A new report published by Western Growers examines the economic and food safety implications of the 2022 and 2023 Hepatitis A outbreaks linked to imported strawberries. While both outbreaks were ultimately traced to a single foreign grower, the report found that California strawberry growers experienced an estimated $125 million in short-term wholesale revenue losses following the 2022 FDA public health advisory, despite no recall being issued for domestic strawberries. The analysis concludes that the decline was driven by a temporary, industry-wide drop in consumer demand rather than changes in supply. The analysis of these outbreaks highlights the importance of traceability, transparency, and timely follow-up when a source is identified, as well as the need for consistent oversight and regulatory responses across both domestic and foreign supply chains.
Here are a few takeaways. To access the full report, click here.
- The U.S. Food and Drug Administration’s initial announcement during the 2022 outbreak did not clarify that the impacted strawberries were imported.
- Short-term demand shocks from the 2022 outbreak cost the California industry approximately $125 million. In the five weeks following the FDA’s May 28, 2022, announcement of the 2022 outbreak, FOB prices fell by nearly 30% for both conventional and organic strawberries beyond what could be expected for typical seasonal and supply price trends
- Because the announcement of the outbreak was released on the Saturday of Memorial Day Weekend, which is the unofficial start of peak strawberry season for California growers, farmers in California shouldered disproportionate costs from the demand shock.
- Based on industry interviews, long-term and ongoing costs for California growers related to the outbreak have been minimal. But that is because California strawberry growers were already leading in food safety practices and had not had to implement additional measures in response to the outbreaks.
- Even though an enteric virus outbreak in berries has not been traced to U.S. berry growers in over 35 years, California strawberry growers bore the brunt of the 2022 outbreak-related revenue declines.
- Strawberries have a global supply chain. Foodborne viruses and bacteria do not know borders.