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Industry-mandated testing to improve food safety: the new US marketing order for pistachios

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Author Info

  • Brunke, Henrich
  • Alston, Julian M.
  • Gray, Richard S.
  • Sumner, Daniel A.

Abstract

Food safety shocks can threaten the health of consumers, create havoc within an industry and result in severe losses to producers. Governments often attempt to aid food safety by mandating standards and inspection of food products to supplement the efforts by private firms and industries. This article assesses a form of collective action that falls between typical government mandates and purely private action. The California pistachio industry recently established a U.S. federal marketing order, which sets quality standards and inspection to reduce the likelihood of dangerous or poor quality pistachios. Simulation results indicate that, across the full range of parameters used in the analysis, the benefit-cost analysis was always favorable to the new policy. In the case of California pistachios, collective action is likely to be a helpful tool to ensure a safe product and increase benefits to producers and consumers.

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File URL: http://purl.umn.edu/97502
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Bibliographic Info

Article provided by Humboldt-Universitaet zu Berlin, Department for Agricultural Economics in its journal German Journal of Agricultural Economics.

Volume (Year): 53 (2004)
Issue (Month): 8 ()
Pages:

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Handle: RePEc:ags:gjagec:97502

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Related research

Keywords: food safety; food scare; collective action; marketing orders; pistachios; public good; food regulations; cost-benefit analysis; Agribusiness; Food Consumption/Nutrition/Food Safety;

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Cited by:
  1. Zheng, Zijuan & Saghaian, Sayed H. & Reed, Michael R., 2012. "Factors Affecting the Export Demand for U.S. Pistachios," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 15(3).

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