Hostname: page-component-586b7cd67f-rdxmf Total loading time: 0 Render date: 2024-11-22T17:59:05.117Z Has data issue: false hasContentIssue false
  • English
  • Français

Effects of Meat Recalls on Futures Market Prices

Published online by Cambridge University Press:  15 September 2016

Jayson L. Lusk  and
Ted C. Schroeder
Jayson L. Lusk
Affiliation:
Department of Agricultural Economics, Mississippi State University
Ted C. Schroeder
Affiliation:
Department of Agricultural Economics, Kansas State University
Get access

Abstract

The number of meat recalls has increased markedly in recent years. This research examines the impact of beef and pork recall announcements on nearby daily live cattle and lean hog futures market prices, respectively. Results indicate medium-sized beef recalls that are of serious health concerns have a marginally negative impact on short-term live cattle futures prices. However, results are not robust across recall size and severity. This research suggests that if there is any systematic change in cattle and hog 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.

Keywords

beef demandfood safetyfutures marketmeat recallpork demand
Type
Articles
Information
Agricultural and Resource Economics Review , Volume 31 , Issue 1 , April 2002 , pp. 47 - 58
Copyright
Copyright © 2002 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Brester, G. W., and Schroeder, T. C. (1995). “The Impact of Brand and Generic Advertising on Meat Demand.” American Journal of Agricultural Economics 77, 969–979.CrossRefGoogle Scholar
Capps, O. Jr. (1989). “Utilizing Scanner Data to Estimate Retail Demand Functions for Meat Products.” American Journal of Agricultural Economics 71, 751–760.CrossRefGoogle Scholar
Capps, O. Jr., and Schmitz, J. D. (1991, July). “A Recognition of Health and Nutrition Factors in Food Demand Analysis.” Western Journal of Agricultural Economics 16(1), 21–35.Google Scholar
Carter, C. A., and Galopin, C. A. (1993). “Information Content of Government Hogs and Pigs Reports.” American Journal of Agricultural Economics 75, 711–718.CrossRefGoogle Scholar
Centers for Disease Control and Prevention. (1999). Data on foodborne illnesses and pathogens. CDC, Atlanta, GA. Online. Available at http://www.cdc.gov/ncidod/diseases/foodborn/foodborn.htm.Google Scholar
Chicago Mercantile Exchange. (1982–99). Daily futures market prices for live cattle and lean hog futures contracts.Google Scholar
Colling, P. L., Irwin, S. H., and Zulaf, C. R. (1997). “Futures Price Responses to USDA's Cold Storage Report.” Agribusiness: An International Journal 13, 393–400.3.0.CO;2-U>CrossRefGoogle Scholar
Eales, J. S., and Unnevehr, L. J. (1988). “Demand for Beef and Chicken Products: Separability and Structural Change.” American Journal of Agricultural Economics 70, 521–532.CrossRefGoogle Scholar
Flake, O. L., and Patterson, P. M. (1999, August). “Health, Food Safety, and Meat Demand.” Paper presented at the annual meetings of the American Agricultural Economics Association, Nashville, TN. Online. Available at http://agecon.lib.umn.edu/aaea99/sp99fl02.pdf.Google Scholar
Greene, W. H. (2000). Econometric Analysis, 4th edition. Upper Saddle River, NJ: Prentice-Hall. Google Scholar
Kinnucan, H. W., Xiao, H., Hsia, C., and Jackson, J. D. (1997). “Effects of Health Information and Generic Advertising on U.S. Meat Demand.” American Journal of Agricultural Economics 79, 13–23.CrossRefGoogle Scholar
Mathur, L. K., and Mathur, I. (2000, November). “An Analysis of the Wealth Effects of Green Marketing Strategies.” Journal of Business Research 50, 193–200.CrossRefGoogle Scholar
McCloskey, D. N. (1985, May). “The Loss Function Has Been Mislaid: The Rhetoric of Significance Tests.” American Economic Review 75, 201–205.Google Scholar
Moschini, G. (1991). “Testing Preference Change in Consumer Demand: An Indirectly Separable Semiparametric Model.” Journal of Business and Economic Statistics 9, 111–117.Google Scholar
Moschini, G., and Meilke, K. D. (1989). “Modeling the Pattern of Structural Change in U.S. Meat Demand.” American Journal of Agricultural Economics 71, 253–261.CrossRefGoogle Scholar
Robenstein, R. G., and Thurman, W. N. (1996). “Health Risk and the Demand for Red Meat: Evidence from Futures Markets.” Review of Agricultural Economics 18, 629–641.Google Scholar
Schroeder, T. C., Blair, J., and Mintert, J. (1990). “Abnormal Returns in Livestock Futures Prices Around USDA Inventory Report Releases.” North Central Journal of Agricultural Economics 12, 293–304.CrossRefGoogle Scholar
Schroeder, T. C., Marsh, T. L., and Mintert, J. (2000). “Beef Demand Determinants.” Report prepared for the Joint Evaluation Advisory Committee, Beef Board, Englewood, CO.Google Scholar
U.S. Department of Agriculture, Food Safety Inspection Service. (1982–99). Meat and Poultry Product Recalls: OPHS Database and Recall Notification Reports . USDA/FSIS, Washington, DC. Online. Available at http://www.fsis.usda.gov/OA/news/yrecalls.htm#RNR.Google Scholar