Distribution of direct recall costs along the milk chain

Velthuis, A.G.J.; Meuwissen, M.P.M.; Huirne, R.B.M.

doi:10.1002/agr.20220

Cited by 14 publications

(17 citation statements)

References 10 publications

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“…However, the total impact obtained with the MiDCIM includes only the direct costs related to recall measures and does not take into account intangible costs such as the damage to long-term relationships among producers, processors, traders, and consumers and indirect costs such as reduction of product pdces and loss of sales, liability claims, and costs associated with consumer illness (40). Therefore, the contdbution of the recall measures to the total impact will be higher than that calculated with this model.…”

Section: Discussionmentioning

confidence: 99%

“…Control measures taken during an incident, such as temporary blocking of production facilities (39) or recall of products from the market, result in direct costs and losses for companies (40). These measures also affect both intemal and extemal business relationships.…”

mentioning

confidence: 98%

“…Similar disruptions occurred during two incidents in 2008, one with pork in Chile (24) and one with pork and beef in Ireland (35,36). Previous research has been conducted to assess the impact of a feed crisis at different stages of the food chain (30,31) and to estimate the direct recall cost in the Dutch milk chain (40). However, the financial consequences of a dioxin incident for the various members of the agri-food chain have not yet been evaluated.…”

mentioning

confidence: 99%

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Financial Impact of a Dioxin Incident in the Dutch Dairy Chain

Alcoser

Velthuis

Hoogenboom³

et al. 2011

Journal of Food Protection

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The aim of this study was to quantify the financial consequences of a milk-dioxin crisis on the stages of the dairy chain involved. The milk dioxin contamination impact model was designed for this purpose and also was used to estimate the net costs of control measures limiting the impact. Results obtained based on the assumption of the worst-case scenario in which the entire daily production of each business unit from feed supplier to milk processor is contaminated suggested that the financial impact of one dioxin incident would be €141.2 million. Another assumption was that the dioxin contamination started at one feed processing plant and was detected 2 weeks after initial contamination (the high-risk period), which would result in the involvement of 714 dairy farms, 26 milk processors, and 2,664 retailers. The stages of the chain that contributed most to the total net costs were the milk processor (76.9%) and the dairy farm (20.5%). If the high-risk period were shorter, i.e., 3 days, the estimated total financial impact decreases to €10.9 million. Thus, early detection of the contamination is crucial for decreasing the number of food businesses involved and lowering the total financial impact. The most influential inputs of the model were the sale price of milk at the processing stage, the daily amount of milk processed per processing plant, the farm-blocking period, and the daily amount of milk produced per farm. However, the effect of these inputs on the total financial impact was less than 10.0%. These results can be used to establish priorities in the application of control measures to limit the financial and public health impacts of a possible food safety incident.

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Section: Discussionmentioning

confidence: 99%

mentioning

confidence: 98%

mentioning

confidence: 99%

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Financial Impact of a Dioxin Incident in the Dutch Dairy Chain

Alcoser

Velthuis

Hoogenboom³

et al. 2011

Journal of Food Protection

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“…Dioxin incidents are a threat to both human health and the economy of a country, specifically the agri-food chains involved. Control measures taken during an incident like, such as temporary blocking of production facilities (Valeeva et al, 2006) or recall of products from the market, results in direct costs and losses for companies (Velthuis et al, 2009). These measures also affect both internal and external business relationships.…”

Section: Introductionmentioning

confidence: 99%

“…Similar disruptions occurred during two incidents in 2008, one with pork in Chile (Kim et al, 2009) and one with pork and beef in Ireland . Previous research has been conducted to assess the impact of a feed crisis at different stages of the food chain ) and to estimate the direct recall cost in the Dutch milk chain (Velthuis et al, 2009). However, the financial consequences of a dioxin incident for the various members of the agri-food chain…”

Section: Introductionmentioning

confidence: 99%

Cost-effective monitoring of dioxins in agri-production chains

Alcóser¹,

Hugo²

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Feed ingredients and additives used in compound feed for livestock production have been a main cause of various food dioxin incidents in recent decades. Monitoring dioxins in feed and food products is deemed crucial to prevent and diminish the financial impacts of dioxin incidents in agribusiness along the food chain. However, economic aspects embedded in the practical assessment and implementation of dioxin monitoring schemes along the food chain have not yet been analyzed in the scientific literature. Hence this dissertation aims to analyze the costeffectiveness of schemes for monitoring dioxins along the food chain by 1) assessing the financial impact of a dioxin incident in the food chain, 2) determining the cost-effectiveness of monitoring dioxins at a single control point along the food chain 3) determining the cost-effective allocation of resources for monitoring dioxins at different stages of the food chain, and 4) determining the cost-effective allocation of resources at one stage of the food chain considering incoming ingredients and final products. This thesis depicts deterministic and stochastic simulation models to assess the effect of monitoring on the flow of dioxin contaminations in the evaluated food chains (dairy, pork and poultry). Linear programming is the core methodology used in this dissertation to assess the cost-effectiveness of schemes for monitoring dioxins. The main findings indicate that establishing effective monitoring plans requires elevated financial resources.However, the size of the direct financial losses of a dioxin incident suggests that there is substantial financial room for monitoring dioxins along the food chain. Testing dioxins levels in aggregate samples rather than in individual samples is a valid strategy for reducing monitoring costs. However, pooling strategies must take into account the target dioxin concentration in individual samples, in order to avoid dilution of dioxin levels and to ensure the proper detection of a dioxin contamination. Monitoring dioxins in an integrated chain approach rather than in an independent chain actor approach has large economic benefits for the whole chain. For all evaluated contamination scenarios, monitoring dioxins at the feed mill stage contributes, on average, 90% to the total effectiveness of the optimal monitoring schemes. 6 7 Acknowledgements

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Economics applied to food safety

Focker

Fels-Klerx

2020

Current Opinion in Food Science

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Distribution of direct recall costs along the milk chain

Cited by 14 publications

References 10 publications

Financial Impact of a Dioxin Incident in the Dutch Dairy Chain

Financial Impact of a Dioxin Incident in the Dutch Dairy Chain

Cost-effective monitoring of dioxins in agri-production chains

Economics applied to food safety

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