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Producer Welfare Changes From Meat And Poultry Recalls

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  • Shiptsova, Rimma
  • Thomsen, Michael R.
  • Goodwin, Harold L., Jr.
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    Abstract

    The number and volume of meat and poultry recalls has increased substantially in recent years. This is likely due to regulatory emphasis on foodborne illness resulting in an increased frequency of testing for pathogens. We use an equilibrium-displacement model to examine the effects of recall costs on the beef, pork, and poultry industries. Results suggest that higher recall costs may have actually increased producer surplus to the broiler industry because of consumer substitution among products and that most losses resulting from recalls are accruing to the beef and pork industries.

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    Bibliographic Info

    Article provided by Food Distribution Research Society in its journal Journal of Food Distribution Research.

    Volume (Year): 33 (2002)
    Issue (Month): 02 (July)
    Pages:

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    Handle: RePEc:ags:jlofdr:26626

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    Web page: http://fdrs.ag.utk.edu/
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    Keywords: Agribusiness;

    References

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    1. Michael R. Thomsen & Andrew M. McKenzie, 2001. "Market Incentives for Safe Foods: An Examination of Shareholder Losses from Meat and Poultry Recalls," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 526-538.
    2. Beghin, John & Chang, Ruey-er, 1992. "Differentiated products and supply controls in the analysis of agricultural policy reform: the case of tobacco," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 7(3-4), October.
    3. Bernard, John C. & Willett, Lois Schertz, 1996. "Asymmetric Price Relationships In The U.S. Broiler Industry," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(02), December.
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    Cited by:
    1. Salin, Victoria & Darmasena, Senarath & Wong, Alex & Luo, Ping, 2006. "Food-Product Recalls in the U.S., 2000-2003," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(01), March.
    2. Loureiro, Maria L. & Umberger, Wendy J., 2007. "A choice experiment model for beef: What US consumer responses tell us about relative preferences for food safety, country-of-origin labeling and traceability," Food Policy, Elsevier, vol. 32(4), pages 496-514, August.
    3. Resende-Filho, Moises & Buhr, Brian, 2007. "Economics of traceability for mitigation of food recall costs," MPRA Paper 3650, University Library of Munich, Germany.
    4. Hooker, Neal H. & Teratanavat, Ratapol P. & Salin, Victoria, 2005. "Crisis management effectiveness indicators for US meat and poultry recalls," Food Policy, Elsevier, vol. 30(1), pages 63-80, February.
    5. Umberger, Wendy J. & Feuz, Dillon M. & Calkins, Chris R. & Sitz, Bethany M., 2003. "Country-Of-Origin Labeling Of Beef Products: U.S. Consumers' Perceptions," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(03), November.

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