Product safety & compliance

FSMA 204 and the $10K/Day Risk: A Guide for Food Industry Leaders

‍What Your Business Needs to Know About HACCP and FSMA 204 Before It's Too Late

FSMA 204’s enhanced traceability requirements are designed to create a robust system for tracking high-risk foods from farm to fork. By requiring compliance at multiple points along the supply chain, the regulation ensures that:

  • Contaminated food can be rapidly identified and removed from circulation.
  • Transparency is maintained across different entities handling the food.
  • Responsibility is shared, making every actor accountable for their part in the chain.

Who Needs to Pay Attention (And Who Doesn't)

If your business handles any foods on the FDA's Food Traceability List, FSMA 204 is about to reshape your operation. This includes:

  • Restaurants and foodservice operations serving fresh produce
  • Food manufacturers processing ready-to-eat deli salads
  • Distributors handling seafood or shell eggs
  • Grocery stores stocking soft cheeses or fresh-cut vegetables

You might be exempt if you're a small farm or food business with annual revenue under $250,000, or if you exclusively handle foods not on the FDA's high-risk list. But here's the catch: if even one ingredient you handle is on that list, you're in.

What's Actually Required

Starting January 20, 2026, you'll need to maintain detailed records of:

  • Every time you receive high-risk ingredients (with lot codes and supplier details)
  • Every time you transform these ingredients (including time and temperature records)
  • Every time you ship products containing these ingredients
  • Every movement of these ingredients within your facility

And you'll need to produce these records within 24 hours if the FDA comes calling.

The Clock Is Ticking

With just over a year until the January 2026 deadline, thousands of food businesses are scrambling to upgrade their systems. Many are discovering their current HACCP compliance tools won't cut it for these new requirements. If you haven't started preparing, you're already behind - but you're not alone.

Let me be blunt: if you're running a food business right now, you're about to face one of the biggest operational challenges of your career. The FDA's new FSMA 204 requirements aren't just another checkbox – they're a complete overhaul of how you'll need to track and trace every ingredient that passes through your operation. And yes, that's on top of your existing HACCP protocols.

I've spent the last month talking to operations managers and business owners just like you. The consensus? This feels impossible. As one kitchen manager in Denver put it: "I'm already stretched thin managing daily operations and HACCP compliance. Now they want me to implement a whole new traceability system?"

Here's what you need to know, no sugar coating:

The Stakes

A single traceability failure under FSMA 204 can result in fines up to $10,000 per violation, per day. More critically, in the event of a foodborne illness outbreak, if you can't provide required traceability records within 24 hours, you're looking at potential criminal liability. Your HACCP plan won't save you – the FDA wants both.

The Reality Check

Your current systems probably aren't ready. If you're like most operations, you're managing HACCP with a combination of paper logs, spreadsheets, and maybe some basic software. FSMA 204 demands more: lot-level tracking, precise timestamps, and complete chain of custody documentation for every high-risk ingredient

What This Means For Your Operation

You'll need to track:

  • Every receiving record for high-risk ingredients
  • Every internal product movement
  • Every shipping record
  • Every transformation step
  • Every temperature log
  • Every cleaning record

And you'll need to connect all this data to your existing HACCP control points.

Practical Next Steps

1. Audit Your Current Systems
  • Review how you’re currently handling HACCP.
  • Identify gaps, strengths, and weaknesses.
  • Use this analysis as the foundation for building a compliant system.
2. Map Your High-Risk Ingredients
  • Focus on the FDA’s Food Traceability List.
  • Prioritize these items for FSMA 204 compliance.
3. Evaluate Technology Options
  • Look for a system that handles both HACCP and FSMA 204 requirements, including:
  • Easy mobile data entry
  • Automated temperature monitoring
  • Batch/lot tracking capabilities
  • Quick report generation
  • Cloud backup
  • Training support
4. Plan Your Training Strategy
  • Prepare your staff for new procedures with:
  • Initial training sessions
  • Regular refresher courses
  • Clear, written procedures
  • Designated compliance champions
5. Set Your Timeline
  • FSMA 204 compliance is mandatory, and the deadline is approaching.
  • Work backward from the compliance date to develop your implementation schedule.

The Bottom Line

You have three choices:

  1. 1. Start preparing now and get ahead of the requirements
  2. 2. Wait until the last minute and scramble
  3. 3. Ignore it and risk your business

The smart money is on option one.

FSMA 204 and the $10K/Day Risk: A Guide for Food Industry Leaders

Shawn Cady

Shawn Cady is a career technologist and serial entrepreneur specializing in retail, foodservice, and healthcare. With over 30 years of experience in data standards and platform development, Shawn has contributed to transformative industry initiatives, including the Global Data Synchronization Network (GDSN), Global Unique Device Identification Database (GUDID), and compliance frameworks like FSMA, CPSIA, and more. He combines a relentless curiosity with a teacher’s soul, driven to simplify complex challenges and inspire innovation.