THE IMPACT OF HACCP ON COSTS AND PRODUCT EXIT

Detailed information on firm level food safety costs is reported. Survey data for small and very small meat processors are modeled. Economies of scale in implementing Hazard Analysis Critical Control Point (HACCP) systems are investigated. Results indicate that even after controlling for scale, ver small plants incur higher compliance costs. Diseconomies of scope are assessed using the probability and number of products discontinued due to HACCP. Such "partial exit" is positively related to the current range of items produced and the need for facility modification. However, no evidence is found for higher levels of partial exit in very small plants.


Issue Date:
2002-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/15513
Published in:
Journal of Agricultural and Applied Economics, Volume 34, Number 1
Page range:
165-174
Total Pages:
10




 Record created 2017-04-01, last modified 2017-04-04

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