2009
DOI: 10.1002/agr.20220
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Distribution of direct recall costs along the milk chain

Abstract: The relation between time and the direct recall costs of one batch of milk was investigated in this study. We developed a Monte Carlo simulation model of a farm-to-consumer supply chain associated with one batch of milk of 150,000 kilograms. The direct recall costs of recalling a batch are less than €100,000 in the first 16 hours after the milk has been collected from the farms, but the costs increase rapidly to more than €140,000. With this study, we showed that a modeling approach can give insight into the r… Show more

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Cited by 14 publications
(17 citation statements)
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“…However, the total impact obtained with the MiDCIM includes only the direct costs related to recall measures and does not take into account intangible costs such as the damage to long-term relationships among producers, processors, traders, and consumers and indirect costs such as reduction of product pdces and loss of sales, liability claims, and costs associated with consumer illness (40). Therefore, the contdbution of the recall measures to the total impact will be higher than that calculated with this model.…”
Section: Discussionmentioning
confidence: 99%
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“…However, the total impact obtained with the MiDCIM includes only the direct costs related to recall measures and does not take into account intangible costs such as the damage to long-term relationships among producers, processors, traders, and consumers and indirect costs such as reduction of product pdces and loss of sales, liability claims, and costs associated with consumer illness (40). Therefore, the contdbution of the recall measures to the total impact will be higher than that calculated with this model.…”
Section: Discussionmentioning
confidence: 99%
“…Control measures taken during an incident, such as temporary blocking of production facilities (39) or recall of products from the market, result in direct costs and losses for companies (40). These measures also affect both intemal and extemal business relationships.…”
mentioning
confidence: 98%
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“…Dioxin incidents are a threat to both human health and the economy of a country, specifically the agri-food chains involved. Control measures taken during an incident like, such as temporary blocking of production facilities (Valeeva et al, 2006) or recall of products from the market, results in direct costs and losses for companies (Velthuis et al, 2009). These measures also affect both internal and external business relationships.…”
Section: Introductionmentioning
confidence: 99%
“…Similar disruptions occurred during two incidents in 2008, one with pork in Chile (Kim et al, 2009) and one with pork and beef in Ireland . Previous research has been conducted to assess the impact of a feed crisis at different stages of the food chain ) and to estimate the direct recall cost in the Dutch milk chain (Velthuis et al, 2009). However, the financial consequences of a dioxin incident for the various members of the agri-food chain…”
Section: Introductionmentioning
confidence: 99%