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The economic forces driving the costs of food safety regulation

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  • Ollinger, Michael
  • Moore, Danna L.

Abstract

The cost of compliance with the Pathogen Reduction Hazard Analysis Critical Control Program (PR/HACCP) rule of 1996 has been controversial from the time it was first proposed. Recent survey evidence indicates costs of about $0.01 per pound. These estimates may capture actual costs but do not indicate how different components of the rule itself, such as HACCP tasks, and indirect influences, such as plant size, affect costs differently. The purpose of this paper is to empirically examine these direct and indirect influences. Preliminary results suggest that plant size has a small, if any influence on costs. The most substantial direct cost is the cost of performing sanitation and tasks associated with a plant's HACCP process control plan.

Suggested Citation

  • Ollinger, Michael & Moore, Danna L., 2006. "The economic forces driving the costs of food safety regulation," 2006 Annual meeting, July 23-26, Long Beach, CA 21214, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea06:21214
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    File URL: http://purl.umn.edu/21214
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    References listed on IDEAS

    as
    1. Bartel, Ann P & Thomas, Lacy Glenn, 1987. "Predation through Regulation: The Wage and Profit Effects of the Occupational Safety and Health Administration and the Environmental Protection Agency," Journal of Law and Economics, University of Chicago Press, vol. 30(2), pages 239-264, October.
    2. Ollinger, Michael & Mueller, Valerie, 2003. "Managing For Safer Food: The Economics Of Sanitation And Process Controls In Meat And Poultry Plants," Agricultural Economics Reports 33975, United States Department of Agriculture, Economic Research Service.
    3. Ollinger, Michael & Moore, Danna L. & Chandran, Ram, 2004. "Meat And Poultry Plants' Food Safety Investments: Survey Findings," Technical Bulletins 33559, United States Department of Agriculture, Economic Research Service.
    4. Ollinger, Michael, 2004. "The Impact Of Market Mechanisms And Haccp Regulation On Food Safety Quality," 2004 Annual meeting, August 1-4, Denver, CO 20150, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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