Category Archives: LEDs

March 17, 2003 – Santa Clara, CA – Applied Materials Inc., the world’s largest supplier of wafer fabrication solutions to the semiconductor industry, has unveiled a plan to align the company’s cost structure with current business conditions. The realignment plan has two major elements: restructuring actions — including consolidation of facilities and a reduction in work force of some 2,000 employees; and second, focused program management to provide additional cost savings.

“The world is changing and the semiconductor industry is changing with it,” said James Morgan, chairman and CEO. “Our customers are investing in advanced, complex technologies at the same time that they are under enormous pressure to reduce costs. The combination of changes in the industry and the extended downturn have led Applied Materials to take decisive action that will enable the company to generate increased profits at current levels of revenue while maintaining strategic product development capability.”

Facilities infrastructure is being reduced primarily through building consolidation in Santa Clara, CA, and Austin, TX. The company’s facilities outside of the US also will be reduced in various locations.

The realignment plan includes the elimination of approximately 2,000 positions or 14% of the company’s global work force. Approximately 1,400 positions in Applied Materials’ North America operations will be affected and the majority of notifications will occur at the end of 2Q03. The remaining 600 positions will be eliminated at other locations worldwide by the end of 4Q03.

Additional savings are expected from focused program management and productivity initiatives that the company has been implementing during the past two years.

March 11, 2003 — Corning IntelliSense Corp., a Wilmington, Mass., subsidiary of Corning Inc., announced today that it will manufacture products for a consortium led by Xerox Corp. The group is developing a better process of manufacturing and commercializing micro-optoelectromechanical systems (MOEMS), according to a Corning IntelliSense news release.

The project is supported by a grant from the National Institute of Standards and Technology, the Cornell Nanofabrication Facility and the Rochester Institute of Technology’s Semiconductor and Microsystems Fabrication Laboratory. Near-term applications include MEMS optical bar code scanners and advanced laser printing systems, the release said.

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EDEN PRAIRIE, Minn., March 10, 2003 — A small company here in the Upper Midwest hopes to make conventional electronic memory, well, a thing of the past.

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NVE Corp. is researching, designing and manufacturing nanodevices that use spintronics, which taps into the spin of electrons rather than their electrical charge, to store or transmit information. The company is using the technique to develop magnetic random access memory (MRAM) products that promise longer life and more power than today’s devices.

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MRAM also promises to shrink products to a new scale while creating always-on electronic components for military applications, biomedical devices, environmental sensors and industrial and consumer devices.

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“We have known for some time that electrons have two spin states, but no one had been able to figure out how to harness that to store or process information,” said Daniel Baker, NVE’s chief executive. Baker won’t disclose exactly how NVE does it — the process is protected by patents — other than to say that the company uses exotic alloys to produce proprietary spintronic materials called Giant Magnetoresisters (GMR) that provide a very large signal (the “giant” in GMR) when subjected to a magnetic field.

Baker uses a cosmic analogy to explain spintronics’ potential.

“If the solar system was an atom and the earth an electron, rather than looking at the entire solar system, which is the presence and absence of planets, you can look at the spin of one of the planets,” he said. “Spintronics has the power to yield persistent electronics with nonvolatile memories. Devices can be so much smaller and faster than conventional devices today.”

NVE’s commercial products include a data coupler for telephone networks that is slightly bigger than a grain of sand but replaces five traditional network transformers several inches thick and wide each. The company has been working with the Defense Advanced Research Projects Agency to produce lab-on-a-chip biosensors for military use and is working with a major Minnesota medical company on implantable medical devices. NVE partners with companies such as Cypress Semiconductor Corp. and Agilent Technologies Inc. on commercialization of miniature memory and networking products.

Jeff Kaszubski, president and chief executive of NVE manufacturing partner Silicon Magnetic Systems, calls MRAM “the Holy Grail” of memory. “MRAM is going to find applications everywhere,” Kaszubski said. “It combines the performance of static RAM along with nonvolatility. Once it hits mainstream production, it will attack every established memory market.”

