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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.

Suggested Citation

  • 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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    References listed on IDEAS

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    1. Nicholas E. Piggott & Thomas L. Marsh, 2004. "Does Food Safety Information Impact U.S. Meat Demand?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 154-174.
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    1. repec:eee:jfpoli:v:69:y:2017:i:c:p:145-153 is not listed on IDEAS

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    Keywords

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

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