Economic Implications of Food Product Withdrawals and Recalls: Lessons from European and Romanian Cases

Iuliana Condulet, Mihaela Pila and Silvius Stanciu
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Iuliana Condulet: Dunarea de Jos University of Galati, Romania
Mihaela Pila: Dunarea de Jos University of Galati, Romania
Silvius Stanciu: Dunarea de Jos University of Galati, Romania

Economics and Applied Informatics, 2025, issue 2, 290-296

Abstract: The paper examines the economic and institutional implications of food product withdrawals and recalls, measures that are essential for protecting consumer health, but which generate substantial financial and reputational costs for companies and the wider agri-food sector. Using a mixed methodology combining bibliographic review and case study analysis, the study explores the legal framework governing recalls at both European and national levels, while also highlighting significant incidents that shaped food safety governance. Three major international cases were analysed—the dioxin contamination of pork in Ireland (2008), the E. coli outbreak in Germany (2011), and the European horse meat scandal (2013)—alongside two Romanian cases, namely the Brădet cheese crisis (2016) and the aflatoxin contamination in milk (2013). Findings show that economic impacts vary depending on the nature of the hazard: chemical contamination led primarily to blocked exports and compensation payments, microbiological outbreaks resulted in EU-level financial aid and reputational damage, while fraudulent mislabelling produced long-term consumer distrust. The Romanian cases underline both the vulnerabilities of the national food system and the importance of alignment with EU safety standards. Overall, the study confirms that withdrawals and recalls should not be viewed solely as technical interventions but as strategic governance tools with direct implications for public trust, market stability, and regulatory efficiency. Strengthening preventive measures, improving traceability, and enhancing institutional coordination are essential steps to mitigate the economic and social costs of future food crises.

Keywords: food safety incidents; product recall; product withdrawal; economic impact; traceability; consumer protection (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ddj:fseeai:y:2025:i:2:p:290-296

DOI: 10.35219/eai15840409539

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