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The Incidence of Producer Welfare Losses from Food Safety Regulation in the Meat Industry

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  • Laurian J. Unnevehr
  • Miguel I. Gómez
  • Philip Garcia

Abstract

The article examines how new regulations to reduce microbial pathogens may influence competitiveness among beef, pork, and poultry. A multimarket model is used to simulate the effects of increased costs on producer welfare losses, taking into account cost differences among meats and substitutions in consumption. Producer losses will be higher for meat products with more processing plants, larger own-price elasticities, and substitution effects that work against them. For example, poultry's estimated losses are the lowest, due to a relatively small number of plants, small own-price effects, and substitutions into poultry with the increased relative prices of other meats.

Suggested Citation

  • Laurian J. Unnevehr & Miguel I. Gómez & Philip Garcia, 1998. "The Incidence of Producer Welfare Losses from Food Safety Regulation in the Meat Industry," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(1), pages 186-201.
    • Handle: RePEc:oup:revage:v:20:y:1998:i:1:p:186-201.
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    File URL: http://hdl.handle.net/10.2307/1349542
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    Citations

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    Cited by:

    1. Shiptsova, Rimma & Thomsen, Michael R. & Goodwin, Harold L., Jr., 2002. "Producer Welfare Changes From Meat And Poultry Recalls," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(2), pages 1-9, July.
    2. Zhigang Wang & Huina Yuan & Fred Gale, 2009. "Costs of Adopting a Hazard Analysis Critical Control Point System: Case Study of a Chinese Poultry Processing Firm," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 574-588.
    3. Roland Herrmann & Gerhard Scherhorn & Stefan Tangermann & Christoph Weiss & Martin Wille, 2001. "Größerer Verbraucherschutz durch mehr Regulierung?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(06), pages 3-18, September.
    4. 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.
    5. Rude, James & Meilke, Karl D., 2004. "Developing Policy Relevant Agrifood Models," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(2), pages 1-14, August.
    6. Martinez, Stephen W. & Zering, Kelly D., 2004. "Pork Quality And The Role Of Market Organizaton," Agricultural Economic Reports 33973, United States Department of Agriculture, Economic Research Service.
    7. 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.
    8. Lusk, Jayson L. & Anderson, John D., 2003. "Modeling The Effects Of Country Of Origin Labeling On Meat Producers And Consumers," Staff Papers 28660, Purdue University, Department of Agricultural Economics.
    9. Giovannucci, Daniele & Reardon, Thomas, 2000. "Understanding Grades and Standards: and how to apply them," MPRA Paper 13549, University Library of Munich, Germany.

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