According to the results of a new
survey, food safety expenditures by the meat and poultry industry
during 1997-2001 were due mainly to compliance with regulatory requirements,
though market incentives are challenging some in the industry to
meet even higher standards than those required by law. Slaughter
and processing plants today are increasingly reacting to stringent
requirements for pathogen control set out by large meat and poultry
buyers who reward suppliers who meet the standards and punish those
who do not, in effect raising the food safety bar (see “Savvy
Buyers Spur Food Safety Innovations in Meat Processing”
in this issue).
The survey, sponsored by ERS and conducted by Washington State University, details
the type, size, and motivating factors of meat and poultry industry investments
in food safety since Congress mandated the Pathogen Reduction/Hazard Analysis
Critical Control Program (PR/HACCP) in 1996. Surveys were sent to 1,725 slaughter
and processing plants; 996 responded. Plants ranged in size from establishments
with only a handful of workers slaughtering one or two animals per week to facilities
with more than 1,000 workers producing millions of pounds of product per year.
Survey results indicate that over the 5-year period 1997-2001, the industry
invested about $570 million on new food safety equipment and quality control/production
personnel to meet regulatory requirements set by PR/HACCP and spent another
$380
million per year to ensure that their plants remain in compliance. On top of
these expenditures, the industry invested another $360 million to meet food
safety requirements set by major meat and poultry buyers, such as McDonald’s
restaurants and Kroger grocery stores, and by importing countries. The average
investment
of $180 million per year accounts for a sizable share of total industry capital
expenditures of about $1.8 billion in 1997, as reported by the Bureau of the
Census.
The survey results also show that large and small plants have responded differently
to regulatory requirements. Large plants have complied with PR/HACCP by emphasizing
investments in new equipment, while small plants have focused on improving sanitation
and plant operating procedures. Large meat and poultry buyers, both U.S. and
foreign, have imposed more stringent food safety demands than PR/HACCP, requiring
suppliers to make greater use of equipment and testing and have more intensive
cleaning and sanitation practices.
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