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Potential Impacts of Foodborne Illness Incidences on Market Movements and Prices of Fresh Produce in the U.S.

Published online by Cambridge University Press:  26 January 2015

Marco A. Palma
Affiliation:
Department of Agricultural Economics, Texas A&M University, College Station, TX
Luis A. Ribera
Affiliation:
Department of Agricultural Economics, Texas A&M University, College Station, TX
David Bessler
Affiliation:
Department of Agricultural Economics, Texas A&M University, College Station, TX
Mechel Paggi
Affiliation:
California State University, Fresno, CA
Ronald D. Knutson
Affiliation:
Department of Agricultural Economics, Texas A&M University, College Station, TX
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Abstract

This study investigates the potential impacts of food safety outbreaks on domestic shipments, imports, and prices of the produce industry. Three case studies were analyzed to assess these potential impacts: the cantaloupe outbreak of March–April 2008, the spinach outbreak of September 2006, and the tomato outbreak of June–July 2008. Data-determined historical decompositions were conducted to provide a weekly picture of domestic shipment, import, and price fluctuation transmissions. The empirical analysis based on a vector autoregression (VAR) model showed differences in the results depending on the source of the outbreak (domestic vs. imported).

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 2010

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