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Abstract

This paper uses plant-level micro-data covering the 1987-2002 and a translog cost function to estimate long-run costs in the meat and poultry industry in order to evaluate the impact of the Pathogen Reduction Hazard Analysis Critical Control Point Rule on cattle, hog and chicken slaughter and prepared pork products and sausage-making industries. Results suggest that costs rose in the cattle and hog slaughter and prepared pork products industries and the cost shares of meat declined and of labor and capital rose. There is little evidence that events over the period favored large or small plants.

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