PRODUCT RECALL-FOOD PROCESSING BECOMING A HIGH RISK INDUSTRY?

India is "fortunate" in that they do not have to worry about the complications involved in returning products under any "recall" regime so common these days in some of the countries where there is over dependence of the citizens on processed foods from the industry. Imagine a situation where the industry has to recall 12 million glasses suspected to be containing toxic substances, 28 million boxes of breakfast cereals, 15 million pounds of spaghetti or a baby products company recalling 2 million cribs or an automaker recalling millions of cars suspected to be defective. The recent recall of 70000 boxes of Mozzarella cheese in Europe and millions of dollars worth of products ranging from chocolates, ground beef, peanut butter, spinach, tomato, egg etc can be devastating for the food industry tarring its image very seriously and raising strong doubts in the minds of consumers regarding the ability of the industry to ensure their safety.

Product recall is bedeviling the food industry, with increasing vigilance and monitoring of the quality and safety of foods put on the market shelves, under the watchful eyes of the authorities vested with the responsibility of food safety. It is to be expected that with HACCP system and various other quality management tools available to the industry, the incidences of costly product recalls would come down dramatically but the ground reality does not bear out this optimism. Last year's peanut contamination incidence in the US is estimated to have caused a loss of $ 70 million to Cadburys by way of recall of some of their products containing the contaminated peanut butter. Supply chain uncertainty and traceability logistics pose critical challenges for the food processing industry to have 100% certainty about the safety of the products they manufacture in their facilities however good they may be. This calls for evolving a method to insulate the industry from financially debilitating product recall episodes and prevent going bust in the process.

The food industry's product recall horror stories in some of the western countries are well documented. The estimated $350 million lost by spinach industry in 2006 and the recent recall of alfalfa sprouts in the US are considered serious business disruptions that can keep any industry on its toes. Imagine the condition of the managers of this industry who have to live a life of great uncertainties losing sleep worrying over the contingency of a recall and consequent financial implications to the company. Risk management is touted as a crucial tool to anticipate such contingencies and survive any product recall crisis. Many in the food industry are unaware of the true exposure their organizations face and the risk lurking at every point along the supply chain from field to fork, both before and after a claim occurs. The details of contract language and business relationships can also increase complications. In addition to a detailed contract analysis with growers, suppliers, packers, production and distribution partners to identify contingent responsibilities, a comprehensive insurance audit could, probably save the affected company substantially in the event of a product recall. But such insurance coverage is neither available or even if available the premium can be a debilitating financial burden on the industry

In countries where consumer rights are inalienable, legal fraternity seems to be finding opportunity for expanding their business by way of providing services to both the industry as well as to affected consumers. The gigantic insurance industry is also a gainer as it is becoming increasingly difficult for the industry to avoid litigation. The over dependence of the people on processed foods in countries like the US can be faulted for such a "no-win" situation and those nations indulging in "sloganeering" for value addition to foods may learn a lesson from the real life situation in many countries where processed foods, supposed to be with high value addition, have a strangle hold on the population. Though value addition does boost the GDP of a country and generates employment, it also contributes to cost escalation for many day to day foods, affecting those with limited buying power. A balance has to be struck between the two opposing extremes.

V.H.POTTY

http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

FOOD CONTAMINATION-PERILS OF "BORDERLESS" TRADE

Modern transportation facilities have enabled the food industry to move foods from from one corner of the earth to the other seamlessly at minimum cost and "universalization of food" is an inevitable "fait accommpli" whether one likes it or not. But such borderless trade can also bring along with many problems associated with safety concerns. The recent mozzarella cheese contamination episode in Europe has brought this issue to the fore. Italians are a worried lot to day after huge quantities of Mozzarella cheese, imported from Germany and distributed in some of the retail outlets in Italy, were recalled from the market suspected of contamination of unknown nature. As this variety of cheese is consumed by majority of the population there and the consumers are wedded to the cheese made from only buffalo milk, any deviation from the standard creates furor and anxiety amongst them. It was not long ago that there was the episode involving large scale "adulteration" of buffalo milk with cow's milk for making mozzarella cheese raising wide scale hue and cry in the country forcing confiscation of those consignments suspected to have contained traces of cow's milk solids.

More than 50% of the cheese made in Italy uses milk supplies coming out side its border and it is difficult to trace the source of contamination if and when it occurs. Dioxin tainted cheese found some time back in the market also caused some discomfort to the safety authorities highlighting the difficult logistics of surveillance in the continent with practically no border restrictions on trade. It is understandable that Italians are touchy about the quality and safety of mozzarella cheese as more than 60% of the population consume this milk product regularly, that too in significant quantities. Though there have been no major out break of food poisoning on account of mozzarella cheese, occasional minor Salmonella contamination episodes are reported but very infrequently. Some of the microbial contaminants found in cheese include Psuedomonas spp, Enterobacter, E.coli, Enterococcus, Klebsiella pneumoniae and some yeasts and molds. Generally the product is traded when it is not less than 5 days old and not more than 15 days old at a temperature of 4-6C.

