< Previous10 Food & Drink International www.fdiforum.net IMPORT AND EXPORT © Shutterstock /Anansing Keeping on Keeping on 10-13.qxp_Layout 1 28/05/2020 12:34 Page 1Food & Drink International 11 www.fdiforum.net IMPORT AND EXPORT Over the last few years, the food and drink supply chain has been beset by a combination of increasing geopolitical tensions as nations come to blows, and the continuing fallout from Brexit. Compounding these existing issues and creating a new set of profound challenges for the industry is the outbreak of COVID-19. The continuing impact of the pandemic on operators within the food and drink industry cannot be overstated. However, as has been demonstrated throughout the protracted Brexit negotiation process, the industry is resilient. Indeed, according to the ‘Lloyds Bank International Trade Index’, food and drink business defied an overall drop in UK exports during the first quarter of 2020 despite supply chain disruptions. The index is compiled in partnership with IHS Markit and serves as a barometer of the UK’s manufacturing sectors. Of the sub- sectors measured, food and drink was the only one to buck the fall in exports. In fact, exports grew for the first time since the second quarter of 2019 between January and March. The sector’s performance was underpinned by strong demand in key export markets – such as the USA and Ireland – and the easing of global trade tensions from 2019, when higher US trade tariffs on European products – such as whisky, wine and cheese – and uncertainty over the UK’s departure from the EU caused UK food and drink exports to fall. While the UK enjoyed an increase in exports overall, exports of specialist cheeses and Scotch whisky to the US have plunged after a twenty-five per cent import tax was introduced six months ago. And the coronavirus crisis is only intensifying the issue. The tax was introduced back in October in the wake of a dispute over European Union subsidiaries provided to aerospace giant Airbus. At the time, the World Trade Organisation (WTO) ruled that the US was entitled to introduce the taxes as a “countermeasure” against countries including France, Germany, Spain and the UK. As well as applying to certain cheese, dairy products and single-malt whisky, it also applies to certain cuts of pork. The coronavirus crisis is compounding pre-existing issues affecting the UK’s food and drink export market, but as the latest figures show, the market is enduring. 12 Á 10-13.qxp_Layout 1 28/05/2020 12:34 Page 212 Food & Drink International www.fdiforum.net IMPORT AND EXPORT © Shutterstock /Studio concept According to analysis of HMRC export figures from the Scotch Whisky Association, there was a twenty-five per cent decline in Scotch whiskey exports in October to December 2019. On single malt whisky, on which the tariff actually applies, there was a seventeen per cent drop compared with the previous year. Independently, this issue would have been challenging for UK exporters – especially smaller producers of whisky and dairy – but has been intensified by the outbreak of COVID-19. There have been many predictions that the collapse of global hospitality, tourism and travel retail sectors will likely lead to a significant decline in exports. The difficulties being faced by the UK’s food industry can be reflected in the latest export figures. In March, UK imports continued to track below previous year levels for most products. Meanwhile, overall exports recorded very marginal growth on the year. In March, for example, exports of fresh and frozen sheep meat fell by forty per cent in volume compared to the previous years values. But, according to the Agriculture and Horticulture Development Board (AHDB), sheep meat imports increased sixteen person in volume and thirty-four per cent in value. For the same period, exports of fresh and frozen beef were “virtually unchanged” in volume compared to the year before, although values fell, the AHDB said. However, March also saw the UK’s pig meat export market continue to record growth year on year. The increase, however, remained relatively modest in volume terms, according to the AHBD. The UK exported 21,600 tonnes of fresh/frozen pork in March – five per cent more than in March 2019. Exports to China continued to show strong growth compared to the previous year as the nation still struggles with the continuing African swine fever crisis and rising demand 10-13.qxp_Layout 1 28/05/2020 12:34 Page 3Food & Drink International 13 www.fdiforum.net IMPORT AND EXPORT for pork. In March, the UK exported 10,200 tonnes of pork, almost eighty per cent more than in March last year. This annual growth rate is a little smaller than the levels recorded in 2019. However, the monthly volume shipped was still the third highest on record, beaten only by October and November last year. Although there has been declines for the UK’s food and drink exporters, they market is largely holding steady. Though the future remains uncertain – with the long- term effects of the pandemic