12 Mar 2009

Peanut recall having big impact

10:55 am on 12 March 2009

The peanut industry in the United States could lose $US1 billion because of an outbreak of salmonella that has forced the biggest food recall in US history. The outbreak began in September.

The salmonella outbreak, which began in September, has affected hundreds of companies and led to the recall of more than 3200 products from crackers to ice cream.

The federal government says 683 people in 46 states became ill after eating contaminated peanut products.

Georgia Peanut Commission executive director Don Koehler told a House of Representatives small business committee on Wednesday that rebuilding in the industry cannot fully begin until the outbreak is over and the recall is complete.

Perry's Ice Cream vice president Diane Austin said her family-run business has had to recall more than 170 tons of product and has spent 2100 hours so far on the recall.

The company ships ice cream across much of the eastern United States.