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Economic Incentives for Firms to Implement Enhanced Food Safety Controls: Case of the Canadian Red Meat and Poultry Processing Sector
Author(s) -
JayasingheMudalige Udith Krishantha,
Henson Spencer
Publication year - 2006
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1111/j.1467-9353.2006.00318.x
Subject(s) - incentive , business , food safety , poultry farming , poultry meat , red meat , meat packing industry , food sector , industrial organization , agricultural economics , marketing , commerce , economics , food science , market economy , agriculture , biology , ecology
This study assesses quantitatively the economic incentives for firms to adopt food safety controls and the potential impact of a number of firm‐ and market‐specific characteristics on this behavior, focusing on the red meat and poultry processing sector in Canada. The results suggest that market‐based (private) incentives have a greater impact on the food safety responsiveness of firms in this sector than government regulatory actions. This creates challenges for regulators in defining policy instruments that promote greater levels of food safety control in food processing sectors rather than constraining firms from taking initiatives that exceed regulatory requirements.