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Buyer-led Food Safety Initiative Recap V

Jim Prevor’s Perishable Pundit, November 21, 2006

There is an ad-hoc group that started it all, the National Restaurant Association has its group working on a program and the Food Marketing Institute has a conference planned. All these buyer-led initiatives can get confusing, so to assist the trade in keeping track of them all, we are publishing this recap of coverage all in one place.

As new developments, occur we will continue to update this recap to help keep the trade organized on this important subject.

On September 25, 2006, in the midst of the spinach crisis, we published The Role of Retailers And The Future Of Food Safety, which pointed out that it is the “representations and warranties” that buyers demand that define the food safety programs we get:

“…in the end, the strength of our food safety systems is at least as dependent on what retailers demand as they are on what the government does for the simple reason that what retailers pay for is what they are going to get.”

Then in the issue of the Pundit’s sister publication, PRODUCE BUSINESS, which was unveiled at the PMA Convention in San Diego on October 21, 2006, we published Food Safety Is A Retail Issue, which pointed out:

“…what holds suppliers back is not that they need an FDA regulation — it is that they need to see a willingness on the part of buyers to pay more to obtain a higher level of food safety and security. So far that is missing.”

The Buyer-led Initiative for Food Safety was then announced. In time it came to be signed on to by nine important buying organizations:

Ron Anderson, Safeway, Inc.
David Corsi, Wegman’s Food Markets
Gary Gionnette, Supervalu Inc.
Reggie Griffin, Kroger Company
Mike Hansen, Sysco Corporation
Gene Harris, Denny’s Corporation
Frank Padilla, Costco Wholesale
Greg Reinauer, Amerifresh, Inc.
Tim York, Markon Cooperative

Here at the Pundit, we applauded the buyer-led effort but on October 30, 2006, ran a piece entitled Buyer-Led Food Safety Effort Leaves Open Question Of Buyer Commitment, in which we pointed out:

“What would be helpful from these buyers is…a reassurance to the grower/shipper/packer/processor community that investments in food safety will be protected.”

As Gene Harris of Denny’s added his endorsement to the Buyer-led Initiative for Food Safety, we published, Pundit’s Mailbag — Denny’s Weighs In On Food Safety Efforton November 1, 2006, and we pointed out that the Western Growers Association was now looking for mandatory standards:

“Buyers can impose standards on their suppliers, but it seems as if the big grower members of WGA are more inclined to go with a mandatory program. Perhaps because this is more easily “saleable” to consumers, perhaps because the growers have no confidence that buyers will ever agree to a uniform standard on food safety and, perhaps, because growers know that buyers today can have the best of intentions but situations change and buyer’s change — and if legal product is available for much less money, that will put a lot of pressure on an organization to change its standards.”

On November 2, 2006, we highlighted an Opportunity For Buyers’ Food Safety Initiative, where we wrote the following:

“Here’s the Pundit’s suggestion to the buyers: Don’t wait for the deadline to pass. Withdraw the letter to the associations, which can only lead to endless negotiations with grower/shippers and watered-down food safety standards. Instead, create a temporary ad hoc consortium to spearhead the quick development of science-based food safety standards.

In the short term, these will be enforced by buyer demand, hopefully including other buyers who will buy into the plan; in the medium run the plan will be turned over to state authorities in California and federal authorities in Washington, D.C., as the basis for new mandatory regulation.”

We pointed out that this initiative may not stay in the hands of the ad hoc group leading the Buyer-led Food Safety Initiative when, on November 7, 2006, we announced: National Restaurant Association Forms Produce Safety Working Groupand pointed out:

“What we should have learned from the FDA loss of confidence in the industry is that food safety is not something that we negotiate over. It has to be driven by the best scientific knowledge we have.”

Mark Munger of Andrew-Williamson Fresh Produce, a grower/shipper, pitched in his thoughts on the important role buyers play in the food safety arena and, on November 8, 2006, we published Pundit’s Mailbag — Insights From A Conscientious Grower, which specifically praised one foodservice customer:

I also have to commend one of our customers, who I believe demonstrates the value of collective partnerships between growers and customers. Two years ago we began working with Darden Restaurants. Darden takes food safety very seriously. They have empowered a food safety team that must approve each and every supplier. They have inspectors in the field who make weekly random inspections of growing operations, picking and packing programs. When problem issues are identified, they work closely with our food safety team to help educate our team and to ensure that collectively we fix the problem. The knowledge that an inspector can be in any field or packing shed at anytime has forced us to treat every day as an inspection day.

Additionally, Darden’s food safety team is separate from their buying team. If a farm is not up to par, they have the authority to stop all transactions until the problems are fixed. They truly put their money where their mouth is and have helped us become a markedly better company. I cannot think of a better example of the power of collective thinking between suppliers and customers. I think the industry would be well served to learn more about their programs and create similar models.

Not surprisingly, the Food Marketing Institute was not going to be content to sit this one out and, on November 10, 2006, we published FMI Steps Into The Food Safety Fray,which detailed a conference scheduled for December 5th at which FMI would host representatives from industry, associations, academia and government to advance food safety issues. Unfortunately, FMI decided to exclude the media and we pointed out:

“…if the goal is to build public confidence in the process the industry is going through, you not only open it to media, you send a velvet invitation to the big consumer media groups.

It smells of smoke-filled rooms where deals will be cut in secret. If you let in some light and air, everyone will have more confidence in the final product.”

On November 14, 2006, we published Pundit’s Mailbag: Grower/Shipper Calls Buyer Led-Food Safety Initiative Hollow Call To Action, in which a respected grower/shipper pointed out that “This is where the retailers must step out of their ivory towers and get their walk (vendor relationship) to match their talk (aligned supply chain)… If those who signed on to this letter would get committed to buying only from “qualified suppliers,” the laws of supply and demand will drive the solution and we will quickly catch up with the rest of the world in this critical area.”

On November 17, 2006, we featured Tale Of Two Buyers, in which we pointed out: “If the VPs are sincere about wanting the buyers to place food safety first, the VPs have the responsibility for changing the culture and the economic incentive systems.”

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