Salmonella Illnesses and Deaths are Killing Peanut Butter Sales
Seattle – Public fears of salmonella-tainted peanut butter could seriously damage their industry, peanut company officials say.
Since the salmonella outbreak was traced to Peanut Corp of America in mid January, peanut butter sales have dropped by 22 percent, and industry officials expect sales to fall even lower in the coming months.
But the same isn’t true of other peanut products. Although cereals, energy bars, cookies, and crackers have joined the list of recalled products, it is peanut butter that is taking a financial beating. Dr. Robert G. Blendon, professor of public policy at Harvard University, thinks he know why. In a recent survey of 1,283 adults, reported in The New York Times, Blendon found that few people knew of the extent of the recalls. In fact, less than half knew that the recalls covered products other than peanut butter.
But, even worse news for the peanut industry was Blendon’s discovery that one in four of those surveyed thought that the major, national brands of peanut butter were at risk for salmonella poisoning. This mistaken assumption had caused them to shun peanut butter.
If these survey results indicate the beliefs of the general public, the peanut industry could soon be in deep financial trouble. At least half of the 2 billion peanuts grown each year go into making peanut butter, reports the Associated Press.
Peanut butter is a popular American food staple. A fairly inexpensive source of protein, many people rely on it for their nutritional needs, especially in tough financial times. Before the salmonella outbreak, the peanut industry anticipated making hefty profits this year in the wake of America’s economic crisis.
But those hopes were dashed by the actions of a tiny link in the peanut chain. Peanut Corp. of America, based in Virginia, was responsible for less than 2.5 percent of the peanut market. In January, a salmonella outbreak led the Food and Drug Administration to the doors of its Blakely, Georgia plant. Inside, investigators found health violations such as mold and roaches. Further investigation revealed that the company had knowingly shipped salmonella-tainted peanut products to stores.
This sparked the initial round of recalls. As more health violations were discovered, more recalls were ordered, and the FBI became involved. The investigation spread to the company’s Plainview, Texas plant, where investigators discovered rodents and their waste above a production area. Consequently, officials recalled all products that had been manufactured there. To date, the salmonella outbreak is responsible for approximately 600 illnesses, nine deaths, and over 2,000 product recalls.
On Friday, those recalls forced Peanut Corp of America to file bankruptcy. Meanwhile, the peanut industry is still trying to assess the damage that has been done to its normally profitable peanut butter market. Whatever damage they find there, industry officials fear, will be reflected in their profit margins–and not in a good way.