The Cost of Food Safety Technologies in the Meat and Poultry Industries.



Table 1: Goodness of fit and model selections of the best meat or poultry cost function
models.

Industry

Model

Number

Description

Test

Variable

Test

Parameters
Estimated

Restric-
tions

G-J

Value

Model
Chi-
Square

Meat
Slaughter

J_____

P,LB1

-

10_________

-

186.6

-

II_________

(P,LB,S,T)2

Both (T,S)

I vs II

21_________

11

159.5

— — ,**⅛

27.1

III

(P,LB,S) 3

Technology (T)

II vs. III

15__________

_6_______

171.5

12.0

IV

(P,LB,T) 4

Sanitation and

Process Control (S)

II vs. IV

15

6

173.4

T _ *

13.9

Meat

Processing

J_____

P,LB1

-

10_________

-

586.8

-

II_________

(P,LB,S,T)2

Both (T,S)

I vs II

21_________

11

555.9

— ʌ ʌ * * *

30.9

III

(P,LB,S) 3 '

Technology (T)

II vs. III

15__________

_6_______

563.8

7.9

IV

(P,LB,T) 4

Sanitation (S)_______

II vs. IV

15__________

_6_______

574.2

18.3

Poultry
Slaughter

J_____

P,LB1

-

10_________

-

126.4

-

II_________

(P,LB,S,p2

Both (T,S)

I vs II

21_________

11

113.6

12.8

III

(P,LB,S) 3 '

Technology (T)

II vs. III

15__________

_6_______

121.1

7.5

IV

(P,LB,T) 4

Sanitation (S)_______

II vs. IV

15__________

_6_______

119.1

5.5

Regu-
lation

Meat
Slaughter

J_____

P,LB1

-

10_________

-

417.0

-

III

(P,LB,R) 3

Sanitation (S)_______

I vs. III

15__________

5

410.0

7.0

Meat

Processing

J_____

P,LB1

-

10_________

1,278

-

III

(P,LB,R) 3

Sanitation (S)_______

I vs. III

15__________

5

1,228

_ ʌ ʌ * * *

50.0

Chicken
Slaughter

J_____

P,LB1

-

10_________

348.3

-

III

(P,LB,R) 3

Sanitation (S)_______

I vs. III

15__________

5

332.6

Σ _**

15.7

* significant at the 90% level, ** significant at the 95% level, *** significant at the 99% level

1 Model I: base model consisting of prices (P) and pounds of output (LB) and denoted (P,LB).

2 Model II: Adds technology (T) and sanitation and process control (S) to (P,LB) to make
(P,LB,S,T).

3 Model III: Removes T from II to make (P,LB,S).

4 Model IV; Removes S from II to make (P,LB,T).

21



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