
Tech Talk Sponsorship
Companies that are interested in sponsoring a 10-minute technical presentation during the series can also submit their abstract through the portal. For pricing information, contact IPC Sales Director RJ Palermo.
Food Safety Tech publishes news, technology, trends, regulations, and expert opinions on food safety, food quality, food business and food sustainability. We also offer educational, career advancement and networking opportunities to the global food industry. This information exchange is facilitated through ePublishing, digital and live events.
About the Food Safety Consortium Conference and Expo (The live event)
Food companies are concerned about protecting their customers, their brands and their own company’s financial bottom line. The term “Food Protection” requires a company-wide culture that incorporates food safety, food integrity and food defense into the company’s Food Protection strategy.
The Food Safety Consortium is an educational and networking event for Food Protection that has food safety, food integrity and food defense as the foundation of the educational content of the program. With a unique focus on science, technology and compliance, the “Consortium” enables attendees to engage in conversations that are critical for advancing careers and organizations alike. Delegates visit with exhibitors to learn about cutting-edge solutions, explore three high-level educational tracks for learning valuable industry trends, and network with industry executives to find solutions to improve quality, efficiency and cost effectiveness in the evolving food industry.
Find records of fraud such as those discussed in this column and more in the Food Fraud Database. Image credit: Susanne Kuehne.
Pasta is widely consumed around the world, and prices have increased because people have been stockpiling it during the COVID-19 pandemic. Durum wheat, the basic wheat for pasta, is the second most cultivated wheat around the world after common bread wheat, claiming 15–30% higher prices, and therefore an attractive target for food fraud. Out of 150 Argentinian pasta samples that were analyzed with a new method based on Fourier transform infrared spectroscopy (FTIR), in combination with Partial-Least Squares Discriminant Analysis (PLS-DA) and Linear Discriminant Analysis (LDA), 112 were found to be altered with common wheat. Argentinian labeling law requires durum wheat pasta to be based on 100% durum wheat.
This week the USDA and FDA signed a Memorandum of Understanding (MOU) in an effort to prevent disruptions at FDA-regulated food facilities, including fruit and vegetable processing locations. The agencies are also trying to prepare for the peak harvesting seasons that involve freezing and canning fruits and vegetables. The MOU provides a process by which the agencies can determine the instances when USDA would exercise authorize under the Defense Production Act (DPA) related to food resource facilities that manufacture, process, pack or hold foods.
“While the FDA will continue to work with state and local regulators in a collaborative manner, further action under the DPA may be taken, should it be needed, to ensure the continuity of our food supply. As needed, the FDA will work in consultation with state, local, tribal and territorial regulatory and public health partners; industry or commodity sector; and other relevant stakeholders (e.g. Centers for Disease Control and Prevention, Occupational Safety and Health Administration) to chart a path toward resuming and/or maintaining operations while keeping employees safe,” stated FDA Deputy Commissioner for Food Policy and Response Frank Yiannas in an agency press release. “We are working with our federal partners who have the authority and expertise over worker safety to develop information on protecting worker health. We are also working with other federal partners to assist the food and agriculture industry in addressing shortages of personal protective equipment (PPE), cloth face coverings, disinfectants and sanitation supplies.”
Since the early 20th century, food safety has been a paramount concern for consumers in the United States. Upton Sinclair’s The Jungle, which painted a bleak, brutal, and downright disgusting picture of turn-of-the-century food processing facilities led to the creation of some of the country’s first food safety laws. Today, federal agencies and statutes make up a comprehensive food safety system to ensure that the growth, distribution and consumption of foods are safe from start to finish.
While food safety has significantly improved in the century since Sinclair’s time, stories of major outbreaks of foodborne illnesses continue to pop up across the country. Over the past few years, a significant number of outbreaks as a result of pathogens have made the headlines. To mitigate the threat of public health crises and ensure food production and distribution is safe and secure, companies must rely on modern technology to trace the movement of food across the entire supply chain.
How Technology Is Changing the Food Industry
Technology is a powerful, innovative force that has changed the way even well established companies must do business in order to stay relevant. From easier access to nutritional information to digital solutions that make food manufacturing and distribution more efficient, greater consumer awareness driven by technology empowers consumers to make decisions that can greatly affect the food industry’s bottom line.
Technology-driven accountability is playing one outsized role in allowing consumers to make better choices about the foods they consume and purchase. Social media and smartphone apps connect consumers to a wealth of resources concerning the harmful effects of certain ingredients in their food, the source of products, and how particular items are made and produced. In 2015, for example, The Campbell Soup Company removed 13 ingredients from its traditional soup recipes as a result of a greater public demand to understand food sources. Neither food giants nor small producers should expect to remain immune from greater public scrutiny over food health and safety.
Nutritional research is also helping change the conversation around food, granting nutritionists and consumers alike greater access to food-related data. Through easily accessible scholarly journals, apps that provide real-time nutrition information, and meal tracking apps that help users log and understand what they’re eating, consumers can gain a better understanding of nutrition to make more informed choices about their daily food intake. Researchers can also use food-tracking apps to make discoveries about consumer behavior and foods that are eaten.
