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The demand impacts of chicken contamination publicity-a case study

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  • Roger A. Dahlgran

    (Department of Agricultural and Resource Economics, University of Arizona, Tucson, Arizona 85721-0023)

  • Dean G. Fairchild

    (Department of Agricultural and Resource Economics, University of Arizona, Tucson, Arizona 85721-0023)

Abstract

Adverse publicity regarding food contamination can depress demand, causing lost producer revenue. This study addresses the magnitude of those losses through the analysis of the impact of TV and print news coverage of bacterial contamination of chicken in the United States. An inverse demand model for chicken is estimated using weekly data from 1982 through 1991. Our findings indicate adverse publicity about salmonella contamination of chicken depressed the demand for chicken, but that the effect was small, less than 1% during the period of maximum exposure. Further, consumers soon forget this news as they reverted to prior consumption patterns in a matter of weeks. [EconLit citation: D120] © 2002 Wiley Periodicals, Inc.

Suggested Citation

  • Roger A. Dahlgran & Dean G. Fairchild, 2002. "The demand impacts of chicken contamination publicity-a case study," Agribusiness, John Wiley & Sons, Ltd., vol. 18(4), pages 459-474.
    • Handle: RePEc:wly:agribz:v:18:y:2002:i:4:p:459-474
    DOI: 10.1002/agr.10033
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    1. Éric Cahuzac & Daniel Hassan & Sylvette Monier-Dilhan, 2007. "Sécurité sanitaire des aliments : fausse alerte et vraie crise," Economie & Prévision, La Documentation Française, vol. 0(1), pages 55-64.
    2. Li, Tongzhe & Bernard, John C. & Johnston, Zachary A. & Messer, Kent D. & Kaiser, Harry M., 2017. "Consumer preferences before and after a food safety scare: An experimental analysis of the 2010 egg recall," Food Policy, Elsevier, vol. 66(C), pages 25-34.
    3. Rieger, Jörg & Kuhlgatz, Christian & Anders, Sven, 2016. "Food scandals, media attention and habit persistence among desensitised meat consumers," Food Policy, Elsevier, vol. 64(C), pages 82-92.
    4. Taylor, Mykel R. & Klaiber, H. Allen & Kuchler, Fred, 2013. "Structural Change in U.S. Consumer Response to Food Safety Recalls," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149819, Agricultural and Applied Economics Association.
    5. Mykel R. Taylor, 2009. "Does Food Safety Information Affect Consumers' Decision to Purchase Mean and Poultry? Evidence from U.S. Household Level Data," Working Papers 2009-11, School of Economic Sciences, Washington State University.
    6. Beach, Robert H. & Zhen, Chen, 2008. "Consumer Purchasing Behavior in Response to Media Coverage of Avian Influenza," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6750, Southern Agricultural Economics Association.
    7. O. Ashton Morgan & Gregory S. Martin & William L. Huth, 2009. "Oyster Demand Adjustments to Counter-Information and Source Treatments in Response to Vibrio vulnificus," Working Papers 09-08, Department of Economics, Appalachian State University.
    8. Zhen, Chen & Wohlgenant, Michael K., 2006. "Food Safety and Habits in U.S. Meat Demand under Rational Expectations," 2006 Annual meeting, July 23-26, Long Beach, CA 21287, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Long He & Ying Rong & Zuo‐Jun Max Shen, 2020. "Product Sourcing and Distribution Strategies under Supply Disruption and Recall Risks," Production and Operations Management, Production and Operations Management Society, vol. 29(1), pages 9-23, January.
    10. Pritchett, James G. & Thilmany, Dawn D., 2005. "The Cow That Stole Christmas? Exploring the Role of Media Coverage in Recent BSE Outbreaks," Western Economics Forum, Western Agricultural Economics Association, vol. 4(2), pages 1-5.
    11. Hornung, Jonathan T. & Ward, Clement E., 2005. "Positive Market Effects from a Meatpacking Plant Opening: Perceptions and Reality," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 6, pages 1-10, March.
    12. Carlos Arnade & Fred Kuchler & Linda Calvin, 2013. "Consumers’ Response When Regulators Are Uncertain About the Source of Foodborne Illness," Journal of Consumer Policy, Springer, vol. 36(1), pages 17-36, March.
    13. Maria De Paola & Vincenzo Scoppa, 2013. "Consumers’ Reactions to Negative Information on Product Quality: Evidence from Scanner Data," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(3), pages 235-280, May.
    14. Yadavalli, Anita & Jones, Keithly, 2014. "Does media influence consumer demand? The case of lean finely textured beef in the United States," Food Policy, Elsevier, vol. 49(P1), pages 219-227.
    15. Tselepidakis, Elina, 2012. "Food Safety And The Demand For Meat Products," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124968, Agricultural and Applied Economics Association.
    16. Rieger, Jorg & Kuhlgatz, Christian, 2015. "Analyzing Consumer Demand During a Food Scandal: The Case of Dioxin Contaminated Feed in Germany and the Media," 2015 Conference, August 9-14, 2015, Milan, Italy 212292, International Association of Agricultural Economists.
    17. Katja Pietrzyck & Nora Berke & Vanessa Wendel & Julia Steinhoff-Wagner & Sebastian Jarzębowski & Brigitte Petersen, 2021. "Understanding the Importance of International Quality Standards Regarding Global Trade in Food and Agricultural Products: Analysis of the German Media," Agriculture, MDPI, vol. 11(4), pages 1-20, April.
    18. Taylor, Mykel & Klaiber, H. Allen & Kuchler, Fred, 2016. "Changes in U.S. consumer response to food safety recalls in the shadow of a BSE scare," Food Policy, Elsevier, vol. 62(C), pages 56-64.
    19. H. Holly Wang & Paul Gardner de Beville, 2017. "The media impact of animal disease on the US meat demand," Agribusiness, John Wiley & Sons, Ltd., vol. 33(4), pages 493-504, September.
    20. Laestadius, Linnea I. & Lagasse, Lisa P. & Smith, Katherine Clegg & Neff, Roni A., 2012. "Print news coverage of the 2010 Iowa egg recall: Addressing bad eggs and poor oversight," Food Policy, Elsevier, vol. 37(6), pages 751-759.
    21. Martin Browning & Lars Gårn Hansen & Sinne Smed, 2013. "Rational inattention or rational overreaction? Consumer reactions to health news," IFRO Working Paper 2013/14, University of Copenhagen, Department of Food and Resource Economics.
    22. Mario Mazzocchi & Davide Delle Monache & Alexandra Lobb, 2006. "A structural time series approach to modelling multiple and resurgent meat scares in Italy," Applied Economics, Taylor & Francis Journals, vol. 38(14), pages 1677-1688.

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