Economic analysis of food-borne diseases control program in Australia

Purpose – Food safety is an important means for controlling food-borne diseases. While there are various procedures for food safety, HACCP-based procedure has been considered as an efficient method for food-safety. In Australia the introduction of HACCP-based food-safety measures has been recommended in particular for meat and meat products to replace the traditional organoleptic meat inspection procedure. Aims to estimate the costs and benefits. Design/methodology/approach – Employing tools of social cost benefit analysis, this paper estimates the worth of the HACCP-based food-safety program. The analysis was carried out assuming five alternative scenarios with 3, 5, and 7 per cent interest rates. Findings – The results of this study show that the HACCP-based food-safety programs are expected to generate net benefit to the society if the effectiveness ranged between 20 and 90 per cent. However, at the 10 per cent level of effectiveness, net benefit turns into net social loss. Originality/value – Provides details of the costs and benefits of the HACCP-based food-safety programs in Australia.