< Previous10 Food & Drink International www.fdiforum.net IMPORT AND EXPORT Border delays Now that the UK has formally left the bloc, its borders are left facing an increase in costs, wait times and red tape. Food and Drink International explores. 10-13.qxp_Layout 1 25/02/2020 12:25 Page 1Food & Drink International 11 www.fdiforum.net IMPORT AND EXPORT On January 31 2020, the UK formally left the European Union and entered into an eleven-month transition period before it officially leaves the bloc at the end of the year. As an EU member state, the UK had not been allowed to hold formal trade negotiations with countries such as the United States and Australia but is now free to set its own trade policy and open discussions with these countries and others. Brexiteers say this freedom will boost the UK’s economy, but critics claim that the chokeholds, wait times and added red tape incurred in ports will undermine any potential benefit. Michael Gove, the Chancellor of the Duchy of Lancaster who is due to have oversight of Britain’s future trading with Europe and the rest of the world, has said that after this transition period ends, the government will introduce import controls on EU goods at the border. Not only will there be extra paperwork involved but, from 1 January 2021, import border checks will be routinely undertaken at the UK border. From this point on, all traders will be required to fill out customs declarations and will be liable to customs checks on goods from cross- Channel trade – all of which can significantly slow down the speed in which goods pass through ports and onto store shelves. If a trade deal with the EU can’t be reached, then taxes such as tariffs will also need to be charged and collected. Speaking to a Border Delivery Group in early February, Gove said: “The UK will be outside the single market and outside the Customs Union, so we will have to be ready for the customs procedures and regulatory checks that will inevitably follow.” He added that any barriers and red tape were also likely to be “costly” and could squeeze supply, leading to further food price inflation. 12 Á 10-13.qxp_Layout 1 25/02/2020 12:25 Page 212 Food & Drink International www.fdiforum.net IMPORT AND EXPORT While agreeing a trade deal between the UK and EU remains a top priority for government, the British Retail Consortium (BRC) has warned that these post-Brexit border checks will result in supply issues, especially where fresh fruit and vegetables are concerned. According to the trade association, border checks could cause hold-ups at channel ports of thousands of trucks – including those carrying fresh food. This aligns with warnings voiced throughout the Brexit negotiation process from industry that fresh food could be left to rot in trucks, with major traffic at ports and empty shelves in shops. The BRC says that the government essentially has to get necessary border infrastructure, facilities, systems, agents and staff in place by the end of the year in order to cope with these checks. If it doesn’t, consumers will see significant disruption to the supply of fresh produce. These disruptions will be heightened at the close of transition period, as January historically marks the UK’s peak import period. The oft quoted figure is that the UK imports almost half of its food, largely made up of fresh produce, and lacks the infrastructure, supply and availability in place to meet this demand domestically. A transformation of the agricultural industry and the widespread adoption of methods such as vertical & urban farming and other innovative production solutions such as hydroponics could help to scale and sure up domestic supply and lesson our dependence on imports. In the interim, the UK is reliant on its neighbours to feed the public, so it’s critical that friction, wait times and red tape be minimised at the border. However, reports have alleged that trade organisations have been informed by officials that a so-called “smart border” with simplified systems designed to reduce disruption would not be available until 2025. For many businesses, border delays would incur higher costs than tariffs as Adam Marshall, Director-General of the British Chambers of Commerce, explains: “Additional friction will equal higher costs for a lot of business, and © Shutterstock /anucha sirivisansuwan 10-13.qxp_Layout 1 25/02/2020 12:26 Page 3Food & Drink International 13 www.fdiforum.net IMPORT AND EXPORT while the discussion over the past few months has focussed a lot on tariffs, it’s actually these border costs … that really is the biggest source of cost for most.” Increased costs, red tape and wait times at the border is inevitable at this point, but government has this transition period to get the infrastructure in place at ports to minimise the impact. In a worst-case scenario, fresh food will be left rotting in trucks and consumers will be faced with gaps on store shelves and no domestic supply to meet the deficit. The UK has formally left the European Union, it officially leaves at the end of the year, but it will likely take years before it can truly stand on its own two feet. The Philippines has fully lifted all import bans and measures on Japanese foods previously restricted following the Fukushima nuclear disaster in 2011. Almost a decade later, the Philippines has become the thirty-fourth country worldwide and the twelfth in