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FAQ

What are the financial consequences of non-compliance with food safety requirements?

Non-compliance with food safety requirements can cost a business tens of thousands to millions of euros. The financial impact goes beyond direct fines from regulators. It also includes product recalls, lost revenue, and reputational damage that can last for years. In this article, we answer the most common questions about the cost of non-compliance in the food industry.

What fines do you risk when violating food safety laws?

When you violate food safety laws in the Netherlands, you risk fines from the Netherlands Food and Consumer Product Safety Authority (NVWA). These can range from a few hundred euros for minor violations to more than 820,000 euros for serious or repeated offenses. The amount depends on how serious the violation is, the size of your business, and whether it has happened before.

The NVWA uses a fine schedule that groups violations into categories. A business that fails to keep proper traceability records, for example, can receive a significant fine at the very first inspection. In serious cases where public health is at risk — such as putting contaminated products on the market — the Public Prosecution Service can also take criminal action.

In addition to NVWA fines, European regulations also apply. EU food safety legislation, in particular Regulation (EC) No. 178/2002, places responsibility directly on the producer. Member states are required to introduce effective, proportionate, and dissuasive penalties. This means the financial threshold for non-compliance has been set deliberately high.

What are the indirect costs of a food safety incident?

The indirect costs of a food safety incident are usually far greater than the direct fines. Think of the costs involved in a product recall, legal assistance, additional audits, fixing production processes, and temporarily shutting down production lines. For industrial buyers, a single incident can disrupt the entire supply chain.

A product recall alone brings significant logistical and communication costs. Products need to be located, retrieved, destroyed, and replaced. Depending on how widely they have been distributed, these operational costs can quickly run into the tens or even hundreds of thousands of euros — not including lost revenue.

Then there are the hidden costs: higher insurance premiums, extra internal checks, additional certification processes, and lost productivity from employees who are focused on crisis management instead of their regular work. For buyers like Marco, who are responsible for keeping a production line running smoothly, an incident at a supplier also means an immediate production stoppage on their end.

How does non-compliance affect a company’s reputation and revenue?

Non-compliance with food safety requirements causes lasting reputational damage and has a direct impact on revenue. Retailers and industrial buyers switch to alternative suppliers as soon as a food safety incident becomes public. Rebuilding trust takes several years on average and requires demonstrable improvements in processes and certification.

In the food industry, trust is the foundation of every business relationship. Supermarkets, foodservice companies, and ready-meal producers all work with strict supplier protocols. A single food safety incident can mean losing a contract that took years to build. On top of that, regulators make incidents public, which makes the reputational damage even worse.

For product developers like Laura, who launch new concepts using premium ingredients, a supplier’s reputation is a direct reflection of their own brand. A goat cheese involved in a recall drags down the image of the final product — regardless of who made the mistake.

What food safety requirements apply specifically to cheese and dairy products?

In the EU, cheese and dairy products are subject to strict requirements covering microbiological safety, hygiene, traceability, and labeling. European Regulation (EC) No. 853/2004 sets specific hygiene rules for products of animal origin, including cheese. Producers must meet standards for pathogens including Listeria monocytogenes, Salmonella, and E. coli.

Microbiological and hygiene standards

Cheese producers are required to carry out risk analyses based on a HACCP system (Hazard Analysis and Critical Control Points) and to monitor critical control points in their production process. For fresh goat cheese, which has a shorter shelf life than aged varieties, the requirements around cold chain management and microbiological testing are especially strict. Any deviation in temperature control or hygiene conditions can quickly lead to permitted limits being exceeded.

Traceability and labeling requirements

Dairy producers must be able to fully trace the origin of milk — from the dairy farm all the way to the finished product. This requires detailed record-keeping and a robust registration system. For private label production, where cheese is sold under a retailer’s or industrial customer’s brand, additional labeling requirements apply and must be followed carefully. Missing or incorrect information on packaging is a common source of non-compliance.

How do you prevent non-compliance and the costs that come with it?

You prevent non-compliance in the food industry by consistently investing in certified quality systems, internal audits, and reliable supplier relationships. Companies that proactively work with certifications such as IFS Food, BRC, or FSSC 22000 significantly reduce the risk of violations and clearly demonstrate to regulators and buyers that food safety is under control.

