Impact of faulty US government data on pecan prices

An article in the Wall Street Journal (April 5,2012) describes an overstatement of US pecan exports to Hong Kong and China in 2010 and 2011, which was corrected recently. The impact of higher exports was perceived impending shortages and thus higher prices. But as the data got corrected, prices dropped, but some buyers had already left the market. The impact – growers in the eastern US got higher prices, while those in the west saw lower prices. Buyers who built up inventory were left facing lower market prices than their costs. Should the US government be held responsible for the market risk impact of the data error ? How should the “cost” of the data quality be shared with the market ? Should the risk by buyers part of the “caveat emptor” view of data ?

About aviyer2010

This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , . Bookmark the permalink.

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