New FDA rules will overhaul perishables trade, experts say

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New federal rules will soon overhaul U.S. perishables trade, requiring more verifications of farms and factories and likely leading some importers to reduce the number of places that they buy from overseas.

Those were among the insights shared at WorldCity’s Trade Connections meeting Aug. 23, which focused on the surging perishables trade and attracted more than 75 people.

J.P. Emond, director of Cold Chain research at Georgia Tech and principal scientific adviser for the Cool Chain Association, says Miami can expand its perishable market. Photos by Carlos MillerPerishables are a big import-export business, topping $350 billion in U.S. trade with the world last year, according to WorldCity’s “2013 Perishables Trade Numbers,” a data-filled publication distributed at the event. Medicines are both the country’s top perishables import and export by value, the numbers show.

The Miami Customs District ranks as a major perishables hub. It is the No. 1 U.S. import district for fish fillets, including salmon from Chile. It also is a key importer of vodka, whiskey and other liquors; frozen shrimp and crab; wine; beer; asparagus, peppers and vegetables; prepared shrimp and crab; bananas; soft drinks; perfume; and apple and orange juice – among the categories listed as country’s top 20 imports, according to the publication.

South Florida also is a top exporter of medicines, plasma and blood, chicken, pork, beef and liquor – among other categories listed among the country’s top 20 exports, the publication said.

The Miami area easily could expand that perishables prowess, said panelist J.P. Emond, director of Cold Chain research at Georgia Tech and principal scientific adviser for the Cool Chain Association. That’s because the area has companies open to adopting new technologies, enjoys excellent air and sea links to transport items from fish to tropical fruits, and employs staff well-versed in perishables.

“If you have a new technology you want to try out, there’s always someone here in Miami who wants to try it,” Emond said, contrasting Miami with other area that are less “pro-active.”

The perishables industry faces upheaval with forthcoming rules for the Food Safety and Modernization Act signed in 2011. The rules remain in comment period and likely will take effect within a couple of years. The law represents the biggest change in the regulation of food imports in more than 70 years, said panelist Charles Woodhouse, a lawyer specialized in food industry regulatory compliance and a former owner of a seafood import company. 

The new Food and Drug Administration rules will rely on “risk-based preventive controls.” That means importers will be asked, for example, to show that the overseas farms and factories they buy from have systems in place to properly handle foods. Proof of those systems will come from independent certifications from such groups as Europe’s ISO. Companies that have all the required paperwork on file and deal only with qualified farms and factories can get speedier entry of imports, Woodhouse said.

Companies that import food should be gathering information now on certifications held by their suppliers to be prepared for the changes, Woodhouse said. That’s because the process of certifying farms and factories can take years, and those not already certified may be late to meet FDA requirements, he said. Charles Woodhouse, a lawyer specialized in food industry regulatory compliance, said importers should expect more red tape with new FDA rules

Recall plans for food also should be readied: “If you don’t have one done now, you are way behind the eight-ball,” said Woodhouse.

How will the new rules affect transport companies such as airlines?, asked Carmen Taylor, who runs American Airlines Cargo for Miami, the Caribbean and Latin American region from Miami International Airport, a top import site for perishables.

The importer will be responsible for meeting requirements, not the airline or ocean carrier, said Woodhouse. Attorneys for transport firms should study the rules and submit comments, he added.

Participants also asked about signing up for the Voluntary Qualified Importer Program, which will speed entry for their food products.

Companies that enter that expedited program will have a competitive advantage, Woodhouse said. He suggested companies check with the FDA on which certifications of farms and factories will qualify, so that they can identify suppliers with those qualifications and seek entry into the program.

Besides the FDA, retailers also greatly influence the perishable food trade. Retailers like to buy from companies that offer reliable delivery and consistency, Emond said.

Carmen Taylor, who runs American Airlines Cargo for Miami, the Caribbean and Latin American region from Miami International Airport, wonders how new FDA rules will affect transport companies.Some retailers now are shifting away from purchases in countries where there have been recurrent outbreaks of food-borne illness from a certain item. They say customers stop buying that item from those countries after outbreaks, even when the product comes from farms not linked to the problem. At least one major retailer won’t carry Mexican strawberries this winter season because of recurrent outbreaks there, said Emond.

Trade Connections is one of six event series organized by WorldCity to bring together executives on international trade topics. The trade series is sponsored by PortMiami, Banesco, Miami- Dade County Aviation Department, American Airlines Cargo and Seaboard Marine.

The next Trade Connections meeting is set for Oct. 18.

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