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Impact of BSE and bird flu on consumers' meat demand in Japan

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  • Takashi Ishida
  • Noriko Ishikawa
  • Mototsugu Fukushige

Abstract

In this article, we investigate the impact of BSE and bird flu on consumers' meat demand in Japan by using the 'almost ideal' demand system. The BSE and bird flu scares brought about a fall in demand for beef and chicken, respectively, and an upturn in demand for pork and fishery products, which are substitutes for beef and chicken in Japan. We also find that the bird flu outbreak had no impact on the market share for beef. This suggests that BSE had a larger impact on consumers' meat demand than did bird flu. Our empirical results also show that BSE has had a persistent impact whereas, bird flu has not. These differences might depend on the characteristics of each disease, such as the incubation period, cure rate and infection risk.

Suggested Citation

  • Takashi Ishida & Noriko Ishikawa & Mototsugu Fukushige, 2010. "Impact of BSE and bird flu on consumers' meat demand in Japan," Applied Economics, Taylor & Francis Journals, vol. 42(1), pages 49-56.
  • Handle: RePEc:taf:applec:v:42:y:2010:i:1:p:49-56
    DOI: 10.1080/00036840701564392
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    References listed on IDEAS

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    1. Panos Fousekis & Christos Pantzios, 2000. "Meat demand in Greece with quality decomposition," Applied Economics Letters, Taylor & Francis Journals, vol. 7(7), pages 431-434.
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    5. John Leeming & Paul Turner, 2004. "The BSE crisis and the price of red meat in the UK," Applied Economics, Taylor & Francis Journals, vol. 36(16), pages 1825-1829.
    6. 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.
    7. Toru Konno & Mototsugu Fukushige, 2002. "The Canada-United States bilateral import demand functions: gradual switching in long-run relationships," Applied Economics Letters, Taylor & Francis Journals, vol. 9(9), pages 567-570.
    8. Ohtani, Kazuhiro & Katayama, Sei-ichi, 1986. "A gradual switching regression model with autocorrelated errors," Economics Letters, Elsevier, vol. 21(2), pages 169-172.
    9. Wim Verbeke & Ronald W. Ward & Jacques Viaene, 2000. "Probit analysis of fresh meat consumption in Belgium: Exploring BSE and television communication impact," Agribusiness, John Wiley & Sons, Ltd., vol. 16(2), pages 215-234.
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    Citations

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    Cited by:

    1. Siettou, Christina, 2016. "Avian Influenza: outbreaks and the impact on UK consumer demand for poultry," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236328, Agricultural Economics Society.
    2. Hsu, Jane Lu & Liu, Kang Ernest & Lee, Hwang-Jaw & Huang, Min-Hsin & Hung, Kelsey Jing-Ru, 2010. "The Influences Of Avian Influenza, Bse, And H1n1 Influenza On Attitudinal Changes In Meat Safety Issues," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116405, European Association of Agricultural Economists;Agricultural and Applied Economics Association.
    3. Aldy, Joseph E. & Viscusi, W. Kip, 2013. "Risk Regulation Lessons from Mad Cows," Foundations and Trends(R) in Microeconomics, now publishers, vol. 8(4), pages 231-313, December.
    4. Satoshi Kabe & Yuichiro Kanazawa, 2014. "Estimating the Markov-switching almost ideal demand systems: a Bayesian approach," Empirical Economics, Springer, vol. 47(4), pages 1193-1220, December.
    5. repec:eee:jfpoli:v:69:y:2017:i:c:p:145-153 is not listed on IDEAS
    6. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(2).
    7. Liu, Kang Ernest & Huang, Min-Hsin & Hsu, Jane Lu & Lee, Hwang-Jaw, 2009. "Avian Influenza Threat and its Potential Impact on Demand for Chicken and Eggs," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49297, Agricultural and Applied Economics Association.
    8. Martin Browning & Lars Gårn Hansen & Sinne Smed, 2013. "Rational inattention or rational overreaction? Consumer reactions to health news," IFRO Working Paper 2013/14, University of Copenhagen, Department of Food and Resource Economics.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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