As different food traceability regulations and legislations roll out across the globe – from the updated FSMA 24 in the U.S. to the European Deforestation Regulation (EUDR) in Europe – the food sector still appears unprepared for full traceability in the food supply chain, according to Foods Connected, a food industry software company.

In the U.S., the Food Safety Modernization Act (FSMA) is driving digital transformation, but there’s still a long way to go for companies working hard to create full transparency to adhere to the new stringent rules, according to a recent survey by food procurement and supply chain management software vendor Foods Connected. 

The company surveyed 250 executives of U.S. food firms with 250 or more employees, asking them to list the biggest challenges they were encountering in enabling full transparency within their supply chains, and whether they will be ready when the new regulations come into force. A new tranche of regulations under the FMSA, which was originally signed into law in 2011, come into effect in January 2026, requiring more companies along the food supply chain to collect more detailed information as they grow, process, pack, or hold foods included on the Food Traceability List (FTL). 

Foods Connected says its survey found that  72% of large-scale U.S. food businesses are still encountering challenges in tracking where their produce and raw materials are coming from - and 28% overall said they are not ready for FSMA 204 specifically. 

“At a very basic level, some businesses still don’t really understand that they need visibility of their supply chains and how supply chain visibility is at the core of traceability,” said Dr. Stephanie Brooks, head of business – traceability innovation at Foods Connected. “What’s needed is an education and awareness piece. Education around what direction traceability is going and awareness around what funding avenues are available to try and meet some of these challenges.”