Is your business ready for the FSMA 204 traceability tsunami?

Spoiler alert: most aren’t

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FSMA 204 traceability regulations will affect businesses across the globe. The question is, how prepared is your business for the change?

In the ever-changing landscape of food safety and traceability, another shift is on the horizon. The US Food and Drug Administration’s (FDA) Food Safety Modernization Act (FSMA) Section 204 is set to revolutionize how the food industry tracks and traces products. This isn’t just another regulation – it's a game-changer that will reshape the entire supply chain.

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FSMA 204: the game-changer you can’t ignore

At its core, FSMA 204 is a rule designed to create a standardized approach to traceability in the US food industry. It mandates that businesses maintain Key Data Elements (KDEs) at Critical Tracking Events (CTEs) throughout the supply chain.

This rule doesn’t just affect US companies. FSMA 204 casts a wide net. If you buy, sell, or handle any food on the FDA Food Traceability List (FTL) and generate over US$25,000 in annual revenue, you’re likely to be subject to the rule. This includes growers, harvesters, processors, distributors, wholesalers and retail food establishments. Even if you’re a non-US company, if your business is part of the supply chain that puts food on US plates, you’ll need to comply. The compliance deadline is set for January 20, 2026, giving businesses limited time to prepare.

It is worth noting that if your small business is under the threshold for compliance, you may be indirectly affected if your larger customers require traceability information to maintain their own compliance.

Key requirements to meet FSMA 204

The rule centers around four main components:

  1. Food Traceability List (FTL): a comprehensive list of foods subject to the new requirements. FTL in detail
  2. Key Data Elements (KDEs) and Critical Tracking Events (CTEs): specific data points that must be recorded at crucial stages of the supply chain. CTEs & KDEs in detail
  3. 24-hour documentation requirement: Businesses must be able to provide required records within 24 hours of an FDA request
  4. Assignment, recording and sharing of traceability lot codes (TLCs) for FTL foods

The FDA is implementing these changes to enhance food safety, expedite the tracing of contaminated products and minimize the impact of foodborne illness outbreaks.

Global perspective: FSMA 204 vs EU and other traceability requirements

The breadth of FSMA 204 underscores its potential to influence future regulations and industry practices globally.  Other countries may follow suit, creating a ripple effect across the international food industry.

For businesses already operating globally, compliance with FSMA 204 may position you to meet or exceed many international traceability requirements. To ensure any changes you make to meet compliance it is important to understand the nuances of each market you operate in.

Aspect FSMA 204 (US) EU General Food Law Regulation Safe Foods for Canadians Regulations (SFCR) Food Standards Australia New Zealand (FSANZ) Japan Food Sanitation Act
Scope High-risk foods on FTL All food or feed products All food products All food products All food products
Traceability requirement one step back, one step forward, plus additional KDEs one step back, one step forward one step back, one step forward one step back, one step forward one step back, one step forward
Data elements Highly specific KDEs required Specific KDEs required Less prescriptive KDEs required Less prescriptive KDEs required Less prescriptive
Response time 24 hours On demand 24 hours or shorter period if risk to human health On demand Not specified
Electronic records Emphasizes electronic,sortable records Not specified (CATCH mandatory digital) Electronic or paper. Must be accessible in Canada Electronic or paper Not specified
Implementation deadline January 20, 2026 Already in effect Already in effect Already in effect Already in effect
Applies to imports Yes Yes Yes Yes Less emphasis
Kipper Herring Lable Traceability

GS1 standards and barcodes: the universal language of traceability

Enter GS1 Standards – the global language of business. These standards play a crucial role in supply chain management, providing a consistent system for identifying, capturing, and sharing supply chain data.

GS1 Standards align seamlessly with FSMA 204 requirements, facilitating the recording of KDEs through standardized barcodes such as GS1-128 and DataBar, the two most relevant for the food industry.

Using standardized barcodes offers numerous benefits:

  • Improved accuracy in data capture
  • Enhanced interoperability across the supply chain
  • Easier compliance with FSMA 204 and other regulations

By adopting GS1 Standards, businesses contribute to a globally consistent traceability system, paving the way for smoother international trade and improved food safety worldwide.

Benefits of digital systems beyond compliance

While the idea of shifting current systems for record keeping and tracking to a more digital system may seem daunting, the shift brings substantial benefits to your business outside of compliance requirements.

