One of the food industry’s biggest threats to profitability is recalls. A product recall occurs after the discovery of safety issues or defects that might endanger consumers or cause them to become sick. Recalls can also put the manufacturer or distributor at risk of legal action.
In the last decade, food recalls have increased dramatically. From 2010 to 2019, the USDA recalled around 250.18 million pounds of food. These recalls have impacted nearly every enterprise-class food manufacturer, processor, and distributor at one point or another. Recalls are often the result of deficiencies in food production and monitoring processes. These include:
- Non-compliance with good manufacturing processes (GMPs)
- Failure to maintain food processing facilities and equipment
- Non-compliance with their own standard operating procedures
- Weaknesses in their hazard and critical control points (HACCP) analysis
- Inability to track products through their supply chain
Ultimately, these failures have an immense business effect, which can be boiled down to three categories.
Ultimately, food recalls occur because there is a possibility that the product is contaminated or mislabeled. This indicates a breakdown in the safety processes and procedures of the food manufacturer, and that’s something you must work to rectify in your facility for your consumers.
A couple of ways you can do this is through food grade fumigation and chlorine dioxide room decontamination. These processes can help reset the microbial environment and assure clean production. And we know that clean food production environments are more important now than ever before.
Following a food recall, your company’s brand will likely experience reputational challenges. To recover, you’ll need to manage the situation properly and proactively, so you can protect your existing customer relationships and rebuild your brand. This will take additional time, effort, and money. It’s critical that you confront this situation and take every precaution possible to prevent it from happening in the future. Often, this looks like updating your current food safety processes and best practices food grade fumigation and chlorine dioxide room decontamination.
3. Financial Repercussions
A recall is the food industry’s biggest threat to profitability. In fact, each recall costs an average of a full quarter’s worth of profits in addition to the value of the recalled product.
According to a joint industry study done by the Food Marketing Institute and the Grocery Manufacturers Association (now known as the Consumer Brands Association), the average cost of a recall to a food company is $10 million in direct costs. This is not including the additional costs in brand damage and lost sales.
Preventing recalls through proper cleaning and decontamination is possible. We recommend updating your safety process and best practices to include chlorine dioxide treatments like food grade fumigation and chloride dioxide room decontamination.
Has your food manufacturing company recently experienced a recall? PureLine can help disinfect your system with chlorine dioxide room decontamination and food grade fumigation processes that disinfect water systems, remove odors, and eliminate bacteria.
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