the Asia Pacific region to fully lift all import bans on foods from Japanese prefectures of Fukushima, Gunma, Ibaraki and Tochigi. The move was announced by Teodoro Locsin Jr., the Philippines Foreign Affairs Secretary, alongside Japanese Foreign Minister Motegi Toshimitsu who was visiting the country in January. During a press conference, Mr Toshimitsu said: “With this lifting, we hope that safe food from Fukushima as well as other parts of Japan will reach many people in the Philippines.” Cypriot farmers re-secure trademark protection for ‘Halloumi’ Cypriot farmers have re-secured an exclusive right to export and market their cheeses as ‘Halloumi’ in the UK after winning trademark protection. Acting on behalf of the farmers, the Cypriot ministry first secured trademark protection for ‘Halloumi’ at the UK Intellectual Property Office in 1990. However, following a legal challenge brought by UK-based cheese producers, the trademark was revoked in 2018. This decision was reached as a result of an administrative error, as the Cypriot ministry failed to respond to legal requests within the required time frame. With the trademark now back on side, Cypriot farmers once again have the exclusive right to market their cheeses using this description in the UK. Fiona McBride, partner and trademark attorney at European intellectual property firm, Withers & Rogers, said the win will “prove lucrative” for Cypriot farmers. “The farmers are unlikely to stop there, however. They have already applied for ‘protected food name’ status to the European Commission,” she said. Philippines the latest to lift food import bans from Japan © Shutterstock /Hitdelight © Shutterstock /difenbahia 10-13.qxp_Layout 1 25/02/2020 12:26 Page 414 Food & Drink International www.fdiforum.net Less errors, While labelling, coding and marking software and technology advance, more information, whether it be a result of government legislation or consumer demand, is making its way onto labels. 14-17.qxp_Layout 1 25/02/2020 12:28 Page 1Food & Drink International 15 www.fdiforum.net LABELLING, CODING AND MARKING L abelling continues to advance rapidly. Improvements in marking and coding technology, software and printers, are speeding up operations, bolstering flexibility and accuracy in response to demand, while amplifying the appeal of products and more effectively indicating food content information for a large variety of labels in the food and drink industry. At the same time, labels are becoming increasingly durable, resistant to fading and smearing. A key trend in the labelling, coding and marking sector is digitalisation and automation. Automated coding technology, for instance, is enabling fast, accurate marking, decreasing chance of product recalls, primarily by eradicating human error and downtime, especially when it comes to changeover processes. Automation is thus set to address the significant amount of recalls resulting from undeclared allergens and labelling errors, which often stem from inaccurate coding. In the UK, a forty per cent rise in food recalls has been linked to substandard coding. Resistance to automated coding and marking has resulted from concerns over the complexity and cost of implementation. The growth of Industry 4.0 and the Internet of Things (IoT), however, are set to make integration of coding automation within existing networks easier. Digitalisation and automation are allowing for an end to end flow of information, with innovative machines and sensors connected with business management software, ERP systems, cloud computing and other IT solutions, providing in depth data and connectivity. This information may be in regard to a job order, delivery proof, colour values, the tracking of hidden code and more. Ultimately, with better connections, waste, error, time and costs can be reduced. When it comes to eliminating mistakes, software improvements and integrated sensors are automating system monitoring and enhancing visibility of operations, sending information on, for example, production rates and equipment effectiveness to the cloud for engineers to use to discover reliability problems and make better use of equipment. AI- driven cameras, meanwhile, linked to the cloud are learning from print errors across operations no matter where they are, identifying cues for abnormal labels to eliminate errors before they happen, and offering feedback to operators with potential problems like incorrect plate mounting. Digitised labelling has been highlighted for its role in improving highly sought-after transparency. Modern, centralised and digitised label management systems improve accuracy and responsiveness, and help in the design of clear labels, the process of which is often tough to streamline, particularly where labels are designed and printed in different pockets across a franchise or international borders. Featuring a central document management system and storage space for label history and templates, any changes to label format can be tracked easily, and all facilities can produce uniform labels from up-to-date templates. Cloud technology has made the switch to a centralised system conceivable, improving accessibility, while its inherent Software as a Service (SaaS) model prevents the need for IT infrastructure. Digital label printing itself is on the rise and is relatively new in comparison to conventional print techniques. With