Search

The U.S. Food and Drug Administration’s (FDA) increased attention to food imports from China is an indicator of safety concerns as imported food becomes more common in the United States. U.S. food imports from China more than tripled in value between 2001 and 2008. Addressing safety risks associated with these imports is difficult because of the vast array of products from China, China’s weak enforcement of food safety standards, its heavy use of agricultural chemicals, and its considerable environmental pollution. FDA import refusal data highlight food safety problems that appear to recur in trade and where FDA has focused its import alerts and monitoring efforts. FDA refusals of food shipments from China suggest recurring problems with “filth,” unsafe additives, labeling (typically introduced in food processing and handling), and veterinary drug residues in fish and shellfish (introduced at the farm). Chinese authorities try to control food export safety by certifying exporters and the farms that supply them. However, monitoring such a wide range of products for the different hazards that can arise at varying points in the supply chain is a difficult challenge for Chinese and U.S. officials.

This report examines U.S. Food and Drug Administration (FDA) data on refusals of food offered for importation into the United States from 1998 to 2004. Although the data do not necessarily reflect the distribution of risk in foods, the study found that import refusals highlight food safety problems that appear to recur in trade and where the FDA has focused its import alerts, examinations (e.g., sampling), and other monitoring efforts. The data show some food industries and types of violations are consistent sources of problems both over time and in comparison with previous studies of more limited data. The three food industry groups with the most violations were vegetables (20.6 percent of total violations), fishery and seafood (20.1 percent), and fruits (11.7 percent). Violations observed over the entire time period include sanitary issues in seafood and fruit products, unsafe pesticide residues in vegetables, and unregistered processes for canned food products in all three industries.

This report examines how product liability law treats personal injuries attributed to microbially contaminated foods. The risk of lawsuits stemming from microbial foodborne illness and the resulting court-awarded compensation may create economic incentives for firms to produce safer food. It is not known how many consumers seek compensation for damages from contaminated foods because information about complaints and legal claims involving foodborne illness is not readily accessible, especially for cases that are settled out of court. Reviewing the outcomes of 175 jury trials involving foodborne pathogens, the analysis identifies several factors that influence trial outcomes, while noting that the awards won by plaintiffs tend to be modest.

Microbial pathogens and pesticide residues in food pose a financial burden to society which can be reduced by incurring costs to reduce these food safety risks. We explore three valuation techniques that place a monetary value on food safety risk reductions, and we present a case study for each: a contingent valuation survey on pesticide residues, an experimental auction market for a chicken sandwich with reduced risk of Salmonella, and a cost-of-illness analysis for seven foodborne pathogens. Estimates from these techniques can be used in cost/benefit analyses for policies that reduce food safety risks.

USDA is now requiring all Federally inspected meat and poultry processing and slaughter plants to implement a new system called Hazard Analysis and Critical Control Points (HACCP) to reduce potentially harmful microbial pathogens in the food supply. This report finds that the benefits of the new regulations, which are the medical costs and productivity losses that are prevented when foodborne illnesses are averted, will likely exceed the costs, which include spending by firms on sanitation, temperature control, planning and training, and testing. Other, nonregulatory approaches can also improve food safety, such as providing market incentives for pathogen reduction, irradiation, and education and labeling to promote safe food handling and thorough cooking.

This study demonstrates how contingent valuation techniques can be used in a cost-benefit analysis of a food safety policy issue. The analysis focuses on banning a specific post harvest pesticide used in fresh grapefruit packinghouses. Benefits of the ban are measured using consumers' aggregated willingness to pay (WTP) for safer grapefruit. A national contingent valuation survey used the payment card method to obtain WTP data. Costs of the ban stem predominantly from increased post harvest losses and were estimated using a model of the market for Florida grapefruit. Results indicate that benefits of the ban outweigh costs.