Technology is also being used to tackle food waste, one of the most pervasive problems facing the food industry. One-third of the total amount of food produced globally, amounting to nearly $1.2 trillion, goes to waste every year. Solving this pervasive crisis has become an industry imperative that is being tackled through a variety of innovative technologies to improve shelf-life, dynamically adjust pricing based on sell-by dates, and allow restaurants to automatically monitor their daily waste.
In the food manufacturing sector, digitally-connected supply chain systems are providing greater visibility into the production of foods and beverages. Supplier management technology delivers data that can be used to optimize processes and improve quality in real-time, making it easy to adjust to consumer demands, respond to logistics challenges, and boost government compliance. The enhanced operational benefits offered through improved supply chain visibility allows manufacturers to produce products faster, safer, and with greater transparency.
Online ordering has also ushered in a new era of food industry behavior. The growing assortment of online ordering apps has just given the consumer more control over quickly ordering their next meal. The trend in online ordering has also allowed restaurants to experiment with new business models like virtual kitchens that offer menus that are only available online.
The IoT adds a layer of technology to the food manufacturing process. (All photos licensed through Adobe Stock)
IoT: The Future of Food Safety
From the farm to the carryout bag, the impact of technology on the greater food industry is already evident in daily practice. Through enhanced access to data, food producers can run an efficient supply chain that reduces waste, boosts productivity, and meets consumer demand in real-time. Using a variety of online resources, consumers are empowered to quickly make well-informed food purchases that are healthier, more convenient and more sustainable than ever before.
The Internet-of-Things (IoT) adds a layer of technology to the food manufacturing process to ensure greater food safety. A broad series of networked sensors, monitors, and other Internet-connected devices, IoT technology can oversee the entire food manufacturing and distribution process from the warehouse to the point of sale. Boosting transparency across the board, intelligent sensors and cameras can transform any food manufacturing operation into a highly visible, data-backed process that allows for better decision-making and improved real-time knowledge.
While IoT technology is a powerful tool that can improve the efficiency of restaurants and provide enhanced customer experiences, some of its greatest potential lies in its ability to safely monitor food preparation and production. Live data from IoT devices makes it possible to closely monitor food safety data points, allowing manufacturers and restaurants to reduce the risks of foodborne illness outbreaks through enhanced data collection and automated reporting.
Domino’s Pizza, for instance, embraced IoT technology to enhance management processes and monitor the food safety of its products. In the past, restaurants have relied on workers to record food temperatures, a practice that was occasionally overlooked and could lead to issues with health inspectors. Using IoT devices for real-time temperature monitoring, Domino’s automatically records and displays temperature levels of a store’s production, refrigeration, and exhaust systems, allowing employees to view conditions from a live dashboard.
In addition to boosting food safety, the comprehensive monitoring offered by IoT technology can help food companies reduce waste, keep more effective records, and analyze more data for improved operations.
IoT isn’t just a safe solution for improving food safety: It’s a smart solution.
Blockchain: The Future of Food Traceability
The ubiquity of QR codes has made it easy for consumers to quickly gain access to information by scanning an image with their smartphone. From accessing product manuals to downloading songs, QR codes make it simple to provide detailed and relevant content to users in a timely manner.
Blockchain enhances the safety of the business of food production itself.
Blockchain technology provides a powerful opportunity to provide consumers with similar information about food safety. Able to instantaneously trace the lifecycle of food products, blockchain can report a food’s every point of contact throughout its journey from farm to table. By scanning a QR code, for instance, users can quickly access relevant information about a food product’s source, such as an animal’s health, and welfare. Shoppers at Carrefour, Europe’s largest retailer, area already using blockchain traceability to track the stage of production of free-range chickens across France.
Walmart piloted a blockchain implementation by tracing a package of sliced mangoes across every destination until it hit store shelves, from its origin at a farm in Mexico to intermittent stops at a hot-water treatment plant, U.S processing plant, and cold storage facility. Real-time product tracing can be conducted in just two seconds, enabling Walmart and other vendors to provide consumers with access to food safety information that could easily be updated should an outbreak or contamination occur.
Blockchain’s inherent transparency not only makes it possible to identify the safety of food production; it also enhances the safety of the business of food production itself. Because blockchain is based upon an immutable, anonymous ledger, record keeping and accounting can be made more secure and less prone to human error. Payments to farmers and other food suppliers can also become more transparent and equitable.
The High Tech Future of Food
Unlike the days of Sinclair’s The Jungle, food transparency is the name of today’s game. As consumers continue to demand greater access to better food on-demand, food producers must continue to find innovative ways of providing safe, healthy, and ethical solutions.
