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Greenyard sees $35 million listeria-related product recall impact

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Staff Writer | July 18, 2018
Belgian food company Greenyard said that the first estimate on the financial impact from its recall of frozen products, potentially linked to an outbreak of the food-borne disease listeria in Europe, was estimated at 30 million euros ($35 million) after insurance.
Food business   The plant has been shut and the company has been conducting an in-depth review
The company’s shares have fallen 38 percent since local media reports on Friday said that deaths due to a listeria outbreak could be linked to frozen vegetable products produced by Greenyard’s plant in Hungary.

The plant has been shut and the company has been conducting an in-depth review after the Hungarian Food Chain Safety Office banned all frozen vegetable and frozen mixed vegetable products produced by the facility on June 29.

Berenberg analysts said on Monday that food safety is the biggest risk for a food company, and “this is the latest in a string of disappointing newsflow relating to Greenyard.”

Greenyard on Friday said that the Hungarian food safety regulator had asked it "to stop all marketing and to recall from its customers and consumers all frozen products that had been produced in this plant between the period of August 2016 and June 2018, based on a potential listeria contamination when frozen products are not properly cooked.

"Greenyard has taken all possible additional measures to preserve food safety, among others recall of the products, closure of the Hungarian plant and additional tests and analyses," a statement said.

"The recall is a precautionary measure and does not imply that recalled products are contaminated. We advise consumers to cook frozen products. When cooked for 2 minutes at 70°C, the potential risk of infection is fully eliminated."