In the News Teaching Activity – How fears of peanut contamination may affect the spice products market (Oct 2024)

Fears of peanut contamination may cause a dip in consumer confidence in the spice products market.

Over 20 spice products, including Domino's BBQ Dip and seasonings from brands like Favourit, have been recalled due to possible peanut contamination not listed on the label. The recall, deemed precautionary, follows earlier concerns involving mustard ingredients supplied by FGS Ingredients Ltd. Despite no traces of peanut found in their facility, tests linked contamination to mustard sourced from India. The company is now sourcing mustard from Canada, working with the FSA to resolve the issue, and advising consumers to return affected products.

More than 20 products recalled over peanut contamination fears - BBC News

1. How would a fall in consumer confidence affect the demand for spice products? What impact could this have on the price?

2. In what way could the supply of spice products be affected? What impact could this have on the price?

3. How could the concern about peanut contamination affect the profits of those firms supplying the spice product market in India and in Canada?