(Reuters) - Belgian food company Greenyard said on Tuesday that the first estimate on the financial impact from its recall of frozen products, potentially linked to an outbreak of the food-borne disease listeria in Europe, was estimated at 30 million euros ($35 million) after insurance.
The company’s shares have fallen 38 percent since local media reports on Friday said that deaths due to a listeria outbreak could be linked to frozen vegetable products produced by Greenyard’s plant in Hungary.
The plant has been shut and the company has been conducting an in-depth review after the Hungarian Food Chain Safety Office banned all frozen vegetable and frozen mixed vegetable products produced by the facility on June 29.
Berenberg analysts said on Monday that food safety is the biggest risk for a food company, and “this is the latest in a string of disappointing newsflow relating to Greenyard.”
Reporting by Nolwenn Brossier and Thyagaraju Adinarayan in Gdynia; Editing by Kirsten Donovan