increasing desire for smaller product runs and on demand printing, digital label printing offers high-quality art on labels, less prepress setup and high speeds, also making it ideal for customised packaging. Reinvigorating the sector are smart labels - coding or labelling that using technology adds functionality beyond standard barcodes - which are being utilised by food manufacturers to boost traceability of goods, food safety, add value to products and enhance available product information, to ultimately gain an advantage over competitors. Perhaps the most well-known smart labels include RFID and QR codes. QR codes have proven popular for their ability to © Shutterstock /Bodnar Taras 16 Á 14-17.qxp_Layout 1 25/02/2020 12:28 Page 216 Food & Drink International www.fdiforum.net LABELLING, CODING AND MARKING • Plain / Printed Labels • Thermal Transfer Ribbons • Lasersheets • Fanfolded Labels • Barcode Labels Self adhesive labels and labelling Tel: 01482 506560 • Email: sales@datamarkuk.com • Website: www.datamarkuk.com store over 7,000 characters, in comparison to the twenty-character scope of traditional barcodes, as well as the fact that smart phone cameras have a built in QR code reader, allowing for easy interaction with consumers. QR codes could provide nutrition information, data on a product’s journey or act as a marketing ploy providing extra content such as recipes for consumers. RFID labels, meanwhile, are primarily used to track products as they move through the supply chain with the aim of improving traceability, food safety and preventing counterfeiting. Smart labels can also track the freshness of a product and visualise this through colour changes on the label to prevent food being thrown away unnecessarily and indicate when a product needs to be used. Not only useful to consumers, this can also be adopted in the supply chain to see where any inefficiencies are creating spoilage. Regulatory changes and consumer expectations continue to challenge labelling, coding and marking, alongside the general growing desire for clearer labels with more depth and transparency. The past year has seen increasing stringency around the issue of allergens in particular. A failure to identify allergens in products on labels can not only lead to a costly recall and litigation but consumer illness, death, and public distrust. Exemplary of these regulatory changes, in the UK, Natasha’s Law was introduced last September, requiring companies to label all ingredients on fresh pre-packaged food after a fifteen-year-old girl died of a sesame allergy. It will come into force in October 2021, giving businesses a transition period to prepare. Allergen labelling for pre-packaged foods could also become mandatory in China under new plans from the Chinese National Health Commission, and in the US, Illinois has introduced a law for sesame labelling. Labels are frequently playing a more important role in key societal issues. Obesity has been tied to labelling on numerous occasions, with a new compulsory labelling system in Mexico aiming to tackle the crisis with black labels on food and drinks, warning whether they contain too much fat, sugar or calories. Additionally, new research has suggested labelling goods with the amount of exercise required to burn off consumed calories could be useful to encourage healthier choices. The focus on health labelling has been felt across the world and a variety of schemes have placed a higher demand on colour labelling. Countries continue to choose new nutritional labelling systems to improve their nation’s health, for example last December the Netherlands backed the Nutri-Score nutritional labelling system over Keyhole and Traffic Lights, the other schemes used in Europe. Nutri-Score, a voluntary scheme that began in France in 2017, ranks foods by letter from A (dark green) to E (red), based on their nutritional quality, though the Netherlands noted that its nutritional calculations don’t perfectly comply with Dutch guidelines, meaning adjustments will be made. Environmental concerns are also affecting labelling, coding and marking. Brands are looking to use sustainable materials including one-hundred per cent recyclable plastics like flexible packaging film. But with thinner walls, companies must reassess if labelling and coding methods and associated inks remain sufficient for use with new materials like these, and compliant with regulation. Companies are also investigating ways to make coding and labelling themselves more environmentally-friendly with new energy efficient and cleaner methods of coding, biodegradable substrates and conscious waste minimising on the agenda. The environmental trend is also seeing a switch in label preferences, from pressure sensitive labels, which create significant waste with removable liners, to in-mould labels, where packaging and its label consist of the same material and can be fully recycled. The environmental influence is also felt in what information is being asked to be provided on labels, as consumers make conscious purchasing decisions. Better recycling details are being asked for, with YouGov research finding that only eight per cent of Brits believe recycling labelling is clear, and just twelve per cent saying they trust recycling labelling. Concurrently, sustainability labelling is making its way into the food industry to highlight the carbon