Assessing the impact of retailer disclosure on the effectiveness of U.S. Meat and poultry recalls

Abstract

In August 2008, the Food Safety and Inspection Service of the U.S. Department of Agriculture (USDA) launched a new policy that required publication of a list of retail consignees for the meat and poultry products part of class I recalls, those with the greatest potential impact on public health. In this study, two recall effectiveness measures (recovery rate and completion time) and a difference-in-difference method were used to examine the effects of retailer disclosures. When controlling for factors previously determined to impact recall effectiveness, including product type, reasons for recall, the amount of food recalled, plant size, and the way the problem was discovered, no significant impact on recall effectiveness was discerned under the current disclosure policy. Recalls for bacterial contamination had higher recovery rates. Larger recalls had lower recovery rates and longer completion times. Recalls issued by very small plants had lower recovery rates. Compared with other stakeholders, government agency discovery of the problem was associated with lower recovery rates. As the U.S. Food and Drug Administration considers a similar retailer disclosure policy for foods regulated under the Food Safety Modernization Act, such lessons from the USDA experience should inform the policy debate.