THE IMPACT OF HACCP ON FACTOR DEMAND AND OUTPUT SUPPLY ELASTICITIES OF RED MEAT

This study uses firm-level data during the hazard analysis critical control point (HACCP) implementation period (1997 - 2000) to analyze the impact of HACCP on input demand and output supply elasticities of firms in the red meat industry and derive implications for efficiency and moral hazard issues associated with the implementation of HACCP systems. The results show that HACCP causes factor demand for labor, material, and capital to be less inelastic while the elasticity of output supply did not change significantly. The interdependent relationships among HACCP and input prices and output result in efficiency gains.