Cyclospora outbreak puts food supply consolidation under scrutiny

The cyclospora outbreak consolidation question is getting new attention as investigators examine illnesses across multiple states. Food safety experts told CNBC that decades of consolidation in farming, processing and distribution may allow one contamination event to reach more people through national supply chains.

Dr. David Relman, a Stanford University professor of microbiology and immunology, said changes in how food is sourced and shipped appear to have played a part. He said centralized systems can mix produce from many places and then send it back out across a much wider area.

The FDA’s cyclosporiasis investigation has centered on shredded iceberg lettuce distributed through Taylor Farms’ foodservice business, CNBC reported. The ingredient reached Taco Bell restaurants and other foodservice customers in several states, according to the report.

How can food supply consolidation affect a cyclospora outbreak?

Consolidation can make a foodborne outbreak harder to contain because more farms, processors, distributors and restaurants may be tied into the same supply stream. Relman pointed to bagged chopped lettuce as an example: one package can contain lettuce from many heads, then move through broad distribution networks.

Marion Nestle, professor emerita of nutrition, food studies and public health at New York University, told CNBC that the consequences can grow when fewer companies handle larger volumes of food. She said centralized processing can extend the reach of a contamination event.

The USDA has said U.S. agriculture and food distribution have become more consolidated over several decades as companies seek efficiency and national scale. Taylor Farms has expanded through acquisitions, including Earthbound Farm in 2019, Curation Foods in 2021 and Equinox Growers in March, according to company announcements cited by CNBC.

Distribution has also concentrated among broadline suppliers that serve restaurants and institutions nationwide. CNBC identified Sysco, US Foods and Performance Food Group as major distributors serving large numbers of foodservice customers.

• Federal regulators blocked Sysco’s proposed $8.2 billion acquisition of US Foods in 2015 on antitrust grounds.
• Sysco later bought regional and specialty distributors including Paragon Foods, The Coastal Companies and Greco and Sons, according to company materials cited by CNBC.
• US Foods acquired Freshway Foods, a fresh produce processor, repacker and distributor, in 2016.

Timothy Lytton, a health and safety regulation expert at Georgia State University, told CNBC that large growers and processors often have more advanced food safety programs than smaller operators. He cited their ability to pay for testing, traceability, audits and quality control.

Lytton also noted studies in California farmers markets that found E. coli contamination in produce from small farms. He said farms that keep animals near crops can create food safety risks, even when growers care about product quality.

Still, Lytton said contamination inside large handler networks can lead to broader recalls that are harder to manage. That point matches the concern raised by Relman and Nestle: the structure of distribution can shape the size of the fallout after contamination occurs.

CNBC said it contacted major food suppliers mentioned about their safety and tracing procedures. Sysco referred CNBC to the International Foodservice Distribution Association, whose spokesperson said foodservice distributors keep records tracking product sources, internal movement and recipients, and can provide traceback information to the FDA within 24 to 48 hours during outbreak investigations.

Relman said consolidation does not itself cause contamination. His warning was that the food inspection and public health systems often draw attention only after failures expose how far a problem can spread.

This story draws on original reporting from CNBC.