IoT devices and blockchain present food manufacturers with powerful technological solutions to solve complex problems. Brands choosing to rely on these innovations, such as Domino’s and Walmart, are helping ensure that food is produced, prepared and distributed with a foremost emphasis on health and safety. As these technologies continue to become more intelligent, well-connected, and embraced by leading food producers, consumers should rest assured that they’ll always be able to know exactly what they’re eating, where it’s from, and whether it’s safe.
The food industry is adapting in completely new ways as a result of the coronavirus pandemic. Retailers are scrambling to keep certain items on store shelves and manufacturers are adjusting their production strategies based on realistic and ever-shifting needs. In a recent discussion with Food Safety Tech, Angela Fernandez, VP of community engagement at GS1 US and FST editorial advisory board member, talks about how companies can improve relationships with trading partners in the face of COVID-19.
Food Safety Tech: What issues do you see happening in the supply chain right now?
Angela Fernandez: Our food supply chain is experiencing overwhelming demand. As an organization that collaborates with both the retail grocery and foodservice sectors to solve supply chain challenges, we’re working with industry on how we can make our supply chain more efficient in the short term, and make it more resilient in the long term.
Consumers are frustrated by empty shelves and the demand created by the pandemic is changing the movement of products. Right now, products are not always accounted for in transit, there are production issues depending on category, and food produced for foodservice outlets like restaurants, schools, and hotels can’t always be easily diverted to a supermarket. The U.S. Food and Drug Administration is lifting restrictions on the sale of food so that it is possible for items that may have been produced for foodservice “sale” to be sold in a supermarket.
FST: In what particular areas are you seeing inventory shortages that are impacting retailers and suppliers?
Fernandez: We’re seeing a couple of different dynamics. For suppliers that produce products for both retail and foodservice channels, we see a shift in reducing production on foodservice items and an increasing manufacturing on their retail product lines. We’re also seeing foodservice suppliers that have not serviced the retail channel previously are now looking to establish new relationships with retailers and recession-proof their businesses. This is not happening as fast as consumer demand for perimeter products like dairy and produce, so we see shortages and products expiring before they can be sold to these new retail customers.
Additionally, food product variation and customization is decreasing. If you think about your own experience going to the grocery store today, or arranging for a delivery, you’re seeing fewer flavors of a product available and fewer brand names you’re familiar with. Suppliers are continuing to shift back to mainstream production of their core product lines just to keep store shelves stocked. I think that’s what we’re going to continue to see—the reduction of customized and specialty items.
For retailers, they have a prioritized the focus on ramping up their e-commerce strategy to relieve the pressure on their stores and service more consumers online. This poses a particular challenge when retailers have limited IT resources and a need to set up a new item supplied from a new foodservice manufacturer that is trying to divert their products to the retail channel to support the demand. And in some cases unfortunately, foodservice suppliers maybe unable to redirect some of their products due to the fact they are not marked for individual sale with the traditional U.P.C. and other retailer requirements.
FST: Is there a better way that food companies, retailers and suppliers can work together during this pandemic?
Fernandez: Food companies can improve the way they work together if they focus on supply chain visibility and data quality. Visibility is key as suppliers are ramping up production on those mainstream products and trying to get them to the proper locations when retailers need them. That’s where I would look at GS1 Standards such as the Global Trade Item Number (GTIN) for product identification and the advance ship notice (ASN) transaction, which lets a partner know when something is ready and being shipped. Global data standards enable the visibility to what delivery a retailer can expect and when, and being able to account for that inventory once it’s inside the DC [distribution center] location so that they can update an online platform. This can help ensure that a retailer has accurate information for the consumer and ability minimize the substitutions that can occur.
The second piece is the data quality aspect—making sure we have the right information around those core items that we are trying to keep stocked on the shelves for consumers who are purchasing those items today. The retail grocery and foodservice industries have been working on making product data more complete and accurate for a number of years, but we’ve seen a heightened focus on it now, knowing that consumers are relying on digital information to be correct since they cannot see the product in person right now. Expanding the data set for the consumer is critical.
FST: What is GS1 US doing right now to help customers better navigate today’s environment?
Fernandez: GS1 US is helping trading partners work with the capabilities they have to implement greater supply chain visibility, improve data quality and ramp up e-commerce operations. Depending on what was already implemented by the manufacturer or retailer, we’re looking at how we can leverage existing capabilities to help partners work together more efficiently to meet demand. How we can help connect the physical product and the digital data, knowing how important that is online right now, not only for trading partners but also for consumers?
One example of how GS1 Standards can be extended is if a retailer is looking to shorten their supply chain and purchase from a local farm. Standards provide a blueprint for supply chain partners to work together in a consistent way. We want to help these companies leverage and extend the standards instead of proprietary systems and abandoning useful processes for item setup, data exchange and point of sale checkout. Those are the types of discussions that we’re having—how GS1 US members can extend the standards that lead to operational efficiency and more easily bring in new partners to help fulfill demand.
