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Meat And Poultry Plants' Food Safety Investments: Survey Findings

  • Ollinger, Michael
  • Moore, Danna L.
  • Chandran, Ram

Results from the first national survey of the types and amounts of food safety investments made by meat and poultry slaughter and processing plants since the late 1990s provide evidence that market forces have worked in conjunction with regulation to promote the use of more sophisticated food safety technologies. From 1996 through 2000, U.S. plants as a group spent about $380 million annually and made $570 million in long-term investments to comply with USDA's 1996 Pathogen Reduction/Hazard Analysis and Critical Control Point (PR/HACCP) regulation, according to a survey initiated by the Economic Research Service. The U.S. meat and poultry industry as a whole during the same time period spent an additional $360 million on food safety investments that were not required by the PR/HACCP rule. Implementation of the regulation began in 1997 and was mandated by early 2000 in all sizes and types of meat and poultry slaughter and processing plants. The full HACCP surveys referenced in this technical bulletin are available at: http://www.ers.usda.gov/data/haccpsurvey

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Paper provided by United States Department of Agriculture, Economic Research Service in its series Technical Bulletins with number 33559.

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Date of creation: 2004
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Handle: RePEc:ags:uerstb:33559
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  1. Lacy Glenn Thomas, 1990. "Regulation and Firm Size: FDA Impacts on Innovation," RAND Journal of Economics, The RAND Corporation, vol. 21(4), pages 497-517, Winter.
  2. Laurian J. Unnevehr & Helen H. Jensen, 1996. "HACCP as a Regulatory Innovation to Improve Food Safety in the Meat Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 764-769.
  3. 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.
  4. John D. Lawrence & Ted C. Schroeder & Marvin L. Hayenga, 2001. "Evolving Producer-Packer-Customer Linkages in the Beef and Pork Industries," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 23(2), pages 370-385.
  5. 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.
  6. Michael Ollinger & Jorge Fernandez-Cornejo, 1995. "Innovation and Regulation in the Pesticide Industry," Working Papers 95-14, Center for Economic Studies, U.S. Census Bureau.
  7. James M. MacDonald & Michael E. Ollinger, 2001. "Scale Economies and Consolidation in Hog Slaughter: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 1084-1086.
  8. Pashigian, B Peter, 1984. "The Effect of Environmental Regulation on Optimal Plant Size and Factor Shares," Journal of Law and Economics, University of Chicago Press, vol. 27(1), pages 1-28, April.
  9. James M. MacDonald & Michael E. Ollinger, 2000. "Scale Economies and Consolidation in Hog Slaughter," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 334-346.
  10. Crutchfield, Stephen R. & Buzby, Jean C. & Roberts, Tanya & Ollinger, Michael & Lin, Chung-Tung Jordan, 1997. "Economic Assessment of Food Safety Regulations: The New Approach to Meat and Poultry Inspection," Agricultural Economics Reports 34009, United States Department of Agriculture, Economic Research Service.
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