April 11, 2008

Beef recall expenses reach US$67.2 million

The USDA billed California-based Westland/Hallmark Meat Co. US$67.2 million for expenses associated with the largest beef recall in US history.

The USDA recalled 143 million pounds of beef from Westland/Hallmark Meat Co. last February after the Humane Society of the US released undercover video showing plant employees violating humane handling practices.

The bill is expected to increase significantly as California and other states accumulate costs associated with destroying meat that been delivered to school districts across the country as part of the National School Lunch Programme.

According to Craig Morries, deputy administrator for the Agricultural Marketing Service, Westland/Hallmark could be asked to pay up to US$117 million.

If the company can't pay, taxpayers will shoulder the cost.