Protecting Food on the Move

E360 Forum • Houston, TX • October 25, 2018

Amy Childress

V.P., Marketing & Planning, Cargo Solutions

Emerson

Global Food Distribution Is Complex

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Food’s Journey to Your Plate

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Complexity Demonstrated — Typical Supply Chain Field to Store

Must run continuous at 32 °F throughout supply chain

Process Map

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Supply Chain Complexity Creates Opportunity for Issues

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The perfect storm(s):

resource waste, food safety, brand reputation and profits

Storm #1: Complex Supply Chain Creates Food and Resource Waste

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“…if food waste was a country by itself, it would be the third-largest

emitter of greenhouse gases behind China and the United States.”

METRIC TONS OF

FOOD IS LOST OR

WASTED, NEVER

MAKING IT FROM

FARM TO FORK.

PRODUCED EACH

YEAR IS NEVER

EATEN.

PEOPLE ARE

CHRONICALLY

HUNGRY.

HAS DEVASTATING IMPACT ON THE ENVIRONMENT

Water wasteCreation of greenhouse

gas emissions

*Mandyck, John and Schultz, Eric. Food Foolish, 2015.

Storm #2: Complex Supply Chain Creates Shrink and Impacts Profits

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Food value estimate per truckload

• Beef — $150,000 to $250,000

• Poultry — $60,000 to $225,000

• Pork — $80,000

• Strawberries — $20,000

• Bananas — $16,000

Storm #3: Complex Supply Chain Impacts Food Safety

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The Statistics

According to the CDC, about

48 million people (1 in 6 Americans)

get sick, 128,000 are hospitalized,

and 3,000 die each year from

foodborne diseases. This is a

significant public health burden

that is largely preventable.

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https://www.cdc.gov/foodborneburden/index.html

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What’s the Role of Temperature?

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Food Safety Food Quality

• There are many variables involved in ensuring food arrives in a safe manner to consumers.

• We know bacteria and other pathogens cause food poisoning.

• Cross-contamination, inappropriate processing methods, and temperature abuse can all contribute.

• Maintaining correct temperatures can help prevent and mitigate foodborne illness.

• Temperature impacts food quality and freshness.

• Shelf life is impacted once harvested.

• Iceberg lettuce lasts five days at 47 °F.

• Iceberg lettuce lasts up to 15 days at 33 °F to 39 °F.

• Typical transport time west to east is three to four days.

https://www.fsis.usda.gov/wps/portal/fsis/topics/food-safety-education/get-

answers/food-safety-fact-sheets/safe-food-handling/fighting-bac-by-chilling-

out/CT_Index

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When Temperature

Goes Wrong

Case Studies

When Temperature Goes Wrong – Food Safety

• GO Loggers applied to

cartons of milk “chugs”;

optimal range: 35–40 °F

• Shipped into fast food

restaurant for kids’ meals

• Loggers identify shipment

at 65 °F for eight hours in

transit; shipment

quarantined, protects

brand, prevents potential

lawsuit and bad press

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Label ID: 0018E1

25.0

30.0

35.0

40.0

45.0

50.0

55.0

60.0

65.0

70.0

75.0

80.0

85.0

90.0

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100.0

105.0

110.0

9/15/2007 14:24 9/15/2007 19:12 9/16/2007 0:00 9/16/2007 4:48 9/16/2007 9:36 9/16/2007 14:24 9/16/2007 19:12 9/17/2007 0:00 9/17/2007 4:48 9/17/2007 9:36 9/17/2007 14:24

Time (Mountain Daylight Time)

Te

mp

era

ture

(°F

)

.

1.80E+02 Lower Limit (Consecutive) Upper Limit (Consecutive)

Refrig. unit turned off in

transit for 8+ hours

Temp. hits 65 °F Deliveries to point

of sale

Normal refrig. unit

defrost cycles

When Temperature Goes Wrong – Food Quality

• Potatoes loaded into truck warm; field

heat not removed prior to shipping

• Shipped close to optimal range for two

days, then up to 89 °F for three days

• To compensate and bring product to

spec at delivery, rapid cooling at

freezing levels

• Result? Massively reduced shelf life,

product will be “mushy” in days

• GO Logger provides visibility to retailer,

enables rejection of substandard load

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Food Safety Regulations

What Is FSMA (Food Safety Modernization Act)?

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• Signed into law on January 4, 2011

• Result of numerous food safety incidents

in the early 2000s

• 2006 spinach incident

• Overarching goal is to ensure U.S. food

supply is safe by shifting focus from

simply responding to prevention

Prevention is the key tenet of FSMA.

