The first attempts by economists to value food safety used an estimate of cost savings as an estimate of the value of saving lives.
The present value of foregone earnings less consumption plus medical expenses was used as the value of cost savings created by safer food.
Food safety risk management will often require an estimate of the cost associated with foodborne illness. In the USA, diseases caused by the major pathogens alone are estimated to cost up to $35 billion annually (1997) in medical cost and lost productivity.
Cost of illness estimates have been used to value food safety in the US, Canada, Great Britain, and Australia.
Medical costs include physician and hospital services, supplies, special procedures unique to treating each foodborne illness.
Medical costs reflect the number of days or treatments of a medical service, the average cost per service and the number of patients receiving such service.
Productivity losses occur when there is a reduction or cessation of work due to premature mortality and morbidity.
Apart from $35 billion cost of illness caused by the major foodborne pathogens, the annual cost of illness due to E. coli 0157 infections in the USA has been estimated at $405 million. This not include costs due to pain and suffering, and expenditure on outbreak investigation.
Cost of Illness due to Food Safety Issue
