Executives with the Iowa egg farms at the center of last year’s salmonella outbreak that sickened nearly 2,000 and led to the recall of 500 million eggs are locked in a legal battle.

Austin "Jack" DeCoster, the man who owns the egg farms, and his former right-hand man, John Glessner are bickering to the tune of $40 million in lawsuits.

In one lawsuit Glessner claims that the DeCoster family has mismanaged its Iowa egg production facilities and deprived him of more than $40 million, including more than $10 million in rent for use of his Hardin County facility, defaulted on bank loans, been "blackballed" by food vendors and been barred from bidding on contracts with retailers.

Clark Kauffman of The Des Moines Register writes in today’s USA Today that DeCoster's Ohio Fresh Egg company is suing Glessner, accusing him of looting the company before he was fired this summer.

An executive with Hillandale Farms of Iowa, which was forced to recall 170 million eggs, sent an e-mail to Glessner in August 2010 saying DeCoster had become a liability to Hillandale.

"Unfortunately, Hillandale Farms can have absolutely no association with Jack, anywhere," wrote Orland Bethel, Hillandale's founder. "We have been told by Costco and Wal-Mart that they will not be doing any business if Jack and his people have any involvement in management."

There goes WalMart Frank again, hammering home the need for food safety leaders and that culture thing.

Frank Yiannas, vice president - food safety, Wal-Mart Stores, Inc. writes in the latest Global Food Safety Initiative (GFSI) newsletter that management and leadership are different. A manager’s job is to oversee and optimize organizational processes to deliver results. A leader’s job is to change the process to deliver even greater results.

Frank says one term (management or leadership) is not inferior or superior to the other. They’re just different: and the food safety world need both; -- good food safety management and more food safety leadership -- as they are both critical to protecting public health.

• Food safety management focuses on the administration of set procedures within an established risk management system; food safety leadership focuses on the creation of new, science-based, and more effective risk reduction strategies, models, and processes. This quote by Stephen Covey illustrates this point quote well. He said, “Management works in the system; leadership works on the system.”

• Food safety management relies on formal authority to accomplish its objectives; food safety leadership relies on the ability to influence others to achieve success. Traditionally, food safety managers coerce others to comply because they have authority over them or their operation. In other words, they get others to comply by holding people and organizations accountable. Food safety leaders, in contrast, get others to do the right thing not because they’re being held accountable, but because they’ve been able to influence them to want to do so. They help others become responsible for food safety – not just accountable for food safety. There is a big difference between the two.

• Food safety management involves working with others based on functional roles; food safety leadership involves working with others in a collaborative manner. Food safety managers work with others in traditional ways to accomplish their objectives. Often times, whether visible or not, they’re protecting their organization’s interests whether it be academia, regulatory, or industry. In contrast, food safety leaders seek genuine win-win solutions for all stakeholders. They recognize they can do more to advance food safety by working constructively with others than by working alone.

Frank Yiannas, corporate vice president, food safety for Walmart says the focus of food borne illness prevention has to move earlier in the supply chain — long before processors are testing for it and product is getting into consumers’ hands.

Meatingplace.com reports that Yiannas, told processors at the North American Meat Processors Association’s annual management conference in Chicago on Saturday retailers are willing to work with suppliers on reasonable cost increases related to improved meat product safety.

Yiannas, author of the aptly-titled 2009 book, Food Safety Culture, said the HACCP system is no longer applied in the way it was originally conceived and testing is ineffective, adding, “E. coli is present in such low levels, it can still cause illness but it’s hard to find. Even at N-120, a processor is going to be pretty sure [the tests will be] negative.”

And the industry can’t afford to put safety solely in the hands of the product’s final cook, he warned.

The best way forward is to “test the process, not the product,” he said. That is, if processors (and producers) work with a verifiably high level of safety, then the chances that the product is safe further down the line is exponentially higher.

Overseeing these efforts should be third-party certification programs, such as the Safe Quality Food program overseen by the Food Manufacturers Institute, Yiannas said. Their standards typically are more comprehensive and exacting than those issued by the government, and the third-party assurances carry weight in the market.

In answer to a question about the additional costs these programs and perhaps interventions require, Yiannas said, “Retailers are willing to share (in reasonable additional costs). There are always tradeoffs, but I have hundreds of example in which that made sense.”
 

The voluntary quality control system widely used in the nation's $1 trillion domestic food industry is rife with conflicts of interest, inexperienced auditors and cursory inspections that produce inflated ratings, according to food retail executives and other industry experts.