That could happen in as little as two years, according to Chad Bennett, senior equity analyst at Miller Johnson Steichen Kinnard Inc., who has been following NVE for a number of years. “Spintronics is definitely real,” Bennett said. “It is still a little bit ‘Star Trekkish’ but it is definitely coming.”

Jason Sam, senior research analyst with investment bankers The Seidler Companies Inc., agrees that MRAM makes too much economic sense not to be a hit.

“On a cell phone today, you have flash, DRAM (dynamic random access memory) and SRAM (static random access memory),” Sam said. “With MRAM you can achieve very high speeds and very durable memory and have a very cost-effective structure. You don’t even have to match DRAM prices, but the goal is to really be cheaper than the three memories you use today, all in one component.”

Bennett said the MRAM market could top $50 billion within the decade. “NVE has one of the best patent portfolios in this space,” he added.

“This is a revolutionary technology,” Baker said, looking up on his wall to quote a line from a recent Scientific American article on spintronics: “It is an unprecedented opportunity to define a radically new class of device.”


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Company file: NVE Corp.
(last updated March 10, 2003)

Company
NVE Corp.

Ticker symbol
Nasdaq SC: NVEC

Headquarters
11409 Valley View Road
Eden Prairie, Minn., 55344-3617

History
Nonvolatile Electronics Inc. was founded in 1989 by James Daughton, based on research he had performed as a Honeywell employee. The company merged with Premis in the fall of 2000 (in a reverse acquisition) and was renamed NVE Corp. It began trading on the Nasdaq in January 2003.

Industry
Electronic components

Employees
59

Small tech-related products and services
NVE develops and manufactures MRAM (magnetoresistive random access memory) products using spintronics — technology focusing on the spin, rather than the charge, of electrons. Spintronics can help reduce the size and enhance the power of sensor-based components relevant to military and industrial applications, biomedical devices, environmental sensors and consumer electronics.

Management

  • Terrence W. Glarner: chairman
  • Daniel Baker: president and chief executive officer
  • James Daughton: chief technical officer and founder
  • Robert Schneider: director of marketing
  • Selected strategic partners and customers
    Customers

  • Agilent Technologies Inc.
  • Digi-Key Corp.
  • St. Jude Medical

  • Partners

  • Silicon Magnetic Systems
  • Investment history
    In November 1990 the company raised $2.5 million in first-round funding, led by Norwest Venture Partners. A $1 million corporate round followed in March 1995, led by Motorola Ventures. In fall 1998, NVE completed a $200,000 second funding round, with participation by Norwest and individual investors. A third round with the same participants followed at the end of 1999, garnering NVE an additional $400,000. The company completed a reverse merger with Premis and went public in November 2000. In August 2002, NVE received a $365,000 DARPA award. The company began trading on the Nasdaq small cap market in January 2003.

    Barriers to market
    It may be a challenge for NVE and other MRAM-product developers to catalyze a major shift in the type of memory used by already-ubiquitous applications such as mobile phones and laptops.

    Competitors

  • Agilent Technologies Inc.
  • Allegro Networks

  • Dallas Semiconductor
  • Honeywell International Inc.
  • Murata Manufacturing Co. Ltd.
  • Goals
    “Lead the revolution and commercialization of spintronics,” said Daniel Baker, NVE’s CEO. “Make sure our commercial products are profitable.”

    Why they’re in small tech
    “Spintronics is a once-in-a-lifetime opportunity,” Baker said. “It is a chance to revolutionize electronics, a great space to be in and a great time to be in it. Spintronics could provide the successor to the transistor.”

    What keeps them up at night
    “I worry that we’ll still have DRAM (dynamic random access memory) in laptops and cell phones in a few years,” Baker said. “The potential for spintronics is really to make a huge improvement in the efficiency of electronics. Personally, as a user of electronics, I can’t wait!”

