Full metadata
Title
Innovative insurance products in food safety: pricing revenue insurance in the fresh spinach industry
Description
The lack of food safety in a grower's produce presents the grower with two risks; (1) that an item will need to be recalled from the market, incurring substantial costs and damaging brand equity and (2) that the entire market for the commodity becomes impaired as consumers associate all produce as being risky to eat. Nowhere is this more prevalent than in the leafy green industry, where recalls are relatively frequent and there has been one massive E. coli outbreak that rocked the industry in 2006. The purpose of this thesis is to examine insurance policies that protect growers from these risks. In doing this, a discussion of current recall insurance policies is presented. Further, actuarially fair premiums for catastrophic revenue insurance policies are priced through a contingent claims framework. The results suggest that spinach industry revenue can be insured for $0.02 per carton. Given the current costs of leafy green industry food safety initiatives, growers may be willing to pay for such an insurance policy.
Date Created
2013
Contributors
- Pagaran, Jeremy (Author)
- Manfredo, Mark R. (Thesis advisor)
- Richards, Timothy J. (Thesis advisor)
- Nganje, William (Committee member)
- Arizona State University (Publisher)
Topical Subject
Resource Type
Extent
vii, 67 p. : ill
Language
eng
Copyright Statement
In Copyright
Primary Member of
Peer-reviewed
No
Open Access
No
Handle
https://hdl.handle.net/2286/R.I.18133
Statement of Responsibility
by Jeremy Pagaran
Description Source
Retrieved on Dec. 18, 2013
Level of coding
full
Note
thesis
Partial requirement for: M.S., Arizona State University, 2013
bibliography
Includes bibliographical references (p. 55-57)
Field of study: Agribusiness
System Created
- 2013-07-12 06:29:58
System Modified
- 2021-08-30 01:39:05
- 3 years ago
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