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Sewing terror: price dynamics of the strawberry needle crisis

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  • Schaefer, K. Aleks
  • Scheitrum, Daniel

Abstract

In September 2018, a former strawberry-picking supervisor for a strawberry farm in New South Wales was arrested for inserting sewing needles in hundreds of punnets of fresh strawberries sold in retail stores across several Australian states. This paper analyses the 2018 Australian strawberry needle scare as a case study on the market impacts of agro-terrorism events. We develop a novel four-step procedure to estimate the effects of the strawberry needle contamination on wholesale fresh strawberry prices. Our results indicate a drop in wholesale fresh strawberries prices of about 20% while the needle crisis was ongoing. However, public and private supply restrictions caused wholesale prices to rise by up to 94% relative to expected dynamics over several weeks in the immediate wake of the incident.

Suggested Citation

  • Schaefer, K. Aleks & Scheitrum, Daniel, 2020. "Sewing terror: price dynamics of the strawberry needle crisis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2), April.
    • Handle: RePEc:ags:aareaj:338484
    DOI: 10.22004/ag.econ.338484
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    1. Turvey, Calum G. & Mafoua, Edouard & Schilling, Brian J. & Onyango, Benjamin M., 2003. "Economics, Hysteresis And Agroterrorism," Research Reports 18186, Rutgers University, Food Policy Institute.
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    4. Turvey, Calum G. & Onyango, Benjamin M. & Hallman, William K. & Condry, Sarah C., 2007. "Consumers' Perception of Food-System Vulnerability to an Agroterrorist Attack," Journal of Food Distribution Research, Food Distribution Research Society, vol. 38(3), pages 1-18.
    5. Colin A. Carter & Aaron Smith, 2007. "Estimating the Market Effect of a Food Scare: The Case of Genetically Modified StarLink Corn," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 522-533, August.
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    Keywords

    Agricultural and Food Policy;

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