    Relevant patents
    GMR high current, wide dynamic range sensor

    Recent news and publications
    NVE gets DARPA grant to “spin” off biodevices

    Contact

  • URL: www.nve.com
  • Phone: 952-829-9217
  • Fax: 952-829-9189
  • — Research by Gretchen McNeely

    March 5, 2003 — Eastman Kodak Co. is releasing what it calls the world’s first digital camera with an organic light emitting diode (OLED) display.

    The EasyShare LS633, which will be commercially launched next month for about $400, features a 2.2-inch OLED display. Made of nanostructured polymer films, OLED screens emit their own light and are lighter, smaller and more energy efficient than conventional liquid crystal displays.

    Kodak already is producing OLED color screens with Sanyo Electric Co. Ltd. Commercial applications include car stereos and mobile phones.

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    March 3, 2003 — For all the science and technology necessary in the search for new drugs, ultimately there comes a time to make the drugs themselves — usually in large quantities. Andrey Zarur knows firsthand that the task is not easy.

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    Zarur, a chemical engineer by trade, has spent more than a few nights checking fermentators and bioreactors at odd hours, tweaking the machines’ settings to ensure that drug samples cooking inside do so under the best conditions possible.

    That experience led Zarur to launch BioProcessors Corp., a 2-year-old startup in Woburn, Mass., that takes a MEMS approach to cultivating biological products: Scale down the process to a few microliters and run samples through thousands of microdevices. The result is a high-speed, automated method of finding the best conditions to grow organic compounds.

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    “Cells are very hard to work with,” Zarur said. “We saw a very large market for this, and then built the technology for it.”

    Drug companies must find the best conditions possible to make cells do what they want them to do — secrete a protein, replicate an antibody or take some other action. By calibrating the growth environment to ideal conditions — that is, optimizing the manufacturing process — the cell will behave in the best way possible.

    Current technology for this “process optimization” process, as the industry calls it, is a considerable pain for drug companies. It requires large flasks and spinners to test growth conditions for biological samples — a plodding approach that can take years to complete and cost millions of dollars.

    BioProcessors uses MEMS technology on a massively parallel scale to conduct thousands of simple, cheap tests at once. Zarur gave the example of a pharmaceutical firm (he won’t say which) that recently hired BioProcessors to optimize its processes of growing an antibody. Zarur’s team ran 2,000 tests in four weeks at a cost of $1 million. With older technology, Zarur said, the same tests would have taken a year and cost $25 million.

    With 20 employees, BioProcessors already earns several million dollars in annual revenues from top-tier pharmaceutical companies such as Amgen Inc. and Novartis AG.

    Zarur said these companies are eager to farm out their process optimization, and improving it is a top priority.

    “It’s probably the most critical bottleneck at this time,” said Govind Rao, a chemical engineering professor at the University of Maryland who has developed a similar milliliter-scale technology licensed to Fluorometrix Corp., also based in Massachusetts.

    Drug companies are finding more and more drug molecules they’d like to explore, Rao said, thanks to high-throughput screening. Without a similar high-throughput system for process optimization, researchers must use liter-sized flasks “and that gets pretty limiting very quickly” because they can only test one or two conditions at a time.

    Eric Henderson, chief scientist at Ames, Iowa-based BioForce Nanosciences Inc., said a MEMS-based approach like BioProcessors’ would be ideal for protein crystals, since they can easily be produced in large quantities once ideal conditions are determined. “For that type of application, it’s perfect,” Henderson said. BioProcessors “is trying to find the practical sweet spot for miniaturization.”

    The bioreactors themselves are carved from clear plastic the size of a typical 96-well plate used for high-throughput screening. Several plates are sandwiched on top of each other, each with eight “units” performing a specific function and separated by membranes from the plates above and below. For example, the bottom plate might have eight microfluidic pumps sending a specific pH solution through the processor. That solution then seeps through the membrane to eight microfermentators in the plate above it holding the cellular samples to be tested.