still yet to reveal themselves – the market is enduring. From 1 January 2021, the UK will apply a UK-specific tariff to imported goods following a consultation period. This UK Global Tariff (UKGT) will replace the EU’s Common External Tariff, which applies until 31 December 2020. In response, four UK unions said: “We are pleased the government has listened and maintained many of the safeguards currently in place for UK farmers under its new UK Global Tariff schedule. This is particularly important in fulfilling the UK government’s commitment not to undermine our high food and farming standards. “It is worth remembering, however, that these tariffs are likely to be negotiated away as part of any trade deals that will be struck in the coming months, and so those deals must include strong provisions ensuring food imports are produced to the same standards required of our own farmers. "Not only will this help the government fulfil its vision of a sustainable and profitable UK farming sector but will also meet public demand that our standards are not undermined in future trade policy.” Gov maintains farmer safeguards under new tariff schedule © Shutterstock /Aleksandar Malivuk 10-13.qxp_Layout 1 28/05/2020 12:34 Page 414 Food & Drink International www.fdiforum.net TEMPERATURE CONTROL SPOTLIGHT Having tight control over temperature is a known expectation across food production, whether that be in manufacturing, processing, packaging, transportation, storage, or when dealing with blazing furnaces or freezers. Without proper temperature maintenance food safety is compromised, chance of spoilage increased, and products frequently end up rejected and discarded, seeing companies lose out on a significant chunk of profit. The processing of raw meat, for instance, requires low temperature environments to stop the development of harmful bacteria. Moreover, as all food items hold maximum shelf lives, storing and transporting them at suboptimal and changing temperatures can reduce a product’s lifespan. Any food facility should develop a temperature control program to reduce spoilage and the growth of pathogenic microorganisms. This involves pinpointing products, ingredients and areas for temperature control, identifying prime temperature conditions, putting in place measurement and monitoring devices such as thermometers and data loggers in critical areas and throughout the supply chain, and delving into monitoring records and correction actions. Investing in technologies that facilitate temperature verification can provide real payoffs in minimising product rejection, recalls and more. The ability to monitor, measure and data log temperature is an essential aspect of temperature management and key for demonstration of product integrity, quality control and regulatory compliance. Without consistent, reliable temperature monitoring and its associated software, one cannot know if a product has reached a customer uncompromised. There are different levels of, and aspects to, temperature monitoring, but this usually fits into either basic monitoring - measuring basic temperature boundaries - data logger monitoring - in which temperature is automatically measured, monitored and recorded over a specified time period to be downloaded and analysed - and cloud monitoring - where wireless monitoring can occur in real-time, offering notification systems, cloud storage and reports. Cloud-based temperature monitoring is on the rise, particularly in the sensitive cold chain, as more companies recognise the need for, and benefits of, continuous tracking, require a larger data management capacity and understand the need to respond rapidly to any regulatory concerns. Temperature sensors can automatically send data to cloud software platforms to be viewed on demand, while data analytics in dashboards present insights into operations. Temperature data loggers are well established, having been around for decades, offering visibility and temperature audit trails, allowing those receiving goods to uncover if products are safe. Traditionally data loggers have been passive, purveying temperature information post-event, collected at regular intervals using thermistors or thermocouples. If temperature fluctuations have made goods unsafe, however, nothing can be done and a batch may need to be discarded, leaving customers without a replacement. In addition, collecting data in this manner is a time-consuming manual process, with data cables required. Bluetooth sensors have addressed some of these issues, as a touchless data logging solution, not requiring infrastructure like cables, but these still do not provide real-time information. Today’s data loggers and temperature tracking solutions, then, are Internet of Things (IoT) connected Tracking temperature Temperature control is vital in food production, to keep food safe and adhere to regulation. Monitoring temperature throughout the supply chain has never been easier, with Internet of Things solutions and cloud powering real-time alerts and data