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Economic Impact of Food Safety Outbreaks on Food Businesses
Department of Wine, Food and Molecular Biosciences, Lincoln University, Lincoln 7647, New Zealand
* Author to whom correspondence should be addressed.
Received: 11 November 2013; in revised form: 25 November 2013 / Accepted: 6 December 2013 / Published: 12 December 2013
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.
Keywords: food safety; economic losses; outbreaks
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MDPI and ACS Style
Hussain, M.A.; Dawson, C.O. Economic Impact of Food Safety Outbreaks on Food Businesses. Foods 2013, 2, 585-589.
Hussain MA, Dawson CO. Economic Impact of Food Safety Outbreaks on Food Businesses. Foods. 2013; 2(4):585-589.
Hussain, Malik A.; Dawson, Christopher O. 2013. "Economic Impact of Food Safety Outbreaks on Food Businesses." Foods 2, no. 4: 585-589.