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The Direct and Indirect Costs of Food-Safety Regulation

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  • Michael Ollinger
  • Danna Moore

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.

Suggested Citation

  • Michael Ollinger & Danna Moore, 2009. "The Direct and Indirect Costs of Food-Safety Regulation," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(2), pages 247-265.
  • Handle: RePEc:oup:revage:v:31:y:2009:i:2:p:247-265.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2009.01436.x
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    Cited by:

    1. Zhigang Wang & Huina Yuan & Fred Gale, 2009. "Costs of Adopting a Hazard Analysis Critical Control Point System: Case Study of a Chinese Poultry Processing Firm," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 574-588.
    2. Ollinger, Michael & Wilkus, James & Hrdlicka, Megan & Bovay, John, 2017. "Public Disclosure of Tests for Salmonella: The Effects on Food Safety Performance in Chicken Slaughter Establishments," Economic Research Report 262183, United States Department of Agriculture, Economic Research Service.
    3. Ollinger, Michael & Taha, Fawzi A., 2015. "U.S. Domestic Salmonella Regulations and Access to European and Other Poultry Export Markets," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(A), pages 1-16, July.
    4. 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.
    5. Ollinger, Michael & Bovay, John & Guthrie, Joanne & Benicio, Casiano, 2015. "Economic Incentives to Supply Safe Chicken to the National School Lunch Program," Economic Research Report 212888, United States Department of Agriculture, Economic Research Service.
    6. Ollinger, Michael & Bovay, John & Hrdlicka, Megan & Wilkus, James, 2015. "Food-safety test performance and public disclosure: The value of information in encouraging improvements in food safety in the chicken-slaughter industry," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205408, Agricultural and Applied Economics Association.
    7. Bovay, J. & Ollinger, M., 2018. "Producer response to public disclosure of food-safety information," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277159, International Association of Agricultural Economists.

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