IDEAS home Printed from https://ideas.repec.org/a/ags/ifaamr/34369.html
   My bibliography  Save this article

The Potential For Recall Insurance To Improve Food Safety

Author

Listed:
  • Skees, Jerry R.
  • Botts, Aleta
  • Zeuli, Kimberly A.

Abstract

This paper explores the food safety implications of insurance products that compensate for business losses when food contamination causes a processing firm to initiate a recall. Discoveries of meat and poultry product contamination, in particular life-threatening pathogens, are increasing. The financial losses that follow a recall can be substantial as illustrated by several recent U.S. cases - Hudson Foods, Bill Mar, and Thorn Apple Valley Inc. Additionally, contaminated food product that escapes the current recall system poses a threat to consumer safety. The conceptual analysis presented here suggests that insurance underwriters could motivate earlier recalls and more diligent implementation of Hazard Analysis and Critical Control Point (HACCP). With sound underwriting, these changes could ultimately reduce the incidence of illness and death from foodborne pathogens.

Suggested Citation

  • Skees, Jerry R. & Botts, Aleta & Zeuli, Kimberly A., 2001. "The Potential For Recall Insurance To Improve Food Safety," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(1), pages 1-13.
    • Handle: RePEc:ags:ifaamr:34369
    DOI: 10.22004/ag.econ.34369
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/34369/files/04010099.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.34369?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Buzby, Jean C. & Roberts, Tanya & Lin, Chung-Tung Jordan & MacDonald, James M., 1996. "Bacterial Foodborne Disease: Medical Costs and Productivity Losses," Agricultural Economic Reports 33991, United States Department of Agriculture, Economic Research Service.
    2. John M. Antle, 1995. "Choice and Efficiency in Food Safety Policy," Books, American Enterprise Institute, number 53485, September.
    3. Buzby, Jean C. & Frenzen, Paul D., 1999. "Food safety and product liability," Food Policy, Elsevier, vol. 24(6), pages 637-651, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fritz, Melanie & Schiefer, Gerhard, 2009. "Tracking, tracing, and business process interests in food commodities: A multi-level decision complexity," International Journal of Production Economics, Elsevier, vol. 117(2), pages 317-329, February.
    2. Mojduszka, Eliza M., 2004. "Private And Public Food Safety Control Mechanisms: Interdependence And Effectiveness," 2004 Annual meeting, August 1-4, Denver, CO 19987, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. A.G.J. Velthuis & M. Meuwissen & R.B.M. Huirne, 2009. "Distribution of direct recall costs along the milk chain," Agribusiness, John Wiley & Sons, Ltd., vol. 25(4), pages 466-479.
    4. Bridget M. Hutter & Clive J. Jones, 2007. "From government to governance: External influences on business risk management," Regulation & Governance, John Wiley & Sons, vol. 1(1), pages 27-45, March.
    5. Chebolu-Subramanian, Vijaya & Gaukler, Gary, 2014. "Product Recalls in the Meat and Poultry Industry: Key Drivers of Supply Chain Efficiency and Effectiveness," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Blecker, Thorsten & Kersten, Wolfgang & Ringle, Christian M. (ed.), Innovative Methods in Logistics and Supply Chain Management: Current Issues and Emerging Practices. Proceedings of the Hamburg International Conferenc, volume 19, pages 339-364, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    6. Henson, Spencer J. & Hooker, Neal H., 2001. "Private Sector Management Of Food Safety: Public Regulation And The Role Of Private Controls," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(1), pages 1-11.
    7. Pozo, Veronica F. & Schroeder, Ted C., 2016. "Evaluating the costs of meat and poultry recalls to food firms using stock returns," Food Policy, Elsevier, vol. 59(C), pages 66-77.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jayasinghe-Mudalige, Udith K. & Henson, Spencer J., 2004. "Quantifying The Impact Of Economic Incentives On Firms' Food Safety Responsiveness: The Case Of Red Meat And Poultry Processing Sector In Canada," 2004 Annual meeting, August 1-4, Denver, CO 20419, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Tuba Pekkirbizli & Mohamad Isam Almadani & Ludwig Theuvsen, 2015. "Food safety and quality assurance systems in Turkish agribusiness: an empirical analysis of determinants of adoption," Economia agro-alimentare, FrancoAngeli Editore, vol. 17(3), pages 31-55.
