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Predicting food safety losses in turkey processing and the economic incentives of hazard analysis and critical control point (HACCP) intervention

Author

Listed:
  • William E. Nganje

    (Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND 58105)

  • Mounir Siaplay

    (Department of Agricultural Economics, Oklahoma State University, Stillwater, OK 74078)

  • Simeon Kaitibie

    (Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND 58105)

  • Emmanuel T. Acquah

    (Office of the Associate Vice President for Academic Affairs and Director of International Programs, University of Maryland Eastern Shore, Princess Anne, MD 28153)

Abstract

Turkey is an important food commodity whose total value of U.S. production amounted to $2.72 billion in 2003. Empirical evidence suggests that among broilers, eggs, turkeys, and chickens, Salmonella contamination of ground turkey is highest at 49.9% prior to hazard analysis and critical control point (HACCP) implementation and 26.6% after HACCP implementation. Salmonella and other microbial outbreaks have greatly contributed to the large number of food recalls in the meat and poultry industry; therefore, processed turkey constitutes a prime commodity for HACCP intervention analysis. Value-at-risk provides a framework for assisting firm management to assess food safety risks in monetary terms, and to evaluate the economic incentives of control measures like HACCP. Results show that food safety losses as measured by downside risk significantly declined following HACCP implementation. Medium- and large-scale turkey processors are more likely to derive more benefit from implementing an augmented HACCP plan than a generic HACCP plan. [EconLit citations: C150, Q180] © 2006 Wiley Periodicals, Inc. Agribusiness 22: 475-489, 2006.

Suggested Citation

  • William E. Nganje & Mounir Siaplay & Simeon Kaitibie & Emmanuel T. Acquah, 2006. "Predicting food safety losses in turkey processing and the economic incentives of hazard analysis and critical control point (HACCP) intervention," Agribusiness, John Wiley & Sons, Ltd., vol. 22(4), pages 475-489.
    • Handle: RePEc:wly:agribz:v:22:y:2006:i:4:p:475-489
    DOI: 10.1002/agr.20098
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    References listed on IDEAS

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    1. 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.
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    3. Ollinger, Michael & MacDonald, James M. & Madison, Milton E., 2000. "Structural Change In U.S. Chicken And Turkey Slaughter," Agricultural Economic Reports 34049, United States Department of Agriculture, Economic Research Service.
    4. Buzby, Jean C. & Fox, John A. & Ready, Richard C. & Crutchfleld, Stephen R., 1998. "Measuring Consumer Benefits of Food Safety Risk Reductions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(1), pages 69-82, July.
    5. Martinez, Stephen W., 2002. "A Comparison of Vertical Coordination in the U.S. Poultry, Egg, and Pork Industries," Agricultural Information Bulletins 33773, United States Department of Agriculture, Economic Research Service.
    6. Nganje, William E. & Mazzocco, Michael A. & McKeith, Floyd K., 1999. "Food Safety Regulation, Product Pricing, And Profitability: The Case Of Haccp," AE Series 23077, North Dakota State University, Department of Agribusiness and Applied Economics.
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    Cited by:

    1. Michael Ollinger & Danna L. Moore, 2008. "The Economic Forces Driving Food Safety Quality in Meat and Poultry," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(2), pages 289-310.
    2. Silviu Ionuţ Beia & Mariana Bran & Mihai Dinu, 2020. "The HACCP System: An Analysis of Its Benefits and Shortcomings in Business Practices in the Era of the SARS COV-2 Pandemic," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 229-234, December.

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