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Estimating The Cost Of Food Safety Regulations To The New Zealand Seafood Industry

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  • Cao, Kay
  • Maurer, Oswin
  • Scrimgeour, Frank G.
  • Dake, Chris K.G.

Abstract

In New Zealand, the Animal Products Act (1999) required all animal product processing businesses to have a Hazard Analysis and Critical Control Points (HACCP) based Risk Management Program (RMP) by the end of 2002. The purpose of the Act is to manage food safety risks and to facilitate overseas market access. However the new regulation will potentially bring costs to businesses. This paper attempts to measure the effects of RMP requirements on the variable cost of production of the New Zealand seafood industry. Using the framework developed by Antle (2000), a cost function is estimated using census of production data from 1929 to 1998. Results show that variable costs could increase from 2 percent to 22 percent or from 2 cents to 19 cents per kilogram.

Suggested Citation

  • Cao, Kay & Maurer, Oswin & Scrimgeour, Frank G. & Dake, Chris K.G., 2005. "Estimating The Cost Of Food Safety Regulations To The New Zealand Seafood Industry," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 13.
    • Handle: RePEc:ags:auagre:126403
    DOI: 10.22004/ag.econ.126403
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    1. Tanya Roberts & Jean C. Buzby & Michael Ollinger, 1996. "Using Benefit and Cost Information to Evaluate a Food Safety Regulation: HACCP for Meat and Poultry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1297-1301.
    2. Jensen, Helen H. & Unnevehr, Laurian J., 1999. "HACCP in Pork Processing: Costs and Benefits," Staff General Research Papers Archive 1632, Iowa State University, Department of Economics.
    3. Crutchfield, Stephen R. & Buzby, Jean C. & Roberts, Tanya & Ollinger, Michael & Lin, Chung-Tung Jordan, 1997. "Economic Assessment of Food Safety Regulations: The New Approach to Meat and Poultry Inspection," Agricultural Economic Reports 34009, United States Department of Agriculture, Economic Research Service.
    4. John M. Antle, 2000. "No Such Thing as a Free Safe Lunch: The Cost of Food Safety Regulation in the Meat Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 310-322.
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    Cited by:

    1. Fullenbaum, Richard & Richards, Tyler, 2020. "The Impact of Regulatory Growth on Operating Costs," Working Papers 10308, George Mason University, Mercatus Center.

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