< Previous10 Food & Drink Internationalwww.fdiforum.netIMPORT AND EXPORTExtending the inevitable? When fifty-one per cent of the British public voted to leave the European Union back in 2016, the nation’s departure from the Bloc was slated for March 29 2019. However, as the UK inched closer, the deadline was extended, first to April 12 and, at the eleventh hour, the EU extended Article 50 – the treaty that states that “Any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements” – to October 31st, allaying fears of a no-deal Brexit, at least for the interim. But what does this all mean for the UK’s import and export market? 10-13.qxp_Layout 1 29/04/2019 09:37 Page 1Food & Drink International 11www.fdiforum.netIMPORT AND EXPORT© Shutterstock/ Rosli OthmanIn the lead up to Brexit, and with the possibility of crashing out without a deal, food manufacturers were stockpiling goods to maintain stock and stay one step ahead of delays and chokeholds at ports. The message from Government was also to stockpile, as much for food as for medicine, but now with the deadline pushed back some seven months, these efforts to avoid delays and a loss in profits could conversely end up costing manufacturers money. Warehouse space needs to be paid for, after all, and it is space that could be put to better use. But with no definite date pencilled in to exit the EU, Prime Minister Theresa May’s insistence of leaving as soon as possible, and a sense that it could happen at a moment’s notice, uncertainty continues to abound. Despite the extension, the Government has said it will continue to make the necessary preparations for a no-deal Brexit, quite what that means, though, remains to be seen. The extension was largely welcomed in the food and drink industry, with Ian Wright, Chief Executive of the Food and Drink Federation, saying that “Food and drink manufacturers are mightily relieved that the immediate threat of a catastrophic no-deal Brexit has been lifted. The additional time must now be used wisely. Government and Parliament simply must give us a coherent plan to lead us out of our current mess. It must be a way forward that allows us to make progress in resolving the future of our relationship with the EU, taking full account of the needs of food and drink businesses.” Minette Batter, President of the National Farmers Union, said: “While this extension will provide some relief in the short-term, it remains the case that farmers and growers are still left with no certainty 12 Á10-13.qxp_Layout 1 29/04/2019 09:37 Page 212 Food & Drink Internationalwww.fdiforum.netIMPORT AND EXPORTabout the future which is hugely damaging to one the UK’s largest manufacturing sectors, worth more than £100 billion to the national economy. This uncertainty is having real-world business impacts right now, with investment being put on hold and essential jobs remaining unfilled. We have crops and livestock in fields with farmers and growers still in the dark about what trading environment they will be operating in, whether they will have access to a sufficient workforce to carry out essential roles this season, or what the UK’s future domestic agricultural policy will look like.” Although uncertainty still abounds, the industry was granted some clarity after EU member states agreed the UK’s listed status application after it met the animal health and biosecurity assurances required for a third country to export live animals and animal products. The move is part of the EU’s published no-deal contingency planning without which, the Department for Environment, Food and Rural Affairs says exports of live animals and animal products to the EU could not take place in the event of a no-deal. It’s worth noting that this referred specifically to the UK crashing out without a deal before April 12. Because of the aforementioned extension, there will need to be another vote to secure the UK’s status as a third country if it was to leave in a no-deal scenario at a different date. However, this has laid © Archer All Square / Shutterstock10-13.qxp_Layout 1 29/04/2019 09:37 Page 3Food & Drink International 13www.fdiforum.netIMPORT AND EXPORTthe ground work and paves the way for a similar potential vote in the months to come. Although we have more clarity now than in the aftermath of the original referendum result some three years ago, uncertainty still abounds affecting investment, innovation and competitiveness. How exactly the extension and its final outcome will affect the import and export relationships between the UK and the Bloc remains to be seen. Record exports for British gin Exports of British gin have reached a record high with producers shipping enough to fill thirty Olympic sized swimming pools in 2018. The United States remained the most popular destination for British Gin, making up £190 million (or 59% of the total). Gin exports to Australia, meanwhile, doubled from 2017 to 2018 to £24 million. “It’s fantastic to see that recent successes for British gin is translating into economic benefits for the country, supporting local jobs,” said International Trade Secretary Dr Liam Fox MP. “As UK drinks exports