Sunday, July 11, 2010
Product recall is bedeviling the food industry, with increasing vigilance and monitoring of the quality and safety of foods put on the market shelves, under the watchful eyes of the authorities vested with the responsibility of food safety. It is to be expected that with HACCP system and various other quality management tools available to the industry, the incidences of costly product recalls would come down dramatically but the ground reality does not bear out this optimism. Last year's peanut contamination incidence in the US is estimated to have caused a loss of $ 70 million to Cadburys by way of recall of some of their products containing the contaminated peanut butter. Supply chain uncertainty and traceability logistics pose critical challenges for the food processing industry to have 100% certainty about the safety of the products they manufacture in their facilities however good they may be. This calls for evolving a method to insulate the industry from financially debilitating product recall episodes and prevent going bust in the process.