Did the Pathogen Reduction and Hazard Analysis and Critical Control Points Regulation Cause Slaughter Plants to Exit?

Our multiperiod analysis tested whether the 1996 Pathogen Reduction and Hazard Analysis and Critical Control Points food safety regulation affected the probability of slaughter plant exit. We estimated probit models using pooled plant-level datasets for the preimplementation, implementation, and postimplementation periods. Results suggest that very small and small meat slaughter plants were more likely to exit during implementation than during preimplementation but less likely after implementation. In contrast, the results suggest the regulation had little effect on the probability of very small and small poultry slaughter plant exit during implementation but may have affected the probability of exit postimplementation. Copyright 2007 American Agricultural Economics Association