The Economic Value of Public Relations Expenditures: Food Safety and the Strawberry Case

Food safety has become an important issue affecting public health and grower profits. Outbreaks of foodborne illnesses are typically accompanied by press accounts of the incident and a decrease in demand. This study estimates the short- and long-run impacts of adverse and positive information delivered through print media on strawberry grower profits. Positive information may arise as part of the promotional efforts of grower associations. It is found that adverse information reduces grower profits, but that positive information can partially offset their effects. It is suggested that grower groups could redirect funds used for promotion to food safety initiatives.