FOOD SAFETY REGULATION, PRODUCT PRICING, AND PROFITABILITY: THE CASE OF HACCP
Michael A. Mazzocco and
Floyd K. McKeith
No 23077, AE Series from North Dakota State University, Department of Agribusiness and Applied Economics
This paper assesses the impact of mandatory Hazard Analysis of Critical Control Points (HACCP) regulation on output price for small meat processors and packers and evaluates implications for firm-level profitability. The importance of HACCP regulation and pricing is an issue that deserves in-depth analysis because of its implications for the survival of small firms in the meat industry. To investigate this issue a survey was sent to meat processors and packers in the United States to collect data on HACCP expenses, output price before and after HACCP implementation, and inputs prices and quantities. Although output price did not increase significantly to compensate for HACCP expenses, analysis of the translog profit function revealed that small firms were more profitable after HACCP implementation. Other than price increase, these results suggest that HACCP provide incentives like reduced product rework to small firms.
Keywords: Food; Consumption/Nutrition/Food; Safety (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ags:nddaes:23077
Access Statistics for this paper
More papers in AE Series from North Dakota State University, Department of Agribusiness and Applied Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().