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Effects of Meat Recalls on Futures Market Prices

Author

Listed:
  • Lusk, Jayson L.
  • Schroeder, Ted C.

Abstract

The number of meat recalls has increased markedly in recent years. This research examines the impact of beef and pork recall announcements on nearby daily live cattle and lean hog futures market prices, respectively. Results indicate medium-sized beef recalls that are of serious health concerns have a marginally negative impact on short-term live cattle futures prices. However, results are not robust across recall size and severity. This research suggests that if there is any systematic change in cattle and hog demand due to meat recalls, it likely occurs over an extended period of time and only in certain cases does it noticeably affect daily futures prices.

Suggested Citation

  • Lusk, Jayson L. & Schroeder, Ted C., 2002. "Effects of Meat Recalls on Futures Market Prices," Agricultural and Resource Economics Review, Cambridge University Press, vol. 31(1), pages 47-58, April.
    • Handle: RePEc:cup:agrerw:v:31:y:2002:i:01:p:47-58_00
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