Mechel Paggi

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

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).

Domestic and Trade Implications of Leafy Green Marketing Agreement Type Policies and the Food Safety Modernization Act for the Southern Produce Industry

Protecting the safety of the U.S. food supply is a shared responsibility. Accomplishing that task requires the efforts of multiple government agencies combined with private sector participation. Despite the best efforts of the public–private partnership, the presence of microbial contamination incidents continues to raise questions regarding the safety of the U.S. food supply. As a result, there have been increased efforts to take measures to enhance food safety by the government and industry groups. The passage of the Food Safety Modernization Act establishes an increasing role for government in establishing and enforcing food safety standards. This new initiative is designed to address food from domestic and foreign origins. These U.S. government initiatives combined with the labyrinth of food safety standards promoted by international organizations, foreign governments, private-sector retail food sales, food processors, and producers have a common foundation. All of these standards generally apply to four basic biohazards areas: soil, water, animals, and people. However, they all have an effect on the costs that producers and other members of the industry face as they attempt to implement and/or document the multitude of activities required for compliance. This article provides an overview of the evolution of food safety standards related to the fresh produce industry. An example of their potential consequences on the profitability of southern region vegetable producers is provided and the potential impact on import suppliers is discussed.

Free Trade Impacts On U.S. And Southern Agriculture: Discussion

The initiative to begin negotiations toward a North provide the foundation for increased cooperation American Free Trade Agreement (NAFTA) in June and cohesion among neighbors who share a historic of 1990 provided the potential for a major step relationship not free from conflicts. This is espeforward in the journey toward sustained economic cially true for Mexico where significant anxiety and growth and development for Mexico and increased distrust of its large neighbors to the North exist. This market opportunities for the U.S. and Canada. A is not surprising since most Mexicans remember that successful NAFTA would result in the worlds largalmost one half of what was once Mexico was conest trading zone, 25 percent larger in GDP than the sumed by the U.S. from 1836 to 1853. EC and an area which would consist of 362 million A second benefit suggested was increased integrapeople with a combined output of almost

Economic Analysis of Food Safety Compliance Costs and Foodborne Illness Outbreaks in the United States

6 trillion. tion to address a host of North American problems. A major component of the proposed NAFTA, and Among those areas pointed out were migration, narone that will present both opportunities and chalcotics, and environment, which are not hindered by lenges, is agriculture. While many agricultural international borders. ests are excited about the opportunities provided by A third point was the possibility for greater coopa successful NAFTA, others view a possible agreeeration and agreement on foreign policy issues. ment with skepticism and/or concern. In addition to Many examples can readily be brought to mind, agriculture, a great many other interests see benefits especially related to U.S.-Mexican disagreements in and/or the potential for expanded market opportunithe past, such as the difference of views over conties from a NAFTA. However, just as in agricultural flicts in Central America (e.g., El Salvador and Nicacircles, not everyone views the prospective agreeragua) as well as Mexicos relations with Cuba. To ment in a positive light. Very briefly we would like highlight the potential for cooperation, the example to: (1) comment on some foreign policy related of Mexicos increase in oil extraction following the benefits of a successful NAFTA, (2) review some Iraqi invasion of Kuwait, despite capacity concriticisms of a NAFTA raised during the debate over straints, was used. extension of the Fast Track Authority, and (3) review The fourth foreign policy consideration outlined the Burfisher et al. paper on the impacts of NAFTA involved the signal a successful NAFTA would send on southern agriculture. to the rest of Latin America. It is no secret that the Bush administration has a vision of an Initiative for FOREIGN POLICY ELEMENTS OF A the Americas which would bring greater coordinaSUCCESSFUL NAFTA tion to all the nations of Central and South America. In most international policy debates in the U.S., While there is no lack of appreciation of the enoragricultural interests are just one set of the many mous problems that would have to be addressed, a voices that receive a hearing during the decisionsuccessful NAFTA would provide an example that making process. In testimony before the Senate Forthe possibility for such an effort exists. eign Relations committee back in April, 1991, Another foreign policy concern not outlined in Mr. Robert Zoellick of the State Department was asked Zoellicks testimony but evident in discussions with if the decision to enter into the NAFTA talks was senior Mexican officials and others in the U.S. is that motivated by economic policy or foreign policy ina successful NAFTA is essential in insuring that the terests. He replied yes and yes. Such is the nature of reforms and progress begun in the De La Madrid era the international policy process. and expanded by President Salinas continue. The In his testimony he outlined several reasons why a benefits for the Mexican people that can come from NAFTA is in the best interests of the U.S., defined recent reform initiatives will take time to materialize. from a foreign policy perspective. First, it will proThe successful completion of the NAFTA negotiavide for an integration of North America that will tions will demonstrate continuing international po-