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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
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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 

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