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Food Business Review | Friday, December 13, 2024
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Food imports face regulatory, supply chain, and environmental challenges, requiring businesses to prioritize compliance, quality, diversification, and sustainability strategies.
Fremont, CA: Importing and exporting food products are essential for global food supplies, whereby countries can have varieties that would be impossible to produce at any one time within their borders. On the other hand, food imports come with unique challenges that make bringing food products from international sources into the domestic market challenging. These include regulatory compliance, quality control, disruption in supply chains, tariffs, and changes in consumer preferences.
Food imports face challenges because of their unique domestic legislation relating to food safety regulations, import restrictions, and documentation requirements. Most small and medium-sized business entrepreneurs find it challenging to stay in line with these regulations because if they are not compliant, their shipments are frequently delayed, rejected, or even destroyed, impacting the bottom lines and the continuity of the supply chain. Highly stringent requirements for food safety and labeling and its inspection are required as per the FDA and EFSA.
Quality and safety in imported foods will require maintaining that quality and safety in the supply chain. Quality conditions such as temperature fluctuations, mishandling, and delayed transits can negatively affect the products. Importers should maintain cold chain control from the start to the market, utilizing sophisticated logistics and tracking systems to minimize spoilage. Severe shocks in food imports are natural disasters, geopolitical tensions, pandemics, and labor strikes. The COVID-19 pandemic has exposed its weaknesses to the vulnerability within the global supply chain and brought tremendous pressure through high prices and food shortages. This has established that diversification of sources in a supply can mitigate risks and improve supply chain resilience.
Changes in any trade agreement or the imposition of tariffs can increase the cost of importing food, making products less affordable for consumers. For instance, it has been evident recently how trade tensions between the U.S. and China have increased tariffs on agriculture-related goods, affecting the pricing and availability of food imported into both countries. Trade policies often feature relatively political issues, so it becomes an ongoing process for importing food businesses to consider and adapt to any development in terms of maintaining competitiveness and remaining compliant. Consumer preference and imported food demand may also change, bringing another issue with the food importers.
Organic, non-GMO, and ethically sourced products are fast becoming the order of the day, particularly in developed markets. Importers have to live up to such ever-changing expectations of consumers by sourcing from certified suppliers and adhering to labeling and sustainability standards; otherwise, low sales and a meager brand reputation would be the outcome. With long-distance transport, the environmental impact of the food import industry is a challenge since there is concern over carbon emissions and degradation. Importers and policymakers must be attentive to sustainable practices such as route optimization, food waste reduction, and renewable packaging materials to regain consumer confidence and sustain the industry.