Assignment 1: Economic Concepts Please read the power point/pdf and HACCP economics in fish processing plants article by Lupin, et al. 1. Explain why one must calculate depreciation for investments made for food safety mitigation strategies (e.g., a new wash station). 2. If you were asked to estimate the cost of a new strategy to reduce food safety risks in a medium-sized potato processing plant, identify two unique (different) means by which you might gather the necessary data (e.g., conduct a survey, expert opinion). Provide a bit of detail, including, e.g., who would be queried and where you would find the data (e.g., provide a specific Internet address). 3. From the reading HACCP economics in fish processing plants by Lupin, et al. define Quality Cost Index. Explain how this index can be used to evaluate if HACCP systems are cost-effective (benefits outweigh the costs) for firms implementing HACCP systems. Assignment 2: Social Accounting Matrix The Social Accounting Matrix helps us quantify costs and benefits to society of food-borne illness and death. Read the study Tracing the Costs and Benefits of Improvements in Food Safety see attached file. Respond to the following questions in essay format 1. where does the benefit data come from in this study? What are the sources of the benefit? Why do estimates vary? Where does the cost data come from? 2. Which household type receives the most net benefit? 3. How do HACCP costs compare to reduction in premature deaths? How do the premature deaths influence the cost of food borne illness? How do they affect net benefit? 4. How much will the medical sector lose and why? 5. What are five take home ideas (not facts, ideas) that you learned from this article? Each idea should be unique and include a great detail.
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