IDEAS home Printed from https://ideas.repec.org/p/ags/aaea14/169452.html
   My bibliography  Save this paper

Demand and Welfare Impacts of a Potential Food Safety Event in the Blackberry Industry

Author

Listed:
  • Rejesus, Roderick M.
  • Safley, Charles D.
  • Strik, Bernadine C

Abstract

This article examines the potential market demand and economic welfare impacts of a potential foodborne illness outbreak in the US blackberry industry using an ex ante partial equilibrium demand-supply framework. Even though a food contamination event has not occurred for blackberries in the US, estimating the magnitude of economic losses from this incident (if it is to occur) is important information that can help guide food safety decisions of blackberry producers and industry stakeholders. Our numerical analysis suggest that total welfare loss from a food safety event in both the fresh and processed blackberry markets is around $16 million after 24 months. Blackberry producers, rather than consumers, are more adversely affected in terms of economic welfare losses, when a foodborne illness occurs. Given the extent of potential losses in the blackberry industry if an outbreak should occur, producer groups and the industry (as a whole) should consider further collective efforts to develop/implement novel interventions that can reduce the risk of an outbreak in the industry.

Suggested Citation

  • Rejesus, Roderick M. & Safley, Charles D. & Strik, Bernadine C, 2014. "Demand and Welfare Impacts of a Potential Food Safety Event in the Blackberry Industry," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169452, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:169452
    DOI: 10.22004/ag.econ.169452
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/169452/files/rejesus_et_al_blackberry_article_v4.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.169452?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. Carlos Arnade & Linda Calvin & Fred Kuchler, 2009. "Consumer Response to a Food Safety Shock: The 2006 Food-Borne Illness Outbreak of E. coli O157: H7 Linked to Spinach," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 734-750, December.
    2. Woods, Mollie & Thornsbury, Suzanne & Raper, Kellie Curry & Weldon, Richard N. & Wysocki, Allen F., 2003. "Food Safety And Fresh Strawberry Markets," Staff Paper Series 11712, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Palma, Marco A. & Ribera, Luis A. & Bessler, David A. & Paggi, Mechel S. & Knutson, Ronald D., 2010. "Potential Impacts of Foodborne Illness Incidences on Market Movements and Prices of Fresh Produce in the U.S," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(4), pages 1-11, November.
    4. Arnade, Carlos Anthony & Calvin, Linda & Kuchler, Fred, 2008. "Market Response to a Food Safety Shock: The 2006 Foodborne Illness Outbreak of E. coli O157:H7 Linked to Spinach," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6448, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Brunke, Henrich & Alston, Julian M. & Gray, Richard S. & Sumner, Daniel A., 2004. "Industry-mandated testing to improve food safety: the new US marketing order for pistachios," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 53(08), pages 1-10.
    6. Russo, Carlo & Green, Richard D. & Howitt, Richard E., 2008. "Estimation Of Supply And Demand Elasticities Of California Commodities," Working Papers 37629, University of California, Davis, Department of Agricultural and Resource Economics.
    7. Mekonnen, Dawit Kelemework & Huang, Chung L. & Fonsah, Esendugue Greg, 2012. "Analysis of Fruit Consumption in the U.S. with a Quadratic AIDS Model," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119767, Southern Agricultural Economics Association.
    8. Richards, Timothy J. & Patterson, Paul M., 1999. "The Economic Value Of Public Relations Expenditures: Food Safety And The Strawberry Case," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(2), pages 1-23, December.
    9. Cuite, Cara L. & Hallman, William K., 2009. "Public Response to Large-Scale Produce Contamination," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 24(2), pages 1-5.
    10. Jiang, Xiaojiao & Marsh, Thomas L., 2012. "Farm Level Demand for Fresh and Processed Stone Fruit in the United States," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124901, Agricultural and Applied Economics Association.
    11. Calvin, Linda, 2004. "Response to U.S. Foodborne Illness Outbreaks Associated with Imported Produce," Agricultural Information Bulletins 33647, United States Department of Agriculture, Economic Research Service.
    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. repec:oup:apecpp:v:40:y:2018:i:3:p:402-420. is not listed on IDEAS
    2. Ferrier, Peyton M. & Zhen, Chen & Bovay, John, 2023. "Price and Welfare Effects of the Food Safety Modernization Act Produce Safety Rule," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(1), January.