While foodborne transmission of the novel coronavirus is unlikely , the virus has significantly affected all aspects of food production, food manufacturing, retail sales, and foodservice. The food and agriculture sector has been designated as a “critical infrastructure,” meaning that everyone from farm workers to pest control companies to grocery store employees has been deemed essential during this public health crisis.* As a society, we need the food and agriculture sector to continue to operate during a time when severe illnesses, stay-at-home orders and widespread economic impacts are occurring. Reports of fraudulent COVID-19 test kits and healthcare scams reinforce that “crime tends to survive and prosper in a crisis.” What does all of this mean for food integrity? Let’s look at some of the major effects on food systems and what they can tell us about the risk of food fraud.
Equally concerning are reports of supply disruptions in commodities coming out of major producing regions. Rice exports out of India have been delayed or stopped due to labor shortages and lockdown measures. Vietnam, which had halted rice exports entirely in March, has now agreed to resume exports that are capped at much lower levels than last year. Other countries have enacted similar protectionist measures. One group has predicted possible food riots in countries like India, South Africa and Brazil that may experience major food disruption coupled with high population density and poverty.
Supply chain complexity, transparency and strong and established supplier relationships are key aspects to consider as part of a food fraud prevention program. Safety or authenticity problems in one ingredient shipment can have a huge effect on the market if they are not identified before products get to retail (see Figure 1). Widespread supply chain disruptions, and the inevitable supplier adjustments that will need to be made by producers, increase the overall risk of fraud.
Figure 1. Reconstructed supply chain based on recall data following the identification of Sudan I in the chili powder supply chain in 2005. Data source: Food Standards Agency of the U.K. National Archives and The Guardian. Figure from: Everstine, K. Supply Chain Complexity and Economically Motivated Adulteration. In: Food Protection and Security – Preventing and Mitigating Contamination during Food Processing and Production. Shaun Kennedy (Ed.) Woodhead Publishing: 26th October 2016. Available at: https://www.elsevier.com/books/food-protection-and-security/kennedy/978-1-78242-251-8
Regulatory oversight and audit programs have been modified. The combination of the public health risk that COVID-19 presents with the fact that food and agriculture system workers have been deemed “critical” has led to adjustments on the part of government and regulatory agencies (and private food safety programs) with respect to inspections, labeling requirements, audits, and other routine activities. The FDA has taken measures including providing flexibility in labeling for certain menus and food products, temporarily conducting remote inspections of food importers, and generally limiting domestic inspections to those that are most critical. USDA FSIS has also indicated they are “exercising enforcement discretion” to provide labeling flexibilities. The Canadian Food Inspection Agency (CFIA) announced they are prioritizing certain regulatory activities and temporarily suspending those activities determined to be “low risk.” GFSI has also taken measures to allow Certification Program Owners to provide certificate extensions due to the inability to conduct in-person audits.
While these organizations have assured stakeholders and the public that food safety is of primary importance, the level of direct regulatory and auditing oversight has been reduced to reduce the risk of virus transmission during in-person activities. Strong auditing programs with an anti-fraud component are an important aspect of food fraud prevention. Adjustments to regulatory and auditing oversight, as necessary as they may be, increase the risk of fraud in the food system.
There is a focus on safety and sustainability of foods. The food industry and regulatory agencies are understandably focused on basic food safety and food sustainability and less focused on non-critical issues such as quality and labeling. However, there is a general sense among some in industry that the risk of food fraud is heightened right now. Many of the effects on the industry due to COVID-19 are factors that are known to increase fraud risk: Supply chain disruptions, changes in commodity prices, supplier relationships (which may need to be changed in response to shortages), and a lack of strong auditing and oversight. However, as of yet, we have not seen a sharp increase in public reports of food fraud.
This may be due to the fact that we are still in the relatively early stages of the supply chain disruptions. India reported recently that the Food Safety Department of Kerala seized thousands of kilograms of “stale” and “toxic” fish and shrimp illegally brought in to replace supply shortages resulting from the halt in fishing that occurred due to lockdown measures.
High-value products may be particularly at risk. Certain high-value products, such as botanical ingredients used in foods and dietary supplements, may be especially at risk due to supply chain disruptions. Historical data indicate that high-value products such as extra virgin olive oil, honey, spices, and liquors, are perpetual targets for fraudulent activity. Turmeric, which we have discussed previously, was particularly cited as being at high risk for fraud due to “‘exploding’ demand ‘amidst supply chain disruptions.’”
How can we ensure food sufficiency, safety, and integrity?FAO has recommended that food banks be mobilized, the health of workers in the food and agriculture sector be prioritized, that governments support small food producers, and that trade and tax policies keep global food trade open. They go on to say, “by keeping the gears of the supply chains moving and actively seeking international cooperation to keep trade open, countries can prevent food shortages and protect the most vulnerable populations.” FAO and WHO also published interim guidance for national food safety control systems, which noted the increased risk of food fraud. They stated “during this pandemic, competent authorities should investigate reported incidences involving food fraud and work closely with food businesses to assess the vulnerability of supply chains…”.
