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Regional Trade Patterns: The Impact of Voluntary Food Safety Standards

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  • Mollie Woods
  • Suzanne Thornsbury
  • Kellie Curry Raper
  • Richard N. Weldon

Abstract

Good Agricultural Practices (GAPs) are aimed at reducing farm level microbial contamination of fresh produce and include both fixed and variable cost components. We empirically analyze three scenarios of voluntary food safety practice adoption and third‐party certification in the North American fresh strawberry market using a spatial equilibrium model. The model incorporates GAPs adoption across production regions and across farm size. Transportation and product shrinkage, which are critical factors in inter‐regional trade of perishable products, are also included. Regional trade pattern impacts are assessed and used to draw inferences for pressure on market structure. Results indicate that competitive pressures are greatest on those regions with mid‐size volumes that are not able to take advantage of close market proximity, yet still must absorb additional costs. This suggests that adoption of food safety practices, even if voluntary, is likely to accelerate what is already a bi‐modal structure for this industry. Les bonnes pratiques agricoles (BPA) visent à réduire la contamination microbienne des produits frais à la ferme et comprennent des coûts fixes et des coûts variables. Nous avons effectué, à l'aide d'un modèle d'équilibre spatial, l'analyse empirique de trois scénarios d'adoption volontaire de pratiques de sécurité alimentaire et de certification par un tiers dans le marché nord‐américain des fraises fraîches. Le modèle intègre l'adoption de BPA dans toutes les régions productrices et les fermes de toute taille. Le transport et le flétrissement, qui constituent des facteurs critiques dans le commerce interrégional des denrées périssables, ont aussi été inclus. Nous avons évalué les répercussions de la structure de commerce régional et les avons utilisées pour tirer des conclusions sur la pression exercée sur la structure de marché. Les résultats ont indiqué que les pressions concurrentielles étaient plus importantes sur les régions qui produisent des volumes moyens, qui ne peuvent tirer profit des marchés de proximité, mais qui doivent pourtant absorber des coûts additionnels. Ces résultats autorisent à penser que l'adoption, même volontaire, de pratiques de sécurité alimentaire contribuera probablement à accélérer ce que est déjà une structure bimodale de l'industrie.

Suggested Citation

  • Mollie Woods & Suzanne Thornsbury & Kellie Curry Raper & Richard N. Weldon, 2006. "Regional Trade Patterns: The Impact of Voluntary Food Safety Standards," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 531-553, December.
    • Handle: RePEc:bla:canjag:v:54:y:2006:i:4:p:531-553
    DOI: 10.1111/j.1744-7976.2006.00065.x
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    References listed on IDEAS

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    1. Phillips, Jon C. & Peterson, H. Christopher, 2001. "Demand Overview For Organic Produce," Staff Paper Series 11778, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Ollinger, Michael & Mueller, Valerie, 2003. "Managing For Safer Food: The Economics Of Sanitation And Process Controls In Meat And Poultry Plants," Agricultural Economic Reports 33975, United States Department of Agriculture, Economic Research Service.
    3. Woods, Mollie & Thornsbury, Suzanne, 2005. "Costs of Adopting Good Agricultural Practices (GAPs) to Ensure Food Safety in Fresh Strawberries," Agricultural Economic Report Series 10934, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Thompson, Gary D. & Glaser, Lewrene K., 2001. "National Demand For Organic And Conventional Baby Food," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36139, Western Agricultural Economics Association.
    5. Bredahl, Maury E. & Normile, Mary Anne, 2001. "Trade Impacts Of Voluntary Quality Standards For Livestock Products," 2001: International Trade in Livestock Products Symposium, January 2001, Auckland, New Zealand 14563, International Agricultural Trade Research Consortium.
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    1. Paggi, Mechel S. & Yamazaki, Fumiko & Ribera, Luis & Palma, Marco & Knutson, Ronald D., 2013. "Domestic and Trade Implications of Leafy Green Marketing Agreement Type Policies and the Food Safety Modernization Act for the Southern Produce Industry," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45, pages 1-12, August.
    2. Paggi, Mechel S. & Yamazaki, Fumiko & Ribera, Luis A. & Knutson, Ronald D. & Anciso, Juan & Palma, Marco A. & Noel, Jay E., 2010. "Comparative Producer Costs Of Gap And Ghp Standards: Can The Playing Field Be Made Level?," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116406, European Association of Agricultural Economists.
    3. Handschuch, Christina & Wollni, Meike & Villalobos, Pablo, 2013. "Adoption of food safety and quality standards among Chilean raspberry producers – Do smallholders benefit?," Food Policy, Elsevier, vol. 40(C), pages 64-73.
    4. Melo, Oscar & Engler, Alejandra & Nahuehual, Laura & Cofre, Gabriela & Barrena, José, 2014. "Do Sanitary, Phytosanitary, and Quality-related Standards Affect International Trade? Evidence from Chilean Fruit Exports," World Development, Elsevier, vol. 54(C), pages 350-359.
    5. Xiaojing Li & Xianli Xia & Jiazhen Ren, 2022. "Can the Participation in Quality Certification of Agricultural Products Drive the Green Production Transition?," IJERPH, MDPI, vol. 19(17), pages 1-16, September.

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