    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. repec:oup:apecpp:v:40:y:2018:i:3:p:402-420. is not listed on IDEAS
    2. Ferrier, Peyton M. & Zhen, Chen & Bovay, John, 2023. "Price and Welfare Effects of the Food Safety Modernization Act Produce Safety Rule," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(01), January.
    3. Bovay, John & Ferrier, Peyton & Zhen, Chen, 2018. "Estimated Costs for Fruit and Vegetable Producers To Comply With the Food Safety Modernization Act’s Produce Rule," Economic Information Bulletin 276220, United States Department of Agriculture, Economic Research Service.
    4. Holderieath, Jason, 2016. "Spatiotemporal management under heterogeneous damage and uncertain parameters. An agent-based approach," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235850, Agricultural and Applied Economics Association.
    5. Rudi, Jeta & Çakir, Metin, 2015. "Demand Spillovers of Food Recalls in Differentiated Product Markets," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205313, Agricultural and Applied Economics Association.
    6. Adalja, Aaron & Lichtenberg, Erik, 2016. "Foodborne Illness Outbreaks, Collective Reputation, and Voluntary Adoption of Industry-wide Food Safety Protocols by Fruit and Vegetable Growers," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235865, Agricultural and Applied Economics Association.
    7. Chantal Toledo & Sofia Berto Villas-Boas, 2019. "Safe or Not? Consumer Responses to Recalls with Traceability," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 519-541, September.
    8. Tselepidakis, Elina, 2015. "Food Safety and the Demand for Leafy Greens," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205583, Agricultural and Applied Economics Association.
    9. Bitsch, Vera & Koković, Nevena & Rombach, Meike, 2014. "Risk Communication and Market Effects during Foodborne Illnesses: A Comparative Case Study of Bacterial Outbreaks in the U.S. and in Germany," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(3), pages 1-18, September.
    10. Maria Aguiar Fontes & Eric Giraud-Héraud & Alexandra Seabra Pinto, 2013. "Consumers' behaviour towards food safety: A litterature review," Working Papers hal-00912476, HAL.
    11. Pouliot, Sebastien, 2011. "The FDA Food Safety and Modernization Act and the Exemption for Small Firms," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103885, Agricultural and Applied Economics Association.
    12. Palma, Marco A. & Ribera, Luis A. & Bessler, David A., 2013. "Implications of U.S. Trade Agreements and U.S. Nutrition Policies for Produce Production, Demand, and Trade," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45, pages 1-16, August.
    13. Hennessy, David A., 2012. "Economic Aspects of Agricultural and Food Biosecurity," Staff General Research Papers Archive 35015, Iowa State University, Department of Economics.
    14. Thibault Fally & James Sayre, 2018. "Commodity Trade Matters," 2018 Meeting Papers 172, Society for Economic Dynamics.
    15. Padilla, Luis & Acharya, Ram N., 2000. "Effects Of Health Information On Fruit And Vegetable Consumption," 2000 Annual meeting, July 30-August 2, Tampa, FL 21742, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Garnache, Cloe & Merel, Pierre R. & Lee, Juhwan & Six, Johan, 2014. "Markets for Agricultural Greenhouse Gas Offsets: The Role of Policy Design on Abatement Efficiency," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170718, Agricultural and Applied Economics Association.
    17. Bakhtavoryan, Rafael & Capps, Oral & Salin, Victoria, 2014. "The Impact of Food Safety Incidents Across Brands: The Case of the Peter Pan Peanut Butter Recall," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(4), pages 559-573, November.
    18. Woods, Mollie & Thornsbury, Suzanne & Raper, Kellie Curry & Weldon, Richard N. & Wysocki, Allen F., 2003. "Food Safety And Fresh Strawberry Markets," Staff Paper Series 11712, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    19. Sporleder, Thomas L. & Boland, Michael A., 2011. "Exclusivity of Agrifood Supply Chains: Seven Fundamental Economic Characteristics," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(5), pages 1-15, December.
    20. Malaga, Jaime E. & Williams, Gary W., 2006. "Mexican Agricultural and Food Export Competitiveness," Reports 90778, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    21. Zarebanadkoki, Samane & Zheng, Yuqing & Woods, Timothy & Buck, Steven, 2016. "Examining the Effect of Food Recalls on Demand: The Case of Ground Beef in the U.S," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236112, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Food Consumption/Nutrition/Food Safety;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:aaea14:169452. 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/aaeaaea.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.