Goal is to create a modern, risk-based framework for food safety.

https://www.cdc.gov/ecoli/2006/spinach-10-2006.html

https://www.fda.gov/Food/GuidanceRegulation/FSMA

Some Core FSMA Rules Highlighting Temperature

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• Preventative Controls for Human

Food and Animal Feed

• Foreign Supplier Verification

Program (FSVP)

• Sanitary Transport of Human

and Animal Food

For the first time, the FDA has the legislative mandate to require comprehensive, science-based preventative controls across the food supply.

https://www.fda.gov/Food/GuidanceRegulation/FSMA

Best Practices

In-transit Cold Chain Monitoring

Best Practices to Prevent Temperature Issues in Transit

Conquer the Cold Chain

1. Precooling processes

2. Loading practices

3. Establish and communicate temps

4. Monitoring devices

5. DC receipt practices

6. DC to store

7. Yard monitoring

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Establish Pre-cooling Processes

• Remove field heat

• Pre-cool before loading to correct transit temperatures

• Pulp to ensure proper temperatures have been reached

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Establish Proper Loading Practices for Optimal Air Circulation

• Promote air flow.

• Do not stack above“load line”.

• Do not pinwheel pallets.

• Load pallet using a centerline-loading pattern (away from walls).

• Pallet height should not exceed the trailer red line that is usually 9–12 inches from the ceiling of the trailer.

• Use load locks after the last pallet to prevent load shifting during transit.

• To avoid vibration damage in mixed trailer loads, for example, do not load berries on the rear of a mixed load.

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Establish and Communicate Proper Transport Temperatures

• Ship at proper transport ranges for the commodity

• Communicate to drivers and receivers

• Pay attention to mixed/combo loads

Common Commodity Temps

• 56 °F (13.3 °C) to 62 °F (16.6 °C) – bananas

• 42 °F (5.5 °C) to 54 °F (12.2 °C) – tomatoes, yellow onions, potatoes

• 32 °F (0 °C) to 39 °F (3.8 °C) – general produce. This is the largest category and includes leafy greens, apples, broccoli, carrots, cauliflower, mushrooms, green onions, berries and corn.

• 28 °F (-2.2 °C) to 39 °F (3.8 °C) – meat (beef, pork, poultry, seafood)

• 32 °F (0 °C) to 39 °F (3.8 °C) – dairy

• -10 °F (-23.3 °C) to 15 °F (-9.4 °C) – general frozen foods

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Temperature Monitoring Device and Placement Procedures

• Establish consistent placement

• Typically two-thirds back toward the trailer door

• Reefer only provides ambient temps

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Receipt at Distribution Center

• Check temperature recorder for temperature history

• Do not rely solely on pulp or reefer temps

• Place into cold storage immediately

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Distribution Center to Store

• Segment not typically scrutinized

• Critical part of the cold chain

• Use independent recorders

• Ensure product unloaded quickly and put into cold storage at the retail level

• Monitor at retail

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Stationary and Yard Monitoring

• Brick-and-mortar retail is part of the cold chain.

• Ensure sufficient monitoring is in place.

• Overflow and temporary storage in the yard is also a part of the cold chain.

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Technology

Advancements

In-transit, Cold Chain Monitoring — Technology Evolution

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The Benefits of IoT in Transit

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• Data loggers and real-time tracking devices placed on perishable loads in transit

• Temperature data automatically transmitted to the cloud, using cellular-based systems

• Simple to use/require minimal human interaction

• Historical records are kept in the cloud. Proactive alerts can also be sent.

IoT enables automated record keeping.

Be proactive and preventive — the internet of fresh.

The Benefits of Blockchain

• Shared “hyper” ledger, new platform

• Updated through peer-to-peer replication

• Eliminates duplication of effort, less vulnerable to attack

• Hash (digital fingerprint or unique identifier) links blocks together

• Some blockchains are permissioned, while others are not

• Faster chain of custody processing

• IBM Food Trust and Walmart – first requirement for leafy green suppliers for traceability

• Freshness applications and shelf-life predictors

• Traceability combined with environmental information

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Where Does Cargo Fit in the Emerson Cold Chain?

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In-transit Cold Chain Insights GO Real-Time Trackers GO Real-Time Loggers

When Temperature

Goes Right

Case Studies

Alaskan Salmon Shipments

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When Temperature Goes Right — International Live Lobster Shipments

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Cold chain monitoring helped:

• Decrease lobster mortality rates

• Evaluate shipping lanes and carriers

• Optimize shipping SOPs, including utilization of ice and gel packs, reducing costs of shipments

• Maintain standard of quality from “boat to plate”

• Gain and keep new customers. Proof of product quality and quality program helps keep $6M customer — became foundational element of a quality marketing program

Supplier utilizes cold chain monitoring as part of marketing program to gain customers

When Temperature Goes Right — No Bananas Today

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Associated Food Stores

Emerson Cold Chain Leadership Extends to All Areas

Components, controls, infrastructure and monitoring all contribute to a maintained cold chain.

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Learn More About How to Conquer Your Cold Chain at Emerson.com/Cargo

Freshness is cumulative.36

Questions?

DISCLAIMER

Although all statements and information contained herein are believed to be accurate and reliable, they are presented without guarantee or warranty of any kind, expressed or

implied. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments, and the user assumes all risks and liability for

use of the information and results obtained. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such

use is free of patent infringement and are not recommendations to infringe on any patents. The user should not assume that all toxicity data and safety measures are indicated

herein or that other measures may not be required.

Thank You!

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