An Economic Assessment of Food Safety Regulations

Costs of HACCP Rule

Table 5 identifies the FSIS-estimated costs of the

preliminary and revised FSIS pathogen reduction rules.

It also indicates the costs of a similar HACCP plan

estimated by the Institute for Food Science and Engi-

neering at Texas A&M University (IFSE).  FSIS labor

estimates (for recordkeeping, record review, plan devel-

opment, etc.) are based on agency experience.  Wage

rates are based on existing wage rates.  Labor wage and

time estimates yield a labor cost.  Material, equipment,

and testing costs are based on current market prices and

pathogen-reduction performance standards.  IFSE gives

Table 3--Medical costs and productivity losses from foodborne and meat/poultry diseases, 1995

All food sources

Meat/poultry

1

Meat/poultry alone

Low

High

Low

High

Low

High

Billion dollars

Percent

Billion dollars