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The Direct and Indirect Costs of Food-Safety Regulation

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  • Michael Ollinger
  • Danna Moore
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    Abstract

    The compliance costs of the Pathogen Reduction Hazard Analysis Critical Control Program (PR/HACCP) rule have been controversial. Previous reports have used limited data to evaluate its overall and component costs. This paper addresses those deficiencies by examining compliance costs with data from a national survey of meat and poultry plants. Results indicate that (a) regulation favors large, more specialized plants over small, diversified ones, (b) private actions incur considerable costs, and (c), except for chicken slaughter, Federally mandated processing tasks are 160-500% more costly than allowing plants to meet standards using whatever food-safety technology they choose. Copyright 2009 Agricultural and Applied Economics Association

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    Bibliographic Info

    Article provided by Agricultural and Applied Economics Association in its journal Review of Agricultural Economics.

    Volume (Year): 31 (2009)
    Issue (Month): 2 (06)
    Pages: 247-265

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    Handle: RePEc:oup:revage:v:31:y:2009:i:2:p:247-265

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    Cited by:
    1. Pozo, Veronica F. & Schroeder, Ted C., 2013. "Effects of Meat Recalls on Firms' Stock Prices," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151287, Agricultural and Applied Economics Association.

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