The US peanut industry could lose $1 billion because of an outbreak of salmonella that has forced the biggest food recall in US history, members of the food industry said today.
The salmonella outbreak, which began in September, has affected hundreds of companies and led to the recall of more than 3,200 products from crackers to ice cream. The government says 683 people in 46 states became ill after eating contaminated peanut products.
Losses will mount until it ends, said Don Koehler, executive director of the Georgia Peanut Commission. "We could see total economic losses of a billion dollars," he told a House of Representatives small business committee.
"We are dealing with a situation of historic proportions," Koehler said. "Rebuilding in the peanut industry cannot fully begin until the outbreak is over and the recall is complete."
Diane Austin, vice president of Perry's Ice Cream, said her family-run business had to recall more than 170 tons of product and so far has spent 2,100 hours hours on the recall.
"We do not yet have a complete accounting of the financial losses that Perry's will face," said Austin, whose firm ships ice cream across much of the Eastern United States.
"It will surely be in the hundreds of thousands of dollars, if not more."
The outbreak is the latest food scare to batter the US food supply. Illness outbreaks caused by contaminated lettuce, peppers and spinach have eroded public confidence in food safety and renewed calls for change at FDA.
Several congressional committees are examining ways to do this. President Barack Obama has promised a thorough review of the agency.
Reuters