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Managing For Safer Food: The Economics Of Sanitation And Process Controls In Meat And Poultry Plants

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Author Info

  • Ollinger, Michael
  • Mueller, Valerie

Abstract

Sanitation and process control costs increased the costs of producing meat and poultry by about 0.5 percent in the period preceding the promulgation of the Pathogen Reduction/Hazard Analysis and Critical Control Point (PR/HACCP) rule of 1996. However, there was no benefit in trying to avoid these costs. Large slaughter plants and all further-processing plants with poor performance of sanitation and food safety process controls were more likely to exit their industries than other plants. Moreover, the fraction of costs required for sanitation and process control was about the same for large plants as for small plants, suggesting that larger plants were no better able than small plants to absorb sanitation and process control costs. Results also suggest that PR/HACCP raised wholesale meat and poultry prices by about 1 percent.

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Bibliographic Info

Paper provided by United States Department of Agriculture, Economic Research Service in its series Agricultural Economics Reports with number 33975.

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Date of creation: 2003
Date of revision:
Handle: RePEc:ags:uerser:33975

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Related research

Keywords: Food safety; production cost; manufacturing plant survival; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries;

References

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  11. Bengt Holmstrom, 1981. "Moral Hazard in Teams," Discussion Papers 471, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  12. Ollinger, Michael & MacDonald, James M. & Madison, Milton, 2000. "Structural Change In U.S. Chicken And Turkey Slaughter," Agricultural Economics Reports 34049, United States Department of Agriculture, Economic Research Service.
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Citations

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Cited by:
  1. Ollinger, Michael & Moore, Danna L., 2009. "The Interplay of Regulation and Marketing Incentives in Providing Food Safety," Economic Research Report 55837, United States Department of Agriculture, Economic Research Service.
  2. Michael Ollinger & Danna Moore, 2008. "Market Forces, Plant Technology, and the Food Safety Technology Use," Working Papers 08-14, Center for Economic Studies, U.S. Census Bureau.
  3. Ollinger, Michael & Wilkus, Jim, 2013. "Regulatory Oversight and the Food Safety of Ground Beef in the National School Lunch Program," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149967, Agricultural and Applied Economics Association.
  4. Ollinger, Michael & Muth, Mary K. & Karns, Shawn A. & Choice, Zanethia, 2011. "Food Safety Audits, Plant Characteristics, and Food Safety Technology Use in Meat and Poultry Plants," Economic Information Bulletin 117989, United States Department of Agriculture, Economic Research Service.
  5. Ratapol Teratanavat & Victoria Salin & Neal H. Hooker, 2005. "Recall event timing: Measures of managerial performance in U.S. meat and poultry plants," Agribusiness, John Wiley & Sons, Ltd., vol. 21(3), pages 351-373.
  6. Ollinger, Michael & Moore, Danna L., 2006. "The economic forces driving the costs of food safety regulation," 2006 Annual meeting, July 23-26, Long Beach, CA 21214, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Goldsmith, Peter D. & Turan, Nesve A. & Gow, Hamish R., 2004. "Firms, Incentives, And The Supply Of Food Safety: A Formal Model Of Government Enforcement," 2004 Annual meeting, August 1-4, Denver, CO 20343, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. Ollinger, Michael, 2008. "Structural Change in the Meat and Poultry Industry and the Pathogen Reduction Hazard Analysis Critical Control Point Rule," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 36747, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Michael Ollinger, 2008. "The Direct and Indirect Costs of Food Safety Regulation," Working Papers 08-31, Center for Economic Studies, U.S. Census Bureau.
  10. Wang, Zhigang & Mao, Yanna & Gale, Fred, 2008. "Chinese consumer demand for food safety attributes in milk products," Food Policy, Elsevier, vol. 33(1), pages 27-36, February.
  11. Hooker, Neal H. & Teratanavat, Ratapol P. & Salin, Victoria, 2005. "Crisis management effectiveness indicators for US meat and poultry recalls," Food Policy, Elsevier, vol. 30(1), pages 63-80, February.
  12. Ollinger, Michael, 2009. "The Cost of Food Safety Technologies in the Meat and Poultry Industries," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 48783, Agricultural and Applied Economics Association.
  13. Kinsey, Jean D., 2004. "Does Food Safety Conflict With Food Security? The Safe Consumption Of Food," Working Papers 14326, University of Minnesota, The Food Industry Center.
  14. Bremmers, Harry J. & van der Meulen, Bernd M.J. & Sredojevi, Zorica & Wijnands, Jo H.M., 2012. "Legal-Economic Barriers to Price Transfers in Food Supply Chains," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 6.
  15. Woods, Mollie & Thornsbury, Suzanne & Raper, Kellie Curry & Weldon, Richard N. & Wysocki, Allen F., 2003. "Food Safety And Fresh Strawberry Markets," Staff Papers 11712, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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