An Economic Assessment of Food Safety Regulations

Conclusions and Suggestions for Further

Research

This report gives an economic appraisal of the meat and

poultry regulatory system in the United States, with a

particular emphasis on the new HACCP systems for

meat and poultry inspection.  For most assumptions

about the effectiveness of HACCP in reducing foodborne

pathogens, the new inspection system will likely reduce

medical costs and productivity losses from foodborne

disease, and these benefits of pathogen reduction will

outweigh the costs of HACCP.  In addition, the report

highlights some distributional considerations: Certain

segments of the population (the elderly, the very young,

pregnant women, people with HIV/AIDS or cancer) may

benefit more from improved food safety, while the costs

of implementing HACCP can be proportionally greater for

some small processing plants.

Additional research is necessary to increase our under-

standing of the economic consequences of meat and

poultry regulation.  First, we need more comprehensive

and accurate data on the scope and incidence of

foodborne illness in this country.  There is still no agree-

ment among the scientific community on the annual

number of foodborne illnesses and associated deaths.

Second, this report considers only six pathogens, while

as many as 40 different pathogens in meat and poultry

can cause foodborne illness (CAST, 1994).  We also

considered only a limited number of diseases.   Certain

chronic conditions, which can be secondary complica-

tions of foodborne illnesses (such as arthritis) were not

included in our cost-of-illness estimates.   More consen-

sus is also needed on the choices economists make

estimating the costs of premature death.  Finally, we

need to consider the effects of efforts to control other

sources of microbial pathogens, such as shell eggs and

egg products (Roberts et al., in press).

As USDA strengthens the meat and poultry inspection

system, other initiatives are underway to promote food

safety.  The FDA, which also has responsibility for

monitoring food safety, is implementing a HACCP

system for inspection of seafood products.   A govern-

mentwide effort is underway to promote safer food

through increased surveillance of foodborne illness

outbreaks, increased data collection on the incidence of

foodborne disease, more complete risk assessments to

track foodborne pathogens from farm to table, and

increased efforts to educate consumers and food

handlers about safe handling practices.  USDA, FDA,

and CDC, along with State officials and private concerns,

are examining the possibility of HACCP systems for eggs

and egg products targeted at reducing the incidence of

Salmonella enteritidis, one of the leading causes of

foodborne illness in the United States.  Over the next few

years, these changes and improvements in our food-

safety regulations and inspections are expected to

improve the safety of the Nation’s food supply.