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HACCP implementation and economic optimality in turkey processing

William Nganje, Simeon Kaitibie and Alexander Sorin
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Simeon Kaitibie: International Livestock Research Institute, Nairobi, Kenya, Postal: International Livestock Research Institute, Nairobi, Kenya
Alexander Sorin: Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND 58105, Postal: Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND 58105

Agribusiness, 2007, vol. 23, issue 2, 211-228

Abstract: Regulatory impact assessment suggests that Hazard Analysis and Critical Control Points (HACCP) is a cost-effective food safety regulation that is highly beneficial to society. This study focuses on firm-level costs and benefits from adoption of specific critical control points. A stochastic optimization framework is used to determine optimal testing and sampling strategies for Salmonella reduction in turkey processing. Results show that under The Food Safety Inspection Service (FSIS) mandated tolerance levels, processors need to designate no more than five critical control points, three more than what is included in the generic HACCP plan. Moves to tighten tolerances should be considered carefully because additional implementation costs tend to increase exponentially. [EconLit Citations: Q18, D81, C61] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 211-228, 2007.

Date: 2007
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DOI: 10.1002/agr.20119

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