Agriculture Reference
In-Depth Information
Research on the observed market impact of outbreaks is limited. In the case of the
2003 outbreak of hepatitis A associated with green onions from Mexico (the major
supplier of green onions in the U.S. market) shipments lagged behind the previous
year's level for about 5 months (Calvin and others 2004). Research on strawberries
in the 1990s showed that consumption is affected more by negative news than positive
news after an outbreak (Richards and Patterson 1999). In the fall of 2006, the leafy
greens industry faced three different batches of bad food safety news after the spinach
problem. One recall turned out to be a false alarm. In December, two outbreaks in
fast-food restaurants were linked to lettuce. In 2007 there was another false alarm
and two recalls of contaminated products but no illnesses were reported in
either case.
Outbreaks can also have an impact on U.S. export markets. Canada is the largest
export market for U.S. leafy greens. In the case of the 2006 spinach outbreak, Canada
briefl y blocked imports of spinach from the U.S. Even after the market reopened, trade
was low (Fig. 22.7). Canadian consumers, like U.S. consumers, were probably less
likely to consume spinach after all the adverse publicity. Volume over the last 4
months of 2006 was down 49% from the previous year. Beginning in June 2007,
Canada started limiting imports of leafy greens from California to signatories of the
LGMA. Although Mexico is a very tiny market for U.S. leafy greens it also followed
the Canadian example, fi rst briefl y banning imports of leafy greens and now limiting
California imports to those from members of the LGMA.
Metric tons
3,000
2,500
2005
2,000
1,500
1,000
500
2006
0
Jan
Mar
May
Jul
Sep
Nov
Figure 22.7.
U.S. fresh spinach exports to Canada, 2005-2006.
Source:
U.S. Depart-
ment of Commerce.
