From eggs to salami, food recalls are hitting the headlines too often. No farm, factory or retailer would wish to be responsible for an E. coli, listeria or salmonella outbreak and the resulting hospitalizations. But sadly, this has been the reality for a handful of US companies in recent years.
Even when only part of a batch is affected, contamination fears often force companies to discard entire lots to protect public safety. As a result, recalls destroy massive amounts of edible food and cost businesses billions of dollars.
In today's dynamic grocery landscape, improved supply chain visibility and data accuracy are therefore becoming essential. The U.S. Food & Drug Administration (FDA) is tightening up regulations in a bid to bolster food safety management, and is in the process of making full digital traceability mandatory.
Food Traceability Final Rule
The FDA’s Food Safety Modernization Act (FSMA) was originally signed into law in 2011 to help regulators trace and recall contaminated products. The Food Traceability Final Rule (known as FSMA Rule 204) mandates which foods will be subject to stricter scrutiny when it comes to recalls. However, the FDA recently announced that it will delay the compliance date by 30 months, pushing the deadline from Jan. 20, 2026 to July 20, 2028.
Retailers now have a significant window of opportunity to develop comprehensive food traceability solutions.
This extended timeline for FSMA 204 compliance reflects the FDA’s acknowledgment of implementation complexities. The rule imposes extensive recordkeeping requirements on businesses handling foods on the Food Traceability List. The Global Cold Chain Alliance (GCCA) has expressed encouragement about this delay, noting it provides much-needed time for companies to carry out pilots, implement strategy refinement, and prepare for compliance across what can be highly complex supply chains.
The additional time will allow America’s food retailers to develop robust systems for tracking “high-risk” foods which include fresh produce, soft cheeses, eggs, nut butters, ready-to-eat deli items and seafood. The rule requires companies that make, process, pack, or store foods on the high-risk list to keep records of Key Data Elements (KDEs) for specific Critical Tracking Events (CTEs). They must provide this information to the FDA within 24 hours, or within an agreed timeframe, if requested.
Bridging the traceability gap
Many U.S. food retailers are already well into their traceability transformation journeys. While legacy systems present challenges, innovative companies are finding creative ways to enhance visibility without complete system overhauls. The transition from paper-based processes to digital tracking is happening incrementally, with each step bringing greater clarity to the farm-to-shelf journey.
When a retailer can quickly trace a packet of feta cheese or jar of peanut butter back through its entire supply chain, they're not just meeting regulations, they're protecting consumers and their brand reputation simultaneously. This capability is rapidly becoming the industry standard rather than the exception.
Digital technologies including RFID, IoT sensors, NFC tags and blockchain are emerging as game-changers for food traceability. Adoption is accelerating. These technologies empower retailers with unprecedented supply chain visibility, streamlined data collection, enhanced temperature monitoring, and precise recall response.
For example, a grocery chain might implement a system that provides comprehensive product visibility, from source to store. This empowers food retailers to overcome the daily pain points of managing inventory and freshness, optimizing on-shelf availability, reducing waste and labor costs. In a product recall situation, these kinds of technology investments translate directly to consumer safety and operational excellence, as problematic batches can be identified at speed and accuracy.
Recognizing that traceability is a shared responsibility, retail leaders are actively supporting their supplier networks through this transition. It’s taken a while for momentum to build, but technology providers are now seeing cooperation across the food supply chain. GS1 Standards for food, combined with blockchain-enabled data sharing, play a key role in strengthening transparency, traceability, and trust across parties. I believe the best way forward is for retailers to work hand-in-hand with suppliers of all sizes to create integrated traceability systems that benefit everyone.
These partnerships take many forms: technology investments, clear communication of requirements, flexible implementation timelines, and the development of shared data platforms that accommodate various tracking capabilities. This collaborative approach ensures that even smaller suppliers can participate in the traceability ecosystem.
Compliance, but operational excellence too
America's most innovative retailers recognize that advanced traceability delivers benefits far beyond regulatory compliance. Enhanced inventory visibility translates to optimized stock levels and reduced carrying costs. One of the advantages of RFID is that it can link expiry dates to individual products, helping retailers manage food waste by optimizing rotations and markdowns as products approach the expiry date. In the case of a recall, an affected lot of food can be accurately identified, so no more food than necessary is discarded, with speed and minimal disruption. Enabling digital identification of individual items provides a significant boost in labor efficiency, reducing the burden of manual inventory processes, while increasing accuracy.
Perhaps most importantly, today's consumers increasingly value transparency about product origin and environmental impact. Fresh is a big deal for us all. For home delivery of groceries, for example, it helps to have richer product information. How fresh is my avocado? Where did it come from? That detail can be made available via a QR code. I want the smoked salmon that has three days of freshness left. Retailers who can confidently share their products’ journey are able to build deeper customer trust and loyalty in an increasingly competitive marketplace.
Don’t delay supply chain traceability
Nearly 1,400 people fell ill in the United States in 2024 from food that was later recalled. Astonishingly, 98% of those cases were traced to just 13 outbreaks. Nineteen people died, double that of 2023. These stark figures from the U.S. PIRG Education Fund highlight the serious consequences of contaminated food entering the market - with all but one of the outbreaks linked to Listeria, Salmonella, or E. coli.
The FSMA Rule 204 is designed to prevent foodborne illnesses like these, by strengthening the ability to track and trace food through all stages of the supply chain through the exchange of key data elements among trading partners. Despite the extended timeline for compliance, I feel confident that the food retail industry will continue to demonstrate resilience and innovation in addressing traceability challenges.
The question is no longer whether to invest in these capabilities, but how to implement them most effectively to enhance food safety, operational efficiency, and customer confidence.
With collaborative partnerships, strategic technology investments, and a commitment to continuous improvement, America's food retailers are well-positioned to exceed both regulatory requirements and consumer expectations. The traceability journey is well underway, and the destination is a safer, more transparent food system that benefits everyone.
