At least this recall was not for something made in China. The Sam's Club unit of Wal-Mart Stores Inc. (NYSE: WMT) said that beef from agribusiness giant Cargill might contain E. coli that cause intestinal illness.
According to the Associated Press, "Cargill learned of the issue Friday, when a compliance officer from the federal Agriculture Department visited the company's ground beef facility in Butler, Wis., Klein said. Officials had traced the patties back to that plant."
Of course, the fact that the meat came from Cargill does not do Sam's Club much good. Few consumers look beyond the brand of the retail outlet when a generic product like beef is recalled.
The news showed that no matter how vigilant U.S. companies are, they remain dependent on their suppliers both for goods and services, and, ultimately, their reputations. Mattel Inc. (NYSE: MAT) has learned that the hard way as it struggles to get out from the damage done to its reputation by the sale of lead-painted toys built in China.
No big retail company has enough inspectors, or can afford enough, to make certain that each item it sells is OK. The Chinese may make bad toys, but it appears that the U.S. has made some bad meat.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
10-06-2007 @ 7:45PM
Brockage said...
That a contaminated food item gets into the retail supply chain is no surprise -- accidental contamination happens and will happen as long as life is constituted as it is on this earth. The key is quick and massive response, just what Sam's and Cargill did. That should make all consumers a bit more easy when they visit their favorite markets.
10-08-2007 @ 9:04PM
Kathy said...
About one month ago I bought a one pound package of ground beef from wallmart. I froze it, then I thawed it 1 week later. No smell looked good, red, no brown on it at all. I browned the meat and then a bad oder rose up from the skillet.
I threw away the meat.
My point is to everyone, "When it doubt throw it out"
Be careful everyone, Thanks!!!!
10-07-2007 @ 12:51PM
Scott said...
I agree with you Brockage, There will always be accidents and mistakes as long as humans are involved. The problem can be made much much smaller if the source of the problem were either eliminated or brought down to a level that is acceptable. There is a small company that worked with a university for testing that has developed a process for doing this but have been limited to its progress due to financial limitations. So far the process stops 99.3% of ecoli at its source, its exciting. They just need someone to come in and back them financially.