FOOD CONTAMINATION
Bacteria cause serious infections and
substantial economic disruption in industrialized as well as developing countries. The incidence of infection and contamination
is escalating worldwide. Increased travel and intensive farming techniques have contributed to the spread of bacteria, and
the over-use of conventional antibiotics has hastened the development of resistant bacterial strains. The annual worldwide
industrial food market is estimated at over € 500 billion.
•Food safety and quality systems are not only
good corporate policy, they are also good business.
• Food safety and quality systems must contribute to the overall financial success
and well being of the corporation.
• Producing defective goods or services are ruinous to business.
FOOD
SAFETY CONTRIBUTION TO PROFITABILITY
Food safety defects are prohibitively expensive, perhaps as much as four times
that of quality defects. Preventing the production of food safety defects will result in gains in productivity and profitability.
1. Expert estimates suggest that poor performance (producing and detecting defects) costs the food industry from
15% to 30% of gross annual sales.
2. Testing, inspecting, and retaining defects can increase these costs to between
25% and 30% of sales.
3. Distributing defective food will irreparably harm the bottom line.
* Perhaps more importantly,
when contaminated products hit the market, the entire company brand can be at stake.
Planned Production Cost
Food Safety Defects - Additional Costs
• Cost of goods
• Cost of goods - 2x - double
• Utilities
• Utilities - 2x - double
• Line time
• Line Time - 2x - double
• Labor
• Labor - 2 - 6x - double to six
times original cost
• Additional Costs due to defects
• Detection Cost
• Specialist's Fee
• Quarantine Cost
• Rehabilitation
• Destruction Cost
• Recall Cost
Source: Keener 2005’
• Litigation Cost
