History of Belcris Foods, Inc.

Belcris Foods, Inc. started out with only three products in the year 1997 by the spouses Antonio and Edith Dy as a pastime. The business came into full swing in the year 2002 and it was taken over by the couple’s third child Christine Dy-Un as the general manager. The number of personnel increased from 3 to 5 and the core products were bacon, tocino, and corned beef. Through the years, the company gradually increased its workforce and machineries in order to cope with the increasing demand of products. The company was able to build a cold storage facility in 2005, acquired RORO trucks for transport, and obtained metal detection machinery. The company became HACCP certified in 2010 and was able to put up an in-house laboratory in the same year. The company also became certified with ISO 9001:2008 in the year 2012. They opened up branches in different parts of the country such as Boracay, Manila, and Moalboal.

Today, in its 13th year of existence, the company already has over 200 employees, and is growing continuously as it aims for the global market.

Nature of Business

Belcris Foods, Inc. is a food manufacturing and processing plant that focuses on frozen processed meat products such hams, sausages and bacons. It supplies such products to a number of hotels and resorts and other clients. The company also has a meat shop located in the plant where customers may purchase Belcris Foods, Inc. products.

Product in to be investigated

Honey cured bacon is one of the Belcris Foods, Inc. main products. It has the following varieties:

o Honey Cured Bacon

o Honey Cured Bacon—Smoked (HACCP claimed product)

o Honey Cured Bacon—Cut ends

Expiration date from manufacture: 1 year

Storage temperature: -18 °C (must not exceed -10 °C)

Problem

Spoilage of honey cured bacon in cold storage

Multiple trays of 1-kg packed honey cured bacon were taken from storage bays, each tray containing about 20 packs of bacon. Some of the expiry dates specified on the labels are still 1-2 months from the date they were taken out for assessment. Some packs have expiry dates which were already due. Primary inspection involve opening each pack to check the color and odor.

Those that pass will be checked for taste and texture in the laboratory. Rejects will be disposed of while acceptable ones will be reprocessed, repacked and sold at a cheaper price.

Why is this a problem?

Financial losses for the company

The main goal for every company is profit. Spoiled goods mean they are not suitable for consumption, therefore they cannot be sold and cannot earn the company profit. The cost of production for the goods that have spoiled are then considered as losses. Furthermore, there is more work to be done for the investigation of the problem of product spoilage which is time-consuming and require additional costs.

Company reputation will be affected

If the spoiled products remain undetected and distributed to consumers or clients, this can affect the reputation of the company which claims to provide good-quality products. Additionally, consumption of spoiled food is detrimental to health. Quality and safety are the top priority in the food industry, therefore instances such as food spoilage should have been avoided.

Possible causes

Air-conditioning unit

The temperature within the storage bays should not go above -10°C to prevent growth of microorganisms that may cause spoilage. The ideal temperature is -18°C for cold storage. Air-conditioning units are installed in every storage bay to provide the desired storage conditions. First thing to consider if there are problems with the storage temperature is the air-conditioning unit. Engineers are assigned to evaluate and repair any problems related to the air conditioner compressors.

Arrangement of goods in storage bays

The arrangement of the products can affect the air circulation and temperature distribution within the storage. It was observed that certain storage bays have products that are closely stacked together, preventing access of some of the products to the desired temperature conditions. There should be enough spacing between goods to promote good air circulation.

There are also products located near the storage doors. When storage bay is frequently accessed, the temperature proximal to the doors may increase.

Inadequate storage space

Inadequate storage space leads to a congested storage area, which affects the arrangement of the products and can affect temperature distribution as described previously.

There were instances when some products cannot be accessed because of boxes or trays blocking the storage corridors. There was little room left in the storage bay and some products have to be removed from the storage in order to access the other products. This exposes the products to different temperature conditions.

Management system problem

There are different storage bays for different types of products. For example, all beef products are to be placed in storage bay 1 and all pork products in bay 2. However, also due to the limited storage space, some pork products are placed in bay 1, and some beef products can be found in bay 2. There was no proper organization or classification of products in the storage area.

This may have led to some of the products with earlier expiry dates to be left longer in the storage. There was supposedly the First In First Out rule but it was not properly implemented.

Communication problems especially in the sales and order department may also have contributed to this. There could have been an overproduction of goods which led to the congestion of the storage bays.

Packaging

Tin’s honey-cured bacon is vacuum-packed in rectangular-shaped high-density polyethylene thermoplastic imprinted with labels while manufacturing and expiry dates are put on as stickers. The vacuum packaging play an important role in the preservation of the product. Even when the product is properly sealed, it may still spoil fast if there are remaining air pockets within the product packaging. These air pockets provide an aerobic environment to microorganisms suitable for growth.

Malfunctioning laser gun thermometer

Temperatures in the storage bays are monitored every 2 hours. Erroneous readings, especially readings that pass the standards when it is actually otherwise may lead to certain problems left overlooked. The company uses laser gun thermometers. These are calibrated daily. Every calibration is recorded, but calibrations vary.

Cleanliness of storage bay

The storage bays require regular cleaning to maintain an environment that prevent the contamination and growth of microorganisms.

Recommendations

Bigger storage space

The spoilage problem was encountered during the month of May. Belcris Foods, Inc. has recently constructed a new storage area which is relatively bigger than the previously existing ones. This is to provide a bigger storage area as the demand and production of products has increased.

Repair/replacement of broken equipment

The functionality of the air conditioner compressors, laser gun thermometers and vacuum packaging equipment must be monitored regularly and must be repaired or replaced immediately in case of problems.

Cleaning and organization of storage bays

Spoiled goods left in storage may affect other goods. There should be proper labelling for classification in the storage bays according to the type of product and expiry dates. The first in first out (FIFO) rule should be strictly implemented.

Handling of goods and processing

Processing and packaging of the products must conform to standards. Additionally, employees should follow good manufacturing practices (GMP). The products can only be of the desired quality if they conform to the standards. The company should conduct more practical trainings to the employees, especially the newly-hired ones.