continue to grow from strength to strength, my international economic department is ready to help our firms break into new markets and meet the rising global demand for great British food and drink.”Ukraine market opens for Irish beef and pork The Ukrainian market has opened its borders to imports of Irish beef and pork, Minister for Agriculture Michael Creed has announced. “This agreement follows on from bilateral negotiations between my department and the Ukrainian authorities, with the assistance of the Irish Embassy in Prague,” said Creed speaking at the 21st meeting of the Food Wise 2025 High Level Implementation Committee in April. “The opening of this new market is a reflection of the confidence the Ukrainian authorities have in the high standards of food safety and the rigorous controls in Ireland. It marks another important step in the development of Ireland’s agri-food links with Ukraine.”© Shutterstock / Oksana Mizina© Shutterstock / Sergey Fatin10-13.qxp_Layout 1 29/04/2019 09:37 Page 414 Food & Drink Internationalwww.fdiforum.netSUPPLY CHAIN SPOTLIGHTTraceability © Shutterstock / mdbildesThe food supply chain is becoming more complex, making traceability and maintaining efficiency more difficult. However, new technologies such as blockchain, AI and the Internet of Things are offering a solution.14-17.qxp_Layout 1 29/04/2019 10:01 Page 1Food & Drink International 15www.fdiforum.netSUPPLY CHAIN SPOTLIGHTAs food and drink industry supply chains continue to become more complex, so do the requirements of consumers and retailers who are asking for more transparency and traceability than ever, alongside speedier deliveries to satiate an “on-demand” culture. Unsurprisingly this is placing more pressure on the supply chain and supply chain managers, who must optimise a chains’ performance and identify key inefficiencies at each stage if they are to keep up with competitors. A desire for transparency need not be a fear for food and drink companies however, as the methods used to achieve transparency bring benefits that one may not initially anticipate such as a more collaborative supply chain, brand loyalty and increased efficiency. In reaching the levels of efficiency and traceability now required of the supply chain, where one needs to be able to track a product all the way back to the fields its ingredients were grown in, digitalisation, embracing new technologies and data awareness are of prime importance. One must have access and be able to provide detailed data on products, ingredients and the ins and outs of one’s supply chain. Having this information from across the chain allows for increased trust, food safety, and a chance to analyse the data to improve operations. Cloud-based supply chain software is becoming ever-more popular for collecting these extensive amounts of data and enabling data and software processing to be stored offsite and accessed remotely by those checking the supply chain, offering easy access to analytics and tools. Supply chain software has also moved away from purchased software packages, which can become outdated quickly, to software as a service (SaaS). Cloud-based blockchain networks are gaining significant attention as a key technology for improving food supply chain traceability. The digital platform, allowing for the storage and sharing of information across a network, is receiving significant investment, suggesting it could be the next “big” method of data-focused supply chain management. The scalable technology is particularly useful as it makes data available to all parties and cannot be altered to amend or falsify records, removing a need for another party to adjudicate the activity and increasing trust in the data. No longer simply acknowledged by cryptocurrency holders, our industry is starting to use blockchain for its ability to enable immediate information transfer. Unlike other supply chain solutions, blockchain systems allow for 16 Á© Shutterstock / aurielaki 14-17.qxp_Layout 1 29/04/2019 10:01 Page 216 Food & Drink Internationalwww.fdiforum.netSUPPLY CHAIN SPOTLIGHT• Plain / Printed Labels • Thermal Transfer Ribbons • Lasersheets • Fanfolded Labels • Barcode LabelsSelf adhesive labels and labellingTel: 01482 506560 • Email: sales@datamarkuk.com • Website: www.datamarkuk.comthe creation of a digital trail that records every step up to the purchase of a product, reaching to each participant in the network, right back to the ingredient suppliers, creating greater transparency. Blockchain networks specifically designed for the industry are appearing now too. IBM launched its blockchain collaboration for the food industry two years ago and has seen a growing number of adopters with millions of products tracked by retailers and suppliers. Like other blockchain cloud networks, the database connects each member of a supply chain who share essential information that can enable waste reduction, increase traceability and improve shelf life. With this blockchain technology, food can be traced back to its source in seconds instead of days, permitting one to see a product’s full history and even track its location data. This has