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Anatomy of a disaster

Author

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  • A. Desmond O'Rourke

    (Agricultural Economics and Director of the IMPACT Center at Washington State University)

Abstract

Price forecasting models are used to demonstrate that revenues to the Washington apple industry would have been about $130 million higher in the 1988-1989 season if the Alar scare had not occurred. Because of the structure of the apple marketing system, virtually all of that loss would have been translated into a reduction of profits to growers. The persistence of the Alar story in the national media contributed to the severity of the loss. Objective measures are needed for evaluating alternative strategies for coping with such food safety scares in the future.

Suggested Citation

  • A. Desmond O'Rourke, 1990. "Anatomy of a disaster," Agribusiness, John Wiley & Sons, Ltd., vol. 6(5), pages 417-424.
    • Handle: RePEc:wly:agribz:v:6:y:1990:i:5:p:417-424
    DOI: 10.1002/1520-6297(199009)6:5<417::AID-AGR2720060502>3.0.CO;2-U
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    Cited by:

    1. Tozer, Peter R. & Marsh, Thomas L., 2018. "Dynamic regional model of the US apple industry: Consequences of supply or demand shocks due to pest or disease outbreaks and control," Agricultural Systems, Elsevier, vol. 164(C), pages 252-263.

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