Neal H. Hooker

Stock Market Reaction to Food Recalls

The costs of food recalls are examined from the perspective of capital markets. A partial event analysis technique is used in this quantitative investigation of firm-specific repercussions of incidents of microbiological contamination of food. These recalls vary by product, company size and scope, and severity. Returns to shareholders fell in some cases, but stock market reaction was not discernible in other incidents. Effects on volatility of returns also are mixed. These findings point out the potentially distinct crisis management tools that would be used for reputation in the stock market versus measures to communicate with the general public.

Childhood obesity and schools: evidence from the national survey of children's health.

BACKGROUND The international prevalence of childhood obesity and obesity-related diseases has received increasing attention. Applying data from the Centers for Disease Control and Prevention, we explore relationships between childhood obesity and school type, National School Lunch Program (NSLP) and School Breakfast Program (SBP) eligibility, membership in sports clubs and other sociodemographic, and household factors. METHODS Nonlinear regression models with interaction terms were developed to investigate the effects of school type, physical activity, and NSLP/SBP, etc, on childrens body mass index (BMI). Probit models then examine the probability of a child being overweight. RESULTS Though clinically small, statistically significant effects on BMI were found for children from households eligible for the NSLP/SBP, attending public schools. They have a mean BMI value 0.401 higher than counterparts attending private schools (p < .05). If the child both attends public school and is eligible for the NSLP/SBP, then his or her BMI is 0.725 higher (p < .001). Children taking part in the NSLP or SBP have a 4.5% higher probability of being overweight (p < .001). CONCLUSIONS Regardless of household socioeconomic status, children attending public schools have higher BMI than those attending private schools. Eligibility for free or reduced-cost lunch or breakfast programs at public schools is positively correlated with childrens BMI. Children attending public schools are more likely to be overweight. In lower socioeconomic status households, school type does not have a significant effect on the probability of being overweight. Policy recommendations for factors to address childhood obesity are discussed.

PRIVATE SECTOR MANAGEMENT OF FOOD SAFETY: PUBLIC REGULATION AND THE ROLE OF PRIVATE CONTROLS

Private sector responses to the challenge of managing food safety are explored. This paper clarifies the objectives of this special issue, introducing the key issues in each of the following articles. The degree and manner of regulatory compliance, an important element of any strategic food safety management decision, are discussed. Separate of the response to regulations, the incentives of firms to implement advanced management system are documented. The paper pays particular attention to firm efforts to minimize the potential for product recalls.

Stock market reaction to food recalls: a GARCH application

How food recalls due to bacterial contamination affect the stock prices of two companies are examined using a version of the financial market model that accounts for Generalized Autoregressive Conditional Heteroscedasticity (GARCH) effects. GARCH methodology was necessary to uncover the time-varying volatility in the series and it contributed to more efficient econometric results. The initial food recall undertaken by the company is associated with reduced mean returns and higher volatility of the companies studied. Repeated recalls by the same company are not associated with strong reactions. Volatility spillovers across firms suggest potential industry-wide repercussions from bacterial contamination incidents.

Understanding the characteristics of US meat and poultry recalls: 1994–2002

The characteristics of US meat and poultry recalls between 1994 and 2002 are examined and the public health implications of these trends highlighted. Most recalls involve the most serious health consequences, including Class I and biological hazards. Numbers of recalls as well as the total amount in pounds have continually increased since 1997. This may be explained by improving inspection methods for detecting microbial pathogens, greater consumer awareness, and/or better surveillance of foodborne illnesses. To guarantee public health, it is important that problems are discovered as early as possible and all affected products are removed from the market.

Food safety regulation and trade in food products

Abstract Nations are becoming increasingly dependent upon internationally traded food products, often at the expense of traditional agricultural commodities. As the focus shifts to high value-added imports and exports, regulations targeting the food safety attributes of these products are increasingly cited as a source of potential non-tariff barriers to trade. To counter such concerns, various bilateral and multilateral efforts to demonstrate the integrity of the regulatory systems under which these foods are produced are taking centre stage. Little analysis of the relative efficacy of such rapprochement efforts exists. This paper therefore discusses the impacts food safety regulation can have on the growth in food trade by presenting a review of key regulatory rapprochement efforts targeting them. The GATT SPS Agreement in particular is discussed. Recent disputes centring on the impacts of food safety regulations are also reviewed to suggest how GATT commitments are being interpreted and enforced. This discussion highlights potential road-blocs to additional trade facilitation and evaluates if a ‘hard law’ system now exists.

Changes in fat contents of US snack foods in response to mandatory trans fat labelling.

OBJECTIVE Impact of mandatory trans fat labelling on US snack food introductions is examined. DESIGN Using label information, lipid ingredients and fat profiles are compared pre- and post-labelling. SETTING Key products in the US snack food industry contribute significant amounts of artificial trans fat. Industry efforts to reformulate products to lower trans fat may alter the overall fat profile, in particular saturates. SUBJECTS Composition data for more than 5000 chip and cookie products introduced for sale between 2001 (pre-labelling) and 2009 (post-labelling) were analysed. RESULTS One-way ANOVA was used to test for significant changes in saturated fat content per serving and the ratio of saturated to total fat. The shares of chip and cookie introductions containing partially hydrogenated vegetable oil declined by 45 and 42 percentage points, respectively. In cookies, there was an increase of 0·49 (98 % CI 0·01, 0·98) g in the average saturated fat content per 30 g serving and an increase of 9 (98 % CI 3, 15) % in the average ratio of saturated to total fat. No statistically significant changes in fat content were observed in chips. CONCLUSIONS This research suggests that, holding other factors constant, the policy has resulted in a decreased use of partially hydrogenated vegetable oil in chip products without a corresponding increase in saturated fat content, but led to significantly higher levels of saturated fat and ratio of saturated fat to total fat in cookie products.

Iso 9000 -- A Marketing Tool For U.S. Agribusiness

The relevance of the ISO 9000 series of quality management systems (QMS) for U.S. agribusiness is analyzed. Certified firms from several industries were surveyed to determine their before (ex ante) and after (ex post) perspectives of the QMS. Results for the agribusiness subsample are compared to those for firms from other industries to determine if they behave differently. Anticipated marketing advantages (increasing market share and providing access to new markets) of the QMS were critical factors that encouraged the pursuit of the certificate. The average cost to attain certification was

Adoption of voluntary front of package nutrition schemes in UK food innovations

101.400 and to maintain certification was an additional

Interdisciplinary food safety research

26,500 per year.