For the second time in three months, we will undergo another
international recall involving another nut. On March 30th, the FDA
alerted consumers to a voluntary recall by Setton Pistachio of
Terra Bella, Inc. ("Setton") based on possible salmonella
contamination of its pistachio products. Setton is the nation's
second-largest pistachio processor. Based on this year's
previous experience, the recall will likely be international in
scope and exceptionally expensive for the food industry.
The Peanut Corporation of America ("PCA") peanut
butter recall ("PCA recall") has sickened over 690 people
in 46 states, killed 9 and resulted in the recall of nearly 3,900
products. What is striking about the enormity and scope of the PCA
recall is that PCA supplied only 1% of the nation's peanut
products. Conservative estimates place the recall cost for the food
industry at over $1 billion.