    Steve Squinto, executive vice president and head of research at Alexion Pharmaceuticals Inc., said his company has collaborated with BioProcessors for nearly a year to find optimal growth conditions for a protein Alexion is studying. Squinto said the protein “has been rather difficult to make.” If Alexion could improve the manufacturing process three or fourfold, he said, “it will become much more attractive to us.”

    So far, BioProcessors has worked at the microlevel and doubled output of the protein, Squinto said. The company will soon scale up manufacturing to confirm that the same efficiency exists at one- or 10-liter volumes.

    “It does go against convention,” Squinto said. “Most would have a hard time believing it’s true. That was our first reaction.” But now, he added, “we’re pretty satisfied.”


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    Company file: BioProcessors Corp.
    (last updated March 3, 2003)

    Company
    Bioprocessors Corp.

    Headquarters
    35-C Cabot Road
    Woburn, Mass., 01801

    History
    Founded in October 2000 and originally headquartered in California, Bioprocessors uses technology familiar to founder Andrey Zarur in his previous work with bioreactors as a chemical engineer. The company also maintains an office in Palo Alto, Calif., but moved its headquarters to Massachusetts in October 2001 to be closer to potential investors and customers.

    Industry
    Drug discovery

    Employees
    20

    Small tech-related products and services
    Bioprocessors Corp. is developing a series of microfabricated devices called SimCells, part of a microfluidics platform designed to aid in miniaturization and automation of live cell growth, culture, harvest and testing. In the future, high-throughput bioprocessing will improve the yield, reproducibility, speed and information value of cell testing. The company is using this platform for creation of three key products: a microfermentor, microscreen and microassay. Anticipated applications include: drug discovery and screening; clone synthesis and selection; bioprocess development; biopharmaceutical molecule development; and toxicology analysis.

    Management

  • Andrey J. Zarur: chief executive officer
  • Christianne Baruqui: vice president of operations
  • Seth T. Rodgers: director of engineering
  • H. Brett Schreyer: director of biological development
  • Selected strategic partners and customers

  • Amgen Inc. (customer)
  • Pfizer Inc. (customer)
  • Alexion Pharmaceuticals (strategic partner)
  • Investment history
    In February 2000, Bioprocessors received $630,000 in seed financing from Rowland Capital, Sequoia International Investments and individual investors. In October 2001 the company completed a first round with participation from Rowland, Sequoia and Oxford Bioscience Partners, which led the round. The company is currently raising a $15 million to $20 million financing round, slated to close by the end of Q1 2003.

    Barriers to market
    The niche is crowded, and Bioprocessors will need to convince potential customers of the advantage their miniaturized methodology holds over current systems.

    Competitors

  • Arradial Inc.
  • Genicon Sciences Corp.
  • Surface Logix Inc.
  • Caliper Technologies Corp.
  • Molecular Devices Corp.
  • Why they’re in small tech
    “MEMS allows the three key features that make our platform unique: automation, parallelization and low cost,” said CEO Andrey Zarur. “Miniaturization is the only avenue that would let us to carry out cell culture research with the precision and control of large-scale systems, while allowing us to carry out tens of thousands of experiments simultaneously at an acceptable price.”

    What keeps them up at night
    “Actually, we work so hard during the day, that we seldom have the time or energy to lie awake at night — mostly we sleep very well,” Zarur said. “If we had time to lie awake worrying, then we would probably use it to work instead.”

    Recent news and publications
    Bioprocessors, Alexion collaborate
    Bioprocessors Corp. closes first round for $6 million

    Contact

  • URL: www.bioprocessors.com
  • Phone: 781-935-1400
  • Fax: 781-935-1450
  • E-mail: [email protected]

    — Research by Gretchen McNeely

  • Quantum Dot, SC Bio sign pact


    February 27, 2003

    Feb. 27, 2003 — SC BioSciences Corp. will exclusively distribute Quantum Dot Corp.’s (QDC) nanocrystal products in Japan and invest in the company, according to a news release.

