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The Food Safety and Inspection Service (FSIS) is proposing to amend the Federal meat inspection regulations to establish a new inspection system for swine slaughter establishments demonstrated to provide greater public health protection than the existing inspection system. The Agency is also proposing several changes to the regulations that would affect all establishments that slaughter swine, regardless of the inspection system under which they operate.

Statement of Need:

The proposed action is necessary to improve food safety; improve compliance with the Humane Methods of Slaughter Act; improve the effectiveness of market hog slaughter inspection; make better use of the Agency’s resources; and remove unnecessary regulatory obstacles to innovation.

Summary of the Legal Basis:

21 U.S.C. 601 et seq.

Alternatives:

The Agency is considering alternatives such as: (1) a mandatory New Swine Slaughter Inspection System (NSIS) for market hog slaughter establishments  and (2) a voluntary NSIS for market hog establishments, under which FSIS would conduct the same offline inspection activities as traditional inspection.

Anticipated Costs and Benefits:

The estimated total annualized value of all mandatory costs to industry is approximately $0.74 million, while total annualized value of all voluntary costs to industry is approximately $11.66 million, assuming a 10 year annualization and a 3 percent discount rate. Estimated combined the total annualized costs to industry is approximately $12.40 million ($0.77 + $11.66), assuming a 10 year annualization and a 3 percent discount rate. FSIS estimates industry-wide adoption of the NSIS would reduce the number of human illness attributed to products derived from market hog by an average of about 2,621 Salmonella illnesses, which represents potential savings of approximately $9.56 million annually. The Agency’s budget is expected to be impacted by changes to personnel and training requirements. The estimated annualized value of the combined changes to the Agency’s budget is a net reduction of roughly $8.77 million, over 10 years assuming a 3 percent discount rate. With the expected impact on the Agency’s budget included, and assuming all large and small exclusively market hog establishments convert to NSIS, the rule is anticipated to have a net benefit of approximately $4.97 million a year, annualized over 10 years assuming a 3 percent discount rate.

Risks:

None.