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The demand impacts of chicken contamination publicity-a case study

Author

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  • Roger A. Dahlgran

    (Department of Agricultural and Resource Economics, University of Arizona, Tucson, Arizona 85721-0023)

  • Dean G. Fairchild

    (Department of Agricultural and Resource Economics, University of Arizona, Tucson, Arizona 85721-0023)

Abstract

Adverse publicity regarding food contamination can depress demand, causing lost producer revenue. This study addresses the magnitude of those losses through the analysis of the impact of TV and print news coverage of bacterial contamination of chicken in the United States. An inverse demand model for chicken is estimated using weekly data from 1982 through 1991. Our findings indicate adverse publicity about salmonella contamination of chicken depressed the demand for chicken, but that the effect was small, less than 1% during the period of maximum exposure. Further, consumers soon forget this news as they reverted to prior consumption patterns in a matter of weeks. [EconLit citation: D120] © 2002 Wiley Periodicals, Inc.

Suggested Citation

  • Roger A. Dahlgran & Dean G. Fairchild, 2002. "The demand impacts of chicken contamination publicity-a case study," Agribusiness, John Wiley & Sons, Ltd., vol. 18(4), pages 459-474.
  • Handle: RePEc:wly:agribz:v:18:y:2002:i:4:p:459-474
    DOI: 10.1002/agr.10033
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    File URL: http://hdl.handle.net/10.1002/agr.10033
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    References listed on IDEAS

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    1. Giancarlo Moschini & Karl D. Meilke, 1989. "Modeling the Pattern of Structural Change in U.S. Meat Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(2), pages 253-261.
    2. Thurman, Walter N, 1986. "Endogeneity Testing in a Supply and Demand Framework," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 638-646, November.
    3. Moschini, GianCarlo & Meilke, Karl D., 1984. "Parameter Stability And The U.S. Demand For Beef," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(02), December.
    4. Chalfant, James A & Alston, Julian M, 1988. "Accounting for Changes in Tastes," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 391-410, April.
    5. David G. Swartz & Ivar E. Strand, Jr., 1981. "Avoidance Costs Associated with Imperfect Information: The Case of Kepone," Land Economics, University of Wisconsin Press, vol. 57(2), pages 139-150.
    6. Dahlgran, Roger A., 1987. "Complete Flexibility Systems And The Stationarity Of U.S. Meat Demands," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(02), December.
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    Citations

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    Cited by:

    1. Mohamed Salah Matoussi & Sylvette Monier-Dilhan & Daniel Hassan & Éric Cahuzac, 2007. "Sécurité sanitaire des aliments : fausse alerte et vraie crise," Économie et Prévision, Programme National Persée, vol. 177(1), pages 55-64.
    2. Maria De Paola & Vincenzo Scoppa, 2013. "Consumers’ Reactions to Negative Information on Product Quality: Evidence from Scanner Data," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(3), pages 235-280, May.
    3. Li, Tongzhe & Bernard, John C. & Johnston, Zachary A. & Messer, Kent D. & Kaiser, Harry M., 2017. "Consumer preferences before and after a food safety scare: An experimental analysis of the 2010 egg recall," Food Policy, Elsevier, vol. 66(C), pages 25-34.
    4. Yadavalli, Anita & Jones, Keithly, 2014. "Does media influence consumer demand? The case of lean finely textured beef in the United States," Food Policy, Elsevier, vol. 49(P1), pages 219-227.
    5. Rieger, Jörg & Kuhlgatz, Christian & Anders, Sven, 2016. "Food scandals, media attention and habit persistence among desensitised meat consumers," Food Policy, Elsevier, vol. 64(C), pages 82-92.
    6. Rieger, Jorg & Kuhlgatz, Christian, 2015. "Analyzing Consumer Demand During a Food Scandal: The Case of Dioxin Contaminated Feed in Germany and the Media," 2015 Conference, August 9-14, 2015, Milan, Italy 212292, International Association of Agricultural Economists.
    7. Taylor, Mykel & Klaiber, H. Allen & Kuchler, Fred, 2016. "Changes in U.S. consumer response to food safety recalls in the shadow of a BSE scare," Food Policy, Elsevier, vol. 62(C), pages 56-64.
    8. Laestadius, Linnea I. & Lagasse, Lisa P. & Smith, Katherine Clegg & Neff, Roni A., 2012. "Print news coverage of the 2010 Iowa egg recall: Addressing bad eggs and poor oversight," Food Policy, Elsevier, vol. 37(6), pages 751-759.
    9. 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.
    10. Hornung, Jonathan T. & Ward, Clement E., 2005. "Positive Market Effects from a Meatpacking Plant Opening: Perceptions and Reality," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 06.
    11. Carlos Arnade & Fred Kuchler & Linda Calvin, 2013. "Consumers’ Response When Regulators Are Uncertain About the Source of Foodborne Illness," Journal of Consumer Policy, Springer, vol. 36(1), pages 17-36, March.

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