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The Direct and Indirect Costs of Food-Safety Regulation

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  • Michael Ollinger
  • Danna Moore

Abstract

The compliance costs of the Pathogen Reduction Hazard Analysis Critical Control Program (PR/HACCP) rule have been controversial. Previous reports have used limited data to evaluate its overall and component costs. This paper addresses those deficiencies by examining compliance costs with data from a national survey of meat and poultry plants. Results indicate that (a) regulation favors large, more specialized plants over small, diversified ones, (b) private actions incur considerable costs, and (c), except for chicken slaughter, Federally mandated processing tasks are 160–500% more costly than allowing plants to meet standards using whatever food-safety technology they choose.

Suggested Citation

  • 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.
    • Handle: RePEc:oup:revage:v:31:y:2009:i:2:p:247-265.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2009.01436.x
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    1. The Direct and Indirect Costs of Food Safety Regulation
      by Sui-Jade in Journalist's Resource on 2010-06-04 00:19:08

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    1. 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, vol. 18(A), pages 1-16, 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. Ollinger, Michael & Wilkus, James & Hrdlicka, Megan & Bovay, John, 2017. "Public Disclosure of Tests for Salmonella: The Effects on Food Safety Performance in Chicken Slaughter Establishments," Economic Research Report 262183, United States Department of Agriculture, Economic Research Service.
    4. Ollinger, Michael & Houser, Matthew, 2020. "Ground beef recalls and subsequent food safety performance," Food Policy, Elsevier, vol. 97(C).
    5. Pozo, Veronica F. & Schroeder, Ted C., 2013. "Effects of Meat Recalls on Firms' Stock Prices," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151287, Agricultural and Applied Economics Association.
    6. 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.
    7. Ollinger, Michael, 2024. "Recall characteristics and food safety process control," Food Policy, Elsevier, vol. 124(C).
    8. Michael Ollinger & John Bovay, 2020. "Producer Response to Public Disclosure of Food‐Safety Information," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 186-201, January.
    9. 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.
    10. Ollinger, Michael & Guthrie, Joanne & Bovay, John, 2014. "The Food Safety Performance of Ground Beef Suppliers to the National School Lunch Program," Economic Research Report 262211, United States Department of Agriculture, Economic Research Service.

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