German Court Orders Compensation for Wrongly Accused Cucumber Grower

Written by Tyler R. Etter

A court in Hamburg, Germany, has declared that Frunet, a vegetable cooperative based in Spain, should
be compensated for losses sustained following the accusation that the coop’s cucumbers were the likely
source of the 2011 e. coli outbreak.

During the peak of the outbreak, Hamburg officials publicized their suspicions about the cucumbers
being the source of the outbreak. As a result, the coop’s sales dropped, impacting growers in amounts
up to $200 million a week. Investigations revealed that fenugreek sprouts, not cucumbers, were the
source of the deadly outbreak.

The cooperative has asked for €2.3 million in compensation, the rough equivalent of $2.54 million. The
director of the coop noted that although the prospect of reimbursement is important, the restoration of
the coop’s good name was also important. “Pointing the finger at a company can destroy it completely
in seconds...” said Richard Sopenberg, Furnet’s sales manager. He further stated that the coop has
managed to rebuild itself to the production and sales levels from before the outbreak crisis.

It is important to note that the City of Hamburg could still appeal this decision, and even in the lack of an
appeal, the amount must be set in a second litigation phase.  A comparable case in the United States
was decided in the opposite direction. Tomatoes had been named a likely source of salmonella during a
2008 outbreak, but the real source was revealed to be jalapeno and serrano peppers. The case was
decided on the basis that food safety warnings are not “regulatory taking[s]” and that there was no
obligation for the government to compensate the tomato growers.

Vilsack Speaks at Conference on Avian Influenza

On July 28, 2015, at a two day conference called, “Avian Influenza Outbreak…Lessons Learned,” in Des Moines, Iowa, Tom Vilsack, Secretary of Agriculture and Iowa Governor, Terry Branstad, gave speeches concerning the avian influenza outbreak.  The conference is closed to the media and public, other than the speeches, in order to ensure open discussion on how responses to the last outbreak went wrong and how future responses can be improved.

According to the Associated Press, Vilsack in his speech commented it would be beneficial to implement a disaster program for poultry producers that would be similar to what is already in place for livestock producers.  The government expects to spend 191 million through its indemnification program and between 350-400 million on the cleanup and depopulation of infected birds.  Vilsack stated there was a proposed insurance program within the 2014 farm bill but was cut due to budgetary considerations.

Vilsack commented during questioning for reporters that if this moves to the East Coast the impact could be quickly outpace the impact of the last outbreak.  Vilsack remarked the process of handling future outbreaks needs to be updated in multiple areas including the indemnification process, how to dispose of the birds and the depopulation of the birds.

To hear a recording of the question session with reporters,click here.

Written by Katharine Richter - Research Assistant

July 29, 2015

Ag Secretary Updates PA Legislators on Avian Influenza

On May 10, 2015, Pennsylvania Agricultural Secretary Russell Redding addressed the Pennsylvania House Agriculture and Rural Affairs Committee and provided legislators with information regarding his department’s preparedness for addressing any possible outbreak of avian influenza in the State’s poultry industry.

Currently, twenty Western states have experienced outbreaks of avian influenza.  As a result of these outbreaks, 47 million birds have died or been destroyed.  Secretary Redding stated that while there have been no reported cases of avian influenza in Pennsylvania, a recent outbreak occurred in Macomb, Michigan-an area 150 miles from the Pennsylvania border. 

The Secretary communicated to the law makers that for the last four months, his department, along with members of the poultry industry and academia, have developed measures to both prevent and deal with an outbreak of avian influenza.  Secretary Redding called for more education of poultry producers regarding proper preventive measures.  He also stressed that that the public needed to be made aware that there is no evidence that avian influenza is harmful to humans.

Secretary Redding stated that currently, the poultry farmers and bird owners bear all the risks and costs associated with an outbreak of avian influenza.  Because such an outbreak could financially devastate poultry producers by causing long suspensions of operations, the Secretary called for the legislators to develop a recovery plan which could provide affected producers with some support until operations are resumed. 

Written by M. Sean High - Staff Attorney

May 11, 2015