Improving food safety and security across your supply chain

Organisations that focus on building resilience can successfully counteract the risks of food safety and security. This is unpacked further by the local division of the BSI Group*, which produces technical standards on a wide range of products and services, and supplies standards certification services for businesses and personnel.

According to the World Bank, the food system accounts for 10% of worldwide gross domestic product, but it’s a complex web that faces countless safety and security challenges. From extreme weather conditions affecting crop yields to critical energy shortages, food industry organisations are vulnerable. As consumers continue to demand greater transparency about their food, what can the industry do to create a positive impact? Here, we look at the key risks at play in the modern food system and explore how organisations can approach mitigating these risks.

The risk of food fraud

Fraud in the food industry has the potential to cause health risks to consumers, as well as financial losses throughout the food supply chain.

Any product that’s deliberately altered, misrepresented, mislabelled or tampered with comes under the umbrella of food fraud. This might occur in the raw material, an ingredient, the final product, or the food’s packaging.

Recent times have seen a steep rise in food fraud incidents, such as the discovery of counterfeit coffee in Ukraine’s Transcarpathian region, as well as reports of attacks on the alcohol industry, with ingredients like methanol, isopropyl alcohol, and industrial alcohol being used to substitute food-grade alcohol. 

The consequences of food fraud on a business can be damaging both in the short term and the long term – incidents of theft or cybercrime can create financial costs, fines, reputational damage, and a loss of consumer confidence. There are several other risks that can also pose a challenge.

Theft and physical security

Theft is one of the biggest risks to the global food supply chain. Food and beverage thefts increased significantly between 2021 and 2022, with almost one in five (or 18%) of all global cargo thefts being of food items. This is likely influenced by extreme weather events and rising energy costs triggering global product shortages and price spikes for certain goods.

Cybersecurity

As agricultural and livestock production become increasingly digitalised, organisations need to ensure resilience against cyberattacks. Organisations that can adapt quickly to digitalisation have the opportunity to avoid disruption or financial loss. 

In recent years, these kinds of cyber challenges have increased. In 2022, for example, cybercriminals based in Russia hacked a multinational meat production company, halting production in Australia and some US states. 

In addressing these online attacks, authorities such as the FBI, Food and Drug Administration (FDA), and the US Department of Agriculture have warned organisations to introduce more vigilant online supply chain security as cybercriminals increasingly target shipments of food and drinks.

Reducing the risks of food fraud

Organisations that focus on building resilient and trustworthy supply chains have the opportunity to successfully counteract these risks by adopting proactive approaches.

• Setting up supply chain risk intelligence looks at historic data to spot trends. Using real-time alerts, food companies can be proactive instead of reactive.
• Introducing a supplier risk management tool can help businesses increase transparency and understanding about their suppliers. It includes creating rigorous measures for auditing suppliers and tracking products throughout the supply chain.
• Investing in advanced testing and detection for common adulterants and contaminants – as well as using technologies such as blockchain and DNA analysis – makes it easier to verify products and know if they may have been tampered with.

Today, consumers are more aware, conscious, and demanding than ever and want to see clear labelling and product authenticity. By putting the right tools in place to deliver this, as well as protect their supply chain security to reduce risks, organisations can be more resilient and effective in the sector.

* This is an edited version of an article from BSI Group South Africa’s blog post: “How to Maintain Food Safety and Security in Supply Chains”.