FOOD SAFETY & COMPLIANCE
Can you afford to be non-compliant?
The real cost of poor hygiene practices in food manufacturing The food industry is arguably the sector most susceptible to damages caused by a breach in hygiene protocols and the costs reach far beyond damage to stock. Rentokil Initial explains the real cost of poor hygiene practices in manufacturing facilities.
THE COST OF PRODUCT RECALLS
the company’s chief executive put the total
water by a producer, personal hygiene
Product recalls are a major threat to any
costs of recalling the meat products at an
breaches and unsanitary food handling
food business. They disrupt operations and
additional R430 million.
practices, and pest infestations along the
cost the business time and money. Then
The effect on consumers is possibly the
there is also the indirect cost associated
most significant factor. A survey by Harris
supply chain.
with reputational damage: the loss of
Interactive found that 15% of consumers
that are potentially life threatening, such
consumer trust can result in significant
would never buy a recalled product again,
as Salmonella – outbreaks which usually
long-term financial losses. For example, one
and 21% of people at the centre of a recall
cause large food recalls. Stored product
of South Africa’s biggest food businesses
would not buy any product from the same
insects (such as weevils and beetles) are also
issued a recall of certain canned foods in
manufacturer again.
responsible for a number of recalls in grains,
Rats and other pests carry pathogens
cereal and dried food products.
July 2021, and the cost to transport, store, and dispose of the affected cans alone was
CAUSES OF FOOD PRODUCT RECALLS
estimated to cost them around R650 million.
The most common cause of food product
TYPES OF FOOD PRODUCTS RECALLED
This includes the cost of the recalled stock
recalls is biological contamination by
Raw foods are a major source of
being written off, but doesn’t even begin to
microorganisms and toxins (for example
contamination leading to product recalls
qualify the reputational damage done to the
Salmonella, Listeria and E.coli), which can
because they don’t go through the sterilising
brands concerned.
occur at any stage in the supply chain, and
phase of cooking. Consumers, therefore, rely
which mainly affect food which is supplied
on safe practices along the supply chain to
fresh or raw.
ensure food safety. Nuts, fruits, vegetables
The 2017 - 2018 listeriosis outbreak caused by contaminated cold-meat products cut the responsible food production group’s
Biological contamination can have many
operating income profit by R425 million, and
causes, including the use of contaminated
and dairy products are some of the major product types to be recalled. The direct costs of a food recall include: • A ssembling the crisis team • Removal of the product from market • Issuing notifications to regulatory bodies, affected businesses and consumers • Collecting the product from warehouses, retailers and consumers • Storage of the recalled product and destruction • Investigation of the root cause of the recall • Managing the PR to protect the business reputation.
"Rentokil Initial has a range of solutions to help reduce food safety risks at all stages of the supply chain." 30
March 2022 | FOOD RE VIEW
