Rising costs of raw materials, water, and energy, along with increasing expenses in staffing, transport, and production... These are still no easy times. How and where can you still save money to maintain your profitability?
It's understandable that business owners are looking for ways to reduce their rising costs. Quiet shrinkflation is one of the, admittedly unappealing, solutions to this issue. It's a sensitive matter: consumers feel deceived, and the backlash on social media can be harsh.
“Quality is also a cost”; how often do you hear that? The board of directors and, not to be underestimated, the Finance department, without any particular knowledge of quality, put pressure on quality managers: 'Less testing and inspections, that will save money...' Really? It appears quite the contrary.
Due to climate change, more and more risks are emerging. This is not a 'far-fetched scenario'. It's already happening. Microorganisms thrive in a warm and humid environment; exactly what is occurring in Europe. The levels of mycotoxins in corn, wheat, and other dry raw materials are increasing. We still don't have a solution for this. Not everything is within our control. The need for checks on food safety is only increasing.
Do you know what it costs to ensure quality? To produce food safely, thus avoiding recalls? Factor quality into your budget. It should be an item that cannot be cut, simply because by doing so, you would be undermining your own business. Quality is a risk. Surely, the Finance department should be receptive to that argument?
Pieter Vos
Director Nutrilab
Source: Vakblad Voedingsindustrie 2024