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A model for estimating industry compliance costs of food labeling regulations

Author

Listed:
  • Michael T. French

    (Center for Economics Research, Research Triangle Park, North Carolina)

  • Dierdre M. Neighbors

    (Center for Economics Research, Research Triangle Park, North Carolina)

  • Lori K. Carswell

    (Center for Economics Research, Research Triangle Park, North Carolina)

  • Richard A. Williams

    (Office of Compliance, Center for Food Safety and Applied Nutrition, US Food and Drug Administration)

  • Laina M. Bush

    (Office of Compliance, Center for Food Safety and Applied Nutrition, US Food and Drug Administration)

Abstract

One of the most publicized and controversial issues in the food industry today is whether or not food labels convey the appropriate product information to consumers. This study models firms' response to labeling mandates and estimates the costs to the food industry of new or revised labeling regulations. Lengthy personal interviews were conducted with 30 domestic food manufacturers and a questionnaire was administered to nearly 1,500 food manufacturing firms. The model incorporates variables to adjust for the type of food manufactured, the number and sizes of the firms affected, the frequency of label redesigning, the type of printing equipment used, the value of labels ordered, and the frequency of inventory turnover. The model is used to estimate the compliance costs for two past labeling regulations-sulfiting agents and sodium.

Suggested Citation

  • Michael T. French & Dierdre M. Neighbors & Lori K. Carswell & Richard A. Williams & Laina M. Bush, 1992. "A model for estimating industry compliance costs of food labeling regulations," Agribusiness, John Wiley & Sons, Ltd., vol. 8(2), pages 165-186.
    • Handle: RePEc:wly:agribz:v:8:y:1992:i:2:p:165-186
    DOI: 10.1002/1520-6297(199203)8:2<165::AID-AGR2720080208>3.0.CO;2-A
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    Cited by:

    1. Caswell, Julie A. & Perloff, Jeffrey M., 1993. "Implications of New Industrial Organization and Demand Models for Marketing Research," Food and Agricultural Marketing Issues for the 21st Century - FAMC 1993 Conference 265924, Food and Agricultural Marketing Consortium (FAMC).

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