Producer incentives and plant investments for Salmonella control in pork supply chains

Gé B.C. Backus and Robert King

European Review of Agricultural Economics, 2008, vol. 35, issue 4, 547-562

Abstract: This paper presents a unified analysis of dynamic producer incentive systems for Salmonella control in primary production and slaughter plant investments in Salmonella control measures. We identify optimal incentive system parameters and cost-effective control strategies for achieving various levels of Salmonella prevalence. We compare the performance measures of the combined plant-level control and producer incentive system with results obtained under a producer incentive system only. The combined system allocates control effort among producers and the slaughter plant, resulting in 25--83 per cent lower expected total control cost for a wide range of threshold values. Oxford University Press and Foundation for the European Review of Agricultural Economics 2008; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Date: 2008
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