footprint of products, with Carbon Trust research indicating that two-thirds of consumers support this and Quorn set to launch labelling this year with a carbon footprint stamp, considering ingredients used, energy consumption, transportation and packaging. © Shutterstock /Brian A Jackson 14-17.qxp_Layout 1 25/02/2020 12:28 Page 3Food & Drink International 17 www.fdiforum.net LABELLING, CODING AND MARKING Accurate food labelling made easy Give customers more clarity with Brother food labelling solutions. With tougher legislation and rising customer expectations, food labelling is more important than ever. Whether it’s stock rotation labelling, ingredient and allergen listing on pre-packed foods or menu management solutions, Brother has all the ingredients for effective and efficient food safety labelling. So you can deliver absolute clarity in the kitchen and beyond – and give customers added peace of mind. Discover our full range of food labelling solutions at brother.co.uk/food-labelling Bart place spicy order for a Makro Labeller Needing to replace the labelling machines on its Bristol- based production lines, herb and spices company, Bart Spices, placed an order with Makro Labelling UK for a MAK 3 labeller. Richard Portman, Managing Director of Makro Labelling UK, said: “This is a very interesting project for us as the new MAK 3 will be applying labels on to both round plastic pots and square tins at 150 c.p.m. The MAK 3 will be applying a ‘U’-shaped watch strap label over the cap via a labelling station mounted over the labeller infeed starwheel, on the square tins, body and back labels will also be applied. However, on the round containers we will apply a wraparound, self-adhesive Body label. “To ensure the labels have been applied correctly, the MAK 3 will have our patented Alice camera-based label inspection system to check for correct label presence / correct barcode and label positioning verification.” For more information, visit www.makro-labelling.co.uk. 14-17.qxp_Layout 1 25/02/2020 12:28 Page 418 Food & Drink International www.fdiforum.net SOFTWARE SPOTLIGHT T he increasing diversity of products and product packaging has made a big impact on the technology used in food production in recent years. Companies cannot now function correctly without software packages being used at all stages of the production and distribution process – but the challenge is to work out what systems are the most suitable for any given company. It’s now easier than ever for companies to make use of bespoke software that can be fully integrated into the production process, rather than have to change your ways of working to incorporate an off-the-shelf option. The added advantage is the exceptional traceability, which is of particular importance as the supply chain is extended. ERP solutions are now commonplace throughout the industry – and that’s not surprising given how effectively they have changed the way in which companies can work. The presence of real time information means downtime is drastically reduced, with a perpetual inventory – which is accurate – replacing the requirement for regular stock takes. The solutions ensure confidence in the accuracy of the information the companies provide to all parts of their supply chain, and all parts of the company. As always, the focus is on efficiency, with a view to reducing costs through minimising on mistakes a more traditional system might make. Removing the human element where possible can help to not only ensure that all data is correct and accurate, but that there are no unnecessary paper trails to try and work through. Automation is king, both on the production line – and when it comes to software packages. One area where this is of particular value is in the supply chain, specifically in distribution centres – which might see products coming in from multiple manufacturing sites across the country, before being sent out to various wholesale or retail outlets from that one warehouse. Any delays at this crucial Computers have been a part of life for decades now, but recent developments have started to push us toward the next level. While factories controlled solely by AI may be sci-fi for now, we’re beginning to see limited usage of limited AI, both in the supply chain and in manufacturing. Developing software 18-21.qxp_Layout 1 25/02/2020 12:31 Page 1Food & Drink International 19 www.fdiforum.net SOFTWARE SPOTLIGHT part of the process can be catastrophic, as it is distribution centres which commonly deal with directly with the final client – introducing that age-old risk of failing to satisfy and thus losing a key contract. With the food and drink retail market dominated by a few very powerful retailers, manufacturers can ill-afford to suffer any lost confidence with these major clients. Because the warehouse is the final port of call from the manufacturer to the customer, systems which monitor and handle traceability are of key importance. Should something go wrong and require a recall – as recent high-profile cases have seen happen – then the retailer will need to assuage the doubts of their own customers. To do this, they will always come back to the manufacturer, asking them to isolate and identify where the batch was contaminated and how – usually within a period of no more than 72 hours. 20 Á © Shutterstock /whiteMocca 18-21.qxp_Layout 1 25/02/2020 12:32 Page 2Next >