Bunge shuts salmonella-tainted canola plants

15-Jun-2009 - Last updated on 16-Jun-2009 at 12:46 GMT

Bunge has closed two canola meal processing plants in Canada after the Food and Drug Administration (FDA) found shipments to the US were contaminated with salmonella, the company said on Friday.

However, experts have said that the contamination does not pose a food risk. Canola meal is used by dairy farmers in cattle feed as a cheaper protein alternative to soybean meal, but contamination of the milk supply is unlikely even if cattle were to consume salmonella-tainted feed, according to dairy specialist at Texas AgriLife Extension Service Ellen Jordan.

She told Reuters: “Because of the body system of the cow, [salmonella] shouldn't end up in the milk. But if salmonella did go into the milk, pasteurization will destroy it."

The FDA tested the rail shipments last month and the plants were shuttered immediately for cleaning after the positive test results, Bunge said. The FDA has detained the canola meal for review.

Lower canola futures

Following discovery of the pathogen, canola future prices took a dive and Bunge’s stock value fell 0.48 percent on the New York Stock Exchange to $66.35. World benchmark July canola futures on the Intercontinental Exchange (ICE) in Winnipeg fell C$3 to C$473 a tonne on Friday, although the impact of the salmonella discovery was overshadowed by lower US soybean futures which tend to set the direction for canola futures, the Reuters report said.

One of the contaminated shipments was traced to a Bunge plant in Hamilton, Ontario and the other to its Nipawin, Saskatchewan facility.

Bunge has said that it is working in conjunction with the FDA and the CFIA (Canadian Food Inspection Agency) to ensure its plants meet food safety standards.

The FDA claims to have implemented tighter controls on salmonella and more testing could be in the pipeline as the Food Safety Enhancement Act – designed to overhaul the beleaguered US food safety system – received bi-partisan approval from the necessary subcommittee last week.

The bill was introduced as industry and consumers intensified calls for stronger food safety checks following several widespread salmonella outbreaks, including the one linked to peanut products earlier this year. That outbreak led to nearly 700 reported illnesses, at least nine deaths, and one of the largest product recalls in US history.