Most recently, the United Fresh Produce Association is offering a “Recall Ready” program that members can purchase from a cost of $5,000 to $15,000 per year.
This topic of food safety insurance will be interesting to follow. Just how broad could “food safety insurance” be? Should the insurance product be designed to cover costs to a grower/shipper if he must perform a recall, or offered only to those not implicated but were “collateral damage” victims?
What kind of growers/farmers would be eligible? Would “means-testing” be used so only smaller or mid-size growers could benefit? If a grower wants food safety insurance, what kind of preconditions (i.e., food safety audits, GAP compliance) must he subscribe to in order to be covered?
Check out this coverage from the United Fresh show of last year that defined the issue
From that story:
Fresh produce marketers looking for insurance against market losses caused by food recalls and food safety scares caused by other companies don’t have a solution.
But David Durkin, principal with Olsson Frank Weeda Terman Matz PC, Washington, D.C., said that the farm bill might address the issue.
Durkin was part of a May 1 panel discussion at a United Fresh 2012 grower-shipper workshop.
Durkin said food recalls can effect a large swath of producers because of public uncertainty over the scope of the recalls. Consumers may just decide not to buy a certain food item from any source, even if they hear a problem is limited to a region or company.
The permanence of information and stories on the Internet also broadens the effect of food recalls, he said.