Food Standards Australia New Zealand (FSANZ) has released a decade of food recall statistics, covering 1 January 2014 to 31 December 2023.
Over the past decade, FSANZ has coordinated 836 food recalls, with the annual number of recalls showing an upward trend. This increase suggests that Australia’s food regulatory system, which safeguards the food supply, is functioning effectively.
A ‘consumer recall’ occurs when a product is available for retail sale, whereas a ‘trade recall’ is conducted when the food is not directly available for public purchase, such as food sold to wholesalers and caterers. From 2019 to 2023, the majority of recalls coordinated by FSANZ were consumer recalls (83%), with trade recalls and combined trade and consumer recalls accounting for 9% and 8%, respectively.
The most commonly recalled food products have been mixed and/or processed foods. This is likely due to the wide range of products in this category, including most long-life packaged foods and manufactured items with multiple ingredients. Dairy products, breads and bakery items, fruits and vegetables, and confectionery were also frequently recalled.
Food recall reporting requirements require businesses to report the corrective actions taken. From 2019 to 2023, the most commonly reported corrective actions were staff training (20%), amended handling procedures (16%), and improved communication procedures (11%).
Undeclared allergens continue to be the primary reason for food recalls in Australia. Nearly half of all food recalls in 2023 were due to undeclared allergens (47%), with milk being the most common undeclared allergen (63%), followed by tree nuts, wheat/gluten, and eggs.
Microbial contamination is another common reason for food recalls. From 2019 to 2023, there were 83 food recalls due to microbial contamination. The most common microbes involved were Listeria monocytogenes (30 recalls; 36%), Salmonella spp. (27 recalls; 33%), and E. coli (18 recalls; 22%). Additionally, there were 20 recalls due to the potential for microbial contamination.
Food recalls can be quite costly for businesses in Australia, impacting various aspects such as financial performance, brand reputation, and operational efficiency.
While the exact cost can vary widely based on the nature and scope of the recall, common expenses include:
- Direct costs:
- Product retrieval: Expenses related to collecting recalled products from the market.
- Disposal and destruction: Costs associated with safely disposing of or destroying recalled products.
- Communication: Costs for notifying consumers, retailers, and other stakeholders about the recall.
- Replacement products: Expenses for producing and distributing replacement products.
- Indirect costs:
- Brand damage: Loss of consumer trust and potential long-term damage to the brand’s reputation.
- Lost sales: Decreased sales revenue during and after the recall.
- Legal fees: Costs for legal counsel, potential fines, and settlements.
- Increased insurance premiums: Higher premiums following a recall event.
Estimates for the total cost of a food recall in Australia can range from hundreds of thousands to millions of dollars, depending on the scale and severity of the recall. For instance, a significant recall might cost a company several million dollars when accounting for both direct and indirect costs.
According to a 2017 report by FSANZ, the average direct cost of a food recall is estimated to be around AUD 10 million, not including the long-term impact on brand reputation and consumer trust.