    3. Frenzen, Paul D. & Buzby, Jean C. & Rasco, Barbara, 2001. "Product Liability And Microbial Foodborne Illness," Agricultural Economic Reports 34059, United States Department of Agriculture, Economic Research Service.
    4. Hussain, Salman, 2006. "Co-regulation and voluntarism in the provision of food safety: lessons from institutional economics," Working Papers 45996, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    5. Page, Elina Tselepidakis, 2018. "Trends in Food Recalls: 2004-13," Economic Information Bulletin 276244, United States Department of Agriculture, Economic Research Service.
    6. E. Rouvière & K. Latouche, 2014. "Impact of liability rules on modes of coordination for food safety in supply chains," European Journal of Law and Economics, Springer, vol. 37(1), pages 111-130, February.
    7. Xiaojuan Qi & Jingxian Guo & Shenjun Yao & Ting Liu & Hao Hou & Huan Ren, 2023. "Comprehensive Dynamic Influence of Multiple Meteorological Factors on the Detection Rate of Bacterial Foodborne Diseases under Spatio-Temporal Heterogeneity," IJERPH, MDPI, vol. 20(5), pages 1-17, February.
    8. Marie-Josée J. Mangen & G. Ardine de Wit & Arie H. Havelaar, 2007. "Economic analysis of Campylobacter control in the dutch broiler meat chain," Agribusiness, John Wiley & Sons, Ltd., vol. 23(2), pages 173-192.
    9. Oh, Miyoung, 2014. "Three essays on consumer choices on food," ISU General Staff Papers 201401010800005236, Iowa State University, Department of Economics.
    10. Kathleen Segerson, 1999. "Mandatory versus voluntary approaches to food safety," Agribusiness, John Wiley & Sons, Ltd., vol. 15(1), pages 53-70.
    11. Harry Telser & Peter Zweifel, 2007. "Validity of discrete-choice experiments evidence for health risk reduction," Applied Economics, Taylor & Francis Journals, vol. 39(1), pages 69-78.
    12. Wilke, Tilman & Belaya, Vera & Pinior, Beate, 2012. "How to Measure Food Safety? A Review of Relevant Literature," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144947, International European Forum on System Dynamics and Innovation in Food Networks.
    13. Crutchfield, Stephen R., 0. "Economic Issues Associated With Food Safety," Increasing Understanding of Public Problems and Policies, Farm Foundation.
    14. Henson, S.J., 1997. "The impact of regulations on consumers and food chain industries," Centre for Agricultural Strategy - Papers and Reports 337969, University of Reading.
    15. Mukhopadhaya, Kaushik & Adhikari, Bishwa B. & Mumma, Gerald A. & Teisl, Mario F., 2004. "Consumers' Willingness To Pay For Food Safety: A Pathogen Specific Analysis," 2004 Annual meeting, August 1-4, Denver, CO 20064, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Ivanek, Renata & Grohn, Yrjo T. & Tauer, Loren W. & Wiedmann, Martin, 2003. "The Cost and Benefit of Listeria Monocytogenes Food Safety Measures," Working Papers 127249, Cornell University, Department of Applied Economics and Management.
    17. Steiner, Bodo, 2006. "Governance Reform of German food safety regulation: Cosmetic or real?," MPRA Paper 26252, University Library of Munich, Germany.
    18. Paul E. McNamara & Gay Y. Miller & Xuanli Liu & David A. Barber, 2007. "A farm-to-fork stochastic simulation model of pork-borne salmonellosis in humans: Lessons for risk ranking," Agribusiness, John Wiley & Sons, Ltd., vol. 23(2), pages 157-172.
    19. Golan, Elise H. & Ralston, Katherine L. & Frenzen, Paul D., 1998. "A Distributional Analysis Of The Costs Of Foodborne Illness: Who Ultimately Pays?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(1), pages 1-13, July.
    20. Goldsmith, Peter D. & Turan, Nesve A. & Gow, Hamish R., 2003. "Food Safety In The Meat Industry: A Regulatory Quagmire," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 6(1), pages 1-13.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifaamr:34369. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifamaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.