THE ECONOMICS OF FOOD SAFETY

The supply of food safety absorbs scarce resources which have alternative uses. A balance must be struck between the 'costs' and 'benefits' of increased food safety. Absolute safety is an unobtainable outcome, and the 'correct' amount depends upon consumption preferences and income levels. Whether unregulated markets are capable of supplying food safety is debated by economists: many argue that 'market failure' is endemic and intervention justified. If governments intervene they should attempt a rudimentary appraisal of 'costs' and 'benefits'; but this involves valuing human life. Intervention can result in non-tariff barriers which distort trade.