Long-term Effects of Meat Recalls

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New AAEA Member research published in AEPP

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Because of the long-lasting negative effects of recalls on prices, producers and processors should probably invest more money into trying to prevent them

When a consumer learns of a recall on purchased meat from the store, meat prices can be affected for years instead of a few days or weeks, as some may believe. This is the finding in a new paper published in the Applied Economic Perspectives & Policy (AEPP). Previous research has been centered around the short-term economic effect on recalls, which usually lead to an immediate decline in prices. Jeffrey Dorfman from the University of Georgia, and his co-author, Matthew Houser, wanted to see the long-term effect.

“One implication is that food safety events each help contribute to a consumer’s overall sense of a products desirability and that these events accumulate over time into impressions that translate to identifiable impacts on consumer demand, and thus price. A second implication is that because of the long-lasting negative effects of recalls on prices, producers and processors should probably invest more money into trying to prevent them,” said Dorfman.

Read Jeffrey Dorfman and Matthew Houser’s research “The Long-Term Effects of Meat Recalls on Future Markets” available on the Oxford University Press website now.

If you are interested in setting up an interview with Jeffrey Dorfman, please contact Allison Scheetz in the AAEA Business Office.

ABOUT AAEA: Established in 1910, the Agricultural & Applied Economics Association (AAEA) is the leading Established in 1910, the Agricultural & Applied Economics Association (AAEA) is the leading professional association for agricultural and applied economists, with 2,500 members in more than 60 countries. Members of the AAEA work in academic or government institutions as well as in industry and not-for-profit organizations, and engage in a variety of research, teaching, and outreach activities in the areas of agriculture, the environment, food, health, and international development. The AAEA publishes two journals, the American Journal of Agricultural Economics and Applied Economic Perspectives & Policy, as well as the online magazine Choices. To learn more, visit http://www.aaea.org.

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Allison Scheetz
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