Abstract of Meeting Paper

Society for Risk Analysis 2001 Annual Meeting

Economic Incentives to Develop New Management Systems: HACCP in a Hamburger Patty Plant. E. Salay, State University of Campinas, Brazil

This paper will identify and analyze the incentives for the implementation of a new food safety management system. The case that will be studied is the Texas American Food Serviceís (TAFS). Data will be collected and analyzed to determine what the most significant factors were that contributed to the innovation and identify the nature and magnitude of the economic incentives. The possible incentives include Michael Porterís "first mover advantage" of a firm building a reputation in the industry for food safety control; firmís wish to avoid a foodborne disease outbreak or recall and the associated costs of clean-up, product destruction, plant closings, etc. that can occur; desire to pay cheaper premiums on the recall/outbreak insurance offered by the American Meat Industry (trade association of meat and poultry packers); concern about reputation and consumer sales of meat products following an outbreak; compliance with contracts by wholesale buyers of meat products; compliance with state, local, Federal or international regulations, and so on. TAFS is now the largest independent hamburger patty producer in the United States. Their path to success is a voluntary food safety management system, like HACCP. Incoming product is monitored for temperature, testing occurs at three points along the production line (initial 2,000 pound combo bins of incoming beef trim, every 15 minutes in the grinding process, finished hamburgers patties), and monitoring for temperature control and other operating procedures is strict. The plant employees wrote the voluntary HACCP plan and management support is strong.

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