An American BSE Crisis: Has it affected the Value of Traceability and Country-of-Origin Certifications for US and Canadian Beef?

With a BSE incident in the United States (US) in December of 2003, questions arose about the effect of the incident on consumers in the US. The purpose of this paper is to determine if traceability systems for beef can help preserve consumer demand following the discovery of BSE. Auctions were conducted approximately 3 weeks before and after the December 2003 BSE incident in the U.S It was found that overall there was no effect on the size of the bribes needed by the BSE incidence. However, for some groups there were important changes. The results indicate that information about traceability and country of origin is valuable to consumers. They also suggest that greater uncertainty about certifications and assurances for beef existed among the participants after December 23rd than before December 23rd.