I’ve been saying that for a long time, but this is the Washington Post version, published this morning. I especially like the pictures of the Montgomery Burns Awards for Outstanding Achievement in the Field of Excellence, courtesy of AIB, the Manhattan, Kansas-based audiots that gave a stellar rating to PCA and Wright Eggs just prior to terrible food safety outbreaks and revelations of awful production conditions (see below).

The system has developed primarily because large chain stores and food producers, such as Kellogg's, want assurances about the products they place on their shelves and the ingredients they use in making food. To get that, they often require that their suppliers undergo regular inspections by independent auditors. This all takes place outside any government involvement and without any signals - stamps of approval, for instance - to consumers. (That’s four-year-old Zoe Warren, right, of Bethesda, who was hospitalized in 2007 after contracting salmonella poisoning after eating a chicken pot pie. The photo is by Susan Biddle for the Washington Post.)

The third-party food safety audit scheme that processors and retailers insisted upon is, in many cases, no better than a financial Ponzi scheme. The vast number of facilities and suppliers means audits are required, but people have been replaced by paper.

In fact, most foodmakers, even those with problems, sail through their inspections, said Mansour Samadpour, who owns a food-testing firm that does not perform audits. "I have not seen a single company that has had an outbreak or recall that didn't have a series of audits with really high scores.”

Third-party food audits, like restaurant inspection, are a snapshot in time. Given the international sourcing of ingredients, audits are a requirement, but so is internal food safety intelligence to make sense of audits that are useful and audits that are chicken poop.

Industry experts say some "third-party" inspections can be rigorous. Those that audit using internationally recognized private benchmarks "are much more thorough," said Robert Brackett, former senior vice president of the Grocery Manufacturers Association. "But they're less likely to be used because they are much more expensive."

Audits, inspections, training and systems are no substitute for developing a strong food safety culture, farm-to-fork, and marketing food safety directly to consumers rather than the local/natural/organic hucksterism is a way to further reinforce the food safety culture.

Will Daniels, who oversees food safety for Earthbound Farm, the folks who brought E. coli O157:H7 in bagged spinach in 2006 that sickened 199 and killed four, said, Earthbound regularly received top ratings in third-party audits, including one exactly a month before the tainted spinach was processed, adding,

"No one should rely on third-party audits to insure food safety."

“… if the incentive is to pass with flying colors, it creates a disincentive to air your dirty laundry and get dinged and lose a customer over it.”

After the E. coli outbreak, Earthbound put in place an aggressive testing and safety program that includes outside audits but also requires Earthbound's own inspectors to show up unannounced to check suppliers. The company tests its greens for pathogens when they arrive from farms and again when they are packaged.

Too bad Earthbound didn’t figure all this out after the 28 other outbreaks involving leafy greens prior to the deadly 2006 outbreak.

Cost is another factor.

Food companies often choose the cheapest auditors to minimize the added expense of inspections, which range from about $1,000 to more than $25,000.

The foodmakers can prepare for audits because they often know when inspectors will show up.

And auditors have a range of experience and qualifications, from recent college graduates to retired food industry veterans. They sometimes walk through a plant, ticking off a checklist to produce a score, Samadpour said. Basic inspections do not typically include microbial sampling for bacteria.

In a written response to questions, Brian Soddy, AIB's vice president of marketing and sales, said company audits are intended to give food manufacturers "guidance and education for improvement."

Producers have the ultimate responsibility, he said, adding that the audits are voluntary and not intended to replace any FDA regulatory inspections.
AIB said last week that it is reevaluating its "superior" and "excellent" rating systems because they "have led to confusion in the wake of recent incidents," Soddy wrote.

Some retailers include inspections as just one piece of their safety programs.

Costco, for example, has its own inspectors but also requires its estimated 4,000 food vendors to have their products inspected according to a detailed 10-page list of criteria. Private auditors must X-ray all products for "sticks and stones, bones in seafood - anything you can think of that might be in hot dogs, baked goods, outside of produce," said Craig Wilson, Costco's assistant vice president for food safety and quality assurance.

Costco maintains an approved list of about nine audit firms. The list does not include AIB.

Wal-Mart requires suppliers of private-label food products sold in its stores and Sam's Club to be audited using private internationally recognized standards.

In addition to conducting its own product testing, Giant Food requires its vendors to be audited from a list of about a dozen approved firms.