Economic Analysis of Food Safety Compliance Costs and Foodborne Illness Outbreaks in the United States

Abstract

This study investigates the potential impact of food safety outbreaks on domestic shipments, imports, and prices of the produce industry. Moreover, the compliance costs associated with new food safety standards were also estimated. Three case studies were analyzed to assess these potential impacts: the muskmelon (Cucumis melo) outbreak of Mar.-Apr. 2008, the spinach (Spinacea oleracea) outbreak of Sept. 2006, and the tomato (Solanum lycopersicum) outbreak of June- July 2008. The results demonstrate that the costs incurred by producers because of food safety outbreaks in produce are far greater than preventing such incidents.