Economics Program and Dean of the College Present

Safety Regulation: For Whom? The Effects of Poultry Slaughter Line Speed Regulation on Firm Profits

This talk examines the effects on firm profits of three regulatory changes in the US poultry industry from the 1990s through 2020. The US Department of Agriculture regulates line speeds in poultry slaughter establishments to prevent foodborne illness. At the same time, large poultry companies consistently lobby for higher line speeds to increase throughput and reduce per-unit costs, and existing literature cites regulation limiting line speed as a bottleneck to firm productivity. This talk discusses how line speed increases do not consistently boost any measure of profitability in the short-run. Findings suggest that firms, which compete over prices and therefore try to minimize costs, push for deregulatory measures that may ultimately intensify the very competition that undermines their profits, a claim that offers important insights for policymakers who must weigh trade-offs and often view line speed increases as an unqualified positive for the industry.

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For more information, call 845-758-7667, or e-mail mgermano@bard.edu.

Time: 4:45 pm – 6:00 pm EST/GMT-5

Location: Levy Conference Room, Blithewood

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