From a food industry perspective, some important considerations include whether businesses have multiple approved suppliers for essential ingredients and the availability of commodities that may affect your upstream suppliers. The Acheson Group recommends increasing supply chain surveillance during this time. The Food Chemicals Codex group recommends testing early and testing often and maintaining clear and accurate communication along the supply chain.1 The nonprofit American Botanical Council, in a memo from its Botanical Adulterants Prevention Program, stated “responsible buyers, even those with relatively robust quality control programs, may need to double- or even triple-down on QC measures that deal with ingredient identity and authenticity.”
Measures to ensure the sufficiency, sustainability, safety and integrity of foods are more closely linked than ever before. In this time when sufficiency is critical, it is important to avoid preventable food recalls due to authenticity concerns. We also need to stay alert for situations where illegal and possibly hazardous food products enter the market due to shortages created by secondary effects of the virus. The best practices industry uses to reduce the risk of food fraud are now important for also ensuring the sufficiency, sustainability and safety of the global food supply.
*Foodborne transmission is, according to the Food Standards Agency in the U.K., “unlikely” and, according to the U.S. FDA, “currently there is no evidence of food or food packaging being associated with transmission of COVID-19.”
On the one level, it’s still too early to see full supply chain stoppages, other than growing port and customs delays. While one does not need a crystal ball to see that significant issues are already on the horizon, it takes time for both positive and negative supply impacts to wend their way through the chain.
My company, Decernis, a FoodChain ID Company, provides a complete regulatory intelligence software suite that covers more than 100,000 global regulations in 219 countries, and as such, we have a unique global perspective on how the pandemic is going to affect the supply chain.
Among the countries to watch is India, which imposed a nationwide 21-day shutdown on March 25 and thus far is the tightest lockdown in the world. In the large cities, the lack of public transportation has forced newly unemployed to walk home, often over a period of days, to their home villages. This creates a challenge for the economy because India depends on seasonal migrant and factory workers.
Unlike most countries, pharmaceutical and supplement manufacturers, as well as food processors, are entirely shut down. While farm operations and their supply chains are exempt, there is no harvest without migrant labor. Moreover, truckers transporting frozen goods often are stopped en route due to uneven permit enforcement across states. Add to this the problem of export foods stuck in containers or ports with limited market access, combined with import/export restrictions, and a crisis is at hand.
And, while the Indian government has not banned rice exports, India’s Rice Exporters Association effectively suspended exports because of dramatic labor shortages and logistical disruptions. So, while buyers exist, there is no practical way to harvest, process or ship those exports.
Combine the lack of migrant agricultural workers with the closing of restaurants and schools in many countries and economies are left with a steep drop in demand. As a result, unprocessed food including pork, eggs, milk and early-harvest fruits and vegetables are being destroyed or “tilled under.”
Countries whose leadership is turning a blind eye to the pandemic (i.e., Brazil) will ultimately see a more significant impact.
Another major player to watch is China, where the tariff crisis initially exposed supply chain vulnerabilities. Combined with the current pandemic, businesses now see that sourcing can often be a more substantial factor than price.
Prior to COVID-19, the United States, among other countries, initiated a trend toward blatant economic nationalism, which significantly accelerated this year. In an effort to protect their populations and national security, countries (i.e., Cambodia, India, Kazakhstan, Russia, Serbia and Ukraine) halted the export of vital commodities. As a result, critical supplies have been diverted to more developed countries that can outbid and pay a higher price, leading to food security risks in smaller and weaker markets.
These factors will trigger a rethinking of supply chains in the medium and long term. The cost savings realized in China, India, Vietnam and Thailand will be weighed against the threats to supply chain stability. The result may be a subtle new form of supply chain nationalism, where companies prefer more reliable local production to lower-cost, more vulnerable foreign production. The recent sourcing trend for large multinationals to partner with fewer, trusted providers could reverse once the dust settles from this pandemic.
The decrease in air cargo capacity (due to the grounding of passenger aircrafts) has also played a significant role in supply chain disruption and will lead to dramatic short-term increases in the cost of air freight.
Last, but certainly not least, will be the fallout from obvious bankruptcies. As an early indicator, 247,000 Chinese companies declared bankruptcy in the first two months of 2020, with many more closures expected.
Obvious candidates include movie theaters, airlines, cruise ships, retailers, and hotels, but any company caught carrying a large debt load is also endangered. Pharma companies and those in oil, gas and petrochemicals will also be affected by a perfect storm of oil market collapse.
On a positive note, any supplement (i.e., Vitamin B, C and D) food commodity (i.e., blueberries, oranges) and processed food products (i.e., juices, yogurts) perceived to have immunity-boosting potential will likely see a short and long-term boost in sales. Botanicals, however, may soon have significant new sourcing problems.
As they deal with consequences of this pandemic, global companies will need to strategize for building a more durable and flexible supply chain. These unprecedented times are sure to spark more innovation and technological growth to address the challenges industry is facing.