availability. Tracking temperature 14-17.qxp_Layout 1 28/05/2020 12:36 Page 1Food & Drink International 15 www.fdiforum.net TEMPERATURE CONTROL SPOTLIGHT Ice, frost and fog in cold stores can create slippery, dangerous conditions for staff. While many accept that ice is simply part of the cold store, it doesn’t need to be so. Munters IceDry® is a specially designed dehumidifier that targets moisture in manufacturing facilities,cold stores and process freezers to: • Reduce & prevent ice, frost and fog build up on floors, walls and ceilings • Reduce defrosts - case studies available • Lower maintenance costs • Improve safety for staff & forklifts • Increase productivity • Improve evaporator efficiency 01480 432243 info@munters.co.uk munters.com/icedryseries Improve Safety & Climate Conditions in Cold Stores Free CPD Seminars Proven global installations “The cold store is the best it’s ever been for excessive ice & snow” - Kitchen Range Foods FREE site surveys wireless devices which send data to cloud software platforms and are capable of presenting complete product, equipment and facility temperature histories, while offering real-time insight into the precise temperature of food, enabling one to proactively act ahead of deviations which could impact the quality or safety of goods. If the conditions of goods change, whether that be as a result of equipment malfunction, human error or a power cut, notifications are sent to managers, allowing someone to be sent to the goods to address the issue, products in transit to be re-routed, for example to be re-freezed, or if it’s clear the goods will no longer be safe for consumption, one can ship another delivery so that customers receive a rapid replacement and your relationship is not compromised. These notifications can also be adjusted to severity levels. Thus if an event is a low threat, a manager may be alerted, while a high severity threat alert could be sent to food safety teams. The costs associated with IoT-based temperature monitoring has pushed food brands away from utilising the technology. However, as food firms look for preventative, scalable temperature control options, the tides are turning. Many are now regulating temperature via the IoT, employing a network of sensors to calculate 16 Á © Shutterstock /nastya_ph 14-17.qxp_Layout 1 28/05/2020 12:36 Page 216 Food & Drink International www.fdiforum.net TEMPERATURE CONTROL SPOTLIGHT algorithms so that equipment is able to spot when temperatures go above or below average margins. Stringent temperature control is particularly vital in the transportation of goods, on road, water, or air. Temperature must be measured, monitored, and logged as goods are transported, for regulatory compliance and to verify products. There are a plethora of options for food firms from Time/Temperature Recorders (TTRs), to disposable temperature loggers, to wireless temperature monitoring devices. It has never been easier to track products as they are transported. Refrigerated trucking carriers and 3PLs frequently offer in depth monitoring and telematics options to present real-time visibility into trailer temperatures throughout transit and during loading and unloading, and temperature monitoring software can offer a range of information from how long doors are open to how efficiently a freezer system has run. Telematics automate sensors and alarms, notifying drivers and fleet managers of problems ahead of potential spoilage. Via Bluetooth or apps, drivers and fleet managers are made aware of any issues, making monitoring simpler. Furthermore, shipping containers are generally becoming smarter, as customers demand more visibility and control NewCold continues to work with customers during challenging times NewCold, 3rd- party logistics partner to some of the UK’s largest frozen food producers, continues to work with their customers during these challenging times for innovative solutions and improvements which add supply chain value. McCain, Aunt Bessie and Froneri all now benefit from automatic handling equipment, installed at their factories to reduce loading times - while retaining product integrity - through a closed supply chain loop. The 3PL, from their expanded Wakefield site, are this year celebrating 5 years operation in the UK, as they work with new customers: Finsbury, Grupo Bimbo, and Genius to improve their respective customer offer - including improved service levels and automated software processes aimed at minimising human interaction and error. A second UK site for NewCold will be announced in the coming weeks, as a deal for a prime location land plot in the logistics ‘golden triangle’ is closed and initial planning approved. To find out more, visit www.newcold.com. © Shutterstock /Mark Y uill 14-17.qxp_Layout 1 28/05/2020 12:37 Page 3Food & Drink International 17 www.fdiforum.net TEMPERATURE CONTROL SPOTLIGHT For the food & drink industry THERMADATA® WIFI LOGGER thermometer.co.uk Cooking • Reheating • Refrigeration • Oven • Grill Helping your business be