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Abstract
This article investigates the potential gains to the U.S. meat
sector with the implantation of the U.S. National Animal Identification
System (NAIS). The focus is on the effect that the NAIS could have on
consumers’ risk perception about eating meat. System of demand equations
are estimated using time series of food safety indexes variables
used as proxies for consumers’ reactions to news on meat safety issues.
The series of food safety indexes are built on the basis of the number of
food safety news reported in top U.S. newspapers. Using the preferred
model estimates, three scenarios are constructed in order to account for
the cases wherein the NAIS is not implemented, is implemented only
for beef and is implemented for beef and pork. The differences in the
estimated total revenues for each scenario are used as a gross measure
of the NAIS benefit for each type of meat. The main conclusion is that
the gains for the beef and pork sectors would be capable of covering the
costs of the NAIS implementation. However, this result depends on how
much of these potential gains will arrive at primary producers.