CHANGES IN MARKET EQUILIBRIA RESULTING FROM FOOD SAFETY REGULATION IN THE MEAT AND POULTRY INDUSTRIES

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This study presents a unique view on the USDA Food Safety and Inspection Service (USDA FSIS) implementation of the so-called "Mega-Reg" authorizing establishment of regulatory hazard analysis and critical control point (HACCP) procedures. Surveys were sent to plant managers of the 11 firms participating in the HACCP Roundtable at the University of Arkansas. Results of the survey were used to create HACCP implementation cost estimates for poultry kill plants and perform welfare analysis by using equilibrium displacement model (EDM). Results show average welfare losses up to 35 million a year for the broiler industry as well as substantial losses to consumers resulting from the new regulation.

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