Costs of Adopting a Hazard Analysis Critical Control Point System: Case Study of a Chinese Poultry Processing Firm

Implementation of a hazard analysis critical control point (HACCP) system by a Chinese poultry processing company required significant initial investments and greater monthly operation costs, including measures needed to meet prerequisite standard sanitary operating practices. HACCP benefits perceived by managers were diverse and difficult to ascertain-access to export markets seems to be the chief benefit. Large-scale, export-oriented plants appear to be able to bear the costs of HACCP implementation, but costs may be a greater barrier for smaller Chinese companies serving the domestic market. Copyright 2009 Agricultural and Applied Economics Association