Last month, your supposedly healthy extra lean ground beef could have contained traces of E. coli bacteria. Two months ago, your baby's organic food bag could have had a defect that allowed food spoilage microorganisms to be introduced.
Since the beginning of 2018, the CFIA has issued 198 food recalls. In 2017, there were 154 recalls involving everything from flour to beef products. The recalls were caused by incorrect labelling, undeclared allergens and bacterial contamination.
A health and commercial issue
As a food consumer, you’re right to be concerned about the frequency – and variety – of recalls due to contamination. As a food business owner, your concern is likely even greater.
In addition to human costs, a food safety crisis often results in:
a significant disruption to the company's operations
damage to reputation and brand image
a loss of income, both short and long term
For most Canadian business owners in the food and beverage industry, the costs associated with a single recall can have a significant and lasting impact, even if their business is not responsible. For example, in 2006, the U.S. spinach industry experienced a 20% drop in sales and $350 million in losses following a major recall. The entire industry suffered from the actions of a limited number of producers. Both small and large companies saw a significant decline in spinach consumption, regardless of which companies were affected by the recall.
Know the total cost of a food recall
The costs of a large-scale recall can be enormous, compared to the immediate costs of removing the product from shelves and refunding customers. Other related costs include:
labor and storage costs for destruction of contaminated products
costs incurred in decontaminating facilities and physician database equipment subject to strict regulation by government agencies
costs for specialist personnel responsible for decontamination and tests to demonstrate its effectiveness
the costs of determining the cause of the contamination, a process that can take weeks or even months
costs to correct failure points in the food production system that contributed to contamination
costs related to damage to the company's and industry's reputation, which may have long-term consequences for sales
Common Causes of Food Recalls
Companies often assume that food contamination is caused by a single factor. However, recent recalls have shown that multiple failures in production and control processes are at fault.
The lack of a risk-based approach to food safety and product quality.
Lack of good manufacturing practices.
Poorly maintained processing facilities and equipment.
The absence of a traceability system in the product supply chain to detect food fraud and contamination.
The absence of hazard analysis and critical control point ( HACCP ) programs.
Strategies to Minimize Recall Risk
Since the majority of food recalls occur due to operational errors (which the company can often avoid), management commitment and investment in a food safety management system should be a priority.
Developing and implementing a HACCP-based program should be the primary proactive measure for a company concerned with managing the risk of product contamination and recalls. Compliance with one of the most stringent international food safety standards , such as SQF, CRC and ISO 22000 – assessed by the Global Food Safety Initiative (GFSI) – is also essential to reduce the risk of recalls. These standards have strict auditable requirements and aim to address the causes of contamination that are at the heart of the majority of food recalls.
Six questions to ask yourself to improve food safety
Companies that have successfully committed to implementing food safety systems have shared best practices. You should start by asking yourself the following questions:
Is food safety a daily concern in our company's activities?
Does our approach to food safety go beyond minimum compliance with regulatory requirements?
Does everyone (not just our staff) in our supply chain – from our raw material suppliers to our distribution partners – have to adhere to the same food safety standards?
Are all elements of our production system actively assessed and monitored for risk management purposes – from staff health and hygiene to pest control and the sanitation of facilities and equipment?
Are food safety protocols clear, relevant, rigorously communicated and well understood, and are activities well documented and audited regularly?
Have we implemented a traceability system throughout the chain for our product?
Food recall and food safety management systems
Given the recent changes made by the CFIA under the Safe Food for Canadians Regulations , investing in the above measures to control and minimize product contamination is no longer an optional extra for many food businesses, but rather a requirement to continue operating.
The CFIA is taking a more rigorous approach to risk management, with a focus on traceability, to improve the safety of Canada's food supply chain. It is now up to everyone involved in the supply chain to take a proactive, prevention-focused approach to ensure that consumers can trust and deliver safe products, starting with the frozen berries in their morning smoothie.
Rowda Mohamud - Senior business advisor at BDC
Rowda Mohamud
Senior Business Advisor
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