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HACCP in Pork Processing: Costs and Benefits

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  • Jensen, Helen H.
  • Unnevehr, Laurian J.

Abstract

To help pork processing firms evaluate the costs of pathogen-reducing interventions, Jensen and Unnevehr explore the various trade-offs associated with multiple pathogen reduction targets. They find that the costs of individual pathogen reduction technologies range from $0.03 to $0.20 per carcass for hogs, and the costs of optimal combinations of technologies may be as high a $0.47 per carcass. While these estimates represent less than 2 percent of packing costs, they are still considerably larger than initial FSIS estimates of the Hazard Analysis and Critical Control Point systems (HACCP) costs to industry. Jensen and Unnevehr note, however, that improvements in food safety may be achieved through relatively modest investments in large plants.

Suggested Citation

  • Jensen, Helen H. & Unnevehr, Laurian J., 1999. "HACCP in Pork Processing: Costs and Benefits," Staff General Research Papers Archive 1632, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:1632
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    References listed on IDEAS

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    1. Marvin L. HAYENGA, 1997. "Cost Structures Of Pork Slaughter And Processing Firms: Behavioral And Performance Implications," Staff Papers 287, Iowa State University Department of Economics.
    2. Tanya Roberts & Jean C. Buzby & Michael Ollinger, 1996. "Using Benefit and Cost Information to Evaluate a Food Safety Regulation: HACCP for Meat and Poultry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1297-1301.
    3. James M. MacDonald & Stephen Crutchfield, 1996. "Modeling the Costs of Food Safety Regulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1285-1290.
    4. Morrison, Rosanna Mentzer & Buzby, Jean C. & Lin, C.T. Jordan, 1997. "Irradiating Ground Beef to Enhance Food Safety," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 20(1), pages 1-5.
    5. Helfand, Gloria E, 1991. "Standards versus Standards: The Effects of Different Pollution Restrictions," American Economic Review, American Economic Association, vol. 81(3), pages 622-634, June.
    6. Bryan E. Melton & Wallace E. Huffman, 1995. "Beef and Pork Packing Costs and Input Demands: Effects of Unionization and Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 471-485.
    7. Hayenga, Marvin L., 1997. "Cost Structures of Pork Slaughter and Processing Firms: Behavioral and Performance Implications," ISU General Staff Papers 199705200700001287, Iowa State University, Department of Economics.
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    Cited by:

    1. Hooker, Neal H. & Teratanavat, Ratapol P. & Salin, Victoria, 2005. "Crisis management effectiveness indicators for US meat and poultry recalls," Food Policy, Elsevier, vol. 30(1), pages 63-80, February.
    2. Jayasinghe-Mudalige, Udith K. & Henson, Spencer J., 2004. "Quantifying The Impact Of Economic Incentives On Firms' Food Safety Responsiveness: The Case Of Red Meat And Poultry Processing Sector In Canada," 2004 Annual meeting, August 1-4, Denver, CO 20419, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Antle, John M., 1999. "Benefits and costs of food safety regulation," Food Policy, Elsevier, vol. 24(6), pages 605-623, December.
    4. Cao, Kay & Maurer, Oswin & Scrimgeour, Frank G. & Dake, Chris K.G., 2005. "Estimating The Cost Of Food Safety Regulations To The New Zealand Seafood Industry," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 13.
    5. Hinson, Roger A. & Whitley, Daniel B., 2001. "Technology Adoption In Oyster Processing: A Haccp Stimulus?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(1), pages 1-4, March.
    6. Hinson, Roger A. & Whitley, Daniel B., 2003. "Cost Of And Approaches To Haccp Implementation: An Oyster Industry Example," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(3), pages 1-9, November.
    7. Miller, Gay Y. & Liu, Xuanli & McNamara, Paul E. & Barber, David A., 2004. "The Influence Of Salmonella In Pigs Pre-Harvest On Salmonella Human Health Costs And Risk From Pork," 2004 Annual meeting, August 1-4, Denver, CO 20258, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Romano, Donato & Cavicchi, Alessio & Rocchi, Benedetto & Stefani, Gianluca, 2004. "Costs and Benefits of Compliance for HACCP Regulation in the Italian Meat and Dairy Sector," 84th Seminar, February 8-11, 2004, Zeist, The Netherlands 24983, European Association of Agricultural Economists.

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