Foodborne pathogens, such as bacteria and parasites in consumable goods, can result in illnesses and deaths, wreaking havoc on residents of states and countries. The companies at fault often face severe damage to their reputation as people fear that continuing to do business with a brand is not safe. Moreover, if the affected enterprises do not take decisive steps to prevent the problem from happening again, they may receive substantial fines or closure orders.
Statistics from the U.S. federal government indicate that there are approximately 48 million cases of foodborne illnesses in the American food supply each year. Fortunately, there are proven steps that production plant managers can take to minimize the risk of foodborne pathogens. Being familiar with the preventative measures, and taking steps to implement them prevents catastrophes.
Engage with Suppliers about Their Efforts to Kill or Reduce Foodborne Pathogens
Foodborne pathogens can enter a production plant on items like fresh produce received from farm suppliers. Agricultural professionals commonly use chlorine to decontaminate goods before shipping them. However, researchers used a chlorine solution on spinach leaves to assess its effectiveness in killing common types of bacteria. The team discovered that, even after chlorine exposure, some bacteria remained viable but undetectable by industrial methods.
Foodborne pathogens can originate at farms for other reasons, too. Failing to take the proper precautions during animal slaughter can introduce contaminants into meats that end up in food production facilities. Water impurities can also pose dangers.
All production plants should regularly communicate with suppliers about the actions they take against foodborne pathogens. Food safety is a collective effort. Practicing it means following all current guidance, plus updating methods if new research justifies doing so. If suppliers resist doing what’s in their power to stop foodborne pathogens, they must realize they’re at risk for severing profitable relationships with production plants that need raw goods.
Consider Using Sensors to Maintain Safe Conditions
The Internet of Things (IoT) encompasses a massive assortment of connected products that benefit industries and consumers alike. One practical solution to enhance food safety in a production plant involves installing smart sensors that detect characteristics that humans may miss.
For example, the USDA published a temperature safety chart that explains what to do with food after a power outage. Most items that people typically keep in refrigerators become dangerous to eat if kept above 40o F for more than two hours.
Food production plants typically have resources like backup power to assist if outages occur. But, imagine a cooler that appears to work as expected but has an internal malfunction that keeps the contents at incorrect temperatures. IoT sensors can help production plant staff members become immediately aware of such issues. Without that kind of information, they risk sending spoiled food into the marketplace and getting people sick.
Researchers also developed a sensor-equipped device that detects the effectiveness of hand washing efforts. In a pilot program involving 20 locations, contamination rates decreased by 60% over a month. Most restrooms at food preparation facilities remind people to wash their hands before returning to work. What if a person takes that action, but not thoroughly enough? Specialty sensors could reduce that chance.
Install Germicidal Ultraviolet Lights
With much of the world on lockdown due to the COVID-19 pandemic, many people want to know if germicidal ultraviolet lights could kill the novel coronavirus. Researchers lack enough information to answer that question definitively. They do know, however, that germicidal ultraviolet lights kill up to 99.99% of bacteria and pathogens.
Plus, these lights are particularly useful in food production because they get the job done without harsh chemicals that could make products unsafe. Ultraviolet lights can damage the skin and eyes, so you must only run them when there are no humans in the room. However, it’s immediately safe to enter the environment after switching the lights off.
These specialized light sources do not eliminate the need for other food safety measures. Think about implementing them as another safeguard against adverse consequences.
Teach Workers about Safe Practices
Food contamination risks exist at numerous points along the supply chain. Mishandling is a major culprit that could make several parties partially responsible for a foodborne pathogen problem. For example, if a person does not wear the proper gear when handling food or stores items intended for raw consumption in places where meat juices touch them, either of those things and many others could cause issues with foodborne pathogens.
As you inform employees about which procedures to take to manage the risks, emphasize that everyone has an essential role to play in keeping products free from contaminants. If workers make ready-to-eat foods, such as packaged sandwiches, ensure they understand how to avoid the cross-contamination that happens when reusing cutting boards or utensils without washing them first.
The FDA requires domestic and foreign food facilities to analyze and mitigate risks. Employee training is not the sole aspect of staying in compliance, but it’s a major component. If a person makes a mistake due to improper or nonexistent training, that blunder could have significant financial ramifications for a food production facility.
Widely cited statistics indicate that food recall costs average more than $10 million, which is a staggering figure in itself. It doesn’t include litigation costs incurred when affected individuals and their loved ones sue companies, or the expenses associated with efforts to rejuvenate a brand and restore consumer confidence after people decide to take their business elsewhere.
Ensuring that workers receive the necessary training may be especially tricky if a human resources professional hires a large batch of temporary employees to assist with rising seasonal demands. If a higher-up tells them that time is of the essence and the new workers must be ready to assume their roles on the factory floor as soon as possible, training may get overlooked. When that happens, the outcomes could be devastating. Efficiency should never get prioritized over safety.
