Supply Response to Technological Change and Regulation: The Case of Mechanically Deboned Poultry

Abstract

The supply of poultry meat is being augmented by hundreds of millions of pounds annually at little economic cost and no increase in the output of chickens or turkeys. The food-processing innovation responsible for boosting the utilization efficiency of our scarce food protein resources is mechanical deboning, a technique that separates the remaining meat from bones destined to be rendered into inedible products. The potential gains to society from further widespread adoption of this technology could be enormous. Therefore, it is important to have a clear understanding of the factors that affect the market supply response to this technology, as well as the impact of additional regulations governing its use.