Evaluating the economic effectiveness of pathogen reduction technologies in cattle slaughter plants

Increasing risk and costs from food-borne illness has led food-processing firms to intensify pathogen reduction efforts. Hazard Analysis and Critical Control Points (HACCP) is one system for evaluating which hazards need to be controlled and where in the production process they can be controlled. Firms may choose among many competing technologies that differ in cost and effectiveness at controlling pathogen growth. To evaluate a firm's pathogen control options, a probabilistic risk analysis model based on typical slaughterhouse practices is linked to a decision model to evaluate the cost effectiveness of seven combinations of pathogen-reducing technologies. The likely comparative advantage of different strategies for large vs. small slaughterhouses is examined. Risk is compared for two cases with the same mean risk to illustrate the importance of correct model specification. The report concludes with a discussion of the institutional barriers and incomplete markets that affect the adoption and development of more effective pathogen reduction technologies. [EconLit citations: Q180, O300, L510]. © 2004 Wiley Periodicals, Inc. Agribusiness 20: 109-123, 2004.