Too little, too late?

The AP reports on the breakthrough in the salmonella case.

Restaurants, consumers, and the tomato industry had reason to breath a sigh of relief this week as two kinds of peppers found in Mexico were linked to the ongoing search for the source of the salmonella outbreak. While officials fell short of completely vindicating the tomato, they did report that no tomatoes have tested positive for salmonella. The cause of the outbreak is being reported as "contaminated irrigation water."

Mexico is denying that they are the source of the outbreak, saying that the positive tests were only preliminary findings. American produce industry executives expressed their dismay at a hearing on Wednesday. They argued that the investigation took too long to get to the "smoking gun." The LA Times reports:

Produce industry insiders, many also testifying at the Wednesday hearing, criticized what they called an expensive, inept investigation that had little transparency and failed to engage business owners.

One executive said his company, which ships tomatoes and other produce across seven states, had lost as much as $18 million since the outbreak began. Members of the Irvine-based Western Growers Assn. have collectively lost $13 million, said Henry L. Giclas, one of the group's vice presidents.

"I don't know how they could call it a breakthrough when our industry's already been broken," he said after testifying.

In other commodity news, corn prices dropped another 3.7%, with soybeans falling 2.8% for the week. While Congress failed to come to an agreement on what to do about oil prices and speculators, it was the weather that brought about the price decline. Thunderstorms rolling into the Midwest prompted the favorable prediction that despite the flooding earlier this year, corn production could still be on production schedule.

Cheaper corn might not directly translate to help for the suffering restaurant industry. The Chicago Tribune reported on the change in consumer spending habits:

In the restaurant business hard times have touched off a flurry of trading down to cheaper outlets.

That's a plus for McDonald's, which is testing a higher price for the double cheeseburger that anchors its dollar menu, and a minus for casual-dining chains. Bennigan's, for example, abruptly shuttered hundreds of its outlets last week.

At the same time, Americans are eating at home more regularly, a help to packaged-food companies at the expense of restaurants.

Further Reading:

San Fransisco Chronicle on criticism on US probe into the salmonella outbreak.
MarketWatch on corn prices creating a buying opportunity.
Seattle PI on the year long moratorium against fast food restaurants in Los Angeles.