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Abstract

U.S. Poultry exports over the past twenty years have risen dramatically. But, concern over Salmonella has threatened access to some traditional export markets. This paper examines the economic forces driving recent reductions in Salmonella on U.S. chicken and discusses the implications of these reductions for U.S. poultry exports. Empirical results suggest that plant size and regulatory changes have contributed to a 50 percent reduction in Salmonella on chicken. These lower Salmonella levels will likely strengthen the U.S. bargaining position in trade negotiations and enhance the U.S. reputation in world trade but will not likely result in immediate export gains.

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