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Quality Assurance Certification and Implementation: Growers' Costs and Perceived Benefits

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  • Kingwell, Ross S.
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    Abstract

    This study reports findings from a mail survey of Western Australian broadacre farmers participating in quality assurance (QA) accreditation. A 50 percent response rate generated a sample size of 78 usable replies. The average farm in the survey spent $13,470 gaining QA accreditation, upgrading facilities and implementing the QA system. Most of these costs were set-up costs incurred in the first year of QA training. Almost half of all farmers in the survey considered QA accreditation and implementation to be value for money. A further 39 per cent were unsure of its value. Only 13 per cent of respondents felt it was not a worthwhile investment. Most respondents agreed that there were benefits, apart from price premia, in applying a QA system and 84 per cent of growers viewed QA accreditation as the start of greater regulation of grain production. Even if no price premium was available for QA grain, 39% of respondents indicated they still believed QA to be worthwhile. However, this same group of farmers also indicated that if the premium for QA grain was less than $8.90 per tonne they would begin to question the value of implementing the QA system on their farm. Overall, farmers in the survey suggested an average premium of $12.30 per tonne was required to prevent them questioning the merits of QA. A simple investment model suggested that to exactly offset the cost of QA accreditation and implementation a price premium of $11.70 per tonne was required. This premium was very close the price premium of $12.30 per tonne identified by growers as being required before they would doubt the worth of adopting a QA system.

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    File URL: http://purl.umn.edu/132535
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    Bibliographic Info

    Article provided by University of Melbourne, Melbourne School of Land and Environment in its journal Australasian Agribusiness Review.

    Volume (Year): 11 (2003)
    Issue (Month): ()
    Pages:

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    Handle: RePEc:ags:auagre:132535

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    Web page: http://www.agrifood.info/review/

    Related research

    Keywords: Western Australia; broadacre; quality assurance; QA system; cost; survey; grain; investment model; Agribusiness; Crop Production/Industries; Farm Management; Production Economics; Productivity Analysis; Research Methods/ Statistical Methods; Risk and Uncertainty; Teaching/Communication/Extension/Profession; ISSN 1442-6951;

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    Cited by:
    1. Chang, Hui-Shung (Christie) & Kristiansen, Paul, 2004. "Selling Australia as "clean and green"," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58393, Australian Agricultural and Resource Economics Society.
    2. Chang, Hui-Shung (Christie) & Kristiansen, Paul, 2004. "Selling Australia as 'Clean and Green'," Working Papers 12899, University of New England, School of Economics.

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