IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v33y2017i4p493-504.html
   My bibliography  Save this article

The media impact of animal disease on the US meat demand

Author

Listed:
  • H. Holly Wang
  • Paul Gardner de Beville

Abstract

Consumers are sensitive to food safety problems such as the outbreak of animal diseases. This paper examined the impact on consumers’ consumption behavior from information about food safety reported in news media. Taking avian influenza outbreak as an example, we counted articles published in major newspapers in the United States between 2001 and 2009, and included variables constructed based on these counts in an Inverse Almost ideal Demand model using monthly market consumption data on chicken, duck, other poultry, beef, and pork to estimate the impact of news on actual demand of these meats. We found that U.S. consumers would reduce their poultry demand and substitute by livestock meats when such news is reported by media negatively. This effect is boundary‐unconstrained, i.e., the U.S. poultry market suffers irrespective to the country of the disease outbreak. However, the magnitude of the effect is lower if the outbreak is from overseas.

Suggested Citation

  • H. Holly Wang & Paul Gardner de Beville, 2017. "The media impact of animal disease on the US meat demand," Agribusiness, John Wiley & Sons, Ltd., vol. 33(4), pages 493-504, September.
  • Handle: RePEc:wly:agribz:v:33:y:2017:i:4:p:493-504
    DOI: 10.1002/agr.21501
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/agr.21501
    Download Restriction: no

