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Regulatory Oversight and the Food Safety of Ground Beef in the National School Lunch Program

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  • Ollinger, Michael
  • Wilkus, Jim

Abstract

This paper examines the impact of food safety standards imposed on suppliers of ground beef to the National School Lunch Program by the Agricultural Marketing Service. Probit regression results show that plants approved by AMS that bid on contracts to supply the NSLP had a higher level of food safety performance than both plants approved by AMS but not bidding on NSLP contracts and other plants regulated by the Food Safety Inspection Service. Plants approved to bid on NSLP contracts but not bidding on contracts had a lower level of food safety performance than both other types of plants. Results after 2009 suggest that differences in food safety performance may have narrowed. The paper also provides some evidence of strategic behavior by plant managers in which they use information about their plant’s food safety performance to decide whether to bid on a contract to supply the NSLP.

Suggested Citation

  • Ollinger, Michael & Wilkus, Jim, 2013. "Regulatory Oversight and the Food Safety of Ground Beef in the National School Lunch Program," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149967, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:149967
    DOI: 10.22004/ag.econ.149967
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    References listed on IDEAS

    as
    1. S. Andrew Starbird, 2005. "Moral Hazard, Inspection Policy, and Food Safety," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 15-27.
    2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    3. Ollinger, Michael & Mueller, Valerie, 2003. "Managing For Safer Food: The Economics Of Sanitation And Process Controls In Meat And Poultry Plants," Agricultural Economic Reports 33975, United States Department of Agriculture, Economic Research Service.
    4. John M. Antle, 2000. "No Such Thing as a Free Safe Lunch: The Cost of Food Safety Regulation in the Meat Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 310-322.
    5. Chiburis, Richard C. & Das, Jishnu & Lokshin, Michael, 2012. "A practical comparison of the bivariate probit and linear IV estimators," Economics Letters, Elsevier, vol. 117(3), pages 762-766.
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    More about this item

    Keywords

    Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Food Security and Poverty;
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