The hidden costs and benefits of BSE

Analyses the likely impact of the recent bovine spongiform encephalopathy (BSE) crisis on the organization of the UK beef supply chain. Using concepts from New Institutional Economics, argues that, in addition to the direct financial costs of the crisis, additional hidden transaction costs and long-...

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Bibliographic Details
Published inBritish food journal (1966) Vol. 98; no. 11; pp. 26 - 35
Main Authors Loader, Rupert, Hobbs, Jill E
Format Journal Article
LanguageEnglish
Published Bradford MCB UP Ltd 01.12.1996
Emerald Group Publishing Limited
Subjects
Beef cattle
Bovine spongiform encephalopathy
Cattle industry
Consumers
Costs
Economics
Farms
Food safety
Inventory
Macroeconomics
Meat industry
Meat processing
Ordination
Product lines
Sales
Supply chains
Vertical integration
United Kingdom > UK
Supply chain
Vertical co-ordination
Costs
BSE
Transaction costs
Meat
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Summary:Analyses the likely impact of the recent bovine spongiform encephalopathy (BSE) crisis on the organization of the UK beef supply chain. Using concepts from New Institutional Economics, argues that, in addition to the direct financial costs of the crisis, additional hidden transaction costs and long-term "transaction benefits" should be considered. Hidden costs include the increased need for monitoring and traceability in the supply chain, while hidden benefits may result from a reorientation of the industry towards a more consumer-driven focus, a greater attention to food safety issues and opportunities for branding and market segmentation. It is suggested that the hidden transaction costs and benefits are likely to lead to closer vertical co-ordination throughout the beef supply chain.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0007-070X
1758-4108
DOI:10.1108/00070709610153669