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Effects Of Meat Recalls On Futures Market Prices

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  • Lusk, Jayson L.
  • Schroeder, Ted C.

Abstract

The number of meat recalls has increased markedly in recent years. Meat recalls have the potential to adversely affect short run demand for meat because of the associated decline in consumer confidence. This research examines the impact of beef and pork recalls on nearby daily live cattle and lean hog futures market prices, respectively. Results indicate that medium sized beef and large pork recalls that are a serious health concern have a marginally negative impact on short-term live cattle and lean hog futures prices, respectively. However, results are not robust across recall size and severity. This research suggests that if there is any systematic significant change in beef and pork demand due to meat recalls, it likely occurs over an extended period of time and only in certain cases does it noticeably affect daily futures prices.

Suggested Citation

  • Lusk, Jayson L. & Schroeder, Ted C., 2000. "Effects Of Meat Recalls On Futures Market Prices," 2000 Conference, April 17-18 2000, Chicago, Illinois 18925, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
  • Handle: RePEc:ags:ncrtci:18925
    DOI: 10.22004/ag.econ.18925
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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. Kinnucan, Henry W. & Chang, Hui-Shung (Christie) & Venkateswaran, Meenakshi, 1993. "Generic Advertising Wearout," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(03), pages 1-15, December.
    3. John D. Jackson, 1997. "Effects of Health Information and Generic Advertising on U.S. Meat Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 13-23.
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    Livestock Production/Industries; Marketing;

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