THE ECONOMICS OF FOOD SAFETY

The supply of food safety absorbs scarce resources which have alternat ive 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 inco me levels. Whether unregulated markets are capable of supplying food s afety is debated by economists: many argue that 'market failure' is en demic and intervention justified. If governments intervene they should attempt a rudimentary appraisal of 'costs' and 'benefits'; but this i nvolves valuing human life. Intervention can result in non-tariff barr iers which distort trade.