A model for estimating industry compliance costs of food labeling regulations

Michael T. French, Dierdre M. Neighbors, Lori K. Carswell, Richard A. Williams and Laina M. Bush
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Michael T. French: Center for Economics Research, Research Triangle Park, North Carolina, Postal: Center for Economics Research, Research Triangle Park, North Carolina
Dierdre M. Neighbors: Center for Economics Research, Research Triangle Park, North Carolina, Postal: Center for Economics Research, Research Triangle Park, North Carolina
Lori K. Carswell: Center for Economics Research, Research Triangle Park, North Carolina, Postal: Center for Economics Research, Research Triangle Park, North Carolina
Richard A. Williams: Office of Compliance, Center for Food Safety and Applied Nutrition, US Food and Drug Administration, Postal: Office of Compliance, Center for Food Safety and Applied Nutrition, US Food and Drug Administration
Laina M. Bush: Office of Compliance, Center for Food Safety and Applied Nutrition, US Food and Drug Administration, Postal: Office of Compliance, Center for Food Safety and Applied Nutrition, US Food and Drug Administration

Agribusiness, 1992, vol. 8, issue 2, 165-186

Abstract: One of the most publicized and controversial issues in the food industry today is whether or not food labels convey the appropriate product information to consumers. This study models firms' response to labeling mandates and estimates the costs to the food industry of new or revised labeling regulations. Lengthy personal interviews were conducted with 30 domestic food manufacturers and a questionnaire was administered to nearly 1,500 food manufacturing firms. The model incorporates variables to adjust for the type of food manufactured, the number and sizes of the firms affected, the frequency of label redesigning, the type of printing equipment used, the value of labels ordered, and the frequency of inventory turnover. The model is used to estimate the compliance costs for two past labeling regulations-sulfiting agents and sodium.

Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:8:y:1992:i:2:p:165-186

DOI: 10.1002/1520-6297(199203)8:2<165::AID-AGR2720080208>3.0.CO;2-A

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