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FDA Food Safety Modernization Act in US Senate

General Mills, Kraft Foods and the Kellogg Company are supporting legislation aimed at preventing tainted foods from entering the food supply. The three companies are supporting a bill introduced by Dick Durbin (IL-Democrat) and Judd Gregg (NH-Republican) into the Senate.

The bill, known as Food Safety Modernization Act, would give the FDA additional authority to mandate food recalls and food safety plans for manufacturers. This is a departure from the industry's prior stance of self-regulation and FDA inspections rather than the proposed mandated preventive measures.

The recent outbreak of salmonella from peanut paste supplier Peanut Corporation of America has negatively impacted the earnings of several food companies. The salmonella contamination sickened over 600 people and is linked to 9 deaths. Investigations revealed that the Peanut Corporation of America shipped salmonella-tainted peanuts at least a dozen times in the last two years.

Source: Zacks Equity Research

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