Dairy-Borne Disease Outbreak and Milk Demand: A Study Using Outbreak Surveillance Data

Agricultural and Resource Economics Review, Forthcoming

18 Pages Posted: 19 Jul 2009

See all articles by Yuqing Zheng

Yuqing Zheng

University of Kentucky - College of Agriculture - Department of Agricultural Economics

Harry M. Kaiser

Cornell University - School of Applied Economics and Management

Date Written: July 16, 2009

Abstract

We utilize the outbreak surveillance data from the Centers for Disease Control and Prevention (CDC) to examine whether consumer demand was impacted by the outbreak of foodborne disease. An additional person sickened due to the ingestion of tainted cheese products at home is found to decrease per capita milk demand in New York State by 0.13% (or 0.07 pound), while milk- and ice cream-borne disease outbreaks, occurring at home or public places, are found to have no impact on fluid milk demand. Our results imply the existence of the word-of-mouth effects, which cannot be tested by the popular information/media index approach used to measure food borne disease outbreaks. We also find that a 7% increase in generic advertising expenditures or a 10% increase in expenditures on non-advertising marketing activities can offset the negative influence of one ill person in cheese-borne disease outbreaks at home, while holding other demand factors constant.

Keywords: Centers for Disease Control and Prevention, dairy-borne disease outbreak (DBDO), fluid milk demand, food-borne disease outbreak (FBDO), outbreak surveillance data

JEL Classification: Q11, M37, I1

Suggested Citation

Zheng, Yuqing and Kaiser, Harry M., Dairy-Borne Disease Outbreak and Milk Demand: A Study Using Outbreak Surveillance Data (July 16, 2009). Agricultural and Resource Economics Review, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1434940

Yuqing Zheng (Contact Author)

University of Kentucky - College of Agriculture - Department of Agricultural Economics ( email )

Lexington, KY 40546
United States

Harry M. Kaiser

Cornell University - School of Applied Economics and Management ( email )

248 Warren Hall
Ithaca, NY 14853
United States
607-255-1598 (Phone)
607-254-4335 (Fax)

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