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

Listed author(s):
  • 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)

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.

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Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 21 (2005)
Issue (Month): 3 ()
Pages: 351-373

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Handle: RePEc:wly:agribz:v:21:y:2005:i:3:p:351-373
DOI: 10.1002/agr.20052
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  1. 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.
  2. 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.
  3. 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.
  4. Marino, Anthony M, 1997. "A Model of Product Recalls with Asymmetric Information," Journal of Regulatory Economics, Springer, vol. 12(3), pages 245-265, November.
  5. Hooker, Neal H. & Nayga, Rodolfo M. & Siebert, John W., 2002. "The Impact of HACCP on Costs and Product Exit," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 34(01), pages 165-174, April.
  6. 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.
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