The Incidence of Producer Welfare Losses from Food Safety Regulation in the Meat Industry

Laurian Unnevehr, Miguel Gomez and Philip Garcia

Review of Agricultural Economics, 1998, vol. 20, issue 1, 186-201

Abstract: The article examines how new regulations to reduce microbial pathogens may influence competitiveness among beef, pork, and poultry. A multimarket model is used to simulate the effects of increased costs on producer welfare losses, taking into account cost differences among meats and substitutions in consumption. Producer losses will be higher for meat products with more processing plants, larger own-price elasticities, and substitution effects that work against them. For example, poultry's estimated losses are the lowest, due to a relatively small number of plants, small own-price effects, and substitutions into poultry with the increased relative prices of other meats.

Date: 1998
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