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Sanitary Regulation of the Fluid Milk Industry: Inspection, Cost, and Barriers to Market Expansion

Author

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  • Jones, W. Webster

Abstract

This study, based on an industry survey, shows that regulation by sanitary authorities cost fluid milk plants an estimated $3,895,637 in 1967. Of this total cost, $3,382,449 was for plant fees and $513,188 for other expenditures associated with plant inspections. Regulation by primary authorities accounted for 83.7 percent of the total cost and regulations by other authorities, 16.3 percent. The 1,249 plants reporting were regulated by an average of 4.8 sanitary authorities--one primary and 3.8 other. Plant inspections by these authorities averaged 23.9, of which three-fourths were primary. Significant differences existed between the sanitary requirements of authorities regulating many plants. These tended to restrict the flow of milk between markets, and lead to excessive duplication in plant inspections. Greater use of reciprocal agreements between sanitary authorities would reduce the amount and cost of duplicative regulation.

Suggested Citation

  • Jones, W. Webster, 1970. "Sanitary Regulation of the Fluid Milk Industry: Inspection, Cost, and Barriers to Market Expansion," Marketing Research Reports 313646, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.
    • Handle: RePEc:ags:uamsmr:313646
    DOI: 10.22004/ag.econ.313646
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    File URL: https://ageconsearch.umn.edu/record/313646/files/mrr889.pdf
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    Cited by:

    1. Helmberger, Peter G. & Campbell, Gerald R. & Dobson, William D., 1981. "PART IV. Organization and Performance of Agricultural Markets," AAEA Monographs, Agricultural and Applied Economics Association, number 337229, january.

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