When a food recall happens, it can lead to irreparable damage to the company. Food loss is just one loss factor. Other costs can include:
- Cost of destroying and disposing of the food.
- Legal costs due to lawsuits and settlements.
- Investigation costs to find the source of the problem.
- Fees for government fines or expenses.
- Crisis management costs to manage media and public relations.
- Loss of revenue from food loss, lost sales, and loss of customers.
- Reputation damage can lead to a business closing its doors.
The complex food chain must keep food safety at the forefront of their business to be proactive and prevent food recalls.
Source: https://esha.com/blog/true-cost-of-a-food-recall/
