Business Central for produce and seafood distributors: FSMA 204 traceability, catch weight, FEFO and retailer EDI

Business Central for produce and seafood distributors: FSMA 204 traceability, catch weight, FEFO and retailer EDI

Sebastian Stefanczyk · BramviaSeptember 23, 2026 6 min read

Bramvia — Business Central Experts

Fresh produce and seafood distributors handle foods on the FDA's Food Traceability List, and retailers are already writing FSMA 204 into supplier contracts ahead of the July 20, 2028 compliance date. What the rule asks of your system, what Business Central records natively, and what needs an app or a focused extension.

Short answer: fresh produce and seafood distributors sit in the middle of FSMA 204. Most of what they move — fresh tomatoes, peppers, cucumbers, leafy greens, herbs, melons, tropical tree fruits, fresh-cut produce, finfish, crustaceans and molluscan shellfish — is on the FDA's Food Traceability List, so from July 20, 2028 they must keep key data elements at each critical tracking event (receiving, shipping, transformation), link them to a traceability lot code, and hand the FDA a sortable spreadsheet within 24 hours when asked. Retailers such as Walmart, Kroger and Albertsons are already putting traceability clauses into supplier contracts, so the practical deadline is your next contract renewal. Business Central records lots, expiry, FEFO picking and forward and backward tracing natively; the FSMA-specific data fields and the 24-hour report are a focused extension, catch weight comes from an app, and retailer EDI from an EDI provider.

Simulator: Lot traceability and mock recall. From a raw-material lot you see in seconds which production lots used it and which customers received them (in the food example, flour lot HT-2609 went into 3 products shipped to 6 customers), and the recall is done in three steps: locate, block stock and notify each customer. Open the demo

Sound familiar?

The day-to-day of a produce or seafood distributor

Whether you import through Nogales or McAllen–Pharr, ship from the Salinas Valley, sell around the terminal markets in the Bronx, Philadelphia or Los Angeles, or handle seafood in Boston, New Bedford, Seattle or Miami:

What FSMA 204 asks of your system

Requirement In practice
Traceability lot code (TLC) Keep the supplier's code on receipt; assign a new one when you transform
Key data elements at each critical tracking event Who, what, where, when and how much at receiving, shipping and transformation
Traceability lot code source Where the TLC was assigned (the packer, the processor, you)
Records within 24 hours An electronic, sortable spreadsheet when the FDA asks during an outbreak
Traceability plan Your written procedures for maintaining the records

How Business Central does it

Requirement How it's handled
Lot numbers and expiry dates Native item tracking on receipt, transfer and shipment
FEFO picking Native pick-by-expiration on warehouse locations
Forward and backward tracing Native item tracing: from a lot to every customer, and back to every receipt
Supplier lot code kept as the TLC Lot number or lot attribute on receipt
KDEs, TLC source and event data Focused extension: fields per event and the 24-hour sortable report
Repack and transformation Assembly or production orders consuming lots and creating new ones
Catch weight App: dual unit of measure through order, pick, ship and invoice
Retailer EDI EDI provider app connected to sales orders, shipments and invoices
PACA trust language Invoice layout text
Quality holds Quality Management extension: lots on hold until released

The numbers

The US depends on imports for much of its fresh produce. According to México, ¿cómo vamos?, 35% of the fresh vegetables available in the US are imported, with Mexico supplying 69% of them; for tomatoes the share is 70%, with Mexico at 90% of imports; for raspberries it was 82.3% in 2024; and for avocados, 88.4%.

Share of US supply met by imports: fresh vegetables 35%, tomatoes 70%, raspberries 82.3% (2024), avocados 88.4%

Much of that product reaches your warehouse with a grower's or packer's lot code already on the case. Under FSMA 204 that code is the traceability lot code you have to keep and pass on, not replace. A system that overwrites it at receiving breaks the chain on day one.

The three places distributors lose money

1. Shrink from picking the wrong lot. FEFO on every pick, plus alerts on lots close to expiry, turns write-offs into sales.

2. Weight given away. Cases invoiced at nominal weight when the real weight was higher. With catch weight captured at pick and invoiced, the difference comes back.

3. Losing a customer at renewal. A retailer that can't get FSMA 204 data from you will buy from someone who can. The cost isn't the fine; it's the account.

Where these distributors come from

From QuickBooks plus a produce or seafood package that holds the lots but not the finance, from old NAV or Dynamics GP, and from spreadsheets that carry the lot codes nobody else keeps. Distribution runs on Business Central Essentials at $80 per full user per month; typical projects run $25,000-45,000 for a small distributor and $45,000-100,000 with several locations, EDI and catch weight (cost breakdown). For food manufacturers rather than distributors, see Business Central for food and beverage manufacturing.

Native versus app

Requirement Business Central
Lots, expiry and FEFO picking Native
Forward and backward tracing Native
Repack and transformation with new lots Native
Quality holds Native (Quality Management)
Landed cost for imports Native
FSMA 204 KDE fields and 24-hour report Focused extension
Catch weight App
Retailer EDI App

How we help

We start with one lot: follow it from the grower's or importer's receipt, through any repack, to every customer it reached. Where the data breaks is where the project starts. We configure lots and FEFO, build the FSMA 204 fields and the 24-hour report, and connect the catch-weight and EDI apps you choose. We work with companies anywhere in the US, with team members in several states. Each part is invoiced only after you accept it.

FAQ

When does FSMA 204 apply? The compliance date is July 20, 2028, after Congress directed the FDA not to enforce the rule before then. The rule itself did not change, and retailers are already asking for the data.

Does it apply if we only distribute and don't process? Yes, for foods on the Food Traceability List: the rule covers businesses that manufacture, process, pack or hold those foods, which includes distributors and warehouses.

Can Business Central produce the FDA spreadsheet? Yes, with a focused extension that stores the key data elements per event and exports them sorted by lot, date and product.

We import from Mexico and Latin America. Does that change anything? Your foreign suppliers are covered too, and you'll depend on their lot codes and data. Keeping their code as the traceability lot code on receipt is the simplest path.

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