Economic Incentives, Public Policies, and Private Strategies to Control Foodborne Pathogens

Food Consumption/Nutrition/Food Safety,

Salmonellosis Control: Estimated Economic Benefits

Salmonellosis, a common human intestinal disorder primarily caused by contaminated meats and poultry, attacks an estimated two million Americans annually. Using a cost of illness approach, the medical costs and productivity losses alone were estimated to cost around one billion dollars in 1987. If pain and suffering, lost leisure time, and chronic disease costs could be quantified, the estimate would increase significantly. Other procedures for calculating the value of life could either raise or lower the estimated economic benefits of reducing human salmonellosis. Incorporating losses to farmers, whose animals have reduced feed efficiency, reduced weight gain, or deaths because of chronic salmonellosis, would also increase the estimates. Also excluded were costs of food safety regulatory programs and costs to the industry for product recalls and plant closures due to foodborne salmonellosis outbreaks. The National Academy of Sciences has endorsed risk assessment as a necessary method to evaluate and improve food safety regulatory programs, especially as applied to Salmonella contamination of poultry. Understanding the costs of salmonellosis is an important part of risk characterization since a key benefit of regulatory programs is reducing human salmonellosis.Salmonella, salmonellosis, foodborne disease costs, economic costs, risk assessment, risk characterization, Food Consumption/Nutrition/Food Safety,

Microbial Foodborne Disease: Hospitalizations, Medical Costs and Potential Demand for Safer Food

Food Consumption/Nutrition/Food Safety, Health Economics and Policy,

IMPROVING COST/BENEFIT ANALYSIS FOR HACCP AND MICROBIAL FOOD SAFETY: AN ECONOMIST'S OVERVIEW

HACCP, cost/benefit analysis, Food Consumption/Nutrition/Food Safety,

Traceability, Moral Hazard, and Food Safety

Errors in traceability can significantly impact the moral hazard associated with producing safe food. The effect of moral hazard depends on the proportion of unsafe food costs that can be allocated to the responsible producer, which depends on the efficiency of the traceability system. In this paper, we develop a model that identifies the minimum level of traceability needed to mitigate moral hazard and motivate suppliers to produce safe food. Regulators and consumer can use the results of this research to design regulations and contracts that mitigate moral hazard and motivate producers to deliver safe food.Food safety, traceability, moral hazard, Food Consumption/Nutrition/Food Safety,

Bacterial Foodborne Disease: Medical Costs and Productivity Losses

Microbial pathogens in food cause an estimated 6.5-33 million cases of human illness and up to 9,000 deaths in the United States each year. Over 40 different foodborne microbial pathogens, including fungi, viruses, parasites, and bacteria, are believed to cause human illnesses. For six bacterial pathogens, the costs of human illness are estimated to be $9.3-$12.9 billion annually. Of these costs, $2.9-$6.7 billion are attributed to foodborne bacteria. These estimates were developed to provide analytical support for USDA's Hazard Analysis and Critical Control Point (HACCP) systems rule for meat and poultry. (Note that the parasite Toxoplasma gondii is not included in this report.) To estimate medical costs and productivity losses, ERS uses four severity categories for acute illnesses: those who did not visit a physician, visited a physician, were hospitalized, or died prematurely. The lifetime consequences of chronic disease are included in the cost estimates for E. coli O157:H7 and fetal listeriosis.cost-of-illness, foodborne pathogens, lost productivity, medical costs, Food Consumption/Nutrition/Food Safety, Health Economics and Policy,

Economic Assessment of Food Safety Regulations: The New Approach to Meat and Poultry Inspection

USDA is now requiring all Federally inspected meat and poultry processing and slaughter plants to implement a new system called Hazard Analysis and Critical Control Points (HACCP) to reduce potentially harmful microbial pathogens in the food supply. This report finds that the benefits of the new regulations, which are the medical costs and productivity losses that are prevented when foodborne illnesses are averted, will likely exceed the costs, which include spending by firms on sanitation, temperature control, planning and training, and testing. Other, nonregulatory approaches can also improve food safety, such as providing market incentives for pathogen reduction, irradiation, and education and labeling to promote safe food handling and thorough cooking.food safety, foodborne illness, microbial pathogens, meat and poultry inspection, HACCP, cost of illness, consumer education, irradiation, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries,

TOXOPLASMA GONDII IN U.S. SWINE OPERATIONS: AN ASSESSMENT OF MANAGEMENT FACTORS

Sera from hogs were analyzed using the modified direct agglutination test (MAT). Serum samples were collected from sows which were part of the National Animal Health Monitoring System (NAHMS) swine survey. The blood sera on file represented 394 randomly selected hog farms throughout the United States. Additionally, the NAHMS survey included information on type of production facilities and level of cat, dog, or bird access to the facilities. Of the sows tested 19 percent tested positive for toxoplasmosis. This study showed a positive relationship between sows or herds testing positive for Toxoplasma gondii and three factors: 1) method of rodent control, 2) type of production facility, and 3) access of certain animals (cats, dogs, birds) to production facilities. These data indicate that it will be difficult to eliminate T. gondii from swine herds which allow cat or dog access to facilities. Use of cats as a method of rodent control should be discouraged. We found a strong association between use of "bait only" for rodent control and the herd testing negative as compared to the use of "cats only" for rodent control. Greater industry awareness is needed for methods of rodent control through the use of baits. Sows in herds where female replacements were raised internally were significantly more likely to test positive for toxoplasmosis. Sows in confinement facilities had a significantly lower prevalence of Toxoplasma gondii. Herds testing positive were significantly smaller than those which were negative. In general, there were not any regional differences in prevalence rates. Sows testing positive did not have a reduced level of productivity.

FOOD SAFETY INNOVATION IN THE UNITED STATES: EVIDENCE FROM THE MEAT INDUSTRY

Recent industry innovations improving the safety of the Nation's meat supply range from new pathogen tests, high-tech equipment, and supply chain management systems, to new surveillance networks. Despite these and other improvements, the market incentives that motivate private firms to invest in innovation seem to be fairly weak. Results from an ERS survey of U.S. meat and poultry slaughter and processing plants and two case studies of innovation in the U.S. beef industry reveal that the industry has developed a number of mechanisms to overcome that weakness and to stimulate investment in food safety innovation. Industry experience suggests that government policy can increase food safety innovation by reducing informational asymmetries and strengthening the ability of innovating firms to appropriate the benefits of their investments.Food safety, innovation, meat, asymmetric information, Beef Steam Pasteurization System, Bacterial Pathogen Sampling and Testing Program, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries,

SETTING PRIORITIES IN FOODBORNE PATHOGEN DATA: PUBLIC AND PRIVATE RESPONSE

Foodborne pathogens, foodborne illness, cost of illness, databases, Food Consumption/Nutrition/Food Safety,