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The impact of E. Coli O157:H7 recalls on live cattle futures prices: Revisited

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  • Moghadam, Arian Khaleghi
  • Schmidt, Claudia
  • Grier, Kevin

Abstract

Meat recalls have the potential to adversely affect the demand for meat due to the associated decline in consumers and investors’ confidence. The objective of this study is to investigate the impacts of Escherichia Coli O157:H7 recall announcements on the nearby cattle futures prices using data from the United States Department of Agriculture’s (USDA) Food Safety Inspection Services (FSIS) and Chicago Mercantile Exchange Live Cattle futures. The results show that E. Coli O157:H7 recalls have adverse impacts on the nearby cattle futures prices, but the impacts are short-lived.

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  • Moghadam, Arian Khaleghi & Schmidt, Claudia & Grier, Kevin, 2013. "The impact of E. Coli O157:H7 recalls on live cattle futures prices: Revisited," Food Policy, Elsevier, vol. 42(C), pages 81-87.
    • Handle: RePEc:eee:jfpoli:v:42:y:2013:i:c:p:81-87
    DOI: 10.1016/j.foodpol.2013.07.002
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    3. Li, Huashan & Bapuji, Hari & Talluri, Srinivas & Singh, Prakash J., 2022. "A Cross-disciplinary review of product recall research: A stakeholder-stage framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    4. Ollinger, Michael & Houser, Matthew, 2020. "Ground beef recalls and subsequent food safety performance," Food Policy, Elsevier, vol. 97(C).
    5. Matthew Houser & Jeffrey H Dorfman & Roderick M Rejesus, 2019. "The Long‐Term Effects of Meat Recalls on Futures Markets," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(2), pages 235-248, June.
    6. Michael Ollinger & John Bovay, 2020. "Producer Response to Public Disclosure of Food‐Safety Information," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 186-201, January.

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    Keywords

    E. Coli O157:H7; Product recalls; Event study;
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