    Tokyo-based SC, a wholly owned subsidiary of Sumitomo Corp., will sell the Hayward, Calif.-based firm’s Qdot products for biological detection and will help QDC set up corporate partnerships in Japan. Both sales and partnerships are part of QDC’s commercialization strategy, the release said.

    Quantum dots are semiconductor nanocrystals attached to a specific biomolecule for use in cell and tissue analysis.

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    Feb. 27, 2003 — Maxima Corp., a San Diego-based optical wireless company, is maximizing its chances in an emerging small tech market by exclusively licensing technology from Swiss-based Alpes Lasers for its next-generation products.

    The market is in free-space optics (FSO), a wireless technology that uses infrared lasers to beam data across open spaces or through windows at “fiberlike” speeds. According to Gartner analyst Bettina Tratz-Ryan, about $6.5 million worth of FSO equipment was sold to telecommunications operators in 2001. The market could reach $888 million by 2006.

    Experts extol the advantages of FSO. “Nobody doubts the huge potential of free-space optical communications,” says Michael Hatcher, technology editor for Opto & Laser Europe, a trade publication. They include ease of installation and low costs compared to fixed-line, fiber-optic links.

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    Alpes’ contribution comes in the form of quantum cascade (QC) lasers, which use a small tech process known as molecular beam epitaxy to fabricate crystal layers only a few atoms thick. The materials are the same as those used to make compound semiconductors, such as gallium arsenide and silicon germanium, depending on the frequencies required.

    The crystal layers are applied to the surface in alternating degrees of thickness, which forms facets that act as a “light resonator.” As a result of the manufacturing process, some parts of the chamber are charged differently than others, forming wells and barriers. As electrical energy is applied, the cascading structure and the reflective surfaces work together to force the electrons to emit photons at a much higher rate than in a normal laser. Electrons move between sub-bands, multiplying the number of photons produced.

    It’s this small tech process that gives the final product an edge over earlier technology. First-generation free-space optics products are a disappointment because of their vulnerability to bad weather. That’s because the infrared lasers are of short wavelength and perform poorly in fog and other weather conditions. Such lasers generate wavelengths of .7 to 1.55 microns, about the same size as a fog particle. The new Alpes laser devices cannot be deflected by fog because they generate wavelengths of 8 to 12 microns each.

    Maxima’s exclusive license with the Swiss startup could give it a competitive advantage. “The availability of 10-micron lasers might not necessarily increase the size of the addressable market, but Maxima could certainly gain significant market share with such systems,” said Jim Plante, Maxima’s chief operating officer.

    Prototypes have been up and running at the company’s San Diego lab since last December and have “not burned out” yet, Plante said. The startup, which has attracted $7.2 million in venture funding led by Forrest Binkley & Brown and Hamilton Apex Ventures, will put equipment into field trials next year.

    Alpes Lasers was co-founded by University of Neuchatel professor Jerome Faist, who has been working on incremental improvements to the QC laser since he made a major breakthrough while working at Bell Labs in 1994.

    The industry is excited about QC and other kinds of semiconductor lasers because, unlike traditional laser devices, they can be mass produced. More importantly, QC lasers outperform existing lasers in photonics power and ability to carry large currents. According to experts, the lasers offer a “one-thousand-fold improvement” over basic lasers.

    But before QC lasers can begin to displace and outpace the existing market, a few refinements in their capacity will have to be made. “The next milestone will be to achieve continuous wave at room temperature over a very wide ranges of wavelengths, from 4 to 12 microns and with reasonable power output,” said Stefan Curry, director of marketing at Texas-based Applied Optoelectronics Inc. The company sells its QC lasers to universities and industry for R&D. Gas sensors are one of the potential products expected.

    Other applications include alternatives to today’s X-ray or radiography equipment. Detlev Grutzmacher, a researcher at the Paul Scherrer Institute in Switzerland, said his group aims to create a wider (100 micron) beam QC laser for handheld devices that detect cavities in teeth, find skin cancer cells or remotely detect gases and chemicals for industrial applications. The Rutherford Appleton Laboratory in the United Kingdom is doing similar work.

