Changes in the market of suppliers of raw materials for food production

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It would seem that the changes brought about by the entry into force of EU Regulation 1169/2011 mainly concern food producers, however, after a year of the new regulations being in force, it seems that the real revolution is only just coming and it may be felt most painfully by suppliers of raw materials for the food industry.

What are the consequences of respecting EU Regulation 1169/2011? In principle, all the provisions of this regulation apply to food producers, so in order to meet the requirements set by the regulations, a food producer must currently include on the label such information as GMO content, the presence of allergens and, most importantly, a table of nutritional values ​​in accordance with the guidelines contained in Regulation 1169/2011. It seems simple, but after all, none of the producers themselves produce the raw materials from which they compose the finished product, so how can they know whether the raw material was made with GMOs and what its nutritional value is? Without this information, it is impossible to meet the requirements imposed by the law. Failure to provide this information will result in severe penalties from December 2016, and the cost of withdrawing a product from sale may result in bankruptcy of the company, so no one will allow themselves to make mistakes in this matter. In addition, in order for a product that meets the requirements of the regulations to be on the shelves at the right time, this information must first be collected, a new label must be developed, packaging must be produced, and only then can it be sold. For products with a longer shelf life, it can be practically said that the turn of 2015/2016 is the deadline for a reasonable date for introducing changes to the labels. What does this result in?

Food producers require new raw material specifications from suppliers
In addition to all the data that they received previously, the producer must now also receive information on nutritional values ​​in the specification from their supplier, but not in full freedom, only such that it is possible to calculate the nutritional values ​​of the product within the scope specified by the Regulation. The producer is obliged to provide information on the packaging: fat, including saturated fatty acids, carbohydrates, including sugars, protein, salt and of course energy values. Such data should also be included in the raw material specification. While this was not of great importance before, over time this importance is growing, and it can even be said that it can now determine subsequent orders.

Raw material suppliers hide behind the same EU Regulation 1169/2011
In response to questions and requests from their customers, raw material suppliers explain that they still have time, because the Regulation does not come into force until December 2016. However, they do not take into account the packaging replacement cycle that the manufacturer they supply must undertake. Because what is the point of a properly prepared raw material specification in December 2016 if by that time a finished product with an appropriate label must already be on the shelves? And this is where we come to the heart of the matter.

Experts estimate that changes are coming to the market of suppliers of raw materials for food production
In such situations, when there are misunderstandings between suppliers and recipients, the market itself usually regulates the solution to the problems. A supplier who shows a lack of understanding of his recipient, does not respond to his requests and requirements, ignores warnings, must reckon with the fact that he will lose the customer. Manufacturers cannot afford to jeopardize their business and lose their hard-earned position on store shelves. Retail chains and branded stores in particular require products that comply with regulations much earlier than is usually necessary. Their managers take expiration dates into account and do not allow themselves to fail to comply with their own internal procedures. A food manufacturer who cares about its reputation, reliability and maintaining constant supplies will also not allow themselves to take risks, so they will certainly find an alternative offer of raw materials in advance, from a supplier who will prepare documentation in accordance with the buyer's wishes. Such behavior, resulting from concern for their business, is normal and should be expected. Therefore, seeing the sluggishness of raw material suppliers, food market specialists predict significant reshuffles in this group, which may result in some suppliers losing customers to competitors who meet the requirements in the current situation. The whole situation will be resolved very quickly, in 2016. Therefore, it is going to be a very interesting year for producers and suppliers of raw materials, which may bring several spectacular bankruptcies or takeovers of companies, and on the other hand, certainly dynamic growth of companies whose management staff follows trends on an ongoing basis and is able to prepare their plant for new market requirements.

Read more: Guide - how suppliers of raw materials and food additives can better meet the requirements of food producers.

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