Dachser invests in food logistics

Europe’s biggest food logistics companies are gearing up for a major change in operating practices when new European legislation is introduced in 2005. The aim of the legislation (EC Regulation No. 178/2002) is to make the food chain fully traceable from producer to consumer, or as the European Commission puts it ‘from farm to fork’. This has major implications for all parties throughout the supply chain, especially logistics providers.

With implementation of the legislation just under 15 months away, there has been a high level of investment by logistics companies, both in new software and transport equipment. Dachser, which generated over €250m of food logistics sales in 2002, has been one of the first to announce how it is to deal with the increased regulations.

Part of its solution has been the development of specialist multi-chamber refrigerated semi-trailers. These are able to ensure that food with different levels of sensitivity is kept separate, guaranteeing clients that they have been maintained at the prescribed temperature. The company is also developing IT systems which will provide rapid documentation of product status to clients, down to the batch and article level.

The introduction of new legislation could be seen by many of the largest food logistics companies as an opportunity to differentiate their product from smaller rivals, due to the level of investment required to comply. However the extra costs involved will undoubtedly be seen by most as an additional burden which will drive down profitability in a low margin industry.