Webinar Product Recalls

2. Speakers
MATIJA ZULJ INES HAJDU BOB WESTBROOK
CEO & Founder Digital Agriculture
Success Manager
Head of Sales

4. To create a transparent data-
powered certification ecosystem
for a safe food supply chain.
Project Mission

5. Project Profile
• Project Acronym: TheFSM
• Project title: The Food Safety Market
• Starting date: 01/02/2020
• Duration: 36 months
• Instrument: H2020-ICT-2019-2, ICT-13-2018-
2019: Supporting the emergence of data
markets and the data economy
• Contribution of the European Union: €4.8
million
The Food Safety Market:
an SME-powered industrial data platform to boost
the competitiveness of European food certification

6. Positioning of TheFSM

7. Consortium
11 PARTNERS FROM
9 EU COUNTRIES &
2 NON-EU COUNTRY INVOLVED (Egypt and Jordan)

8. 10 Pilots where food companies and their supply chain stakeholders will test, improve and drive the
adoption of the data platform and the linked software tools.
Pilots
10 countries:
• Greece
• Netherlands
• Italy
• Romania
• Croatia
• Poland
• Serbia
• Cyprus
• Egypt
• Jordan

9. For TheFSM project AGRIVI will be releasing a new
version of an existing farm management system
(AGRIVI 2.0) to serve producers that wish to exchange
certification-relevant data with their inspectors and
buyers, through simple, automated and robust data
exchange workflows that respect their data ownership
and rights.
AGRIVI’S role

10. AGRIVI’S role
Activities during the Project:
• Integrate, extend and pilot supplier data
sharing capabilities in AGRIVI
• Design, setup, involve and mobilise existing
clients that will participate in innovation and
piloting activities in Croatia, Serbia and
Poland and coordinate pilots for partners
pilot participants
• Contribute to 3rd party software integration,
data models and interoperability, data
population & localisation of data

11. Agenda
• Overview of Recalls in the US and EU
• On-Farm Situations that Cause Above-the-Limit Pesticide Residues
• Responsible Sourcing Strategies that Regulate the Use of Pesticides
• How Digital Agriculture Solutions Help in Mitigating the Risk
• Challenges of Bringing Digital Agriculture Solutions to Farms
• Benefits of Digitally Integrated Agriculture Supply Chains

12. 1099 PRODUCT RECALLS
650 PRODUCT RECALLS
2019 data
2021 data
Source: FDA
Source: EU RASSF
Product Recalls
in the US and EU

13. 59%
9%
8%
6%
6%
4%
8%
Fruits and vegetables
Herbs and spices
Nuts, nut products and seeds
Cereals and bakeryproducts
Dietetic foods and supplements
Food additives and flavourings
Other
Product Recalls
in the US and EU
Recalls of fruit and vegetable
make over 50% of all recalls in EU

14. Product Recall Costs
Source:Food Marketing Institute and the Grocery Manufacturers Association (GMA), US

15. Why do Product Recalls Happen?

16. Recall Reasons
• Wrong timing of spraying
• Wrong product selection
• Wrong dosage of product during spraying
(too high)
• Harvesting before the waiting period
has expired

17. Wrong timing of spraying

18. Wrong product selection

19. Wrong dosage of
product during spraying
(too high)

20. Harvesting before the
waiting period has expired

21. Estimated harvest in 8 days
Weather forecast: no heavy rain for 2 weeks
Waiting period: 7 days
Next 3 days: Rain comes and will last for a week
Rain just stopped
Mold detected – Spraying recommended Decision: Spray
Weather forecast changed
Harvest before the waiting period
Harvest after the rain
Real-Life Scenario

22. Impact of
Decision Making
on Financial Situation
• Slim margins in many crops
• Avg US farm $1.3M in debt
• Borrowing against land has increased
• Delinquency on payments up as well

23. Agricultural Supply Chain Perspective
FARM DISTRIBUTOR RETAIL

24. Agricultural
Supply Chain
Perspective
Delivering crops with pesticide
levels above the acceptable rate
The Challenge

25. • Growers Crops Companies Internal Quality Check
• Maximum Pesticide Residue Breached Crops are Rejected Huge Financial Loss, Food Waste
• Transferring the Loss to The Grower Great Financial Risk
• Food Company Needs to Substitute the Lost Yield Higher Price Risk Impact on Profit
Waste During Quality Control

26. • Internal Quality Control No Breaches Detected Products Delivered to
the Market with Pesticide Residues
• Inspection at the Retail Level Breaches Detected Product Recall Initiated
Huge Financial and Brand Impact
Product Recalls

27. Thank you.