    The Fraunhofer Institute for Physical Measurement Techniques in Freiburg, Germany, is also investigating how the technology can be used to make optical analytical instruments that analyze a patient’s breath for evidence of disease.

    Feb. 17, 2003 — Bacterial BarCodes Inc., a Houston developer of a microfluidics-based molecular identification and DNA fingerprinting system, has secured a $6 million third round of financing, according to a company news release.

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    Techxas Ventures led the round, which included new investors Koch Ventures and Pacific Rim Ventures. Previous investors Baylor College of Medicine and BioTex Finance Ltd. also participated. The financing will be used for continued product development and to launch products in the clinical microbial typing market.

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    The company previously received $950,000 in first-round funding in June 2000, and $3.7 million in second-round funding in October 2001, according to Chief Operating Officer Lynne Holfield.

    MEMX nets $8 million B round


    February 12, 2003

    Feb. 12, 2003 — MEMX Inc., a Palo Alto, Calif., developer of MEMS and MEMS processes, has secured $8 million in a Series B round of financing, according to a news release.

    The round was led by Austin Ventures and Sequoia Capital. Agilent Technologies Inc. also participated.

    MEMX was spun out from Sandia National Laboratories in 2000. The company develops products based on its Summit V MEMS technology.

    Welcome back to the jungle?


    February 1, 2003

    By Mark A. DeSorbo

    The trusting walked to the killing beds only to be knocked out with sledgehammer blows, hoisted in the air by one shackled foot, and then stabbed in the jugular.

    The pigs and cows wailed, but the so human-like protests fell on deaf ears as they bled to death, perhaps watching the men, who despite their best efforts, waded through the half-inch of blood that never drained.

    The players in Upton Sinclair's literary work The Jungle butchered livestock furiously in Chicago's Packingtown, where conditions defied sanitization.

    “There would be meat that had tumbled out on the floor in the dirt and sawdust, where the workers had tramped and spit uncounted billions of consumption germs,” he wrote.

    Ironically, The Jungle, published in January 1906, did not bolster Sinclair's main theme: The exploitation of immigrant labor and the need for socialism. Instead, it fueled the roaring fires of public indignation stoked over such scandals as the “embalmed beef” supplied to U.S. troops in the Spanish-American War of 1898, as well as the “muckraking” exposés of journalists like Samuel Hopkins Adams on deadly patent medicines.

    Perhaps the most significant impact The Jungle had was how it influenced the first in a series of consumer protection laws — the Pure Food and Drug Act and the Meat Inspection Act, which were passed within just six months of the literary work's publication.

    Sinclair later wrote, “I aimed at the public's heart and by accident hit it in the stomach.”

    Déjà vu or microbiological safari?

    Nearly a century later, the public is still taking blows with an estimated 75 million food-borne illnesses and approximately 5,000 deaths each year, according to the Food and Drug Administration's (FDA) Center for Disease Control and Prevention (CDC).

    Moreover, recent adverse events have triggered the FDA, the Department of Agriculture (USDA) and the food processing industry, to react similarly to the way the elder factions did when The Jungle hit the shelves.

    Last November, the USDA announced that it would intensify its testing program for plants making ready-to-eat processed meat such as hotdogs and deli meat [See “USDA beefs up meat testing program,” January 2002, p. 1].

    The directive came in the wake of a listeriosis outbreak in the Northeast that killed seven people over the summer and led to the largest meat recall in U.S. history. A Wampler Foods plant in Franconia, Pa., recalled more than 27 million pounds of cooked deli meat last October after identical strains of the listeria monocytogenes bacteria linked to the Northeast outbreak was detected by the USDA and CDC in floor drains at the facility.

    The incident was perhaps the proverbial straw that broke the camel's back, for just four months earlier, in July, ConAgra Co. (Greeley, Colo.) recalled more than 19 million pounds of ground beef that was tainted with E. coli. Inmates at three Colorado prisons ate the contaminated meat, while 28 people fell ill in California, Colorado, Michigan, South Dakota, Washington and Wyoming.

