European Review of Agricultural Economics Advance Access originally published online on December 12, 2008
European Review of Agricultural Economics 2008 35(4):547-562; doi:10.1093/erae/jbn042
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Producer incentives and plant investments for Salmonella control in pork supply chains
Agricultural Economics Research Institute (LEI), The Hague, The Netherlands
University of Minnesota, St Paul, USA
Corresponding author: Gé B.C. Backus, Agricultural Economics Research Institute, PO Box 29703, 2502 LS The Hague, The Netherlands. E-mail: ge.backus{at}wur.nl
Received November 2007; final version received September 2008
This paper presents a unified analysis of dynamic producer incentive systems for Salmonella control in primary production and slaughter plant investments in Salmonella control measures. We identify optimal incentive system parameters and cost-effective control strategies for achieving various levels of Salmonella prevalence. We compare the performance measures of the combined plant-level control and producer incentive system with results obtained under a producer incentive system only. The combined system allocates control effort among producers and the slaughter plant, resulting in 25–83 per cent lower expected total control cost for a wide range of threshold values.
Keywords: L14, Q13, Q18