Benefit/Cost Analysis in Public and Private Decision-Making in the Meat and Poultry Supply Chain

Abstract

Benefit/cost analysis (BCA) is a tool that can be used to examine either public or private decision-making. What differs is what variables are included in each BCA. Hazard Analysis and Critical Control Point/Pathogen Reduction (HACCP/PR) regulation was established in 1996 for US meat and poultry. From the US government’s perspective, the estimated benefits of HACCP were a reduction in foodborne illnesses of the American public citizens and their expenses (medical costs, productivity losses, and pain and suffering) vs. the costs to industry of implementing the HACCP regulations. The public health protection benefits were estimated to be in the billions of dollars, while the industry costs were in the millions of dollars.