low cost, fast “in-house” pathogen testing

Understanding their needs and challenges. We perform in-depth research and thorough understanding of the food production industry, including regulations, compliance, and production processes.

1. Providing a clear value proposition which helps improve efficiency, quality control, and profitability. We focus on how our products and services solve their specific problems and provide real-world improvements to food production companies.
2. Showing expertise and credibility: Food production companies want to work with us. We have deep expertise in the industry and a proven track record of success, demonstrating our expertise and credibility through case studies, testimonials, and industry awards can help build trust and establish credibility.
3. Offering customized solutions to food production companies. We know that our clients have unique needs, and one-size-fits-all solutions is not effective. Offering customized solutions that meet their specific needs and requirements can help differentiate our product or service from competitors and build long-term customer relationships.
4. Emphasizing safety and quality control for our food production clients. We place a high priority on safety and quality control, as any issue can have significant legal, financial, and reputational consequences. We emphasize how our product or service can help improve safety and quality control can be a powerful selling point.
5. Providing exceptional customer service to our food production clients who expect vendors to be responsive, knowledgeable, and proactive in addressing their needs. We provide exceptional customer service, including fast response times, clear communication, and ongoing support, can help build long-term customer relationships and drive referrals.
6. Keeping up with industry trends. The food production industry is constantly evolving, and staying up to date with the latest trends and developments helps position our products and services as cutting-edge and innovative. We differentiate our offering from competitors and appeal to forward-thinking food production organizations.

Pathogen testing is a crucial part of maintaining food safety in the food industry.

Pathogens such as Salmonella, Listeria, and E. coli can cause serious illness and even death if not detected and prevented from entering the food supply.

To ensure food safety, food producers have the option of either setting up an in-house pathogen testing laboratory or outsourcing the testing to a third-party laboratory.

The decision between these two options can have significant economic implications over a five-year period. In this article, we will discuss the cost-benefit analysis of an in-house pathogen testing laboratory compared to a third-party laboratory from an economic perspective.

Costs and Benefits of an In-house Pathogen Testing Laboratory

Setting up an in-house pathogen testing laboratory requires a significant upfront investment. The cost of purchasing equipment, hiring trained personnel, and maintaining the facility can be high.

However, once the laboratory is established, the cost per test decreases significantly as the equipment and personnel become more efficient.

Additionally, an in-house laboratory provides the benefit of faster turnaround times, which can be critical in preventing outbreaks and recalls.

An in-house laboratory also provides greater control over the testing process. The food producer can customize the testing protocols to their specific needs and can respond more quickly to changes in the food safety landscape. Furthermore, an in-house laboratory can help build internal expertise and knowledge about pathogen testing, which can lead to better decision-making and risk management.

Estimated Costs and Benefits of a Third-Party Pathogen Testing Laboratory

Outsourcing pathogen testing to a third-party laboratory can provide cost savings in the short term, as the upfront investment is much lower.

Additionally, the third-party laboratory may have access to specialized equipment and expertise that would be difficult for a food producer to obtain. However, the cost per test can be significantly higher than that of an in-house laboratory.

A third-party laboratory may also have longer turnaround times, which can be problematic in the event of an outbreak or recall. Moreover, the food producer has less control over the testing process and may have to rely on the third-party laboratory to respond to changes in the food safety landscape.

ESTIMATED Cost-Benefit Analysis

To conduct a cost-benefit analysis, we need to compare the costs and benefits of the two options over a five-year period. We will assume that the food producer needs to conduct 1,000 pathogen tests per year (20 tests per week for 50 weeks).

Estimated Five (5) year Third-Party Pathogen Testing Laboratory with AME:

• Upfront Investment for ancillary equipment: $6,000
• Annual Equipment Rental: $12,000
• Price per Test: $24.95
• Total Test Cost per year (estimate: 1,000 tests @ $24.95/each): $24,950
• Consumables Costs (Tubes, tips, gloves, etc.): ~$2,500 
• Total Turnaround Time Per Test (sample collection, testing, analysis): 1 hour
• Estimated Annual lab cost per year: $39,450
• Annual ISO Certification & Verification via ISO 17025: $9,000 (Optional)
• Estimated Yearly cost: $39,350
• Total Cost over 5 Years: $197,250

Estimated Five (5) year Third-Party Pathogen Testing Laboratory costs:

• Upfront Investment: $0
• Price per Test: $50 to $150
• Annual Operating Costs for 1,000 tests: $150,000
• Transportation Costs: $?
• Turnaround Time: 48  to 168 hours
• Total Cost over 5 Years: $750,000

Based on the above analysis, an in-house pathogen testing laboratory would provide cost savings of $552,750 over a five-year period compared to outsourcing to a third-party laboratory.

Further, the in-house laboratory would provide faster turnaround times, greater control over the testing process, and increased internal capacity, expertise, and operational knowledge.

Summary

While the upfront investment of an in-house pathogen testing laboratory can be high, it can provide significant cost savings over a five-year period compared to outsourcing to a third-party laboratory. Furthermore, an in-house laboratory provides greater control over the testing process, faster turnaround times, and the ability to build internal expertise and knowledge. However, each food producer should evaluate their specific needs and resources to determine the optimal course of operational economics.