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Potential Impacts of Food Borne Ill Incidence on Market Movements and Prices of Fresh Produce in the US

  • Palma, Marco A.
  • Ribera, Luis A.
  • Bessler, David A.
  • Paggi, Mechel S.
  • Knutson, Ronald D.

For many decades, fresh fruits and vegetables enjoyed a reputation as the healthiest products full of essential vitamins, minerals, and other beneficial substances for a balanced diet. However, numerous recent food outbreaks associated with fresh produce have raised concerns on the mind of the consumer. Following an outbreak, consumers reduce their immediate consumption of the affected products. Even tough fresh fruits and vegetables have unique characteristics and flavors, consumers tend to substitute affected outbreak products with other fruits and vegetables. The potential impact of food borne illness on consumption has also a longer term impact, reducing consumption of the products over a period of several months after the outbreak. This paper used historical decomposition analysis to study both, the contemporaneous and lagged effects of food borne illness in the fresh produce industry using three case studies, spinach, cantaloupes, and tomatoes.

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File URL: http://purl.umn.edu/46745
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Paper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 46745.

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Date of creation: 2009
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Handle: RePEc:ags:saeana:46745
Contact details of provider: Web page: http://www.saea.org/

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  1. David A. Bessler & Derya G. Akleman, 1998. "Farm Prices, Retail Prices, and Directed Graphs: Results for Pork and Beef," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1144-1149.
  2. Bernanke, Ben S., 1986. "Alternative explanations of the money-income correlation," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 25(1), pages 49-99, January.
  3. Hoover, Kevin D., 2005. "Automatic Inference Of The Contemporaneous Causal Order Of A System Of Equations," Econometric Theory, Cambridge University Press, vol. 21(01), pages 69-77, February.
  4. Swanson, N.R. & Granger, C.W.J., 1994. "Impulse Response Functions Based on Causal Approach to Residual Orthogonalization in Vector Autoregressions," Papers 9-94-1, Pennsylvania State - Department of Economics.
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