The Impact of HACCP on Costs and Product Exit

Neal Hooker, Rodolfo Nayga and John W. Siebert

Journal of Agricultural and Applied Economics, 2002, vol. 34, issue 1, 165-174

Abstract: Detailed information on firm level food safety costs is reported. Survey data for small and very small meat processors are modeled. Economies of scale in implementing Hazard Analysis Critical Control Point (HACCP) systems are investigated. Results indicate that even after controlling for scale, very small plants incur higher compliance costs. Diseconomies of scope are assessed using the probability and number of products discontinued due to HACCP. Such “partial exit” is positively related to the current range of items produced and the need for facility modification. However, no evidence is found for higher levels of partial exit in very small plants.

Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jagaec:v:34:y:2002:i:01:p:165-174_00

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