The impact of E. Coli O157:H7 recalls on live cattle futures prices: Revisited

Meat recalls have the potential to adversely affect the demand for meat due to the associated decline in consumers and investors’ confidence. The objective of this study is to investigate the impacts of Escherichia Coli O157:H7 recall announcements on the nearby cattle futures prices using data from the United States Department of Agriculture’s (USDA) Food Safety Inspection Services (FSIS) and Chicago Mercantile Exchange Live Cattle futures. The results show that E. Coli O157:H7 recalls have adverse impacts on the nearby cattle futures prices, but the impacts are short-lived.