When a food safety incident occurs, one of the primary ways to control the outbreak is to recall all the potentially affected products. An effective recall removes the product from the shelves and instructs those who purchased the affected product to throw it away. Naturally, this requires some form of an identification and tracking system. Especially when it comes to products with a long shelf life, an efficient tracking system is a legal necessity. Even if a recall isn’t required, performing a voluntary recall may be the wisest decision. If a farmer does not take steps to control the outbreak and more people get sick, the farmer may appear more negligent. As we discussed earlier, being found legally negligent can require the farmer to pay extensive damages to the injured person and to indemnified parties.

The tracking should be narrow enough to order as narrow a recall as necessary. To use Alexi’s example, she would want the ability to recall only the apples that came from the unwashed batch. So, her ideal system would track apples by location of harvest, date of harvest, the packer, and delivery date. The tracking code would then be stamped on bags or cases so consumers can check whether their item is included. The ability to perform a recall effectively is a key way to manage the potential liability of a food safety outbreak.

Recalls are usually voluntary but can be required under some circumstances. As food safety incidents appear to become more serious around the country, federal and state governments are increasing their ability to mandate recalls of fresh fruits and vegetables. Even very small farmers who sell their own product locally may be required to do a recall. If a farmer is required to perform a recall and cannot, several things may happen. The law may impose a fine or the producer may be forced to destroy all products to be on the safe side.

Managing the financial risks of a recall

Recalls are generally very expensive to perform. The logistics of getting product off the shelves and communicating the recall to the public are very complicated. Aside from carrying out the recall itself, the farm suffers a loss of reputation, lost revenue from not being able to sell, and if the indemnification dominoes fall, the damage quickly escalates.
Insurance is sometimes available to protect against the expense of a recall. Finding such a policy may take some time. Generally, farm liability policies do not cover the losses from performing a recall or losing revenue, and simple business endorsements or liability additions for direct-to-consumer sales usually don’t include recalls either.

The reality is that recall coverage may only be available as part of a commercial liability policy normally designed for larger commercial operations. Such coverage is likely pretty expensive. However, even this coverage can vary: Commercial policies may cover voluntary recalls but not government-ordered ones, or vice versa, covering government-ordered recalls and not voluntary ones.

TAKING ACTION ON RECALLS

• Implement product tracking and traceability
• Consider recall insurance

Farmer Sally Takes Action

Sally hears about the other advantages of a good tracking system, such as careful monitoring of field productivity and worker efficiency. It sounds like a good investment. Here’s what Farmer Sally does:

•  Makes a careful decision on whether recall ability is right for her business and the level of recall accuracy she would like.
• Researches the different tracking systems available through private consultants, nonprofits, and extension agents, as well as the forms and templates available at OnFarmFoodSafety.org.
• Puts the right system in place for her farm that will offer a reasonable ability to get product back if there is a risk of contamination.
• Asks her insurance agent whether and how she is covered for the expenses of a recall.