@Risk

Last Thursday, Jodi Nudelman, Regional Inspector General for Evaluations and Inspections from the Office of Inspector General, U.S. Department of Health & Human Services, testified before the Subcommittee on Oversight and Investigations of the House Committee on Energy and Commerce about the safety of the nation’s food supply.

Her remarks were reminiscent of an earlier speech by Dr. Margaret Hamburg, Commissioner of Food and Drugs, and served to underscore the current vulnerabilities of our food supply chain.

Here are a few of the startling specifics: (more…)

Earlier this month, the Kroger Co. became the first national retail chain to encourage its suppliers to subscribe to Rapid Recall Exchange, an online service that standardizes and accelerates food and product recalls and withdrawals.

The Rapid Recall Exchange, developed by GS1 US in collaboration with the Food Marketing Institute and Grocery Manufacturers Association, is the industry’s only online standardized recall notification system. It uses consistent forms and processes, so that when a recall is issued, retailers receive the same complete information, including product images and handling instructions.

Kroger, the largest traditional grocery retailer in the US, is asking all of its suppliers to subscribe by July 1, 2010. Once subscribed, suppliers using the Rapid Recall Exchange can quickly alert retailers and provide all critical recall information in one communication – 24 hours a day, seven days a week. This will enable Kroger to quickly remove recalled products and reach out to customers with detailed information about the recalls. (more…)

Most foodborne illness outbreaks are from non-produce food items, according to a new report from the Alliance for Food and Farming. The report, which analyzes Centers for Disease Control data associated with foodborne illness outbreaks, found that from 1990 to 2007:

• 88 percent of foodborne illness outbreaks were from non-produce food items. (See examples here and here.)

• 12 percent of all foodborne illness outbreaks were associated with produce.

• Of this 12 percent, more than 10 percent  were associated with improper handling of produce after leaving the farm. For instance, 65 percent of outbreaks traced back to a produce item can be attributed to improper handling in a restaurant, most likely the result of cross contamination or improper employee hygiene.  Mishandling at community events caused 14 percent of the produce-related outbreaks, followed by mishandling in the home –which represents 13 percent of outbreaks associated with produce.

• 2 percent of produce-related outbreaks were associated with the growing, packing, shipping or processing of produce.

This is the second time the Alliance for Food and Farming has conducted a review of the CDC databases. The first review, based on data from 1990 through 2004, resulted in similar findings, indicating that illnesses associated with produce are still low despite some recent outbreaks. (more…)

A new study by a former U.S. Food and Drug Administration (FDA) economist estimates that the total annual health-related costs of foodborne illness across the nation is $152 billion annually – four times that of earlier estimates calculated by the U.S. Department of Agriculture.

This total is based on an FDA cost-estimate approach: health-related costs are the sum of medical costs (physician services, pharmaceuticals, and hospital costs) and losses to quality of life (lost life expectancy, pain and suffering, and functional disability). It includes the costs of medical bills, lost wages and lost productivity. (Note: These are health-related costs only. An aggregate economic impact total that included losses to food manufacturers and distributors involved in recalls would be significantly higher.)
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Supply chains involve people, and that means there are always embedded risks from “the human element.”

Employees quit. They strike. Sometimes they get sick and can’t work. And occasionally, an employee who’s an integral component of your supply chain will lie, cheat and steal in a manner that could threaten your company’s entire future.

Think I’m exaggerating? I’m not. For proof, take a look at “Bribes Let Tomato Vendor Sell Tainted Food,” an article published last week in The New York Times.

In the article, reporter William Nueman reveals that federal agents have uncovered a startling, widespread scheme of corruption in the food industry. SK foods, one of the nation’s largest tomato processors, is at the center of the plot because according to federal prosecutors, SK Foods’ owner and others there offered bribes to a handful of corporate buyers in exchange for lucrative contracts and confidential information on bids submitted by competitors. (more…)