Stay Abreast of Emerging Risks
Besides doing your part to curb well-known threats that could introduce foodborne pathogens, spend time learning about new problems that you may not have dealt with before.
For example, scientists have not confirmed the origin of COVID-19. However, since early evidence suggested live animal sales and consumption may have played key roles, Chinese officials cracked down on the wildlife trade and imposed new restrictions on what was largely an unregulated sector cloaked in secrecy.
Much remains unknown about COVID-19, and it’s but one virus for food producers to stay aware of and track as developments occur. The ongoing pandemic is a sobering reminder not to blame specific groups or ethnicities, and to avoid jumping to hasty conclusions. It’s good practice to dedicate yourself to learning about any production risks that could introduce foodborne pathogens. Read reputable sources, and don’t make unfounded assumptions.
A Collective and Constant Effort
There is no single way to combat all sources of foodborne pathogens. Instead, anyone involved in food production or supply must work diligently together and know that their obligation to prevent issues never ceases.
The novel coronavirus (COVID-19) has been quickly spreading across the globe, which triggered most affected countries to officially declare a state of public health emergency. The World Health Organization (WHO) has labeled this rather fast outbreak as pandemic. Food companies were urged to apply proper hygiene practices such as regular handwashing and surface cleaning to keep the risk of contagion at its lowest level.1 At the moment, there are many ongoing clinical trials evaluating potential treatments for COVID-19 but no specific vaccine or medicine have been publicly made available, as of this writing.
COVID-19 belongs to a family of viruses that cause respiratory issues and can be passed on directly through contact with an infected person’s body fluids (i.e, cough or sneeze discharge) and indirectly, through contact with contaminated surfaces.2 But can the virus be transmitted through edible goods?
Coronavirus Transmission through Food
According to the CDC, there is no current indication to support the transmission of COVID-19 through food since, in general, it needs a living host on which to grow. However, sharing food and beverages, especially in public places, is discouraged. Moreover, good food safety practices are highly recommended, including refrigerating, keeping raw and cooked goods separated and heating food at suitable temperature (around 75 ̊ C).3
If the consumed food is hypothetically contaminated with the virus, the stomach acid (due to its acidic nature) will immediately inactivate it. In addition, COVID-19 cannot affect the body internally via the intestines. One rare exception to the previous statement occurs when the virus gets in contact with a specific type of respiratory cells.
According to food safety experts, foodborne illnesses are generally caused by bacterial cells that have the ability to grow in food and multiply rapidly within a short amount of time. On the other hand, viruses are dormant particles floating around living cells; only when they successfully breaks into the aforementioned cells, the multiplication process can take place.1,3
General Food Safety Advice for Food Businesses
Food manufacturers must follow good hygiene and safety practices to help ensure the consistent quality and safety of their products:4,5,6
Purchase raw material from reputable sources
Cook food thoroughly and maintain safe holding temperatures
Clean and sanitize surfaces (such as cooking boards, refrigerators handles, etc.) and equipment
Properly train staff in taking extreme hygiene measures
Employees showing signs of infectious illness must not attend work
Implement appropriate risk management strategies (e.g,. encourage social distancing and endorse online meetings when applicable)
Number of staff in a kitchen or food preparation area should be kept to a bare minimum
Space out workstations and food preparation areas, when possible
The spread and impact of the COVID-19 pandemic has been fast and furious across the globe.1 The toll on human life and the economy is being felt by everyone, everywhere. Closures of schools and restaurants, restrictions on social gatherings, the shift to working from home, and other social distancing practices have created sudden, unusually high demand spikes across a number of categories, particularly related to food.
COVID-19 in the Food Industry: Mitigating and Preparing for Supply Chain Disruptions | Attend this complimentary webinar on-demandRepercussions from these dramatic demand surges are being felt across entire supply chains. Growers, producers, processors, manufacturers, wholesalers, and retailers of all sizes are scrambling to fill immediate shortages.2,3 At the same time, foodservice operators are reassessing their needs in response to government mandated take-out/delivery-only service. Schools are consolidating preparation and pick-up points for breakfast and lunch programs, while on-campus foodservice venues have closed at colleges and universities. Food companies are scrambling to redeploy and redirect existing inventories, as well as forecast short and mid-term demand and production requirements in the face of an unprecedented situation.
In the first several days of disruption, the immediate response is all-hands-on-deck damage control. Rightfully so. But in the flurry of activity, it is critical that those responsible for demand forecasting document the disruption as it is happening. Why? Because sales history is the foundational input of sales forecasting algorithms. Outlier events, such as COVID-19, natural disasters, extreme weather, short-term international trade restrictions, etc., have the potential to distort demand trends if they aren’t recognized and weighted appropriately in forward-looking projections. Formally documenting extraordinary events allows organizations to:
Explain unusual variances to history and/or forecast
Create evergreen institutional knowledge (vs. relying on individuals, scattered notes, and memory)
Build a “disruption database” that can be used to make fact-based overrides to algorithm-generated statistical forecasts when a similar disruption is predicted or occurs in the future.
