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Recall event timing: Measures of managerial performance in U.S. meat and poultry plants

Author

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  • Ratapol Teratanavat

    (Department of Agricultural, Environmental and Development Economics, The Ohio State University, Columbus, OH 43210-1067)

  • Victoria Salin

    (Department of Agricultural Economics, Texas A&M University, College Station, TX 77843-2124)

  • Neal H. Hooker

    (Department of Agricultural, Environmental and Development Economics, The Ohio State University, Columbus, OH 43210-1067)

Abstract

This study investigates the performance of meat and poultry plant managers in discovering and responding effectively to food safety problems that lead to product recalls. Timing is used as a performance measure of managers' response to recalls of food, using survival distributions of times between production and recall, and recall case duration. The objectives are to understand how these time periods vary across plants and to determine factors explaining such variability. Survival distributions are estimated using the Kaplan-Meier and life table methods. Subgroups of the population are compared using plots of the estimated survival functions and statistically compared using log-rank and Wilcoxon tests. Managers at large plants, in multi-plant firms, and at plants with prior recall experience do not perform better. Cox regressions indicate that government agency sampling programs enhanced the speed of discovery, and that national distribution networks contributed to the risk that cases remained open for a longer period. [EconLit citations: D210, Q180.] © 2005 Wiley Periodicals, Inc. Agribusiness 21: 351-373, 2005.

Suggested Citation

  • Ratapol Teratanavat & Victoria Salin & Neal H. Hooker, 2005. "Recall event timing: Measures of managerial performance in U.S. meat and poultry plants," Agribusiness, John Wiley & Sons, Ltd., vol. 21(3), pages 351-373.
    • Handle: RePEc:wly:agribz:v:21:y:2005:i:3:p:351-373
    DOI: 10.1002/agr.20052
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    References listed on IDEAS

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    1. Ollinger, Michael & Ballenger, Nicole, 2003. "Weighing Incentives for Food Safety in Meat and Poultry," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-8, April.
    2. Hooker, Neal H. & Nayga, Rodolfo M. & Siebert, John W., 2002. "The Impact of HACCP on Costs and Product Exit," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 34(1), pages 165-174, April.
    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. Ollinger, Michael & Mueller, Valerie, 2003. "Managing For Safer Food: The Economics Of Sanitation And Process Controls In Meat And Poultry Plants," Agricultural Economic Reports 33975, United States Department of Agriculture, Economic Research Service.
    5. Michael R. Thomsen & Andrew M. McKenzie, 2001. "Market Incentives for Safe Foods: An Examination of Shareholder Losses from Meat and Poultry Recalls," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 526-538.
    6. Marino, Anthony M, 1997. "A Model of Product Recalls with Asymmetric Information," Journal of Regulatory Economics, Springer, vol. 12(3), pages 245-265, November.
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    Citations

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    Cited by:

    1. 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.
    2. Akhundjanov, Sherzod B. & Pozo, Veronica F. & Thomas, Briana, 2022. "Recurrent Event Survival Analysis of Repeated Food Recalls: Some Insights from the U.S," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322197, Agricultural and Applied Economics Association.
    3. Jianbin Yu & Neal H. Hooker, 2024. "Exploring factors influencing repeated recalls in the US meat and poultry industry," Agribusiness, John Wiley & Sons, Ltd., vol. 40(4), pages 825-845, October.
    4. Ge, Houtian & Baker, Quinton J. & Gomez, Miguel I. & Jaromczyk, Jerzy & Yi, Jing, 2022. "Assessing the carbon footprint of fresh produce assembly and distribution in the U.S," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322537, Agricultural and Applied Economics Association.
    5. repec:ags:aaea22:335507 is not listed on IDEAS
    6. 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.
    7. Ge, Houtian & Gomez, Miguel I. & Peters, Christian, 2022. "Assessment of the economic viability of grass-fed beef production in the Northeastern U.S," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322487, Agricultural and Applied Economics Association.
    8. 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.
    9. Ge, Houtian & Goetz, Stephan J. & Cleary, Rebecca & Yi, Jing & Gómez, Miguel I., 2022. "Facility locations in the fresh produce supply chain: An integration of optimization and empirical methods," International Journal of Production Economics, Elsevier, vol. 249(C).
    10. Hall, David C. & Johnson-Hall, Tracy D., 2021. "Recall effectiveness, strategy, and task complexity in the U.S. meat and poultry industry," International Journal of Production Economics, Elsevier, vol. 234(C).
    11. Ge, Houtian & Goetz, Stephan & Canning, Patrick & Perez, Agnes, 2018. "Optimal locations of fresh produce aggregation facilities in the United States with scale economies," International Journal of Production Economics, Elsevier, vol. 197(C), pages 143-157.
    12. Chebolu-Subramanian, Vijaya & Gaukler, Gary M., 2015. "Product contamination in a multi-stage food supply chain," European Journal of Operational Research, Elsevier, vol. 244(1), pages 164-175.
    13. Perry, William R. & Marsh, Thomas & Jones, Rodney & Sanderson, M.W. & Sargeant, J.M. & Griffin, D.D. & Smith, R.A., 2007. "Joint product management strategies for E. coli O157 and feedlot profits," Food Policy, Elsevier, vol. 32(5-6), pages 544-565.

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