It is against this context one has to see the latest mozzarella contamination episode which occurred in some parts of Italy According to reports, the food safety authorities in northern Italy seized a batch of 70,000 mozzarella that turned blue once they were removed from their packs, triggering emergency control measures by them. The particular cheese, was imported from Germany for an Italian distribution company that sold it to discount supermarkets in the north of the country. The much vaunted European "rapid alert" system was launched informing all concerned about the the contamination. What is interesting is that it was left to an alert consumer to inform the authorities by sending images from her mobile phone of the soft, white cheese immediately turning blue once it came into contact with air and action was promptly taken to take off the affected cheese from the shelves to prevent any untoward incidence of food poisoning. Though initial assessment indicated it to be bacterial rather than toxic contamination, the incidence has baffled many experts calling for further investigation about the cause. The possibility of the blue color development due to presence of copper, nickel or lead in the milk or the aqueous solution used to preserve the cheese was not ruled out. As no consumer reported falling sick due to consumption of this "blue" cheese, the incidence did not create any serious consumer backlash though more vigilance is being advocated for cross country food trade.

The above piece of news is remarkable viewed from three angles. First it reflects the keen sense of consumer vigilance and responsibility as the abnormality in the cheese was noted first by a consumer who alerted the concerned authorities through a mobile phone where after the decision for recall was taken as a precaution. Second the excellent rapid alert system that operates in the EU for meeting such contingencies. Last, it speaks volume about the commitment to safety by the industry as exemplified by the prompt and voluntary decision by the distributor to recall all the products from the retail shelves with minimum loss of time. All the three stake holders in the safety assurance frame work, consumer, authorities and the industry deserve kudos for their role in tackling this unfortunate incidence with damage to none.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

THE TRACEABILITY TOOL-BECOMING AN INDUSTRY STANDARD

With the food-borne diseases capturing world-wide attention, traceability has become a priority area of consideration so that such out breaks and costly market recall of suspected products can be avoided as much as possible. The problem assumes serious dimension under a global trade regime that depends on food resources and ingredients used by the industry from different corners of the world. While many developed countries are formulating policies for putting in place a dependable traceability program, some industry players are taking a proactive stand by implementing their own voluntary traceability plans.

Those products undergoing minimum processing and made from lesser number of ingredients are easily amenable to any new requirements for making the information about supply sources. But it becomes complicated bordering on nightmare when it comes to products containing dozens of ingredients sourced from different parts of the world. The "one up and one back" approach evolved a few years ago is relatively easy to be accomplished and possibly if every one in the supply chain keeps the supply source record, it should be possible to identify all the players involved through elaborate investigations, though it may take quiet some time to get the full details. The present clamor for full traceability vis-à-vis the final product by the manufacturer has to be understood in this context. The surmise is that in the event of any suspected episode, the entire sequence and the players involved can be traced instantly. Electronic tracing will eventually become an industry practice in future.

A manufacturer of chocolate bar in the US recently introduced a "choc-o-lot" code, a series of numbers that customers can plug into the company's website revealing where the cocoa beans in that bar were grown and who grew them. The idea is to introduce customers to the farmer in Ecuador, Mexico or the Philippines who cultivated the bar's essential ingredient. Tracing the chocolate from the bean to the bar is an elaborate exercise and this ability to track an ingredient from origin to destination is what is accomplished by this small chocolate company. Fritto-Lays Inc, the potato chips giant, initiated its own efforts under the "chip tracker" program under which consumers can track electronically the journey of potato from the farms to the factory. The fruit berry company, Driscoll's have the traceability sticker on the pack to inform its buyer about the history of the produce marketed by them while Chiquita company has put in place its "Leaf Locator" program for the lettuce it is marketing.

While 100% traceability is a desirable goal, whether it can be enforced across the entire spectrum of food industry under the prevailing situation is an issue that requires more attention to the details of logistics and other constraints coming in the way. Imagine the tribulations of a company dealing with a produce like tomato which are accessed from different sources for supply to the market after a series of operations. Tomatoes are plucked at different stages of half ripening, cleaned, sorted, packed, labeled and dispatched to the market. Naturally any given pack can have tomatoes coming from more than one farm and how difficult it can be to trace any contamination when suspected, to any original source. Under a strict traceability regime, the processor will have to have separate handling facilities for produce coming from different sources or at least separate storage facilities for each supplier. Same applies to all food materials as blending, mixing and pooling are standard operations in food processing industry for maximizing quality, safety and profitability.

In a country like India traceability will remain a pipe dream with millions of growers supplying the raw materials to the industry and millions of retailers peddling the processed products through their small outlets. Probably few retailers in the organized sector may be able to achieve some traceability because of their ability and capacity to link with large growers with traceable address. But eventually all countries have to fall in line if traceability becomes a pre-requisite for international trade under the WTO regime.

V.H.POTTY

http://vhpotty.blogspot.com/

http://foodtechupdates.blogspot.com