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Id say this problem is caused directly by regulation, we wouldn't see contaminated meat in a real free market. First of all, if we did live in a free market, the meat/slaughter industry would have not developed the way it did. Govt regulation consolidated the market for so called consumer safety, it made huge slaughter houses which produced lots more meat at a much faster pace.
The free market solution wouldnt have developed like this, it instead would have kept a linear track from before the regulation. We would still be going to butcher stores, where the butcher himself was responsible for the product he sold. His lively hood and that of his employees was solely based on his customers. If the customer's are getting sick, that butcher shop is likely to close up shop and another will open up.
Every year the nyc officials try and close the two butcher shops we have in our town, its quite sad.
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