Dive Brief:
- The USDA will not shut down Midamar Corp. after executives were sentenced to prison. They were charged with erasing USDA establishment numbers to hide that the beef was coming from an unapproved processing facility.
- Instead, the USDA has handed down a 16-page consent decree which will allow Midamar to remain in business only if the company meets a long list of stringent requirements.
- Requirements include appointing a corporate ethics officer, developing procedures to ensure complete and accurate documentation, and appointing an independent plant manager to oversee day-to-day operations and develop a "Standards of Conduct" policy and program.
Dive Insight:
As Food Safety News reported, USDA "could have dropped the hammer on Midamar," but instead gave the company one more heavily safeguarded chance. The agency still has the upper hand, as it can prevent Midamar from exporting at any time if the company does not meet all requirements of the consent decree.
But these requirements can't fix the underlying problem of food safety throughout the entire food industry. This could send the wrong message to other companies that may not take the case's outcome as seriously.
Executives in this case did receive jail time, as they did in cases like the Peanut Corporation of America case. But in PCA's case, the company shut down after the salmonella outbreak its products caused. If Midamar continues to operate, it does so with a tarnished reputation in the eyes of consumers and business customers. The company will likely have to make significant changes to operations and safety protocols to restore consumer trust, including those the USDA requires.