FSMA on Small and Mid-sized Suppliers

What doesn’t kill me makes me stronger is no longer an attitude most can afford.

FSMA, the Food Safety Modernization Act is here. Signed into law in 2011, final and proposed rules are in place. The Institute of Food Technologists (IFT) website has a convenient chart describing the timing of proposed and final rules. Many companies have FSMA training completed or scheduled for their staff, especially larger, global suppliers. Despite the headlines and publicity, many small and midsized suppliers may not be prepared to meet the new regulations. (For reference: Link to US FDA FSMA Source)

The Food Safety Tech website recently posted a piece by Randy Fields titled Despite Exemptions, Compliance Will Not Be Optional For Small Suppliers. (Link to Source) The author starts with a well publicized food safety case that made national headlines as one of a continuing saga of such cases that appear each year. Most importantly, the piece notes that in an earlier case not only the supplier who declared bankruptcy and went out of business, but the country’s largest retailer were sued, a case that ended in an out-of-court settlement. The message is clear, “both suppliers and retailers are now responsible for everything they sell.”

With FSMA finalization now underway, the FDA “mandates that retailers and suppliers have documentation that verifies their supply chain’s regulatory compliance is readily accessible for government inspection.”  As noted above, the largest suppliers, ones that typically sell the majority of our foods are likely to have procedures and systems in place for both production and distribution, minimizing their risk. And because they have “deep pockets”, they are likely to hold themselves to a very high standard to avoid problems, bad publicity and potential litigation. With these companies, outbreaks on a national scale are possible which means national headlines, giving any investment they make in food safety a high priority.

The author notes one significant concern for small businesses: wholesalers and retailers may find the risk of using small businesses that may be exempt from FSMA requirements and that may not have the resources or knowledge to supply FSMA documentation to major retailers too great, leaving these suppliers for other sources. Suppliers of fresh, locally grown produce and foods could be in this category.

What can these small, local concerns do? Fortunately the author notes that “affordable, interoperable systems have been developed to address the market need for receiving, storing, sharing and managing regulatory, audit and insurance documentation.” Employing such systems can allow “suppliers of any size can also track products as they move through the supply chain and trace them back in the event of a recall” should one be necessary. Of course with the proper HACCP plan in place to augment such systems, small suppliers will have the tools to make such an event unlikely.

Figure 2. Kate’s Homemade Butter http://www.kateshomemadebutter.com/ (left) and Figure 3. Vermont Creamery http://www.vermontcreamery.com/ (right) are carried by major market and specialty food stores across the U.S. These and thousands of similar, regional, small, specialty product manufacturers and distributors will need to examine the impacts of FSMA and take actions to insure their continued success

A key takeaway is “having a comprehensive food safety system is quickly becoming a competitive advantage.” Local, specialty products that are desired by consumers can provide small suppliers with a loyal consumer base, one willing to put a premium price on such products. Larger retailers who carry these products may become increasingly risk averse. Employing both HACCP and FSMA to their operations can help insure continued success for these small businesses.