and regional surveys (Boland, Peterson-Hoffman, and Fox.; Hooker, Nayga, and Siebert)
indicated costs of 0.7, 0.9, and 2 to 20 cents per pound, respectively.
This paper most closely tracks Ollinger and Mueller (2003) in that both papers use
translog cost functions to estimate the costs of doing food safety tasks. The papers differ in three
ways from the earlier paper. First the earlier paper examined only the cost of doing sanitation
tasks, as mandated by the Food Safety Inspection Service, while this paper also includes process
control tasks as described in HACCP plans. Second, this paper uses 2002 Census data and
matching sanitation and process control data, both of which were collected after promulgation of
the PR/HACCP rule. Data for the earlier paper came from the 1992 Census and matching FSIS
data, which were collected before the PR/HACCP rule was mandated. Finally, this paper
examines the impact of food safety technology on plant costs while the earlier paper did not.
THE REGULATORY ENVIRONMENT.
Concern over food safety and meat and poultry safety in particular and regulation of the meat
and poultry processing industries has existed for over 100 years. However, only in recent years
have the health threats posed E coli: 0157H7, Listeria monocytogenes, and other harmful
pathogens become apparent (Ollinger and Mueller, 2003).
The most important recent FSIS food safety regulation came in 1996 when FSIS
promulgated the final PR/HACCP rule. It mandated that (1) all meat and poultry plants must
develop, implement, and take responsibility for standard sanitation operating procedures
(SSOPs) and a HACCP process control program, (2) all slaughter plants must conduct generic E.
coli microbial tests to verify control over fecal matter, and (3) all slaughter and ground meat