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Food-safety test performance and public disclosure: The value of information in encouraging improvements in food safety in the chicken-slaughter industry

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  • Ollinger, Michael
  • Bovay, John
  • Hrdlicka, Megan
  • Wilkus, James

Abstract

This paper examines the impact of changes in the regulatory standards enforced by the USDA Food Safety and Inspection Service on the Salmonella test performance of chicken-slaughter establishments. Regulatory changes include open disclosure of establishments with poor performance on Salmonella tests and rigorous Salmonella standards. Empirical results show that public disclosure of establishments with mediocre or poor levels of performance on Salmonella tests led to a substantial drop in Salmonella levels over the 2008−2010 period, which allowed FSIS to later reduce its tolerance for acceptable levels of Salmonella in chicken by 50 percent.

Suggested Citation

  • Ollinger, Michael & Bovay, John & Hrdlicka, Megan & Wilkus, James, 2015. "Food-safety test performance and public disclosure: The value of information in encouraging improvements in food safety in the chicken-slaughter industry," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205408, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea15:205408
    DOI: 10.22004/ag.econ.205408
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    File URL: http://ageconsearch.umn.edu/record/205408/files/ollinger_bovay_aaea_food_safety%20_categories_05_29_15-jb-mo.pdf
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    References listed on IDEAS

    as
    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. 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. Thomas Marsh & Ted Schroeder & James Mintert, 2004. "Impacts of meat product recalls on consumer demand in the USA," Applied Economics, Taylor & Francis Journals, vol. 36(9), pages 897-909.
    4. Michael Ollinger & Danna Moore, 2009. "The Direct and Indirect Costs of Food-Safety Regulation," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(2), pages 247-265, June.
    5. Victoria Salin & Neal H. Hooker, 2001. "Stock Market Reaction to Food Recalls," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 23(1), pages 33-46.
    6. Golan, Elise H. & Roberts, Tanya & Salay, Elisabete & Caswell, Julie A. & Ollinger, Michael & Moore, Danna L., 2004. "Food Safety Innovation In The United States: Evidence From The Meat Industry," Agricultural Economics Reports 34083, United States Department of Agriculture, Economic Research Service.
    7. A. Colin Cameron & Douglas L. Miller, 2015. "A Practitioner’s Guide to Cluster-Robust Inference," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 317-372.
    8. Michael R. Thomsen & Andrew M. McKenzie, 2001. "Market Incentives for Safe Foods: An Examination of Shareholder Losses from Meat and Poultry Recalls," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 526-538.
    9. 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.
    10. Ollinger, Michael & Guthrie, Joanne & Bovay, John, 2014. "The Food Safety Performance of Ground Beef Suppliers to the National School Lunch Program," Economic Research Report 262211, United States Department of Agriculture, Economic Research Service.
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    More about this item

    Keywords

    Agribusiness; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Industrial Organization;

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