Dive Brief:
- CRF Frozen Foods has been unable to identify the source of the listeria contamination at its Pasco, WA, plant that led to the company recalling more than 350 frozen food products under 42 brand names in April.
- The company is now shifting gears to instead focus on securing the federal approvals required to resume production, particularly those from the U.S. Department of Agriculture, a CRF spokesperson told the Tri-City Herald.
- The CDC linked the listeria outbreak to eight hospitalized people, two of whom died, though state health officials did not say whether listeriosis was the cause of death.
Dive Insight:
CRF's movement to secure USDA authorization to restart production is a welcome announcement after the company had to lay off more than 300 workers from its Pasco facility last month. But without having identified the source of the listeria contamination that caused those layoffs in the first place, CRF is in a tough spot.
In addition to convincing federal safety officials that its Pasco plant is safe enough to resume production, CRF will also have to convince its customers, which include a number of brands and retailers, and consumers that these products are safe. When a company can demonstrate firm knowledge of a contamination source and take visible steps to fix the underlying issue, that can often restore consumers' confidence.
But because CRF wasn't able to identify what caused the contamination, the company can't necessarily guarantee the contamination won't happen again. And listeria is particularly tricky, because it takes only a trace amount to sicken a consumer, and even clean facilities can harbor listeria, Bill Marler, managing partner at Seattle-based food safety law firm Marler Clarke, told the Tri-City Herald.
The best CRF can do is invest in new equipment, sanitizing, and testing at the plant. That could cost upwards of tens of millions of dollars and "could be enough to sink any company," CRF's spokesperson told Tri-City Herald. Such a figure might not be far off, as recalls alone often cost the affected company over $10 million. In some cases, costs can reach as much as $100 million, according to a 2015 report from reinsurance company Swiss Re.
As manufacturers prepare for FSMA compliance, having ample documentation of safety procedures, risk assessments, and traceability systems in place could reduce the likelihood of facing an unknown contamination source in the future. Establishing detailed and involved safety protocols, replacing problematic equipment, and properly documenting each step may require upfront investments. But the costs of a future recall, potential production shutdown, any measures needed to resume production, and a damaged reputation could far exceed those initial investments.