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

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  • Cao, Kay
  • Maurer, Oswin
  • Scrimgeour, Frank G.

Abstract

In New Zealand, the Animal Products Act 1999 requires all animal product processing businesses to have a HACCP-based risk management program by the end of 2002. This paper attempts to measure the effects of such regulation on the variable cost of production of the New Zealand seafood industry. Using the framework developed by Antle (2000), a model of quality-adjusted translog cost function is estimated using census of production data from 1929 to 1998. Our results show that variable costs could increase from 2% to 22% or from 2 cents to 19 cents per kilogram.

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Bibliographic Info

Paper provided by Australian Agricultural and Resource Economics Society in its series 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia with number 57840.

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Date of creation: Feb 2003
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Handle: RePEc:ags:aare03:57840

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Keywords: HACCP; compliance costs; seafood; Production Economics;

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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 1632, Iowa State University, Department of Economics.
  3. 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.
  4. 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 Economics Reports 34009, United States Department of Agriculture, Economic Research Service.
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