By Mark Huffman
ConsumerAffairs.com
March 20, 2009
Large U.S. food companies were accused of being "sloppy" as Congress convened hearings into the peanut-related salmonella outbreak, that killed at least nine people and caused recalls of hundreds of millions of dollars worth of food products.
"There were some red flags you should have noted," Rep. Henry Waxman (D-CA), chairman of the House of Representatives Energy and Commerce Committee, told Kellogg's CEO.
Waxman and some of his Democratic colleagues took issue with reliance on audits from a firm that had links with the Peanut Corp of America, which made the tainted products.
Kellogg, along with King Nut Corp and Vitamin Cottage Natural Food Markets, said it was common food industry practice to rely on third party audits. Kellogg CEO David Mackay said the company did everything it could do, but couldn't foresee Peanut Corporation of America's actions.
"We were dealing with an unethical and dishonest supplier," Mackay told the committee. "I'm unaware how you manage for someone who is prepared to put the public at risk."
Mackay said Kellogg lost nearly $70 million because of the recall.
Lawmakers were particularly irate over internal documents that showed PCA was notified when an inspection was planned by the audit firm it hired and advised how to get ready. The Georgia plant that received the heads-up later received a "superior" rating from the auditor, lawmakers said. That same plant was later cited as the source of January's salmonella outbreak.
Committee members noted that in 2002, Nestle hired its own auditor to inspect the Georgia plant and found it "not in compliance" with acceptable sanitation standards. As a result, Nestle used another peanut supplier, not PCA.
The food industry has been generally supportive of Congressional efforts to increase oversight and regulation of their business, when it comes to safety. Recently Pam Bailey, CEO of the Grocery Manufacturers Association, voiced support for a bipartisan Senate bill to enhance the food safety functions of the Food and Drug Administration.
"In particular, GMA supports proposals requiring all food companies to have a comprehensive food safety plan in place," Bailey said. "It is absolutely critical that manufacturers take a preventative approach in identifying and evaluating potential hazards, and building food safety into the manufacturing process from the very beginning."
