by Greg Schaefer
In 2010, Hillandale Farms in Iowa had to recall half a billion eggs due to a Salmonella outbreak that may have originated from the cramped, unsafe, unsanitary conditions under which the egg-producing hens were housed. The result was over 2,500 illnesses from the infected eggs, and what ensued was one of the largest shell egg recalls in recent history, according to an FDA official.
According to a 2011 report issued by the Grocery Manufacturers Association (GMA), the outbreak was the largest Salmonella outbreak in FDA history. While the total costs of the outbreak have yet to be calculated, the same report states that the negative media attention egg manufacturers received over the course of the outbreak cost them over $100 million in sales in September 2010 alone.
The preceding anecdote is a good example of why product recall insurance is so important: When something goes wrong, it goes wrong quickly and exponentially, and the results can be disastrous. Food recall insurance is more relevant today than ever before; in this age of ever-increasing technological developments, it is becoming easier and easier for manufacturers to track and identify unsafe products, down to the plant they were processed in.
