When a food recall hits, it doesn’t just affect contaminated products—it can ripple across your entire inventory, even affecting lots that were never at risk.
According to a recent peer-reviewed study published in the Journal of Food Protection, the median cost of an overly broad recall is $8.2 million per producer. For some firms, the damage can escalate to a staggering $72.7 million. And that's just for producers—distributors and retailers face millions in losses, too.
The worst part? These losses are often avoidable.
With precise traceability software in place, you can narrow the scope of a recall, protect your brand, and maintain regulatory compliance—without sacrificing your bottom line.
What Is an Overly Broad Recall?
An overly broad recall happens when the root cause of a food safety incident can’t be traced to a specific lot or shipment. As a result, companies and regulators issue recalls for entire product lines or categories to avoid risk. This approach might be safe, but it’s also expensive and destructive.
The recent Journal of Food Protection study shows just how costly this can be:
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Producers: Median cost = $8.2M per firm (range: $3.0M to $72.7M)
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Distributors: Up to $2.3M per firm
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Retailers/Restaurants: Up to $3.1M per firm
That’s millions lost on product disposal, logistics, legal fees, and brand damage—often unnecessarily.
Why Recalls Get So Expensive
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Lack of real-time traceability means companies can’t isolate affected lots quickly.
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Paper-based or fragmented systems delay response time.
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Inadequate visibility across partners leads to chain-wide recalls.
Without reliable KDE (Key Data Elements) and CTE (Critical Tracking Events), your only option is to pull everything.
What Are KDEs and CTEs in FSMA 204?
Key Data Elements (KDEs) and Critical Tracking Events (CTEs) are the foundation of FSMA 204 compliance. CAT Squared helps food processors automatically capture and manage these data points through our integrated MES, ensuring that traceability data is accurate, complete, and audit-ready.
The Solution: Real-Time, Interoperable Traceability
This is where CAT Squared delivers real value. Our Starfish-powered traceability engine is fully embedded in your MES and collects KDEs, CTEs, quality records, supplier certifications, and more.
With CAT Squared, you can:
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Capture traceability data in real-time from live receiving to final shipment
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Share that data securely with supply chain partners
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Isolate affected lots in seconds, not days
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Generate FDA-ready reports to meet FSMA 204 requirements
You can also connect your traceability data to a branded QR-code portal through our FoodTrace platform, building consumer trust while supporting ESG and transparency goals.
Business Benefits of Traceability Software for FSMA 204 Compliance
Implementing traceability isn’t just about compliance—it’s about protecting your business. Companies that invest in food traceability solutions are better positioned to:
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Minimize the scope and cost of recalls
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Avoid destroying unaffected inventory
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Improve collaboration across the supply chain
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Maintain customer trust
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Meet retailer and regulatory requirements
Why Food Processors Are Investing in FSMA 204 Traceability Tools
Traceability isn’t a future goal—it’s an operational necessity. Especially now, as FSMA 204 enforcement draws closer and consumer expectations rise.
CAT Squared helps food processors implement traceability that protects products, brand reputation, and profitability.
Want to learn how our traceability solutions can reduce your recall risk? Explore our platform.
