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Recall event timing: Measures of managerial performance in U.S. meat and poultry plants

Author

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  • Ratapol Teratanavat

    (Department of Agricultural, Environmental and Development Economics, The Ohio State University, Columbus, OH 43210-1067)

  • Victoria Salin

    (Department of Agricultural Economics, Texas A&M University, College Station, TX 77843-2124)

  • Neal H. Hooker

    (Department of Agricultural, Environmental and Development Economics, The Ohio State University, Columbus, OH 43210-1067)

Abstract

This study investigates the performance of meat and poultry plant managers in discovering and responding effectively to food safety problems that lead to product recalls. Timing is used as a performance measure of managers' response to recalls of food, using survival distributions of times between production and recall, and recall case duration. The objectives are to understand how these time periods vary across plants and to determine factors explaining such variability. Survival distributions are estimated using the Kaplan-Meier and life table methods. Subgroups of the population are compared using plots of the estimated survival functions and statistically compared using log-rank and Wilcoxon tests. Managers at large plants, in multi-plant firms, and at plants with prior recall experience do not perform better. Cox regressions indicate that government agency sampling programs enhanced the speed of discovery, and that national distribution networks contributed to the risk that cases remained open for a longer period. [EconLit citations: D210, Q180.] © 2005 Wiley Periodicals, Inc. Agribusiness 21: 351-373, 2005.

Suggested Citation

  • Ratapol Teratanavat & Victoria Salin & Neal H. Hooker, 2005. "Recall event timing: Measures of managerial performance in U.S. meat and poultry plants," Agribusiness, John Wiley & Sons, Ltd., vol. 21(3), pages 351-373.
  • Handle: RePEc:wly:agribz:v:21:y:2005:i:3:p:351-373
    DOI: 10.1002/agr.20052
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    References listed on IDEAS

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    1. Marino, Anthony M, 1997. "A Model of Product Recalls with Asymmetric Information," Journal of Regulatory Economics, Springer, vol. 12(3), pages 245-265, November.
    2. Hooker, Neal H. & Nayga, Rodolfo M., Jr. & Siebert, John W., 2002. "The Impact Of Haccp On Costs And Product Exit," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(01), April.
    3. Michael R. Thomsen & Andrew M. McKenzie, 2001. "Market Incentives for Safe Foods: An Examination of Shareholder Losses from Meat and Poultry Recalls," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 526-538.
    4. Ollinger, Michael & Ballenger, Nicole, 2003. "Weighing Incentives for Food Safety in Meat and Poultry," Amber Waves, United States Department of Agriculture, Economic Research Service, April.
    5. Frenzen, Paul D. & Buzby, Jean C. & Rasco, Barbara, 2001. "Product Liability And Microbial Foodborne Illness," Agricultural Economics Reports 34059, United States Department of Agriculture, Economic Research Service.
    6. Ollinger, Michael & Mueller, Valerie, 2003. "Managing For Safer Food: The Economics Of Sanitation And Process Controls In Meat And Poultry Plants," Agricultural Economics Reports 33975, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Perry, William R. & Marsh, Thomas & Jones, Rodney & Sanderson, M.W. & Sargeant, J.M. & Griffin, D.D. & Smith, R.A., 2007. "Joint product management strategies for E. coli O157 and feedlot profits," Food Policy, Elsevier, vol. 32(5-6), pages 544-565.
    2. A.G.J. Velthuis & M. Meuwissen & R.B.M. Huirne, 2009. "Distribution of direct recall costs along the milk chain," Agribusiness, John Wiley & Sons, Ltd., vol. 25(4), pages 466-479.
    3. Fritz, Melanie & Schiefer, Gerhard, 2009. "Tracking, tracing, and business process interests in food commodities: A multi-level decision complexity," International Journal of Production Economics, Elsevier, vol. 117(2), pages 317-329, February.
    4. Chebolu-Subramanian, Vijaya & Gaukler, Gary M., 2015. "Product contamination in a multi-stage food supply chain," European Journal of Operational Research, Elsevier, vol. 244(1), pages 164-175.

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