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  • Enhanced food safety: faster, more precise recalls. Accurate product tracking enables you to respond to possible product contamination or mislabeling with speed and precision. Minimizing waste and protecting your brand reputation
  • Operational efficiencies: streamline processes and reduce manual data entry. Remove human error in record keeping and facilitate easy and accurate information sharing
  • Real-time inventory management: improve stock-control and reduce waste
  • Increased profitability: gain better insights into product performance and supply chain efficiency
  • Market competitiveness: meet and exceed customer expectations for transparency and safety. Improve your brand reputation, easily meet consumer demand for source information, and give yourself a competitive edge
     

Comparison of manual approach to digital approach of record keeping

Aspect Manual approach Digital approach
Speed Slow, error-prone Real-time, accurate
Compliance Can be challenging to ensure all data is collected to meet compliance Built-in compliance features, easily adjustable to compliance changes
Scalability Limited to employee time and skills Highly scalable to meet business growth
Cost High long-term costs Initial investment, long-term savings

 

From ocean to plate: why seafood processors are feeling the heat

The seafood industry faces unique challenges in FSMA 204 compliance, with nearly all seafood products refrigerated, fresh, frozen or previously frozen, on the FDA FTL, including:

  • Finfish
  • Smoked finfish
  • Crustaceans
  • Molluscan shellfish, bivalves

The interlinking, international nature of seafood supply chains combines with its perishable nature to add another level of complexity to meeting FSMA 204 compliance.

Five or more stops in a seafood supply chain is not uncommon, with inventory churn needing to be measured in minutes and hours rather than days or weeks. Seamlessly passing information between players requires shared standards and protocols.  However, even with these challenges, forward-thinking businesses can leverage the introduction of FSMA 204 compliance for their competitive advantage.

Interoperable seafood traceability systems: introducing CATCH

Building on EU General Food Law traceability requirements, as of January 10, 2024, with full compliance required by January 10, 2026, fisheries that import to the EU are required to upload detailed catch certification and related documents onto the IUU regulatory IT system CATCH; including:

  • Fishing vessel identity
  • Species caught
  • Catch dates and areas
  • Quantities landed

The use of CATCH is mandatory. It streamlines the certification process with a fully digitalized workflow, thus facilitating the exchange of data, information and documents between trading parties and authorities. The aim of the improved, digital system is to prevent, deter and eliminate illegal, unreported and unregulated fishing.

Traceability From Sea To Supermarket Axin Software Infographic

Case study

Observing the rapid development of technologies over the last few years in the fish processing industry, Icelandic whitefish producer Brim digitalized their product processing in 2022. Brim products are now traceable from ocean to shelf simplifying tracking and ensuring greater food safety. Real-time monitoring and order management has maximized raw material use and made production scheduling according to market demand much easier. “With Marel Software, we have more information about the product than ever before and a clear overview of the status of every order,” says Gísli Kristjánsson, Director of Production at Brim.

The clock is ticking and waiting could cost you 

The challenges in meeting these new regulations will be significant for a number of reasons:

  • Many businesses still rely on paper-based systems
  • Digital transformation requires careful change management
  • Seafood supply chains are often long and complex
  • Hiring or training employees in necessary skills will cost time and money

The biggest hurdle is often not the technology but managing the internal cultural shift towards digital processing.

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So, how do you prepare your business?

The critical part of preparing for compliance is to start now. By understanding what needs to change in your business and ensuring there is enough time to make the changes you will gain the most benefits.

Roadmap of critical elements to consider:

  1. Understand your current process
  2. Communicate with your supply chain partners
  3. Evaluate and select a software solution
  4. Begin implementation and staff training
  5. Run pilot programs and refine processes
  6. Full implementation and continuous improvement

Partnering for success: your FSMA 204 compliance journey and beyond

Navigating the complexities of FSMA 204 doesn’t have to be a solo journey. By partnering with the right software provider, you’re not just buying a solution, you’re investing in a long-term relationship that will guide you through compliance and propel your business into a digital future with confidence.

We develop solutions tailored to address the unique challenges and objectives of businesses in the industry:

  1. Expert consultation to create the right roadmap for your specific business needs
  2. Software for seamless compliance: built-in features address FSMA 204 requirements, ensuring you’re always ahead of regulatory changes
  3. Growth-ready: as your business evolves, our scalable solutions grow with you, adapting to new industry challenges and opportunities
  4. Future-proofed: regular updates keep you aligned with emerging industry standards and technological advancements
  5. Operational excellence: beyond compliance, gain real-time insights to optimize your operations and boost profitability
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FSMA 204 is just one more step in traceability requirements

Remember, FSMA 204 is just the next stage in a long history of industry traceability actions, the difference today, is the increased pressure to adopt digital technologies. As the food industry continues to evolve, having a forward-thinking software partner will be crucial. We’re not just here to help you through FSMA 204, we’re here to help you thrive in the new era of food safety and traceability.

Let’s embark on this journey together and turn compliance into a competitive advantage, setting new standards for food safety, efficiency and customer trust.

 

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