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The Interplay of Regulation and Marketing Incentives in Providing Food Safety

  • Ollinger, Michael
  • Moore, Danna L.

This report examines the impact of process regulations mandated under the Pathogen Reduction/Hazard Analysis and Critical Control Point (PR/HACCP) rule by the Food Safety and Inspection Service of USDA on food safety process control. The current level of food safety found in U.S. meat and poultry food products is a result of process and performance regulations and management-determined actions brought about by market incentives. Processing regulations include sanitation and other tasks related to food safety; management-determined actions include capital investment and other actions independent of process regulations, but possibly driven by performance standards. Performance standards—regulations that allow manufacturers to reach an acceptable level of food safety in any manner they see fit—are not a subject of this report. This study used the share of samples testing positive for Salmonella spp. as a measure of food safety process control in meat and poultry processing plants and found empirically that management-determined actions account for about two-thirds of the reduction in samples testing positive for Salmonella spp., while process regulations account for about a third of the reduction. The importance of process regulation varies, but accounts for 50 percent or more of process control in about a quarter of plants, and in some plants accounts for the entire process control system.

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File URL: http://purl.umn.edu/55837
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Paper provided by United States Department of Agriculture, Economic Research Service in its series Economic Research Report with number 55837.

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Date of creation: Jul 2009
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Handle: RePEc:ags:uersrr:55837
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  1. 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.
  2. Spencer Henson & James Northen, 1998. "Economic determinants of food safety controls in supply of retailer own-branded products in United Kingdom," Agribusiness, John Wiley & Sons, Ltd., vol. 14(2), pages 113-126.
  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. Starbird, S. Andrew, 2005. "Supply Chain Contracts and Food Safety," Choices, Agricultural and Applied Economics Association, vol. 20(2).
  5. Nicholas E. Piggott & Thomas L. Marsh, 2004. "Does Food Safety Information Impact U.S. Meat Demand?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 154-174.
  6. 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.
  7. Hayri �nal & Laurian Unnevehr & Aleksandar Bekric, 2000. "Regional Shifts in Pork Production: Implications for Competition and Food Safety," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 968-978.
  8. Jeffrey J. Reimer, 2006. "Vertical Integration in the Pork Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 234-248.
  9. 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.
  10. 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.
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