Role of Economics in Pathogen Control Regulations Robert L. Buchanan HHS Food and Drug Administration Center for Food Safety and Applied Nutrition

Economic and Food Safety Risk Assessment and Economic Analysis is an integral part of both Risk Assessment and Economic Analysis is an integral part of both Development of new pathogen control regulations Development of new pathogen control regulations Adaptation of existing regulations to new microbiological threats Adaptation of existing regulations to new microbiological threats A good idea even if it is a requirement, particularly for complex issues A good idea even if it is a requirement, particularly for complex issues

Economics and Food Safety 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 consumption Low risk/high consumption vs. high risk/low consumption Profile of industry being affected Profile of industry being affected Small businesses and developing countries represent a unique challenge Small businesses and developing countries represent a unique challenge Risk: Hard to prove significance risk on per annum basis Risk: Hard to prove significance risk on per annum basis Economics: Intervention costs Economics: Intervention costs Our knowledge of what industry is already doing Our knowledge of what industry is already doing The population and food being affected (e.g., babies, pets, children, adults, elderly) The population and food being affected (e.g., babies, pets, children, adults, elderly) Who pays? Who pays?

Economics and Food Safety Observations on what works Observations on what works Improvements in food safety by industry seen most often when it is not a competitive issue Improvements in food safety by industry seen most often when it is not a competitive issue Compliance needs to be reduced to a binary decision and clearly articulated to industry Compliance needs to be reduced to a binary decision and clearly articulated to industry Programs based solely on education often do not work Programs based solely on education often do not work Understanding risk perception Understanding risk perception Emphasizing outcomes and not process Emphasizing outcomes and not process Programs that are verifiable Programs that are verifiable

Economics and Food Safety What is needed What is needed Iterative nature of risk management and the need to periodically review Iterative nature of risk management and the need to periodically review Costs are more than economics Costs are more than economics