Nebraska Agri-Business Association

When I was with you back in August of 2001, I mentioned that in New Mexico I served on the board of the New Mexico Agricultural-Chemical and Plant Food Association, and have, I hope, some appreciation of the work you do. I also truly appreciate your interest in your support of the work conducted at the Institute of Agriculture and Natural Resources at the University of Nebraska-Lincoln. Thank you for that! Your support, always critical, becomes even more so in such difficult, difficult economic times as our state finds itself in today. Nearly $4 million dollars was permanently slashed from the IANR budget in three rounds of budget cuts between October 2001 and August 2002, a result of Nebraska's continuing revenue shortfalls. At the same time, our frustrated IANR constituents make it clear that nearly $4 million of need did not disappear with our funding. Now more cuts are expected in this legislative session.

Who Suffers Most when Disease Outbreaks and Food Recalls Happen? The Case of Mad Cow Disease in the United States

It is generally observed that whenever there are cases of disease outbreaks and food recalls, such as the case of the 2003 Mad Cow Disease (Bovine Spongiform Encephalopathy or BSE) outbreak, cattle and beef prices fall. Given these incidents, there is the question of which part of the marketing chain is the most affected. For those who produce live cattle, such as feedlot operators, the question is ‘what effect these events have on price and demand for beef and cattle?’ Similarly, how do the Food Safety Inspection Service (FSIS) recalls and diseases such as Mad Cow Disease outbreaks affect the beef marketing margins at all levels in the U.S. beef marketing chain? Identifying these effects along the marketing chain provides insight into which level along that channel is the most vulnerable to these events. In addition, this information helps to assess the impact of such events on the industry, providing a basis for policy formulation.