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Over the past twenty years, there has been an increasing trend in the number of recalls. Despite increased safety control standards, foodborne disease outbreaks continue to impact the food supply. A common source of foodborne illness and fatal infection is beef from diseases such as E. coli 0157:H7, Listeria Monocytogenes, and Salmonella. Certain companies have even been bankrupted, unable to overcome the social costs and economic losses associated with recalls. We examine beef recalls over a twenty year period through an accumulated two-year index to see if there is a prolonged effect of recalls on current weekly cattle prices. We find that recalls act together, adversely impacting prices and decreasing farm-level revenue. The revenue drop is economically small; therefore, it is uncertain if beef recalls financially incentivize cattle producers to invest in food safety safeguards.


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