Economic Impact of Food Safety Outbreaks on Food Businesses

TLDR

Globalized food trade and complex supply chains heighten microbiological outbreaks, pressuring companies to meet demand and risking safety lapses that can trigger costly foodborne incidents. The study urges concrete measures to strengthen food safety for domestic and international markets to avert scandals and economic losses. Food safety incidents cost the U.S.

Abstract

A globalized food trade, extensive production and complex supply chains are contributing toward an increased number of microbiological food safety outbreaks. Moreover, the volume of international food trade has increased to become very large. All of these factors are putting pressure on the food companies to meet global demand in order to be competitive. This scenario could force manufacturers to be lenient toward food safety control intentionally, or unintentionally, and result in a major foodborne outbreak that causes health problems and economic loss. The estimated cost of food safety incidents for the economy of the United States is around $7 billion per year which comes from notifying consumers, removing food from shelves, and paying damages as a result of lawsuits. Most other countries similarly have economic losses. Much of these losses represent lost markets, loss of consumer demand, litigation and company closures. Concrete steps are needed to improve safety of foods produced for local or overseas markets to avoid unexpected food scandals and economic losses.