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This article explores the high costs incurred by food safety incidents, such as emergency room care, lost productivity, and recall expenses. The financial impact on industries like peanuts, tomatoes, and spinach is analyzed, alongside the costs of lost production and sales. Restoring brand reputation through advertising and public relations is also discussed, with total expenses reaching over $2 billion. Additionally, proactive prevention strategies are highlighted, including improved surveillance, government reform, and promoting research. The importance of cost-effective prevention methods through legislation, regulation, and education is emphasized.
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Costs to Victims • Emergency roomand ICU care • Lost work and productivity • Lingering Illnesses
Costs of Recall • Peanut recall may reach $500 million • Track down, retrieve, and transport millions of items • Kellogg’s alone $75 million
Cost of Lost Sales • Tainted products, related products • Tomato industry lost $100 million • Spinach recall $175 million
Cost of Lost Production • Peanut sales down more than 25% • Fields went fallow • Peanut industry estimates lost sales and production over $1 billion
Cost of Restoring the Brand • Advertising • Public relations • Rebuild relationships with wholesalers, small businesses, Investors
Adding it Up • Over $2 billion dollars, because of a company that processed only 2.5% of annual U.S. crop • None of it covered by insurance • Compensating sickened customers a tiny fraction
My Top Eleven • Improve surveillance • Government Agencies work together • Train, certify, vaccinate food handlers • Stiffen license requirements • Increase food inspections
My Top Eleven • Reform agencies at every level to be more proactive • Legal consequences • Technology to make food more traceable • Promote research • Provide tax breaks • Improve consumer understanding
Prevention is Cost-Effective • Legislation • Regulation • Education
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