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Quality assurance mechanisms in agrifood: the case of the Spanish fresh meat sector

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Author Info
Manuel Gonzalez-Diaz
Marta Fernandez Barcala
Benito Arrunada

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Abstract

The largest fresh meat brand names in Spain are analysed here to study how quality is signalled in the agricultural and food industries and how the underlying quality-assurance organisations work. We obtain two main results. First, organisational form varies according to the specialisation of the brand name. Geographical indicators, which focus on achieving high organoleptic product attributes, rely on market contracting with individual producers because it provides stronger incentives for sustained quality improvement. In contrast, private brands rely more on hierarchy, taking advantage of its superiority in solving coordination problems. Second, the seemingly redundant coexistence of several quality indicators for a given product is explained in efficiency terms. Multiple brands are shown to be complementary, given their specialisation in guaranteeing different attributes of the product.

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Publisher Info
Article provided by Inderscience Enterprises Ltd in its journal International Journal of Agricultural Resources, Governance and Ecology.

Volume (Year): 2 (2003)
Issue (Month): 3 (January)
Pages: 361-382
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Handle: RePEc:mes:ijarge:v:2:y:2003:i:3:p:361-382

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Keywords: agriculture; cobranding; contracts; quality assurance; vertical integration; fresh meat; Spain;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Monteverde, Kirk & Teece, David J, 1982. "Appropriable Rents and Quasi-Vertical Integration," Journal of Law & Economics, University of Chicago Press, vol. 25(2), pages 321-28, October.
  2. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law & Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
  3. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr. [Downloadable!] (restricted)
  4. Blois, K J, 1972. "Vertical Quasi-Integration," Journal of Industrial Economics, Blackwell Publishing, vol. 20(3), pages 253-72, July. [Downloadable!] (restricted)
  5. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law & Economics, University of Chicago Press, vol. 26(2), pages 301-25, June.
  6. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-41, August. [Downloadable!] (restricted)
  7. Shapiro, Carl, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, MIT Press, vol. 98(4), pages 659-79, November. [Downloadable!] (restricted)
  8. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August. [Downloadable!] (restricted)
  9. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law & Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
  10. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-28, June. [Downloadable!] (restricted)
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  1. Innes, Brian & Kerr, William & Hobbs, Jill, 2007. "International Product Differentiation through a Country Brand: An Economic Analysis of National Branding as a Marketing Strategy for Agricultural Products," Commissioned Papers 6131, Canadian Agricultural Trade Policy Research Network. [Downloadable!]
  2. Brent Hueth & Maro Ibarburu & James Kliebenstein, 2005. "Business Organization and Coordination in Marketing Specialty Hogs: A Comparative Analysis of Two Firms from Iowa," Center for Agricultural and Rural Development (CARD) Publications 05-wp415, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
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