    “These were very unique situations,” says Steven Cohen, a spokesman for the USDA's Food Safety and Inspection Service (FSIS).

    Listeria, he says, is a ubiquitous germ that is responsible for about 500 deaths annually. It is often found in the intestines of healthy animals, including humans, and in soil, water and vegetation, and it can grow under extreme heat-up to 150 degrees-as well as in refrigeration, making it difficult to kill.

    Initially, Cohen says, there were a lot more listeria illnesses than there were linked cases, but through extensive interviews with victims, the FSIS was able to pinpoint foods that may have been responsible for the outbreak.

    “We'd get information from CDC and then gather product samples where people shopped, and then we identified the source, which led us to Wampler Foods and J.L. Foods (Camden, N.J.),” he says.

    The FSIS deployed about 50 of its 140 consumer safety officers to investigate the Northeast listeriosis outbreak and J.L Foods, which recalled 4.2 million pounds of poultry meat that was contaminated with listeria.

    “At Wampler, we took 125 product samples and put them through different tests, and we didn't find the outbreak strain in a product, but we did find it in two drains,” Cohen says. “At J.L. Foods, we did the same thing, and found the outbreak strain in two product samples.”

    Those product samples were each divided into 13 25-gram samples and then cultured.

    “You know within two days if it's a negative, but it takes five days for a confirm positive. We use the same method when looking for E. coli,” Cohen explains. “It's a sensitive test, and we've looked at using other tests, but the problem is the others do not give you the same accuracy.”

    Determining just how much product to recall also depended upon when production equipment and surfaces were completely sanitized.

    “In Wampler's case, they did it every couple of days. At ConAgra, they did it every 24 hours, so if we got a positive during a production run after the cleaning, you have to recall lots before and after that cleaning or sanitization,” Cohen adds. “That's why the recall totals became so much larger.”

    Swift steps

    ConAgra was already employing several methods of contamination control, including steam and lactic acid carcass washes to beat back E. coli. [See “E. coli-triggered recall sparks tighter contamination control measures at ConAgra,” Sept. 2002, p.1].

    “Whether those interventions were being applied consistently was one of those questions the company had to answer, and that's why we had a team in there doing an investigation,” Cohen says.

    At the time of this report, ConAgra, now known as Swift & Co., had committed more than $4 million to a host of upgrades designed to make its products safer. This expenditure is in addition to the some $30 million the company has spent in the last three years to improve production and food safety programs.

    “The steps we are taking now are not final,” says Jim Herlihy, vice president of communications. “We don't view food safety as a goal. We see it as an ongoing challenge. There is no proven silver bullet. We need to make continual incremental improvements, anything that can help enhance the food safety process.”

    The number one improvement was additional testing for pathogens on meat for hamburger and sausage, he said. Before the recall, workers at Swift only tested for E. coli 0157:H7, the deadliest strain, in trimmings and other cuts that were earmarked for ground beef.

    Herlihy says the USDA did not test meat before the recall, but now does so randomly. Swift now tests 100 percent of its product lots, whereas before, it randomly sampled 30 percent.

    “If we get a green light, we let it go. If not, we do more testing,” he says. “If it has E. coli, or another type of contamination, we either cook it to kill bacteria and use it in prepared foods, or sell it to a third-party who will use it to make non-petroleum lubricants.”

    Like listeria, E. coli contamination stems from cattle feces and intestinal fluids that spatter when the animal is slaughtered, so Swift has added new procedures to keep excrement off the carcass, which is a very difficult task, says sanitarian Robert W. Powitz, principal consultant at R.W. Powitz & Associates (Old Saybrook, Conn.).

    “There's a tube on the animal from the mouth to the rear that has to come out, and we expect to clean and skin that animal without any of the dirty parts touching the meat,” he says. “It's a very difficult thing to do.”

