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The Direct and Indirect Costs of Food Safety Regulation

Author

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  • Michael Ollinger
Abstract
The cost of compliance with the Pathogen Reduction Hazard Analysis Critical Control Program (PR/HACCP) rule of 1996 has been controversial since it was first proposed. Surveys have provided some cost information but examined plant size and other indirect effects with limited data and did not make cost estimates of direct cost components, such as mandated tasks. This paper addresses those deficiencies with data from a national survey of meat and poultry plants on PR/HACCP costs. Results indicate that (1) mandated tasks are the most costly component of the PR/HACCP rule, (2) regulation favors large plants over small ones, and (3) private actions are nearly as costly as direct regulation.

Suggested Citation

  • Michael Ollinger, 2008. "The Direct and Indirect Costs of Food Safety Regulation," Working Papers 08-31, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:08-31
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    File URL: https://www2.census.gov/ces/wp/2008/CES-WP-08-31.pdf
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    References listed on IDEAS

    as
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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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