The FDA has announced a recall of fresh whole onions as a result of a salmonella outbreak. The onions, imported from Chihuahua, Mexico have been traced to as many as 37 states around the US. In addition to onions found in grocery stores, food subscription services such as HelloFresh and EveryPlate are asking customers to dispose of onions sent in their boxes. Because of the long shelf life of onions, contaminated produce imported as far back as August 27th may still be on store shelves. To date, the CDC is reporting that over 600 people have reported illnesses from contaminated onions. The CDC is also investigating to see if other onion supplies are also potentially contaminated.
According to the CDC, several salmonella outbreaks occur each year, primarily from tainted meats and produce.
Questions
- How might the news of the salmonella outbreak affect demand for onions in the US, as well as demand for food subscription services like HelloFresh and EveryPlate?
- Use your answer from above, combined with the effect of the recall to predict what will happen to the equilibrium price and quantity after the outbreak.
- How might this outbreak affect demand of other fruits and vegetables?
Sources: Fox59: FDA announces additional recalls involving onions; The Denver Post: HelloFresh, EveryPlate and more now part of extended onion recall; CDC: Reports of Selected Salmonella Outbreak Investigations; Photo by Sincerely Media on Unsplash