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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.

Suggested Citation

  • Cao, Kay & Maurer, Oswin & Scrimgeour, Frank G., 2003. "Estimating The Cost Of Food Safety Regulation To The New Zealand Seafood Industry," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57840, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare03:57840
    DOI: 10.22004/ag.econ.57840
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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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