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Structural change in the meat and poultry industry and food safety regulations

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  • Michael Ollinger

Abstract

This study uses plant-level micro‐data over 1987–2002 and a translog cost function to examine structural change in the cattle and chicken slaughter and pork processing and sausage‐making industries during a period of increasing food safety oversight. Results suggest that labor and capital cost shares rose and the meat share of costs dropped in all industries and that long‐run costs rose in the cattle slaughter, pork processing, and chicken slaughter industries. Results also suggest that events may have favored large cattle slaughter plants throughout the period and large chicken slaughter plants during the implementation period of the Pathogen Reduction Hazard Analysis Critical Control Point (PR/HACCP) rule spanning the 1997–2002 period. There is no evidence that events favored large plants over small plants in pork processing and sausage‐making. This is important because regulatory effects must have been small in those industries if the relationship did not change. [EconLit citations: L510; L160]. (C) 2010 Wiley Periodicals, Inc.

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  • Michael Ollinger, 2011. "Structural change in the meat and poultry industry and food safety regulations," Agribusiness, John Wiley & Sons, Ltd., vol. 27(2), pages 244-257, Spring.
    • Handle: RePEc:wly:agribz:v:27:y:2011:i:2:p:244-257
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    File URL: http://hdl.handle.net/10.1002/agr.20258
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    Cited by:

    1. James, L. & Glynn, T., 2017. "Reexamining the Question: Are Imported Beef and Domestic Beef Complements or Substitutes?," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252720, Southern Agricultural Economics Association.
    2. Jindrich SPICKA & Zdenka NAGLOVA & Martin GURTLER, 2017. "Effects of the investment support in the Czech meat processing industry," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(8), pages 356-369.
    3. Tengying Weng & Tomislav Vukina & Xiaoyong Zheng, 2015. "The Effects of Productvity and Demand-Specific Factors on Plant Survival and Ownership Change in the U.S. Poultry Industry," Working Papers 15-20, Center for Economic Studies, U.S. Census Bureau.

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