Introduction

The Challenges and Risks of Global Food Trade

Introduction

The Challenges and Risks of Global Food Trade

The global food market is expanding rapidly, presenting significant opportunities for businesses looking to export their products internationally. Companies that effectively navigate the global market can access new customer bases and achieve substantial growth.

Financial and Reputational Risks

Identifying Critical Pesticides for Analysis

Compliance with International Pesticide Regulations

2,500+ incidents

involving pesticide residues in 2023 ⁽¹⁾

Addressing these challenges requires a proactive and strategic approach, where companies invest in understanding and adapting to the regulatory frameworks of their target markets, ensuring rigorous compliance to safeguard their financial interests and reputation.

Entering new markets is accompanied by critical challenges when considering compliance with pesticide MRLs

Challenges of Pesticide MRL Compliance

^{(1) Ingredient Risk Identification by HorizonScan™ | HorizonScan is a registered trademark of Fera Science Ltd.}

Which of these challenges is most relevant to your business?

Compliance with international pesticide regulations
Identifying critical pesticides for analysis
Financial and reputational risks

Compliance with International Pesticide Regulations

Navigating the regulatory environments of different countries presents a major hurdle. Each country or region has its own set of rules regarding permissible pesticides and their MRLs on food products.

These regulations are often intricate, subject to change, and vary widely between markets, requiring robust knowledge and continuous monitoring to meet and maintain compliance.

The challenge is often compounded by limited resources and insufficient access to data across global markets, making it difficult to stay informed about every update and amendment.

Single Region Example:

European Union

381

listed commodities

717

regulated pesticides

270,000+

pesticide MRLs

Identifying Critical Pesticides for Analysis

With hundreds of pesticides in use, determining which are critical for analysis in specific commodities can be a daunting task.

Different markets may have different concerns and priorities regarding pesticide residues, leading to a need for targeted testing strategies. This requires not only a deep understanding of the pesticides used on products but also a knowledge of their impact on trade compliance and public health.

The decision-making process involves scientific, economic, and regulatory considerations, often necessitating expert consultations and significant research.

Pesticide Alerts by Commodity Group:

Top 3 in 2023 ⁽¹⁾

#1

Vegetables (fruiting)

#2

Cereals

#3

Fruits (various)

^{(1) Ingredient Risk Identification by HorizonScan™}

^{HorizonScan is a registered trademark of Fera Science Ltd.}

Financial and

Reputational Risks

The stakes are high when entering new markets. Non-compliance with pesticide regulations can lead to severe consequences, including the rejection of product shipments at borders.

Such rejections are not only financially burdensome due to the costs of product returns, disposal, and potential fines, but they also pose a reputational risk.

Being flagged for non-compliance can damage a company's brand image and consumer trust, which is particularly amplified by the rapid spread of information through social media and other digital platforms.

The risk extends beyond a single incident, potentially affecting future trade and business opportunities in the implicated market as well as others. In many countries, just one violation can lead to increased surveillance and testing of all future shipments of that company or importer, creating additional market access barriers.

Recent Incident: Missing Potato MRL

The U.S. potato industry collaborated with stakeholders and the Korean government to establish over 100 MRLs. However, a loophole led to a major oversight in 2021 when a crucial MRL was missed.

View the video above to learn more.

View full webinar