The Challenges of Food Safety in the Age of Global Supply Chains

Consumers, food brands, and farmers are facing a collective crisis: the constraints of the supply chain, which can hinder the safe handling, preparation, and storage of food. According to the CDC, foodborne illnesses affect one in six Americans a year. In other words, roughly 48 million people in America are impacted annually, with 128,000 of them being hospitalized and 3,000 dying as a result of the illness.

As these numbers skyrocketed over the past few years, consumers have grown increasingly conscious of the importance of food safety and are demanding greater transparency regarding the origin and journey of their food.

When there is a potential threat to consumer safety, manufacturers have to remove the product from store shelves as fast as possible. However, correctly identifying the source of a problem requires up-to-date and reliable data, which poses a challenge in the context of global supply chains that rely on outdated practices.

Supply chain issues and food recalls cause massive financial damage

Instead of being able to pinpoint the issue, manufacturers often have to initiate a widespread recall of the product, which can have a negative impact on a brand's reputation and cause significant financial damage. The average cost of a food recall amounts to around $10 million in direct costs, and it creates a lot of food waste. The damage to brand reputation may be even more significant - Back in 2012, a survey of consumers showed that 55% of consumers would switch brands temporarily following a recall - and 15% would switch permanently.

Additionally, a study from 2019 found that the number of overall food recalls increased by 10 percent between 2013 and 2018. Addressing consumer food safety concerns and ensuring that food is safe for consumption is vital in the foods and beverages industry.

However, unexpected costs like these can lead to severe adverse effects for farmers. For example, according to the findings of a study published by the Congressional Research Service in July 2022, about 30 percent of all U.S. farms have farm debt.

Consumers also suffer in the event of mass recalls. Mass wastage and abrupt shortages impact the supply-demand economics heavily causing prices to shoot up.

Modern food supply chains pose a threat to the environment

Food recalls decrease revenues and supply, but demand will most likely stay unchanged. As a result, financially strained farmers may be compelled to increase their production to offset the loss of income. However, this approach often leads to superfluous supply, which then drives down prices and perpetuates the need for more production. This leads to a vicious cycle that can result in the erosion of natural resources, creating an imbalance in the ecosystem. Ultimately, it negatively impacts the quality of future production.

Overfarming can not only lead to immediate issues, such as lower crop yields, but it can also cause debilitating long-term damage to soil fertility and the overall ecosystem. Overfarming can deplete soil nutrients and result in soil erosion. Alarmingly, this issue is not exclusive to farming and extends to all food production systems dependent on natural resources. For example, overfishing can disrupt the balance of marine ecosystems and harm the sustainability of fish populations.

The root cause is often a focus on short-term gains and financial needs instead of sustainability, which can ultimately lead to significant harm to the environment and future harvests. Consequently, it is important to prioritize sustainable practices to ensure the long-term health and productivity of natural resources.

How emerging technology can make supply chains more sustainable

Traditional supply chain tracking systems use outdated technologies and practices t are dependent on manual input for tracking and tracing food storage conditions and other critical data. This introduces lags in information gathering, significantly delaying the identification of potential issues. They are also susceptible to tampering and fraud, which further compromises the safety and integrity of food supply chains.

Modern supply chains are complex with networks now spanning various entities across the globe, and visibility is a critical issue making effective monitoring tough for regulatory bodies like the FDA. So, companies are now facing the pressure of new compliance requirements from these agencies.

To address these issues, modernizing supply chains with advanced technologies, such as blockchain, artificial intelligence, and the Internet of Things (IoT), is necessary. Immutable blockchain technology can enhance supply chain visibility, trust, efficiency, and security to ensure the quality and safety of the food supply.

Farm to Plate, a blockchain-based food track & trace solution, built on GS1 standards and compliant with FDA FSMA Rule #204, aims to be an end-to-end solution for stakeholders in different stages of the supply chain.

CEO Pramod Sajja also founded Farm to Plate's parent firm Paramount Software Solutions, a leading IT Staffing and Solutions brand with a commitment to utilizing technology to help people.

Built on similar principles, Farm to Plate's technological innovations will be aimed at solving problems for real people and communities and working towards a healthier planet.

The platform utilizes blockchain technology to provide accurate and immutable data in real-time. Additionally, it automatically collects data through IoT devices to facilitate efficient and reliable tracking of food spoilage, ensuring consumer safety and satisfaction. With complete origin traceability, it also eliminates the need for mass food recalls.

Furthermore, Farm to Plate has introduced an innovative micro-tipping feature that enables consumers to support farmers directly. By scanning a QR code, consumers can easily track the journey of their food all the way back to its producer and utilize the Microtip functionality to show their appreciation. This Microtip system has the potential to make a significant impact, especially for farmers in developing nations.

The platform uses open industry standard technology to seamlessly integrate with its clients' current software infrastructure and offers tailored solutions to enable tracking and tracing across the entire supply chain. Farm to Plate uses technology simplification to be more inclusive of contributors in the supply chain and is usable by anyone with access to cell/smartphones.

With sustainability being a priority, Farm To Plate benefits all stakeholders in the food supply chain.