HACCP compliant Designed & built in the UK, we offer a wide range Bluetooth® of temperature. More sensitive internal temperature monitoring and control systems are now available and supply chain temperature monitoring systems can simplify the documentation of shipping container temperatures. Outside of logging and tracing temperature data, temperature control is also being heightened with new handling solutions such as ‘pods’ utilising automated loading technology to bridge the gap between frozen production or storage and trailers. Goods that leave the production line at a certain temperature can be loaded through sliding doors at a pod of the same temperature, then transferred into a trailer docked to the pod. Ensuring absolute temperature integrity, goods remain at a set temperature and untouched. Meanwhile seemingly basic aspects of food facilities like seals and doors, and their management, shouldn’t be forgotten, with door systems playing a key role in maintaining correct room temperature and preventing the entry of air into temperature controlled areas to avoid, for example, the ingress of warm air into chill rooms, which will see more electricity drawn upon to maintain room temperature, adding to costs. Concurrently, warm air can add moisture, creating pools on floors and potentially cause accidents. Doors should facilitate easy access, while preventing air exchange. Automated, airtight, and high-speed doors where appropriate can offer a high degree of air and temperature control. © Shutterstock /Vladimir Nenezic 14-17.qxp_Layout 1 28/05/2020 12:37 Page 418 Food & Drink International www.fdiforum.net SUSTAINABLE PACKAGING With half of all US and UK consumers making an effort to cut down on the amount of single use plastic they consume, and forty-two per cent noting that selecting products made from recyclable or sustainable materials is important in shopping decisions, food and drink companies are looking to reduce the environmental impact of their packaging and build a sustainable image, investigating recyclable, reusable and biodegradable materials. Fortunately, many consumers are willing to pay a premium for products packaged with sustainable materials. According to the ‘2019 Consumer Survey’ from Ball Corporation, focusing on beverages, seventy-three per cent of respondents said they would choose environmentally friendly containers and fifty per cent said they would pay more for environmentally- friendly packaging. Brands are already seeing growth from sustainability strategies, with Unilever claiming that several of its brands utilising these, like Ben & Jerry’s, are growing thirty per cent faster than those not. Much of the sustainable packaging debate has been propelled by the war against plastics, which continues to scale up as governments bring in more legislation to combat the 300 million tonnes of plastic waste generated annually, frequently made up of bottles, lids and wrappers, forcing action in the food and drink sector. In the EU, the Single-Use Plastics Ban and Circular Economy Action Plan are notable and, incentivising use of recycled plastics, in March the UK recommitted to a tax on plastic packaging containing less than thirty per cent recycled content. From April 2022, manufacturers and importers will be charged £200 per tonne on packaging made of less than thirty per cent recycled plastic. This will increase the use of recycled plastic in packaging by forty per cent which is equal to carbon savings of nearly 200,000 tonnes. A challenge for food firms looking to use packaging with recycled content however is making sure enough high-quality recycled plastic is available. Countries across the world continue to make new pledges to enhance packaging sustainability. In January, the South African Plastics Pact was launched to drive a circular economy for plastic. Members have committed to four targets to stimulate the design of plastic packaging to be reusable or recyclable and push the use of recycled content in new products. Founding members of the pact include Coca-Cola Africa, Danone, Distell, Pick n Pay, Shoprite Group, SPAR, Tiger Brands, Unilever, amongst others. Independently, brands are trying to minimise their plastic packaging use, and are delivering. Iceland, for example, has reached a twenty-nine per cent reduction in its overall plastics packaging usage, two years after pledging to erase all plastics from its own label product packaging by the end of 2023. The reduction reflects a removal of 3,794 tonnes from its annual plastic usage, and this has been done without extra charges on consumers. Meanwhile, supermarket Lidl recently unveiled a first of its kind 21 Á The sustainable switch In the food and drink industry, sustainable packaging is no longer just a nice addition to product lines, it is obligatory; customers expect and demand it. 18-27.qxp_Layout 1 29/05/2020 13:29 Page 1Food & Drink International 19 www.fdiforum.net SUSTAINABLE PACKAGING © Shutterstock /UvGroup 18-27.qxp_Layout 1 29/05/2020 13:29 Page 2Next >