    But it's not impossible, Powitz says, if cleaning objectives for everything—from as early on as the livestock to the process to the workers to the home—are put in place.

    Those objectives, he explains, are the creed of the federal Hazard Analysis and Critical Control Point (HACCP) system, a mandatory contamination control program for seafood processors since late 1997, and for all meat and poultry processors since January 2000. It became a regulatory requirement for large juice processors in January 2002, and has most recently become a must for small juice processors as well. [See Special Report: “Improving the recipe for food safety,” June 2001, p. 17, and “Contamination control in a food processing environment—Having HACCP helps,” May 2000, www.cleanrooms.com].

    “How many chances do I have before I have a finished product to render that product safe? There are a ton of chances and that's what HACCP is all about, no matter if it is food or a pharmaceutical,” Powitz says. “The farther I go back to minimize contamination, the less I have to worry about a contaminated product coming out of my area.”

    And having objectives that ring in the adage of safety from farm to fork is Swift's new mission.

    “We're looking at this as a multi-step process,” Herlihy says. “With live cattle, we have instituted probiotics into feed to reduce E. coli bacteria in their intestines.”

    In production areas, where carcasses are disemboweled and partially disassembled, additional lighting has been added to help workers find and trim contamination. “We also encourage workers to stop the line if they see a food- or work-safety issue to make sure that it's addressed,” Herlihy says.

    Worker orientation has also changed, and employees are given primers on pathogens and contamination control. “We realize this is a people-intensive business and beyond the technologies, we have to make people as effective as possible,” he says.

    Swift has also taken steps to reduce the chances of cross-contamination by placing carcasses farther apart, giving workers a second knife to use while the first is sterilized and allowing employees more time to check for contamination before the USDA's final approval.

    Preventive measures a must

    Sanitarians, like Powitz, balk at the mere suggestion that it's still a Jungle out there.

    “These pathogens are nothing new. They've been around for a very long time,” he says. “Our surveillance is a lot better. I don't think there is more food-borne illness. It's just that we're now able to identify them and the sources.”

    Many, like the volatile, intestinal Norwalk virus, which has docked cruise ships and sickened many throughout the United States, have eluded scientists for decades, but new techniques have brought it out of hiding, he explains.

    “Before, we'd chalk it up to an infection, but not necessarily one that came from food,” Powitz says.

    Ultimately, he adds, food safety comes down to being “a people thing,” adding that the preventive, or minimizing, measures need to have clear objectives that should be part of the culture in a process environment.

    “We treat everything as objects, and that's how we get into trouble,” Powitz says. “We can't use the same techniques for numerous objects because they all have different cleaning priorities, and by that, I mean we can't put people in autoclaves.”

    In a perfect world, those objectives would mean livestock is fed feed that reduces the E. coli and listeria pathogens found in the stomach and intestines. It would call for better employee training and accountability for proper gowning and regular hand washing. It would also mean public acceptance of irradiated food, and adhering to safe handling practice in restaurants, grocery stores and homes. It also means there cannot be a deviation in temperatures that keep food-borne pathogens at bay.

    Many of these problems, Powitz claims, could be significantly minimized if the public would embrace irradiated food, a USDA-approved process that involves a precisely controlled amount of radiant energy that destroys harmful microscopic bacteria without affecting the nutritional content, taste or texture of the food.

    “If they irradiated the meat, you wouldn't have these recalls,” he adds. “Then, if there was cross-contamination, you would only find it within the restaurant or household.”

    Beyond that, and what it boils down to, is food safety becomes an issue of cost, and Powitz points out that contamination could be reduced significantly if such steps as antibiotic feed was fed to livestock and if on-the-clock time included gowning and hand washing. “It needs to become part of the culture, and what would make a difference is economic incentives—the same way a father sweetens the pot with a five dollar bill so his son mows the lawn,” he says.

    Either way, Powitz adds, food processors can accept, establish and follow HACCP and its sanitizations program or reject food safety measures. “And what's the consequence of rejecting it?” he adds. “It makes sense.” lll