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Traceability in Food Supply Chain

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by Ashish D , Senior Research Analyst
27 March 2013

In 2009, various products containing peanuts contaminated with Salmonella lead to nine deaths and more than 600 cases of illness in US. As a result, the US Food and Drug Administration (FDA) and the company Peanut Corporation of America (PCA), announced a major recall involving a massive 3,913 products made by 361 different companies which used ingredients from PCA in their products. The source of contamination was later found as improper sanitation facilities, poor environmental conditions at the plant. Further investigations revealed that the company had knowingly shipped peanuts containing salmonella many times between 2007 and 2008. During February 2009, the company eventually filed for Chapter 7 bankruptcy. Estimates reveal that various other innocent companies had to take a blow in lost sales, a small company Forward Foods had to file for Chapter 11 bankruptcy; several other smaller companies had to struggle for their survival. This recall cost the peanut industry more than U SD 1 billion as a result of lost sales due to damaged consumer confidence in peanut products of all brands.

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