National Meat Association

Update: PCA recall’s impact spreads

Source of Article:


2/23/2009-According to the Food & Drug Administration’s Web site, on Feb. 20 the Peanut Corp. of America (PCA) informed customers who received products from its Georgia or Texas plants not to distribute or further use those products and to contact the FDA regarding the proper disposition of recalled products. In light of the company’s Chapter 7 bankruptcy filing on Feb. 13, PCA’s assets are currently under the control of a bankruptcy trustee, which impacts the company’s ability to take any actions regarding recalled products that were shipped from its Georgia and Texas plants.

On Jan. 28, PCA announced it was voluntarily recalling all peanuts and peanut products process in its Blakely, Ga., facility since Jan. 1, 2007. Further, on Feb. 12, the Texas Dept. of State Health Services ordered PCA to cease the manufacture and distribution of all food products from its Plainview, Texas, plant and to immediately recall all products manufactured there since March 2005. According to a article, so far, 654 people in 44 states have been sickened by the Salmonella outbreak traced to the Ga. plant, which is also linked to nine deaths. In addition, Colorado health authorities have linked at least nine cases of Salmonella poisoning to the Texas plant.

Forward Foods, a food manufacturer who received products from PCA, has had to file for Chapter 11 bankruptcy because of the outbreak. In addition, Kellogg Co. Chief Executive David Mackay said earlier this month the recall had an adverse 6-cent impact on earnings per share and that it had cost Kellogg an estimated $70 million in losses. This does not include the possible further costs Kellogg, and other food manufacturers, might see from lawsuits filed against them. According to an article in QSR, Attorney Bill Marler from Marler Clark, a law practice specializing in food poisoning cases, is moving to lift the stay of bankruptcy for PCA so that litigation on behalf of victims can continue.

FDA article

QSR article




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