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Managing For Safer Food: The Economics Of Sanitation And Process Controls In Meat And Poultry Plants

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  • Ollinger, Michael
  • Mueller, Valerie

Abstract

Sanitation and process control costs increased the costs of producing meat and poultry by about 0.5 percent in the period preceding the promulgation of the Pathogen Reduction/Hazard Analysis and Critical Control Point (PR/HACCP) rule of 1996. However, there was no benefit in trying to avoid these costs. Large slaughter plants and all further-processing plants with poor performance of sanitation and food safety process controls were more likely to exit their industries than other plants. Moreover, the fraction of costs required for sanitation and process control was about the same for large plants as for small plants, suggesting that larger plants were no better able than small plants to absorb sanitation and process control costs. Results also suggest that PR/HACCP raised wholesale meat and poultry prices by about 1 percent.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:uerser:33975
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    Citations

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    Cited by:

    1. Ollinger, Michael, 2009. "The Cost of Food Safety Technologies in the Meat and Poultry Industries," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 48783, Agricultural and Applied Economics Association.
    2. Goldsmith, Peter D. & Turan, Nesve A. & Gow, Hamish R., 2004. "Firms, Incentives, And The Supply Of Food Safety: A Formal Model Of Government Enforcement," 2004 Annual meeting, August 1-4, Denver, CO 20343, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Ratapol Teratanavat & Victoria Salin & Neal H. Hooker, 2005. "Recall event timing: Measures of managerial performance in U.S. meat and poultry plants," Agribusiness, John Wiley & Sons, Ltd., vol. 21(3), pages 351-373.
    4. Mollie Woods & Suzanne Thornsbury & Kellie Curry Raper & Richard N. Weldon, 2006. "Regional Trade Patterns: The Impact of Voluntary Food Safety Standards," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 531-553, December.
    5. 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.
    6. Ollinger, Michael & Moore, Danna & Chandran, Ram, 2004. "Meat and Poultry Plants' Food Safety Investments : Survey Findings," Technical Bulletins 184316, United States Department of Agriculture, Economic Research Service.
    7. Michael Ollinger & Danna Moore, 2008. "Market Forces, Plant Technology, and the Food Safety Technology Use," Working Papers 08-14, Center for Economic Studies, U.S. Census Bureau.
    8. Woods, Mollie & Thornsbury, Suzanne & Raper, Kellie Curry & Weldon, Richard N. & Wysocki, Allen F., 2003. "Food Safety And Fresh Strawberry Markets," Staff Papers 11712, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    9. Ollinger, Michael & Bovay, John & Guthrie, Joanne & Benicio, Casiano, 2015. "Economic Incentives to Supply Safe Chicken to the National School Lunch Program," Economic Research Report 212888, United States Department of Agriculture, Economic Research Service.
    10. Bremmers, Harry J. & van der Meulen, Bernd M.J. & Sredojevi, Zorica & Wijnands, Jo H.M., 2012. "Legal-Economic Barriers to Price Transfers in Food Supply Chains," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 6.
    11. 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;Western Agricultural Economics Association.
    12. 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).
    13. Ollinger, Michael & Benicio, Casiano, 2014. "The Food Safety Performance of Chicken Suppliers to the National School Lunch Program," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169380, Agricultural and Applied Economics Association.
    14. repec:oup:revage:v:30:y:2008:i:2:p:289-310. is not listed on IDEAS
    15. 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.
    16. Ollinger, Michael, 2008. "Structural Change in the Meat and Poultry Industry and the Pathogen Reduction Hazard Analysis Critical Control Point Rule," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 36747, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Ollinger, Michael & Taha, Fawzi A., 2015. "U.S. Domestic Salmonella Regulations and Access to European and Other Poultry Export Markets," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 18(A).
    18. Wang, Zhigang & Mao, Yanna & Gale, Fred, 2008. "Chinese consumer demand for food safety attributes in milk products," Food Policy, Elsevier, vol. 33(1), pages 27-36, February.
    19. Hooker, Neal H. & Teratanavat, Ratapol P. & Salin, Victoria, 2005. "Crisis management effectiveness indicators for US meat and poultry recalls," Food Policy, Elsevier, vol. 30(1), pages 63-80, February.
    20. Ollinger, Michael & Muth, Mary K. & Karns, Shawn A. & Choice, Zanethia, 2011. "Food Safety Audits, Plant Characteristics, and Food Safety Technology Use in Meat and Poultry Plants," Economic Information Bulletin 117989, United States Department of Agriculture, Economic Research Service.
    21. Kinsey, Jean D., 2004. "Does Food Safety Conflict With Food Security? The Safe Consumption Of Food," Working Papers 14326, University of Minnesota, The Food Industry Center.
    22. Ollinger, Michael & Moore, Danna L., 2009. "The Interplay of Regulation and Marketing Incentives in Providing Food Safety," Economic Research Report 55837, United States Department of Agriculture, Economic Research Service.

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