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This article examines the business relationships in the cold chain used for exporting food to new markets in developing countries. The American Potato Trade Alliance, a cross‐network alliance that includes all levels of the value chain, is the subject of case study research involving participant observation and fieldwork in the Philippines and Thailand. Multinational restaurant companies manage technical challenges in target markets with tight specifications and exclusive supply chains, while smaller firms use extensive networks to supply imported frozen potatoes. Pricing strategies for cold chain services are closely related to quality and potentially affect the availability of outsourced cold chain services. Opportunistic behavior by buyers could reduce incentives for private investment in cold chain infrastructure, while long‐term commitment by chain partners would strengthen the potential for private markets to provide cold chain services in newly developing markets.

How food recalls due to bacterial contamination a ect the stock prices of two companies are examined using a version of the ®nancial market model that accounts for Generalized Autoregressive Conditional Heteroscedasticity (GARCH) e ects. GARCH methodology was necessary to uncover the time-varying volatility in the series and it contributed to more e cient econometric results. The initial food recall undertaken by the company is associated with reduced mean returns and higher volatility of the companies studied. Repeated recalls by the same company are not associated with strong reactions. Volatility spillovers across ®rms suggest potential industry-wide repercussions from bacterial contamination incidents.

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