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Motivation For and Cost of HACCP

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  • Deodhar, Satish Y.

Abstract

To remain quality competitive in the post-WTO regime, Indian food processing firms would have to adopt a food safety management system - Hazard Analysis and Critical Control Points (HACCP). It is necessary to understand, therefore, in what way the system benefits firms, and, what are the costs of HACCP implementation. This paper does that. Data on reasons for and cost of HACCP implementation was generated through questionnaire survey of food processing firms. Analysis was performed using factor analysis, contingency tables and chi-square tests. While quality and production related factors motivate firms to employ HACCP, trade associations are not at all instrumental in promoting the system. Set-up cost and operating cost vary with the type of food sub-sector and the size of firm. Government and trade associations may facilitate sector specific concessional loans for HACCP implementation and initiate training programmes. Economies of scale are important in HACCP adoption, hence Indian firms may want to go for horizontal and/or vertical integration.

Suggested Citation

  • Deodhar, Satish Y., 2003. "Motivation For and Cost of HACCP," IIMA Working Papers WP2003-05-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:wp00076
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    Cited by:

    1. Oliver Masakure & John Cranfield & Spencer Henson, 2009. "Factors affecting the incidence and intensity of standards certification evidence from exporting firms in Pakistan," Applied Economics, Taylor & Francis Journals, vol. 43(8), pages 901-915.
    2. Wu, Zhen & Wachenheim, Cheryl J., 2013. "Quantitative Cost Model of HACCP Implementation," Agribusiness & Applied Economics Report 142596, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. Darroch, Mark A.G., 2010. "South African Farmers’ Perceptions of the Benefits and Costs of Complying with EUREPGAP to Export Fresh Citrus to the European Union (EU)," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96437, African Association of Agricultural Economists (AAAE).

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