Salmonella Enteritidis (SE), a strain of Salmonella, is linked to consumption of shell eggs. Data from the Centers for Disease Control and Prevention (CDC) reveal that SE shows an increasing trend over the last 20 years with corresponding increases in the number of SE outbreaks, disabilities, and deaths. The CDC data also show that raw or lightly cooked eggs were responsible for 83% of SE outbreaks.

Recent microbiological studies reveal that 8% of egg-related SE cases can be reduced by requiring refrigeration of shell eggs at 45^oF or less during storage and transportation.

This paper describes 4 alternative scenarios of benefits and compares them with costs of compliance with the 45^oF rule. The results reveal that the benefits of refrigeration exceed the costs in three out of 4 scenarios. Therefore, it is concluded that society would realize net benefits if shell eggs were required to be refrigerated at 45^oF or less.

The refrigeration rule would not be burdensome to small establishments because the costs of compliance amount to less than a penny per dozen eggs. Also, more than half the States already require shell egg refrigeration and the firms operating in these States have already incurred the compliance costs. The small and large firms could easily pass on this cost to consumers without adversely affecting demand for eggs because demand for eggs is almost inelastic, i.e., consumer expenditures on eggs constitute a small fraction of their budget and they are not likely to reduce their demand for eggs if the price is increased by a penny a dozen. The competition in the shell egg industry would also keep the price from increasing, as there are hundreds of shell egg producers in this industry.

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