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Hysterisis in Food Safety Investments

Author

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  • Richards, Timothy J.
  • Nganje, William E.
  • Acharya, Ram N.

Abstract

Concerns regarding the safety and integrity of the fresh produce supply chain are becoming all too common in the media. In 2006, an outbreak of E. coli O157:H7 from farms in Central California sickened almost two hundred people and lead to the deaths of three. Estimated costs to the industry ranged from $100 per month to $200 million until spinach sales returned to normal. By some accounts, the spinach industry has yet to recover and may not for years to come. The incident, however, has lead to a host of initiatives from industry officials, legislators and fresh produce retailers to ensure the safety of fresh produce. The necessary technology and best practices knowledge exists, yet some growers have not made the investment required to ensure that such outbreaks do not happen again in the future.

Suggested Citation

  • Richards, Timothy J. & Nganje, William E. & Acharya, Ram N., 2008. "Hysterisis in Food Safety Investments," 110th Seminar, February 18-22, 2008, Innsbruck-Igls, Austria 49888, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa110:49888
    DOI: 10.22004/ag.econ.49888
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    References listed on IDEAS

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