Here are some practical steps to help prevent non-compliance:

  • Work with certified suppliers who can demonstrably show they meet international food safety standards and keep their certifications up to date.
  • Conduct regular internal audits based on your HACCP plan and consistently document any deviations and corrective actions.
  • Train your employees on hygiene, traceability, and applicable regulations, so that compliance is a daily habit — not a one-time effort.
  • Actively monitor your supply chain and set contractual quality requirements for suppliers, including the right to audit them directly.
  • Keep your documentation in order: make sure specifications, test results, and delivery documents are always accessible and up to date for any NVWA inspections.

For buyers in the food industry, choosing a supplier with a proven quality system is one of the most effective ways to reduce your own compliance risk. A supplier who is transparent about their production processes and certifications shares part of the responsibility — and lowers the chance of costly incidents in the supply chain.

How DeJong Cheese helps with food safety and compliance

As a family business with years of experience producing fresh and soft goat cheese specialties, we know better than anyone how important consistent quality and demonstrable food safety are to our customers. Whether you are buying for an industrial production line or developing new food concepts, we offer the assurance you need to stay compliant.

Here is what we offer:

  • Certified production with full traceability from milk to finished product
  • Consistent specifications per batch, so your production line runs without surprises
  • Complete documentation available for audits, including test results and hygiene reports
  • Flexible private label options with correct labeling in line with European regulations
  • Personal contact with dedicated points of contact who know your specific requirements and think along with you

We supply retail and foodservice customers worldwide and are experienced in meeting the strict quality standards that major buyers require. Want to know how DeJong Cheese can reduce your compliance risk? Get in touch for a no-obligation conversation about your specific situation.

Frequently Asked Questions

How often does the NVWA inspect businesses in the food industry?

The NVWA carries out risk-based inspections. This means the inspection frequency depends on your company’s risk profile, any previous violations, and the nature of your products. Businesses that work with products of animal origin — such as cheese and other dairy products — are generally inspected more often than those with a lower risk profile. Having up-to-date certifications like IFS Food or FSSC 22000 can positively influence how the NVWA views your business, but it never exempts you from the obligation to always remain compliant.

What should I do if my supplier is involved in a food safety incident?

Activate your crisis protocol immediately and notify all parties in the chain, including your own customers. Use your traceability system to quickly identify which batches you received from the supplier in question and whether they have already entered circulation. Block any suspect stock internally and document every step carefully — this documentation is critical if you need to communicate with the NVWA. You should also consider seeking legal advice to assess your liability and to make use of any contractual rights you have against the supplier.

Is HACCP certification mandatory for all businesses in the food industry?

HACCP is not a certification in itself, but a legally required method of risk management that applies to virtually all businesses in the food chain, including producers, processors, and distributors. Under European legislation (Regulation (EC) No. 852/2004), you are required as a food business to implement and maintain a HACCP system. Certifications such as IFS Food or BRC build on HACCP principles and provide an additional layer of demonstrable compliance that many retailers and industrial buyers require as a condition for doing business.

Can I as a buyer be held liable for non-compliance at a supplier?

Yes, as a buyer you can be held jointly liable if you have not carried out sufficient due diligence when selecting and monitoring your suppliers. European food safety legislation follows the principle of chain responsibility. This means that as a link in the chain, you are required to verify that your suppliers meet the applicable requirements. Setting contractual quality standards, securing audit rights, and regularly requesting certifications and test results are practical ways to limit your own risk and make your due diligence demonstrable.

What insurance covers the costs of a product recall?

Product liability insurance generally covers damage to third parties caused by an unsafe product, but the direct costs of the recall itself are often not automatically included. For that, there is a separate product recall insurance policy, which can cover costs such as logistics, communication, product destruction, and lost revenue. It is strongly recommended to have your insurance portfolio reviewed by a specialist in food industry insurance, so you know exactly what risks are covered and where any gaps may be.

How do I know whether a supplier is actually keeping their food safety certifications up to date?

Always ask for a valid certificate with a clear expiration date and verify it independently through the database of the relevant certification body, such as the BRCGS Directory or the IFS Database. Reliable suppliers proactively share their certifications and notify you in good time when they are renewed or when their certification status changes. You should also consider including a contractual clause requiring the supplier to notify you immediately if a certification expires, is suspended, or is withdrawn — so you are never caught off guard.

What are the first steps if I want to improve my own compliance level?

Start with an internal gap analysis based on the legislation that applies to your sector and the requirements of your most important customers. This gives you a clear picture of where the risks are. Then prioritize the areas for improvement based on risk and draw up a realistic action plan with concrete deadlines and responsibilities. After that, invest in the right certifications, employee training, and supplier monitoring as the structural pillars of your quality system. Bringing in an external food safety consultant or working with certified suppliers who are transparent about their processes can significantly speed up this journey.

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