Economic Loss from Foodborne Disease and Non-Illness Related Recalls Because of Mishandling by Food Processors

Abstract

Costs relating to 17 foodborne outbreaks and 3 non-illness related recalls where 12 different types of processed food had been mishandled are presented and compared. Direct (easily measurable) costs amounted to a total of $578,497,352, with costs of individual problems ranging from $83,000 to $164,890,338 and a median average cost per case of $34,362. Some indirect costs were also determined; these include the value of pain, grief, suffering and death, and of loss of housekeepers' productivity and leisure time. The economic impact of a processed food problem is typically greater than that of a foodservice problem, although the latter occurs more frequently. The costs associated with foods that have resulted in more severe types of illnesses, such as botulism or typhoid, are invariably high, not only because of medical expenses but also because health control agencies perceive that risks for the population are great and public recalls must be made. Often this type of problem can involve a whole industry, e.g., the processing and marketing of canned corned beef, salmon or tuna where economic losses have measured $150 million or more.