As someone who works in the food industries, you face a number of challenges. Besides the recent scandals over the contamination of produce, cheese and meat products across the US — just to name a few headline grabbers — food and beverage companies also face the tightening of an ever-evolving set of regulations, outlined in the 2011 Food Safety Modernization Act (FSMA). Add to this some costly operating margins, and any supplier quality issues, and these concerns can be overwhelming at times.
The quality of products in the food and beverage industry is intrinsically linked to health and safety issues. A product recall is not only costly to suppliers, but the negative press can also harm future business prospects. Furthermore, with the government’s changing requirements for record keeping, many executives in food manufacturing are being forced to revaluate their current technological capabilities for traceability and quality. You fully understand the importance of meeting food safety requirements and certainly wish to preserve your reputation for quality and avoid recalls or the risk of being shut down. While Food Manufacturing insurance cannot restore faith in companies involved in a food recall, it can help with any litigation issues that result from consumers affected by their products.
Some companies face shrinking operating margins
Additionally, the current global economy has forced companies to become more competitive than ever, which adds pressure to operating margins throughout the supply chain. To counteract this, several organizations are identifying areas for improvement, including the quality of products and processes. Genetic engineering technology does offer some potential benefits, but it also poses risks to human health and the environment that current regulations have not addressed effectively.
While food contamination and operating margins may top the list of concerns, you still have the responsibility of providing quality product to both wholesalers and consumers, and can protect the interests of your company effectively with Food Manufacturing insurance coverage.