The International Food and Agribusiness Management Review · 2001 · 42 citations · 1 references
AgricultureFood ScienceInsuranceConsumer ProtectionFood SafetyUnderwritingFood Safety AnalysisFood Safety HazardsFood Safety In ProcessingFood Safety PolicyRecall ManagementSafety RiskConsumer SafetyCritical Control Point AnalysisFood Recall ManagementFood Recall PolicyFood Recall SystemsMarket LossesRecall PenaltiesRecalls
Increasing reports of meat and poultry contamination, coupled with significant financial losses from recalls and the risk of contaminated products escaping the recall system, highlight a growing threat to consumer safety. The study examines how recall insurance could influence food safety by compensating firms for losses during contamination‑induced recalls. The conceptual analysis suggests that insurance underwriters could motivate earlier recalls and more diligent implementation of HACCP, ultimately reducing illness and death from foodborne pathogens.
This paper explores the food safety implications of insurance products that compensate for business losses when food contamination causes a processing firm to initiate a recall. Discoveries of meat and poultry product contamination, in particular life-threatening pathogens, are increasing. The financial losses that follow a recall can be substantial as illustrated by several recent U.S. cases—Hudson Foods, Bil Mar, and Thorn Apple Valley Inc. Additionally, contaminated food product that escapes the current recall system poses a threat to consumer safety. The conceptual analysis presented here suggests that insurance underwriters could motivate earlier recalls and more diligent implementation of Hazard Analysis and Critical Control Point (HACCP). With sound underwriting, these changes could ultimately reduce the incidence of illness and death from foodborne pathogens.
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Food safety and product liability
Jean C. Buzby, Paul D. Frenzen · Food Policy · 1999 · 82 citations
Law, Food Science, Food Law +12