EXIT OF MEAT SLAUGHTER PLANTS DURING IMPLEMENTATION OF THE PR/HACCP REGULATIONS
By: Muth, Mary K.; Karns, Shawn A.; Wohlgenant, Michael K.; Anderson, Donald W.
Muth, Mary K.; Karns, Shawn A.; Wohlgenant, Michael K.; Anderson, Donald W., EXIT OF MEAT SLAUGHTER PLANTS DURING IMPLEMENTATION OF THE PR/HACCP REGULATIONS, Journal of Agricultural and Resource Economics, Volume 27, Issue 1, July 2002, Pages 187-203
Implementation of the Pathogen Reduction and Hazard Analysis and Critical Control Points (PR/HACCP) regulations has occurred across all U.S. meat and poultry plants. A probit model is estimated to determine which factors have affected the probability of red meat slaughter plant exit during implementation of the regulations. While controlling for plant-level, company-level, regional-level, and supply conditions that may affect the probability of plant exit, smaller plants are found to exhibit a much greater probability of exit than larger plants. Other factors affecting plant exit include plant age, market share relative to the degree of market concentration, regional entry rates, and state-level wage rates.