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Abstract
We investigate whether food safety crises affect the demands for beef, pork and
chicken in Brazil. We construct series of food safety crisis indices for each meat (beef, pork
and chicken) based on the total number of news in ‘Folha de São Paulo’ newspaper fitting
predefined search criteria. We use those series, the retail prices of each type of meat, the price
of a composite good and per capita expenditure on consumption as explanatory variables in six specifications of a four-equation demand system. We select the preferred specification of the models based on
adjusted likelihood ratio tests. Based on the preferred model specification we do not reject the hypothesis by which
food safety crisis do not affect the demand for meat in Brazil. We conclude that if the shifts down in the demand in
response to food safety crises create incentives for companies to adopt measures to produce safer food, such incentives
do not exist in the meat sector in Brazil. This reinforces the importance and necessity of an active public system to
regulate and establish standards for meat safety in Brazil.