Variability in the Impact on Industry of Food Safety Regulation: a Review of Ex Post Analyses

The report reviews studies on the costs incurred by companies in complying with food safety regulation across meat, leafy greens, almond and orange industries. The cost comparison is based on changes in average costs from surveys of companies affected by government regulations and by voluntary industry programs. The results show that the compliance costs varied across companies of different sizes with medium-sized companies incurring the largest cost in three of the four industries considered. In addition, cost function estimation preand post-regulation demonstrates that companies producing higher-value meat products tend to experience higher costs and greater variation in costs than do slaughter businesses and processors of raw meat. The Agribusiness, Food, and Consumer Economics Research Center (AFCERC) provides analyses, strategic planning, and forecasts of the market conditions impacting domestic and global agricultural, agribusiness, and food industries. Our high-quality, objective, and timely research supports strategic decision-making at all levels of the supply chain from producers to processors, wholesalers, retailers, and consumers. An enhanced emphasis on consumer economics adds depth to our research on the behavioral and social aspects of health, nutrition, and food safety. Through research efforts, outreach programs, and industry collaboration, AFCERC has become a leading source of knowledge on how food reaches consumers efficiently and contributes to safe and healthy lives. AFCERC is a research and outreach service of Texas AgriLife Research and Extension and resides within the Department of Agricultural Economics at Texas A&M University.