highlighted its potential to be particularly useful when dealing with recall, an often complex situation requiring the urgent tracing of products. Of course while blockchain can assist in a process like recalling products it cannot on its own prevent the situation reoccurring. It can however provide data such as time stamps of crucial process steps and information on who conducted each task, increasing accountability, and changes can be made. As numerous parties are involved in a food supply chain, an especially useful characteristic is that blockchains, unlike for instance Enterprise Resource Planning (ERP), are able to communicate across all enterprise management systems - they are interoperable. Blockchain also beneficially allows smart algorithms to be utilised to filter through data and find patterns and trends such as reduced sales for specific products. In addition, with blockchain one can track major issues in supply chains such as CO2 emissions, water consumption, energy consumption and waste. Further, with the implementation of Internet of Things (IoT) technology, blockchain can be enhanced to provide a network with automated updates and gather data - a valuable resource for those involved in the food and drink supply chain who need to check, for example, that products are stored in consistent conditions. New technologies like IoT (the implementation of network connected devices), hold a particularly important place in improving data-focused supply chain management and are making the collection and analysis of data easier than ever. IoT devices collect information through sensors at intervals and convert it into digital data, which increases visibility of goods as they move through certain processes, are transported or alternatively one might use the sensors to track the state of machinery coming into contact with goods. Sensors can help alert to many problems such as incorrect temperatures in transit, just one example of the countless number of issues that IoT enabled devices can track and store information on that arise across the supply chain and effect ingredients and products. IoT sensors therefore allow for more careful 14-17.qxp_Layout 1 29/04/2019 10:01 Page 3Food & Drink International 17www.fdiforum.netSUPPLY CHAIN SPOTLIGHTdŚĞh<ΖƐůĞĂĚŝŶŐƉĂĐŬĂŐŝŶŐƐƵƉƉůŝĞƌƚŽƚŚĞĨŽŽĚĂŶĚĚƌŝŶŬŝŶĚƵƐƚƌLJ͕ŽīĞƌŝŶŐĂǁŝĚĞƌĂŶŐĞŽĨƉĂĐŬĂŐŝŶŐƉƌŽĚƵĐƚƐŝŶĐůƵĚŝŶŐ͗ŝƌ^ŚŽĐŬďŽƩůĞƉĂĐŬƐWĂůůĞƚǁƌĂƉΘƐLJƐƚĞŵƐŽdžĞƐĨŽƌďŽƩůĞƐ>ĂďĞůƐan employee-owned businessinventory control, which is essential for avoiding spoilage, damage and contamination that can violate food safety legislation. It is when IoT coincides with AI and other analysing tech that data presents major benefits for supply chain management. Large masses of data from various sources can be analysed by AI which will then highlight anomalies and make predictions that can be used to optimise the supply chain. Analysed data can thus be used to make more effective decisions, more accurate demand forecasts and to solve problems, surpassing what the mind is capable of alone. AI makes probabilistic forecasting in particular easier, assessing large amounts of data from news, events and weather amongst other sources to predict demand more confidently to avoid stock outs or waste. Of course, AI itself has further benefits outside of data analysis for the supply chain, for instance it can boost the efficiency of the warehouse when one uses AI technologies like Automated Guided Vehicles (AGVs) and automated carts which can free up employees undertaking menial tasks. AI can also improve worker safety with robots deployed to retrieve products from hard to reach areas, which warehouses may otherwise not use and have sitting empty. With warehouse workers spending most of their time walking around the © Shutterstock / Dusan Petkovic warehouse rather than on generating revenue AI is welcome and becomes even more so when one considers the labour shortage food and drink warehouses are facing. Effective warehouse management can make a real difference to a smooth supply chain, and by implementing automated technologies, useful time can be saved. Warehouse Management Systems to monitor warehouses and guide workers, robotics and voice technology are a recommended combination for ensuring an efficient food and drink warehouse. Leading the way, Nestlé is set to create a new highly-automated warehouse in the UK to offer more efficient access to its products. Due to open in 2020, it will host advanced sorting systems and robotics while using predictive data. When considering warehouse effectiveness one cannot forget a key issue continuing to plague the supply chain - the sheer lack of warehouses. In the UK Brexit stockpiling has only made the amount of warehousing available to the food and drink industry worse, and at the end of last year Ian Wright, Chief Executive of the Food and Drink Federation, told MPs that warehouses around the UK had no bookable space available in the near future. Using technology, data and embracing innovation to make warehouses as efficient as possible is therefore more vital now than ever.14-17.qxp_Layout 1 29/04/2019 10:01 Page 418 Food & Drink Internationalwww.fdiforum.netCLEANING AND MAINTENANCEAlthough food and drink manufacturers are required by law to ensure their machinery and equipment is kept clean and hygienic, sometimes cleaning products can work against them. By their very nature, cleaning products are purposefully designed to provide disinfection and biocide, but some can be so strong they actually damage machinery and equipment. Machinery would ideally be corrosive resistant, but this isn’t industry standard and replacements could be costly for manufacturers. There are, however, cleaning products that promise strong disinfection without damaging surfaces. The cleaning of any machine inevitably results in downtime which can be increased exponentially in the event of a corrosive reaction with a cleaning product. Corrosion can accrue over time often without a manufacturer realising until it’s too late and rust or metal flakes find their way into products. There’s also the environment to consider when it comes to cleaning. Of course industrial cleaning products themselves can often be hazardous to the environment, but water usage is one of the industry’s biggest issues. According to Waste & Resources Action Programme (WRAP), cleaning can account for as much as seventy per cent of a site’s entire water use. This excessive usage brings with it several additional costs such as labour, downtime, lost materials, cleaning chemicals and the extra energy expended for heating and pumping. To say it’s advantageous for manufacturers to optimise their water usage might be stating the obvious, but too many food makers are still literally pouring money down the drain. Optimisation requires a change in cleaning routine that, over time, will not only help to cut water supply bills, but also reduce the volume of concentration in effluent. There’s a pervasive chain of thought that a thorough and effective washdown routine requires a great torrent of water, or that a reduction in water compromises hygiene requirements. But this simply isn’t true, with a number of ways of minimising water usage whilst also maintaining hygiene levels and, in some cases, even improving them. An average food and drink plant will spend an average of twenty per cent of the day cleaning during which time a lot of water and energy can be expended. Much of this is extraneous and can be significantly minimised without sacrificing quality or safety assurances. WRAP advise using dry cleaning-up wherever possible which helps to stop the use of water, keeps waste material out of drains and maintains quality assurance and food safety. It’s also often the most practical and effective means of reducing water consumption and chemical oxygen demand (COD) in effluent. Less is more At every level of the food and drink supply chain there are stringent regulations put in place by government, European legislation and recommendations from the Food Standards Agency. Although covering everything from environmental emissions to product quality, one area that is most strictly controlled is hygiene. However, adhering to these hygiene levels isn’t always a simple matter.© Shutterstock/ Jaruek Chairak18-21.qxp_Layout 1 29/04/2019 10:06 Page 1YOUR EXPERTSIN CLEANINGIN PLACE• Saves costs• Meets the highest requirements on hygiene• Increases safety and quality• Used in breweries and food & beverage industrieswww.sera-web.comContact: 01733 396040sales.uk@sera-web.com Food & Drink International 19www.fdiforum.netCLEANING AND MAINTENANCEClean in place (CIP) systems are commonplace throughout the food and drink industry and while effective, these systems are intensive and require large amounts of water, chemicals and energy to function. Essentially the system works by using non-foaming detergents and disinfectants which are circulated through pipework and process equipment. But tanks, large diameter pipes and large containers can be more thoroughly cleaned using spray balls or rotating jet devices. This helps to avoid the unnecessary and uneconomical filling of vessels with solutions as well as slashing overall water usage. Because CIP systems are automated it means that it requires no human contact, so stronger detergents can be used for circulation as well as boosting overall onsite safety. Disinfectants used in the food and drink industry are purposefully designed and used so that any potential residues left on surfaces do not taint the food or harm the consumer. However, many still affect the skin, eyes or respiratory system and, if ingested in sufficient quantity, can be harmful to human health. But they’re also usually much stronger than those used domestically, requiring careful handling. Indeed, according to The Health and Safety Executive (HSE), exposure to disinfectants is one of the biggest causes of occupational ill health in the food and drink industry. Although CIP and spraying systems help to automate the process, cleaning is still predominantly undertaken by human workers, so it’s critical for companies to ensure the welfare of operatives. The handling of such harsh chemicals 21 Á© Shutterstock/ Phovoir18-21.qxp_Layout 1 29/04/2019 10:06 Page 2Next >