Challenges in Processed Food Logistics and Labelling
By Arnon Melo, President Mellohawk Logistics
“In today’s globalized food industry, processed foods play a significant role in meeting the demands of consumers worldwide. From canned goods to frozen meals, processed foods offer convenience, shelf stability, and often lower prices. However, behind the convenience lies a complex network of logistics and labelling challenges that the industry must navigate to ensure consumer safety and regulatory compliance.
In the dynamic landscape of processed food logistics and labelling, small and medium-sized enterprises (SMEs) face unique challenges alongside opportunities for growth and innovation. From managing costs and logistics to navigating regulatory changes, SMEs must adopt strategic approaches to succeed in this competitive industry.
Managing the supply chain for processed foods involves coordinating multiple steps, from sourcing raw ingredients to delivering finished products to retailers. With perishable ingredients and tight production schedules, any disruptions can lead to delays or shortages, affecting product availability and consumer satisfaction. During the pandemic these disruptions become even more chaotic and complex causing logistics prices to skyrocket which were eventually passed on to the final consumer. Even thought the pandemic is over and logistics costs have come down, we can still have disruptions caused by war and political uncertainty in many parts of the world.
Maintaining optimal inventory levels can help SMEs minimize storage costs and reduce the risk of wastage. Implementing inventory management systems and adopting lean practices can streamline operations and improve cost efficiency, not to mention choosing logistics partners that can help structure and optimize supply chain and routes.
Building strong relationships with suppliers and negotiating favorable terms can help SMEs secure competitive pricing for raw materials and packaging. Exploring alternative suppliers and bulk purchasing options can further reduce procurement costs. I cannot stress enough the importance of networking, making connections and building relationships in your supply chain.
Optimizing transportation routes and consolidating shipments can help minimize transportation costs and reduce carbon emissions.
When selecting partners for logistics and transport, SMEs should prioritize reliability and reputation. Conducting thorough background checks, requesting references, and assessing past performance can help identify trustworthy partners who can meet delivery deadlines consistently. In Canada we are blessed to count on the Canadian International Freight Forwarders Association, CIFFA (www.ciffa.com). For 75 years CIFFA has been the voice of supply chain in Canada and abroad offering a list of Freight Forwarders, freight broker, customs broker, warehouse operator or drayage operators to help importers and exporters navigate the complex world of supply chain.
Depending on the nature of their products, SMEs may benefit from partnering with logistics providers with expertise in handling perishable goods or specialized packaging requirements.
Logistics providers can leverage technology solutions such as real-time tracking and inventory management systems that can enhance visibility and transparency throughout the supply chain. Integrating technology can improve communication, minimize errors, and optimize resource utilization.
Collaborating with partners who understand the unique needs of the processed food industry can mitigate risks and ensure smooth operations.
SMEs must stay abreast of legislative changes and regulatory updates that may impact processed food logistics, labelling, importing, and exporting process. Subscribing to industry newsletters, attending seminars, and seeking guidance from regulatory experts can help SMEs navigate compliance requirements effectively. Information is a crucial tool.
In Canada we rely on the Canadian Food Inspection Agency, CFIA, for guidance and ruling on the labelling, importation, and distribution of food items. Since 2019, CFIA has changed, significantly, the way we import, manage, and distribute food across Canada. Depending on the items further authorization will also be required from Health Canada. Canada prides itself on being a multicultural society, where diverse cultures, languages, and traditions coexist harmoniously. However, this rich cultural tapestry also presents complexities and challenges when it comes to controlling the importation of food from around the globe.
With the rise in food allergies and intolerances, accurately labelling allergens is crucial to protect consumer health. However, identifying and labelling all potential allergens present in processed foods can be challenging, especially when dealing with complex ingredients or cross-contamination risks during production.
Providing accurate and comprehensive nutritional information on food labels helps consumers make informed choices about their diet. However, determining the nutritional content of processed foods can be complicated due to variations in recipes, serving sizes, and processing methods. Additionally, keeping up with changing nutritional guidelines and requirements adds to the challenge.
Food labels often feature various claims and marketing messages designed to attract consumers, such as “natural,” “organic,” or “low-fat.” However, ensuring that these claims are truthful and not misleading requires careful scrutiny and adherence to regulatory guidelines. Misleading or false claims can damage consumer trust and lead to legal repercussions for manufacturers.
When exporting processed foods to international markets, manufacturers must comply with the labelling requirements of each destination country. This may involve translating labels into multiple languages, adjusting nutritional information to meet local standards, and ensuring compliance with specific regulations unique to each market. In Canada food items can only arrive in Canada and be imported having the mandatory labeling guidelines as per CFIA. Food items must leave the origin country and arrive in Canada with proper nutritional labelling, and it should be in English and In French, to avoid any delays at clearance. No longer any food items can be labeled after it arrives in Canada and it is cleared thought Canada Customs, which was the case prior to 2019.
If I could suggest some tips for SMEs I would say invest in training and education. Providing ongoing training for employees on food safety protocols, labelling regulations, and best practices in logistics can enhance compliance and operational efficiency.
Collaborating with industry peers, trade associations, and regulatory bodies can provide SMEs with valuable insights, resources, and support networks to overcome common challenges and stay competitive.
Embracing sustainable practices not only aligns with consumer preferences but can also result in cost savings and operational efficiencies. SMEs can explore opportunities to reduce packaging waste, optimize energy consumption, and minimize carbon footprint across their supply chain.
In conclusion, SMEs in the processed food industry face countless challenges in logistics and labelling, but with strategic planning, partnerships, and a proactive approach to compliance, they can navigate these complexities and thrive in the marketplace. By focusing on cost management, selecting reliable logistic partners, staying informed about legislative changes, and embracing innovation, SMEs can position themselves for long-term success and growth not only in Canada but abroad.”