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Slaughterhouse Rules: Animal Uniformity and Regulating for Food Safety in Meat Packing

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David A. Hennessy

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Abstract

Meat retailers express demand for a more uniform product, and technical innovations are allowing an increasingly uniform supply. Packers can promote uniformity through pre-slaughter sorting, or earlier through contracts. Emphasizing effort on the packing line, we develop a model whereby packers gain from carcass handling efficiencies when animal uniformity increases. Whether optimally regulated or not, equilibrium food safety declines with increased uniformity. A line speed regulation can increase welfare in the presence of food safety externalities by reducing the opportunity cost of allocating effort toward promoting food safety. The regulation also reduces packer demand for more uniform animals. Copyright 2005 American Agricultural Economics Association.

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Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 87 (2005)
Issue (Month): 3 (08)
Pages: 600-609
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Handle: RePEc:bla:ajagec:v:87:y:2005:i:3:p:600-609

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  3. Robert Innes, 1999. "Self-Policing and Optimal Law Enforcement When Violator Remediation is Valuable," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1305-1325, December. [Downloadable!] (restricted)
  4. J.L. Lusk & J.A. Fox & T.C. Schroeder & J. Mintert & M. Koohmaraie, 2001. "In-Store Valuation of Steak Tenderness," Framed Field Experiments 0058, The Field Experiments Website.
  5. Garen, John, 1988. "Compensating Wage Differentials and the Endogeneity of Job Riskiness," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 9-16, February. [Downloadable!] (restricted)
  6. Boland, Philip J. & Proschan, Frank, 1988. "Multivariate arrangement increasing functions with applications in probability and statistics," Journal of Multivariate Analysis, Elsevier, vol. 25(2), pages 286-298, May. [Downloadable!] (restricted)
  7. David A. Hennessy & John A. Miranowski & Bruce A. Babcock, 2004. "Genetic Information in Agricultural Productivity and Product Development," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 86(1), pages 73-87, 02. [Downloadable!] (restricted)
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  8. Milgrom, Paul & Roberts, John, 1996. "The LeChatelier Principle," American Economic Review, American Economic Association, vol. 86(1), pages 173-79, March. [Downloadable!] (restricted)
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