Impact of recalls on peanut production

During 2008 and 2009, one of the largest ever food recalls took place because of Salmonella poisoning. There were 714 illnesses and nine deaths attributed to contaminated peanut paste. The source of the outbreaks was found to be two plants owned by the Peanut Corporation of America. The recall affected more than 3,900 products and 200 manufacturers. The problem with this company is that it was selling its large containers to manufacturers who in turn made it into many products that are sold all around the world. So the recall was rather time consuming and expensive.

Some of the information used in this article is found in the USDA Economic Research Service Research Report OCS-10a-01. The title of this article is ?Impacts of the 2008-09 Foodborne Illness Outbreak linked to Salmonella in Peanuts.? This report is authored by Kelsey Wittenberger and Eric Dohlman. This is located online at http://www.ers.usda.gov/Publications/OCS....

While only about 2 percent of the total peanut crop was affected, recalls affect consumers, retailers, and manufacturers. However, sales of all peanut products declined initially because of the confusion by the consumers. They were unsure if their brands such as Peter Pan, Jif, Skippy, and the retail store generic brands might be affected.

Salmonella is an animal-borne disease and is not associated with plants. So how do the products get contaminated? According to experts, it is usually as a result of contamination of animal feces with the finished product. The inspection and the investigation had shown that there were sanitary concerns at both plants and that there were holes in the roof that allowed bird droppings to get inside the plant in areas where both the raw nuts and finished materials were being stored. According to one industry insider, both plants had had problems in the past and were older facilities that were poorly maintained. The investigation showed that these plants had found Salmonella previously, but re-tested until they found an uncontaminated sample.

Recalled products containing peanut ingredients include brownies, cakes, pies, many types of candy, cereals, cookies, crackers, donuts, dressings and seasonings, prepared fruit and vegetable products, ice creams, peanut butter and products, pet foods, pre-packaged meals, snack bars, snack mixes, and toppings.

This major recall was not the first time that the Food and Drug Administration and the Center for Disease Controls have initiated a recall for peanut products. The first occurred in late 2007 and 2007. It was found that a Salmonella strain had been found in a single processing facility that produced Peter Pan peanut butter for the retail market. The processing plant was closed and repaired. The result of the recall is that peanut butter production was increased to make up for the product that was lost.

Prior to the second recall in 2008 and 2009, peanut butter production had increased. Part of this is due to the way that peanuts were being handled in the farm program. The loss of the marketing quota caused many smaller producers to go out of business and the consolidation of acres led to a more efficient way of reducing total cost. As a result, peanut butter remained low during the period from 1999 and 2008.

There are two major companies that track retail sales of peanut products. The data shows that the sale of peanut products declined the first four weeks of January and February of 2009 compared with the same period of 2008. However, the market has since rebounded.

Once the recall was announced, the monthly volume remained about the same. During the 2008-2009 marketing year, peanut processing actually increased by 1.5 percent. However, peanut snacks actually declined by 14 percent as a result of the recall.

Peanut butter is relatively inexpensive and is considered ?recession proof? since it is a staple for low-income families. Overall the nutritional composition of peanuts is extremely good, with most of the peanut?s fat being monounsaturated. They also provide an excellent source of protein, vitamin E, and fiber. For consumers who want a low-carbohydrate lifestyle, peanuts can be a part of that diet.

The peanut recall due to Salmonella has caused more media scrutiny and discussions by national government leaders have increased the awareness of food safety. Action by Congress and the Obama Administration has resulted in more preventative measures. Individual states including Georgia have produced legislation to provide more oversight and food safety guidelines.

For now, the main consideration for peanut producers will be supply and demand. With the increased acreage of 2008 and 2009, there are large ending stocks for peanuts. As a result, peanut acreage is likely to be less this growing season.

U.S. per capita consumption of peanuts has been steady and the overall processing growth is about the rate of population growth. If the problem of contamination at the processing plants can be resolved, there is no reason for the future of peanut production to be bright.

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Dr. Michael R. Milam is an agronomy specialist and county program director with University of Missouri Extension in Dunklin County.