The High Costs Of A Food Recall & How To Avoid Them!

Did you know there were 79 food recalls in Australia last year, according to recalls.gov.au – the product recalls information website maintained by the Australian Competition and Consumer Commission (the always serious and not-to-be-trifled-with ACCC).

That’s more than six and a half recalls per month, and each and every one of these comes with many significant costs to the businesses that find themselves in the difficult and – worse – potentially devastating position of having to initiate a food recall.

But while all the information about what has been recalled, by whom, why and when for any contaminated food products in Australia goes all the way back to 1998; it’s much harder to put a figure on just how much the recall has cost the manufacturer. The range of potential costs of a food recall is broad, and both the short and long-term costs can be extremely high.

Costs of a food recall can include:

  • Costs to notify the public for consumer-level recalls – including press advertisements and notices you may need to book.
  • The cost to physically retrieve the recalled products.
  • Refunds or replacements that need to be issued to affected customers.
  • In addition to the above is loss of the value of the recalled products.
  • Short and long-term damage to your brand’s reputation.
  • Loss of trust with your customers.

Most of these are not too difficult to put a dollar figure to, but it’s these last two costs listed above that are not only the hardest to quantify, but can do the most damage. When you factor in the long-term impacts on future sales and even on arrangements with retailers and distributors that arise from such a loss of reputation and trust, a food recall that could have easily been avoided can just as easily significantly damage a company.

Ultimately, all these costs can be very easily, efficiently and cost effectively avoided with the right systems to inspect your products for food contaminants.

Eagle Product Inspection offers a superior range of food x-ray inspection solutions that are specifically designed to give food manufacturers assurances when it comes to meeting vital Hazard Analysis and Critical Control Points (HACCP) principles.

Eagle’s world class x-ray inspection technology can accurately detect a wide range of physical contaminants including glass, metal, high-density plastic, mineral stone and calcified bone; whether it be in packaged, unpackaged or bulk goods.

The Eagle Product Inspection food inspection machines offered by FPE in Australia and New Zealand are state-of-the-art and can be customised to suit the specific needs of your business.

So while the costs of a food recall may be great, they can easily be avoided by taking the simple and very quick step of proper food inspection. Contact us today to learn more about how you can minimise the risk of a recall of your food products.