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Meat And Poultry Plants' Food Safety Investments: Survey Findings

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

Abstract

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

Suggested Citation

  • 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.
  • Handle: RePEc:ags:uerstb:33559
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    References listed on IDEAS

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    1. Ollinger, Michael & Fernandez-Cornejo, Jorge, 1998. "Innovation And Regulation In The Pesticide Industry," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(1), April.
    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. 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.
    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. 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.
    6. 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.
    7. 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.
    8. 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.
    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. 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.
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    Citations

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    Cited by:

    1. Deepananda Herath & Zuhair Hassan & Spencer Henson, 2007. "Adoption of Food Safety and Quality Controls: Do Firm Characteristics Matter? Evidence from the Canadian Food Processing Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(3), pages 299-314, September.
    2. 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.
    3. Bulut, Harun & Lawrence, John D., 2007. "Meat Slaughter and Processing Plants' Traceability Levels Evidence From Iowa," Staff General Research Papers Archive 12791, Iowa State University, Department of Economics.
    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. 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.
    6. Resende-Filho, Moises & Buhr, Brian, 2007. "Economics of traceability for mitigation of food recall costs," MPRA Paper 3650, University Library of Munich, Germany.
    7. Tuba Pekkirbizli & Mohamad Isam Almadani & Ludwig Theuvsen, 2015. "Food safety and quality assurance systems in Turkish agribusiness: an empirical analysis of determinants of adoption," ECONOMIA AGRO-ALIMENTARE, FrancoAngeli Editore, vol. 17(3), pages 31-55.
    8. Ragona, Maddalena & Mazzocchi, Mario, 2008. "Measuring the Impacts of Food Safety Regulations: A Methodological Review," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43864, European Association of Agricultural Economists.
    9. 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).
    10. Ragona, Maddalena & Mazzocchi, Mario, 2008. "Impact Evaluation of Food Safety Regulations: A Review of Quantitative Methods," 110th Seminar, February 18-22, 2008, Innsbruck-Igls, Austria 49887, European Association of Agricultural Economists.
    11. 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).
    12. 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.
    13. 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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