WASHINGTON - U.S. consumer groups blamed a
"business-friendly" Bush administration for lax food safety
policies on Monday, in the wake of the largest U.S. meat recall
ever that prompted a 34 percent drop in shares of Pilgrim's
Pride Corp. .
Pilgrim's Pride, the No. 2 U.S. poultry producer, on Sunday
recalled 27.4 million pounds of fresh and frozen ready-to-eat
turkey and chicken products under its Wampler brand, after
pulling 295,000 pounds of turkey and chicken products from the
market last week due to listeria concerns.
The recall surpasses the previous record of 25 million
pounds of ground beef set by Hudson Foods in 1997.
The company said the recall occurred after environmental
tests at its Franconia, Pennsylvania, plant found a strain of
listeria similar to the one identified in an outbreak in the
U.S. Northeast that has caused at least 23 deaths and 120
illnesses.
The company halted production at its Pennsylvania plant and
recalled meat products it made between May 1 and Oct. 11. It
said most of the turkey and chicken were purchased nationally
at grocery stores and restaurants and already consumed.
U.S. consumer advocates blamed the Bush administration for
the massive recalls, saying hundreds have fallen ill because
Washington eased food safety standards.
The No. 2 U.S. poultry producer joins ConAgra Foods Inc. ,
Smithfield Foods Inc. and privately held Cargill in withdrawing
massive amounts of meat in recent months because of fears they
may be tainted with harmful bacteria.
The Pittsburgh, Texas-based company's stock tumbled $2.36,
or 34 percent, to $4.65 in mid-afternoon trading at the New
York Stock Exchange. They ended the day's trading at $5.28.
Pilgrim's Pride said on Monday, however, that it did not
expect the recall to have a material adverse effect on its
financial condition.
"I think, with the market environment we are now in, any
news regarding a company causes the reaction to sell first, ask
questions later," said Richard Cogdill, the company's chief
financial officer.
"We stand by our products that they are 100 percent safe
and wholesome."
CONSUMER GROUPS BLAME BUSH ADMINISTRATION
Consumer groups blamed the Bush administration for not
putting stricter food-testing regulations in place.
"There are proposed listeria regulations dating back to the
Clinton administration that may have prevented this, but the
Bush administration is sitting on it," said Karen Mitchell,
executive director of Safe Tables Our Priority.
Last year, the USDA proposed rules, written by the Clinton
administration, to require makers of ready-to-eat meats to test
for listeria in their plants. The comment period ended in May
2001, but the Bush administration has yet to act on it.
"There is no excuse for the Bush administration to hold
back needed improvements in food safety," said Caroline Smith
DeWaal of the Center for Science in the Public Interest.
The USDA routinely tests products at meat plants for
listeria, but separate industry testing is voluntary.
LISTERIA OUTBREAK
The Pilgrim's Pride recall was discovered by USDA while
investigating a listeria outbreak that has caused at least 23
deaths, three miscarriages and 120 illnesses in the U.S.
Northeast. The company and USDA have said no illnesses could be
linked to the recalled poultry.
The USDA and the Centers for Disease Control and Prevention
have been unable to pinpoint the source of the Northeast
listeria outbreak in Pennsylvania, New York, New Jersey,
Delaware, Maryland, Connecticut, Michigan and Massachusetts.
The CDC has suspected turkey deli meat as one likely
source. Despite more than 400 tests on lunch meats and deli
products, USDA has not been able to find the cause.
Eating food contaminated with listeria monocytogenes can
cause listeriosis, leading to miscarriages and stillbirths, as
well as potentially deadly infections in those with weak immune
systems.
At the Chicago Mercantile Exchange, live cattle futures
prices were mixed due to concerns the huge recall may hurt
consumer demand for meat. Live cattle contracts for October
delivery closed on Monday off 0.325 at 68.150 cents per pound.
Pilgrim's Pride has voluntarily closed its meat processing
plant about 25 miles north of Philadelphia, but hopes to reopen
it on Wednesday. USDA said its inspectors must recertify that
the plant meets federal food safety standards before it can
return to operation.
"We are not going to open the plant until we are absolutely
confident it's in the shape we want it in," Cogdill said.
Pilgrim's Pride said the amount of product covered by the
recall was about 7 percent of the company's annual turkey
production and less than 1 percent of its total poultry
production.
About 2,500 cases of listeriosis occur each year in the
United States. Listeria can be destroyed by cooking meat to a
temperature of at least 160 degrees Fahrenheit (71 C).