The Cost of Food Safety

The current effects of the largest recall in U.S. history, that of peanut contamination, has caused and continues to cause massive product recalls throughout the United States and into other countries.

The company which had the issues and initiated recalls has filed for bankrupcy protection. It certainly has exceeded its level of insurance protection and asset protection.

Who does this affect and what is the cost? Certainly, the families who lost a loved one and those that suffered illness, have real medical costs and have suffered emotionally.

The employees, who no longer have a job, have lost their income. Eventually, since this has happened in the worst economic times since the early 70's, they could lose their homes, cars, etc. They can be on unemployment, food stamps, government assistance programs. They are not working so they do not pay taxes, which increases the burden on the local economy, the state and the U. S. economy.

The businesses in their communities suffer because they lose a customer base.

All the companies that initiated a recall, and the list continues to grow, have suffered loss that will be in litigation for some time. This affects the financial stability of these companies.

An article today by an insurance company, addressed the availability of insurance to handle these type of cases. The manager stated that the food company first needed strong quality, traceability, recall and crisis management programs in order to be considered for this insurance. Certainly, this recall has affected the rates for this insurance.

Good Manufacturing Practices, a complete HACCP plan, a working Quality program must be part of the process. We have focused a great deal of effort on finding better ways to improve speed of recall to protect the public. More work is needed to make an effective program for the entire food industry.

However, if we place more effort on education and practices in our plants, we can effectively reduce and control liability to our companies and to the public. A strong food ethics program is critical to this process.

I will comment more on this in future communications.

I look forward to discussing your situation or concerns.
Contact me at rudy@powerinlearning.com

Until then be safe and be questioning.

Rudy

Who do you trust?

When you are a customer, you have to believe in the wholesomeness of food products being sold in our supermarkets and restaurants across the country, if you are going to purchase and consume food. Or, raise your own food! Probably not for most Americans.

Our government inspection systems were set up to develop standards for operators to produce wholesome products. The regulatory agencies depend on their teams of inspectors to assess the adequacy of the system.

Our food companies have the responsibility to interpret the rules and implement them, so that they are safeguarding their products. They have to rely on all of their employees to follow the rules and procedures.

In today's world, raw materials and finished products enter our food supply from many sources, foreign and domestic. As a purchaser how do you trust that it meets the standards necessary to be used in the manufacture of your products or to be sold on your shelves?

The basic word is TRUST!

With this latest peanut disaster, TRUST has been destroyed.

A major food company announced that its inspections of the manufacturer resulted in superior inspection results. These audits were performed by an outside trusted firm. Could they have been incorrect? Maybe not. As a purchaser, how in depth an inspection are you allowed? How in depth do you ask for? Is a letter from the supplier that it guarantees that it meets regulations enough?

I suspect that if insurance companies continue to pay out big amounts for clients that do not have proper controls to avoid or reduce liabilities, they will raise rates, change legal contracts and force inspections of companies.

I suspect that we will continue to see more government direction and involvement.

I suspect that it is time for our manufacturers to ask for and demand more transparency from their suppliers and more access to their facilities.

I also suspect that in response, suppliers will be less open and provide less access, than ever before.

In today's economically challenged world, where does FOOD SAFETY fit?

That choice is up to each of us.

Be informed! Challenge the process! Contact me for specific solutions for your specific needs!
www.powerinlearning.com
rudy@powerinlearning.com


Rudy

Reduce Recalls, Improve Effectiveness

Since January 28th, when the Peanut Corporation of America expanded its recall of peanuts and peanut products, over 40 companies have announced associated recalls of their products.

While work is being done in the U.S. and around the world on developing better trace and track and recall systems, we are still a long way from agreeing on a format, a useable system that can be used by all companies. In order to be effective a recall system must be useable by small, medium and large companies. Efforts must be made to control the cost impact to the companies and the consumers.

Any system in order to be effectively utilized by the CDC or FDA or other regulatory agencies will require partication by all food companies. If industry drives the process with advice from government agencies the chance for adoption will improve. Although most people feel we need an effective system, most do not agree on who must accept the cost and burden.

Two food safety directions must be followed. The first must be to continue efforts to reduce the need for recalls by improving the checks and balances in the manufacturing plants. This takes training, monitoring and daily involvement of plant operations, quality control, suppliers, and consultants.

The second piece is an effective recall process. One that can find common components or products and remove them from the market in a shorter period of time. It cannot take weeks and months to complete the process.

I am involved in work on both fronts. Feel free to contact me for further information and discussion.

Be safe out there...
Rudy

rudy@powerinlearning.com
http://www.powerinlearning.com/