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

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Author Info
Hennessy, David A.

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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.

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Publisher Info
Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 10839.

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Date of creation: 29 Oct 2003
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Publication status: Published in American Journal of Agricultural Economics, August 2005, Vol. 87, No. 3, pp. 600-609.
Handle: RePEc:isu:genres:10839

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Keywords: biotechnology contract provisions industrialization overload safety regulation.

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  1. Bennett, Richard & Blaney, Ralph, 2002. "Social consensus, moral intensity and willingness to pay to address a farm animal welfare issue," Journal of Economic Psychology, Elsevier, vol. 23(4), pages 501-520, August. [Downloadable!] (restricted)
  2. Milgrom, Paul & Shannon, Chris, 1994. "Monotone Comparative Statics," Econometrica, Econometric Society, vol. 62(1), pages 157-80, January. [Downloadable!] (restricted)
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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. Lusk, Jayson L, et al, 2001. " In-Store Valuation of Steak Tenderness," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 83(3), pages 539-50, August. [Downloadable!] (restricted)
  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. 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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  7. 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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