U.S. government increases FDA's funding by nearly 3% from last year to US$3.8B; food safety program sees largest amount at US$39M

Nevin Barich

LOS ANGELES , December 1, 2011 (Industry Intelligence) – The U.S. government increased the Food and Drug Administration’s (FDA) funding by nearly 3% from last year to US$3.8 billion, The Washington Post reported Nov. 30.

Of that additional money, the FDA’s food safety program saw the largest amount at $39 million.

Industry experts say it makes sense to increase FDA funding, citing that major recalls linked to food-borne illnesses exact real and reputational costs by shaking consumer confidence.

For example, according to federal data, demand for spinach took years to recover after the 2006 E. Coli outbreak, with total retail expenditures on bagged spinach dropping about $202 million in the 68 weeks after the recall. Also, Kellogg said that it cost roughly $70 million for it to recall some of its peanut-containing products in the wake of a deadly salmonella outbreak linked to one of its suppliers, a peanut processing plant in Georgia.

The primary source of this article is The Washington Post, Arlington, Virginia, on Nov. 30, 2011.

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