Consumer

(WCCO) The February 20, 2009 recall of Simply Potato products comes in the midst of a Minnesota Department of Agriculture investigation into the company that makes them.

That company is Northern Star, a subsidiary of Michael Foods.

The WCCO-TV I-TEAM learned Northern Star was under investigation recently for what the Department of Agriculture called multiple violations related to the manufacturing of potatoes that are sold under the brands Simply Potatoes and Diner's Choice.

The Minnesota Department of Agriculture told the I-TEAM the situation at the Minneapolis potato plant, Northern Star, is serious and its investigation has been going on since 2006.

"The ultimate goal here is to produce a safe product and if it turns out that we need to take regulatory action, we're not shy about doing that," said Mike Schommer, with the Department of Agriculture.

In addition to Simply Potatoes, Northern Star also packages products under the Diner's Choice and Farm Fresh label. Some of those products were recalled Friday as well.

"An investigation happens when the inspector has noticed something that rises to the level of serious concern that could actually lead to what we call an 'enforcement action,'" Schommer explained.

The Department of Agriculture won't talk specifics because of the active status of the case, but it did say the violations at the plant are serious or the agency wouldn't be investigating.

"It's so bad, I've never seen a place like this. It smells so bad, it's dirty," a former employee at Northern Star said.

The man worked at Northern Star during the time of the Department of Agriculture's investigation, and has worked in food manufacturing plants for 15 years. He asked to not be identified, since he is searching for a new job.

"Why did you come forward?" WCCO-TV's Frank Vascellaro asked the former employee.

"Because I like to protect the people who eat this product," the man replied. "I've seen mice all over the place, cockroaches, black mold, Listeria. I mean you name it, you can find it."

He reported his concerns about Listeria on plant equipment to the FDA. Based on Friday's recall, we know Listeria was a problem.

Inspection reports from 2002 and 2004 show the Department of Agriculture ordered Northern Star to "Eliminate all areas of potential rodent harborage," "Eliminate all roaches from the firm's premises" and "Eliminate black mold in the cook line room."

"It's certainly not desirable," Schommer said. "When you see that type of thing, it needs to be addressed."

The Department of Agriculture couldn't say if Northern Star adequately fixed those problems, and wouldn't release any inspection reports generated since the beginning of its investigation in 2006, saying by law; the documents aren't public until the conclusion of the case.

To give some perspective about how serious the case is, out of the hundreds of food manufacturing plants the Department of Agriculture inspects every year, only a couple ever rise to this level of investigation.

"It's certainly not what we see on a daily basis," Schommer said. "It's rare."

The I-TEAM repeatedly asked Michael Foods, both by phone and in person, for an interview and was told it would not be possible to do an on-camera interview.

"Do want to talk to me? I'm from WCCO," a WCCO-TV producer asked an environmental services manager from Northern Star.

"Oh," the manager replied. "I'm not allowed to."

A month ago when the I-TEAM asked what the company had to say about the Department of Agriculture's investigation, the company denied one existed. Michael Foods now acknowledges the investigation, but claims it only recently learned of it. When the I-TEAM asked the company for its inspection reports, it refused to provide them.

The company did issue a statement after word on the recall on February 20th saying: "In (its) 30-year history, Northern Star has never had a reported incident of illness from a food-borne pathogen." It also said that Northern Star is "Working closely and cooperatively with MDA to understand and promptly resolve issues."

Another recall of Simply Potatoes took place in 2004 when glass fragments were found in product samples.

Also a problem at the plant? The smell.

"It's worse than the garbage," he said.

"I'd say this facility, or this odor issue in this neighborhood, is probably the longest-standing unresolved odor issue that we've had," said Patrick Hanlin, an environmental inspector for the city of Minneapolis.

The city has been trying to get Northern Star to deal with the stink for years. After the city ordered the company to clean up piles of rotten, smelly potatoes and stop dumping potato sludge in the city sewers, Northern Star put in a digester to help process the waste. The air still filled with hydrogen sulfate, which smells like rotten eggs.

"It can make you feel pretty sick," Hanlin said.

To date, Northern Star has been issued $7,000 in citations for odor violations, which is more than any other company in the city.

"We don't really consider this case resolved," Hanlin said.

The Department of Agriculture also considers its case unresolved. Even thought the product has been taken off store shelves, its investigation continues.

"The ultimate goal here is to prevent people from getting sick," Schommer said.

Depending on the results of the investigation, Northern Star could face criminal charges or fines. The fines could total $1,000 per day, per violation.

Northern Star is now in the process of relocating its plant to Chaska, Minn. Chaska's city administrator said the city was unaware of the investigation by the Department of Agriculture because inspection reports are not required when a company moves. Northern Star has already purchased and is modifying an existing industrial site which it says will be state of the art.

Click here to read a copy of the press release from the Minnesota Department of Agriculture.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

More Special Reports

• New Economy
• Good Question
• Reality Check
• Don Shelby's Good To Know
• Finding Minnesota
• I-TEAM Investigations
• Project Energy