The food and beverage industry faces significant challenges related to food contamination. As risks evolve, businesses must review their risk management strategies and risk transfer solutions to effectively mitigate and respond to potential recall events.
A recent example illustrates this point. A well-known distributor found that one of its most popular products was linked to a potential outbreak of foodborne illness, forcing the urgent recall of the item and sparking financial and reputational repercussions.
Data from the FDA shows that recalls due to potentially dangerous contamination remain a persistent concern for the industry. The Centers for Disease Control and Prevention (CDC) documented nine distinct foodborne outbreaks in October alone.
The risk of product recall and/or contamination remains severe across all stages of the supply chain. Investing in technology that enables real-time tracking of products, regular audits and assessments of suppliers, and conducting a thorough analysis of agricultural practices can help mitigate these risks.
Climate-related events are expected to continue impacting food and beverage companies, potentially leading to variability in crop yields, damaged infrastructure, and changes in growing seasons. Organizations must consider conducting a climate resilience assessment of physical infrastructure and operations to evaluate potential impacts from climate-related events that may disrupt operations.
Regular tabletop exercises can prepare organizations to respond effectively to food safety risks before a recall event occurs. Building a culture of awareness and preparedness begins at the top, with leadership teams identifying core action items and reinforcing communication best practices among teams and stakeholders.
Quantifying food safety performance is essential to determine whether an organization is meeting regulatory requirements and maintaining high standards of safety and sanitation. Developing clear, quantifiable food safety metrics that align with operational goals can help organizations assess their performance and create a culture where food safety is viewed as a core value.
Effective risk transfer solutions are also crucial in managing food safety exposures. Organizations should consider engaging with a third-party risk advisor to effectively transfer risks associated with foodborne illness out of their organization, or offer solutions that leverage real-time data and AI to help pinpoint sources of contamination in supply chains and respond more efficiently.
Source: https://www.marsh.com/en/industries/food-beverage/insights/strategic-actions-to-mitigate-food-contamination-risks.html