    File URL: https://libkey.io/10.1002/agr.21501?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Eales, James S. & Unnevehr, Laurian J., 1994. "The inverse almost ideal demand system," European Economic Review, Elsevier, vol. 38(1), pages 101-115, January.
    2. David L. Ortega & H. Holly Wang & Nicole J. Olynk & Laping Wu & Junfei Bai, 2012. "Chinese Consumers' Demand for Food Safety Attributes: A Push for Government and Industry Regulations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(2), pages 489-495.
    3. Witsanu Attavanich & Bruce A. McCarl & David Bessler, 2011. "The Effect of H1N1 (Swine Flu) Media Coverage on Agricultural Commodity Markets," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(2), pages 241-259.
    4. Lusk, Jayson L. & Schroeder, Ted C., 2002. "Effects of Meat Recalls on Futures Market Prices," Agricultural and Resource Economics Review, Cambridge University Press, vol. 31(1), pages 47-58, April.
    5. Taha, Fawzi A., 2007. "How Highly Pathogenic Avian Influenza (H5N1) Has Affected World Poultry-Meat Trade," Miscellaneous Publications 7360, United States Department of Agriculture, Economic Research Service.
    6. David L. Ortega & H. Holly Wang & Nicole J. Olynk Widmar, 2015. "Effects of media headlines on consumer preferences for food safety, quality and environmental attributes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(3), pages 433-445, July.
    7. Moonsoo Park & Yanhong H. Jin & David A. Bessler, 2008. "The impacts of animal disease crises on the Korean meat market," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 183-195, September.
    8. Thomas Marsh & Ted Schroeder & James Mintert, 2004. "Impacts of meat product recalls on consumer demand in the USA," Applied Economics, Taylor & Francis Journals, vol. 36(9), pages 897-909.
    9. Capps, Oral, Jr. & Schmitz, John D., 1991. "A Recognition Of Health And Nutrition Factors In Food Demand Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(1), pages 1-15, July.
    10. Elif Akben & Gökhan Özertan & Aslýhan D. Spaulding & Sayed H. Saghaian, 2008. "Consumer responses to the H5N1 Avian Influenza: the case of Turkey," Economics Bulletin, AccessEcon, vol. 4(15), pages 1-9.
    11. John M. Marsh & Gary W. Brester & Vincent H. Smith, 2008. "Effects of North American BSE Events on U.S. Cattle Prices," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(1), pages 136-150.
    12. Kesavan, T & Buhr, Brian, 1995. "Price Determination and Dynamic Adjustments: An Inverse Demand System Approach to Meat Products in the United States," Empirical Economics, Springer, vol. 20(4), pages 681-698.
    13. Jason H. Grant & Dayton M. Lambert & Kenneth A. Foster, 2010. "A Seasonal Inverse Almost Ideal Demand System for North American Fresh Tomatoes," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(2), pages 215-234, June.
    14. Henneberry, Shida Rastegari & Piewthongngam, Kullapapruk & Qiang, Han, 1999. "Consumer Food Safety Concerns And Fresh Produce Consumption," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-16, July.
    15. Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics, Blackwell, vol. 25(2-3), pages 359-374, September.
    16. 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.
    17. John M. Marsh & Gary W. Brester & Vincent H. Smith, 2008. "Effects of North American BSE Events on U.S. Cattle Prices," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(1), pages 136-150.
    18. 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.
    19. Beach, Robert H. & Kuchler, Fred & Leibtag, Ephraim S. & Zhen, Chen, 2008. "The Effects of Avian Influenza News on Consumer Purchasing Behavior: A Case Study of Italian Consumers' Retail Purchases," Economic Research Report 56477, United States Department of Agriculture, Economic Research Service.
    20. Roland Herrmann & Stanley R. Thompson & Stephanie Krischik-Bautz, 2002. "Bovine spongiform encephalopathy and generic promotion of beef: An analysis for “quality from Bavaria”," Agribusiness, John Wiley & Sons, Ltd., vol. 18(3), pages 369-385.
    21. Rickersten, Kyrre, 1998. "The Effects of Advertising in an Inverse Demand System: Norwegian Vegetables Revisited," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(1), pages 129-140.
    22. Dedah, Cheikhna O. & Keithly, Walter R., Jr. & Diop, Hamady & Kazmierczak, Richard F., Jr., 2007. "An Inverse Almost Ideal Demand System for Oysters in the United States: An Empirical Investigation of the Impacts of Mandatory Labels," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34957, Southern Agricultural Economics Association.
    23. T. A. Lloyd & S. McCorriston & C. W. Morgan & A. J. Rayner, 2006. "Food scares, market power and price transmission: the UK BSE crisis," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(2), pages 119-147, June.
    24. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ray Huffaker & Monika Hartmann, 2021. "Reconstructing dynamics of foodborne disease outbreaks in the US cattle market from monitoring data," PLOS ONE, Public Library of Science, vol. 16(1), pages 1-15, January.
    2. Alban Thomas, 2020. "Is there a win-win scenario with both limited beef production and reduced beef consumption?," Working Papers hal-02790948, HAL.
    3. Qiujie Zheng & H. Holly Wang & Yonggang Lu, 2018. "Consumer Purchase Intentions for Sustainable Wild Salmon in the Chinese Market and Implications for Agribusiness Decisions," Sustainability, MDPI, Open Access Journal, vol. 10(5), pages 1-16, April.
    4. Karavolias, Joanna & House, Lisa A., 2018. "Demand Elasticities of Conventional and Raised without Antibiotics Chicken," 2018 Annual Meeting, August 5-7, Washington, D.C. 273991, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Mu, Jianhong E. & McCarl, Bruce A. & Bessler, David A., 2013. "Impacts of BSE and Avian Influenza on U.S. Meat Demand," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150392, Agricultural and Applied Economics Association.
    3. Sven Anders & Anke Mőser, 2010. "Consumer Choice and Health: The Importance of Health Attributes for Retail Meat Demand in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(2), pages 249-271, June.
    4. Bakhtavoryan, Rafael & Capps, Oral, Jr. & Salin, Victoria, 2012. "Impact of Food Contamination on Brands: A Demand Systems Estimation of Peanut Butter," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), pages 1-13, December.
    5. 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.
    6. Shang, Xia & Tonsor, Glynn T., 2017. "Food safety recall effects across meat products and regions," Food Policy, Elsevier, vol. 69(C), pages 145-153.
    7. Edgardo Ayala & Joana Chapa, 2017. "AH1N1 impact on the Mexican pork meat market," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 32(1), pages 3-25.
    8. Pruitt, J. Ross & Holcomb, Rodney B., 2017. "Impacts of Food Safety Recalls and Consumer Information on Restaurant Performance," Journal of Food Distribution Research, Food Distribution Research Society, vol. 48(3), November.
    9. Matthew Houser & Berna Karali, 2020. "How Scary Are Food Scares? Evidence from Animal Disease Outbreaks," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 283-306, June.
    10. Costa, Rafael & Bessler, David & Rosson, C. Parr, 2015. "The Impacts of Foot and Mouth Disease Outbreaks on the Brazilian Meat Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), pages 1-19, November.
    11. Aye Chan Myae & Ellen Goddard, 2020. "Household behavior with respect to meat consumption in the presence of BSE and CWD," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(3), pages 315-341, September.
    12. 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.
    13. Beach, Robert H. & Zhen, Chen, 2008. "Consumer Purchasing Behavior in Response to Media Coverage of Avian Influenza," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6750, Southern Agricultural Economics Association.
    14. Oral Capps Jr. & Sergio Colin‐Castillo & Manuel A. Hernandez, 2013. "Do Marketing Margins Change with Food Scares? Examining the Effects of Food Recalls and Disease Outbreaks in the U.S. Red Meat Industry," Agribusiness, John Wiley & Sons, Ltd., vol. 29(4), pages 426-454, September.
    15. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    16. Anders, Sven M. & Moeser, Anke, 2008. "Using Retail Scanner Data to Assess the Demand for Value-based Ground Meat Products in Canada," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44154, European Association of Agricultural Economists.
    17. Chen‐Ti Chen & John M. Crespi & William Hahn & Lee L. Schulz & Fawzi Taha, 2020. "Long‐run impacts of trade shocks and export competitiveness: Evidence from the U.S. BSE event," Agricultural Economics, International Association of Agricultural Economists, vol. 51(6), pages 941-958, November.
    18. Piggott, Nicholas E., 2006. "Consumer Price Formation with Demographic Translating," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25252, International Association of Agricultural Economists.
    19. Peguero, Felipe & Kennedy, P. Lynn & Zapata, Hector O., 2018. "A Generalized Dynamic Inverse AIDS Model for Fresh Fruits and Vegetables: An Application to the U.S. Bell Pepper Industry," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266686, Southern Agricultural Economics Association.
    20. 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.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:33:y:2017:i:4:p:493-504. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.