I've been covering the news on foodborne pathogens ever since the mid-August outbreak of E. coli in spinach across the nation.

E. coli 0157:H7 infected leafy greens from natural selection foods (some sold under the Dole brand) hitting 26 states, causing 187 illnesses, killing three people (by last count) and putting 97 people in the hospital. The recall for bagged spinach and lettuce, which was traced to California farms, didn't occur until September 15, 2006.

First, let me set one thing straight: E. coli as it stands already exists in our systems. It's the strain of 0157:H7 that can make you sick and even prove to be fatal.

Around the same time as the spinach outbreak of E. coli, salmonella was found in tomatoes.

And now, there's a new outbreak at Taco Bell restaurants in Northeastern United States. This time, it's probably from (according to the company) green onions originating in California farms.

Granted, the majority of our supply of fresh fruits and vegetables come from California. But the fact that the spinach and green onion E. coli infections are the 20^th and 21^st outbreaks since 1995 makes the point clear that something has to be done.

As MSN reminds consumers in an article covering this Taco Bell story, there is no “kill step” with fruits and vegetables, meaning they're more likely consumed raw than cooked. At least cooking red meat or chicken kills bacteria.

According to the Center for Science in the Public Interest, Americans are now more likely to get sick from contaminated produce than any other food item. Foodborne illnesses on record have nearly doubled, from 40 in 1999 to 86 in 2004.

Over the years, the FDA has never really imposed any “regulations” on food growers and producers, only a set of “guidelines.” Instead, the FDA oversees the production plant, which is a step too late for detecting foodborne pathogens. So the FDA is really under fire now.

The FDA claims that a 37% drop in the budget for its Center for Food Safety and Applied Nutrition makes it harder for the agency to inspect food at its source.

Regardless, supermarkets are taking the situation into their own hands and demanding change.

Three weeks ago, a group of owners from Vons, Albertsons, Ralph's, Safeway and even Costco Wholesale Corp. (COST:NASDAQ) gave growers until December 15 (this coming Friday) to establish new safety rules for leafy greens. The group of heavy hitters wants growers to work with federal regulators and scientists on food safety standardization across the board.

It's obvious why the superstores are so antsy about getting higher safety regulations out of the door and into the field… the companies are losing millions of dollars in revenue every time a food package is recalled.

And more and more people are getting sick.

Kevin Reilly, a California food safety official, stated it best plainly: “Unless something changes, we will have another outbreak.”

According to Tim York, president of Markon Cooperative, a California buyer for food distribution, if the growers do not come to any food safety standardization checklist or process, food buyers will impose their own system on the industry, which could hurt the non-compliant growers.

Immediately following the outbreak of E. coli infection in spinach, I positioned my WaveStrength Hot Sheet readers into a micro-cap company called Neogen Corporation (NEOG:NASDAQ) that created the first handheld system for E. coli testing. It makes and markets a system that can find E. coli in fresh fruits and vegetables in a matter of hours. And it's used by inspectors around the country, and even around the world.

In fact, it's considered the “gold standard” for food safety testing.

NEOG is my pick as the company that will profit from either refined FDA regulations on the handling of food from the moment of growth, or private companies that want to protect their own reputations as food producers.

Neogen is already well respected in the field. Since 1994 the USDA's Food Safety Inspection Service (FSIS) has used the company's rapid test for E. coli in the nation's beef supply.

Since 1994, the USDA's Federal Grain Inspection Service (FGIS) has awarded Neogen a contract for the exclusive use of its quantitative test for aflatoxin in grain commodities. (Aflatoxin is a fungus that makes animals and humans sick in large doses.)

The company's revenue in food safety products rose 48% alone to $11.4 million in its last quarter of 2006. And its first-quarter testing products were up 25%.

As this battle between supermarkets, food producers, the FDA and consumers/advocacy groups comes to fruition, Neogen Corporation will be a winner either way.

Because something has to be done to decrease the number of sicknesses caused by fresh fruits and vegetables, NEOG will no doubt have a place in the solution.