The Effects of E. Coli 0157:H7, FMD and BSE on Japanese Retail Beef Prices: A Historical Decomposition

Sayed Saghaian, Leigh Maynard and Michael Reed

No 25580, 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia from International Association of Agricultural Economists

Abstract: This study examines the time-varying Japanese price reactions to the 2001 Bovine Spongiform Encephalopathy (BSE) discovery, the 2000 outbreak of foot and mouth disease (FMD), and the 1996 E. coli food po isoning events. Historical decomposition of retail-level price-series aids in explaining the behavior of beef prices in a neighborhood (period-by-period time interval) of the three events. This is based on an application of directed acyclic graphs, constructing orthogonal innovations to determine causal patterns behind contemporaneous innovations. The results show the beef safety events had different negative impacts on Japanese retail beef prices, suggesting that consumers understood and differentiated among the health risks. The results provide incentives for beef producers and retailers to proactively inform consumers about ongoing beef safety measures. Understanding consumer reaction to BSE, FMD and E. coli helps the beef industry restore consumer confidence after future food safety crises, and provides policy makers a basis for countermeasures and compensations.

Keywords: Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries (search for similar items in EconPapers)
Pages: 26
Date: 2006
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The effects of E. coli 0157:H7, FMD and BSE on Japanese retail beef prices: A historical decomposition (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae06:25580

DOI: 10.22004/ag.econ.25580

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