Role of Role of Economics in Economics in

Pathogen Control Pathogen Control RegulationsRegulations

Robert L. BuchananHHS Food and Drug AdministrationCenter for Food Safety and Applied

Nutrition

Economic and Food Economic and Food SafetySafety

Risk Assessment and Economic Risk Assessment and Economic Analysis is an integral part of Analysis is an integral part of bothboth Development of new pathogen Development of new pathogen

control regulationscontrol regulations Adaptation of existing regulations Adaptation of existing regulations

to new microbiological threatsto new microbiological threats A good idea even if it is a A good idea even if it is a

requirement, particularly for requirement, particularly for complex issuescomplex issues

Economics and Food Economics and Food SafetySafety

Importance varies depending on:Importance varies depending on: Who requested a new regulation?Who requested a new regulation? What metrics are being used?What metrics are being used?

Risk: Risk per serving? Risk per annum?Risk: Risk per serving? Risk per annum? Economics: ???Economics: ??? Low risk/high consumption vs. high risk/low Low risk/high consumption vs. high risk/low

consumptionconsumption Profile of industry being affectedProfile of industry being affected

Small businesses and developing countries Small businesses and developing countries represent a unique challengerepresent a unique challenge

Risk: Hard to prove significance risk on per annum Risk: Hard to prove significance risk on per annum basisbasis

Economics: Intervention costsEconomics: Intervention costs Our knowledge of what industry is already doingOur knowledge of what industry is already doing

The population and food being affected The population and food being affected (e.g., babies, pets, children, adults, elderly)(e.g., babies, pets, children, adults, elderly)

Who pays?Who pays?

Economics and Food Economics and Food SafetySafety

Observations on what worksObservations on what works Improvements in food safety by industry Improvements in food safety by industry

seen most often when it is not a seen most often when it is not a competitive issuecompetitive issue

Compliance needs to be reduced to a Compliance needs to be reduced to a binary decision and clearly articulated to binary decision and clearly articulated to industryindustry

Programs based solely on education often Programs based solely on education often do not work do not work

Understanding risk perception Understanding risk perception Emphasizing outcomes and not processEmphasizing outcomes and not process Programs that are verifiablePrograms that are verifiable

Economics and Food Economics and Food SafetySafety

What is neededWhat is needed Iterative nature of risk Iterative nature of risk

management and the need to management and the need to periodically reviewperiodically review

Costs are more than economicsCosts are more than economics