These “disruption databases” could ultimately serve as the foundation for even more sophisticated disruption forecasting models. As machine learning and artificial intelligence continue to evolve, these models could potentially be customized based on the type of event. Importantly, this annotation of events needs to occur within your forecasting platform so that it is permanent and visible to inform insights for all forecast users.
So, what information should you capture?
Timing of the event
This includes specific days or weeks as well as information across the event lifecycle, including pre, during, and post event completion.
Geography impacted
The scale of the event should also be noted. Some events are market-specific (i.e., the 2020 Nashville tornado), while others are state or region-specific (i.e. California wildfires, Hurricane Katrina) or result in national or global level impacts (COVID-19).
The ship-to locations of your customers relative to the disruption will influence the demand impact of the event.
Customer gains & losses
During shortages, changes to current customer strategies should also be accounted for, such as potential volume reallocations. This could mean realignment of current customer distribution centers, temporarily not shipping to or losing specific customers, and/or even securing new customers based on your ability to supply when competitors cannot.
Customers may also shut down temporarily and/or delay previously scheduled new store openings. They may also reduce their hours of service and/or increase frequency of deliveries.4
Channel shifts
The use of different channels in response to the event should also be captured. For example, in response to COVID-19, grocery retailers are seeing a significant increase in home delivery and click-and-collect orders.
Collaborate with your customers to quantify this shift. It may explain your volume trends (if your products are or aren’t typically purchased online) and/or suggest alternative product forms, packaging, etc. to meet both immediate needs and longer-term demand.
Products impacted
This includes both items with demand spikes as well as those realizing unexpected demand declines. Shifts may also occur between product forms. For example, some consumer concern about bulk produce has been expressed with COVID-19 since the produce is manually stocked and shopped.5 While efforts are underway to dispel this misconception, it has impacted short-term demand for both the bulk items and their pre-packed counterparts.6,7
Adjacent, complementary and/or substitutable items should also be considered.8 Focusing short-term production on core varieties, cuts, forms, etc. vs. a complete assortment may allow a faster return to category (if not item-specific) in-stock levels.
Ordered vs. filled quantities
Typically, sales reporting systems only capture what was shipped/invoiced, not what was ordered. Capturing and comparing both enables quantification of the demand “opportunity loss,” which could be factored into future “event” forecast models.
Consumer sentiment and behavioral shifts
Specific to COVID-19, NielsenIRI and Crisp DemandWatch have identified “phases” of consumer behavior and anticipated category purchase impacts. Noting when these phases occur in your forecasting system can provide insight into performance analysis and inform future projections. These consumer patterns may also have application to other extreme events, such as natural disasters.9,10
In the face of significant disruptions, look for, leverage, and annotate relevant consumer insights to inform the forecast. Link the annotation to a central archive of relevant research and data to expand access and understanding across your organization.
Raw material, ingredient, packaging, labor or other sourcing issues
Note any shortages that impacted your ability to meet demand. Your ability to satisfy demand may be impacted by your own suppliers’ ability to get you the necessary inputs and/or your ability to staff production runs.
Distribution & logistics issues
Access to truck, rail, and/or air transportation of products may also be disrupted by the event. Note any logistics constraints to delivering finished goods to customers.
Competitor activity/disruptions
New product launches, delivery systems, ownership, facility fires, labor shortages or disputes, weather patterns, and more that impact your competitors can also influence demand for your products, both in the short and long term.
In the heat of the crisis, this level of documentation may sound burdensome. Even if you start with notes on a scratch pad, email chains, and a collection of industry newsletters, set aside one morning or afternoon a week to annotate within your forecasting platform the factors that impacted demand that week. Continue to post notations in the week each specific disruption-driving factor begins and each week thereafter until its impact has dissipated. Keeping up with annotations as you go along will keep things fresher in your mind and can help inform immediate and near-term plans.
Disruption databases can serve as the foundation for more sophisticated disruption forecasting models. As machine learning and artificial intelligence continue to evolve, these models can be customized based on the type of event. (Figure courtesy of Crisp).
Don’t forget that pantry loading shelf-stable items early in a disruption may significantly impact post-disruption sales, as consumers work through inventory they have at home. Track this as well. Best-in-class forecasting platforms, such as the example shown in Figure 1, can effectively leverage advanced computing power and analytics to help visualize the impact of COVID-19 on supply and follow-on effects predicted to be felt in your markets. The disruption information you track can be gathered, organized, and analyzed along with trillions of data points from disparate sources to generate high-quality statistical demand forecasts and actionable insights with speed and precision.
When the dust settles on this current event, take the time to document other historical disruptions. Working in reverse chronological order, gather as much date-specific archived data and tribal knowledge as you can, and add it to the annotations in your forecasting platform. The next time a disruption occurs (and it will!), you will be equipped to draw on this “database of disruptions” to proactively predict and respond to future impacts on demand.
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