Preliminary Cost Benefit Analysis
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Initial Share of Establishments and Production Volume Expected to Not Meet the Performance Standards (2015 Risk Assessment 10) Product Metric Salmonella Campylobacter 1 8 of 52 4 of 52 Performance standard Chicken Parts Production volume share 73 85 Establishment share 63 46 1 13 of 52 1 of 52 Performance standard NRTE 93 56 Comminuted Production volume share Chicken Establishment share 62 24 1 7 of 52 1 of 52 Performance standard NRTE Comminuted Production volume share 61 20 Turkey Establishment share 58 9 1 The performance standard is defined as a maximum allowable number of positive samples in a 52 sample moving window.. For example, to estimate the costs to HACCP size large, production volume large establishments, FSIS multiplied 83 establishments (Table 2) x 63 of establishments not meeting the standards (Table 5) x 28.84 weighted testing cost= 94.5 in-house lab (footnote 19) x 20 per pathogen + (1-94.5 ) contract lab (footnote 19) x 30 per pathogen + 8.29 sampling cost x 1.59 weighted number of tests needed per sample= 15 Salmonella only sampling (Table 4) x 1 test per sample + (1-15 -13 ) no sampling (Table 4) x 2 tests per sample x 9 samples per day (low estimate of 6, high estimate of 12) x 260 days per year = 5.61 million ( 3.74 million, 7.48 million) annual testing costs for HACCP size large, production 18 Agency expert opinion.. Total Industry Costs – Implementation Timeline Level of Year 1 Establishments Not Costs Meeting the Standard Cost Component ( mil) Capital Equipment 3.40 Antimicrobial Solution 3.50 Sampling 4.96 30 HACCP Reassessment 0.01 Training Total Costs 11.88 Capital Equipment 4.39 Antimicrobial Solution 4.67 Sampling 5.26 40 HACCP Reassessment 0.01 Training Total Costs 14.32 Capital Equipment 5.67 Antimicrobial Solution 5.83 Sampling 5.57 50 HACCP Reassessment 0.01 Training Total Costs 17.09 Year 2 Costs ( mil) 4.09 7.00 9.93 Year 3-10 Costs ( mil) 1.36 7.00 9.93 0.01 21.03 5.27 9.34 10.52 18.29 1.76 9.34 10.52 0.01 25.13 6.81 11.67 11
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