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An evaluation of the USDA's policy to reduce listeria illnesses in ready‐to‐eat meat and poultry products

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  • Travis Minor
  • Matt Parrett

Abstract

Using 1998–2008 data collected by the Centers for Disease Control and Prevention on foodborne illnesses and outbreaks, we examine the economic impact of the United States Department of Agriculture's proposed and final rules to reduce the incidence of Listeria monocytogenes (Lm) in ready‐to‐eat meat and poultry products. Using a difference‐in‐differences approach, we find that these rules together reduced meat‐related Lm illnesses by about 60 per year, which we attribute to reductions in both the number and average size of meat‐related Lm outbreaks. We then monetize this illness reduction using an underreporting and underdiagnosis multiplier of 2.3 and an estimate of the mean cost of a Lm illness of $1.5 million and find that these rules generated about $208 million per year in cost savings, which compares favorably to the rules’ estimated annual cost of roughly $22 million. [EconLit citations: I18, Q18].

Suggested Citation

  • Travis Minor & Matt Parrett, 2020. "An evaluation of the USDA's policy to reduce listeria illnesses in ready‐to‐eat meat and poultry products," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 347-362, June.
    • Handle: RePEc:wly:agribz:v:36:y:2020:i:3:p:347-362
    DOI: 10.1002/agr.21642
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    References listed on IDEAS

    as
    1. Travis Minor & Matt Parrett, 2016. "A retrospective review of the economic impact of the food and drug administration's proposed egg rule," Agricultural Economics, International Association of Agricultural Economists, vol. 47(4), pages 457-464, July.
    2. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    3. Solomon Asfaw & Dagmar Mithöfer & Hermann Waibel, 2010. "Agrifood supply chain, private‐sector standards, and farmers' health: evidence from Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 251-263, May.
    4. Minor, Travis & Parrett, Matt, 2017. "The economic impact of the Food and Drug Administration’s Final Juice HACCP Rule," Food Policy, Elsevier, vol. 68(C), pages 206-213.
    5. Travis Minor & Angela Lasher & Karl Klontz & Bradley Brown & Clark Nardinelli & David Zorn, 2015. "The Per Case and Total Annual Costs of Foodborne Illness in the United States," Risk Analysis, John Wiley & Sons, vol. 35(6), pages 1125-1139, June.
    6. Julius J. Okello & Scott M. Swinton, 2010. "From Circle of Poison to Circle of Virtue: Pesticides, Export Standards and Kenya’s Green Bean Farmers," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 209-224, June.
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