Poultry slaughter and processing sector facility-level model, final report, contract no. 53-3A94-03-12, delivery order 10

Abstract

In August 2004, the U.S. Department of Agriculture’s Food Safety and Inspection Service (USDA, FSIS) contracted with RTI International (RTI) to develop a poultry slaughter and processing facility-level model with a proper user interface, product market characterization, and documentation for use by FSIS in regulatory impact analysis. The model uses data for fiscal year 2004; thus, analyses using the model will be based on a 2004 baseline. Using this model, analysts can input estimates of the costs of complying with a regulation and obtain estimates of the facility, market, and economic welfare effects of the regulation. RTI developed the model using data characterizing the following poultry market categories: ?? young chickens, ?? other chickens (includes capons, light fowl, and heavy fowl), ?? turkeys (includes roaster, young, breeder, and old breeder turkeys), and ?? other poultry (includes ducks, geese, and other types). The data used to develop the model were obtained from the 2005 update of the Enhanced Facilities Database, a database of meat, poultry, and egg facilities operating in the United States; the results of a survey of the poultry slaughter industry fielded by FSIS in late 2004; and market-level data available from published sources. The model is designed so that FSIS can use it to estimate the economic effects of regulations affecting poultry plants. For example, estimates of the costs (or cost savings) associated with fully implementing Hazard Analysis and Critical Control Points (HACCP) in young chicken establishments can be incorporated into the model to estimate the economic impacts once the regulatory requirements have been identified and the costs of compliance have been estimated by an analyst.