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Dynamics of EU food safety certification: a survival analysis of firm decisions

Author

Listed:
  • Catherine Ragasa

    (Development Strategy and Governance Division of International Food Policy Research Institute)

  • Suzanne Thornsbury

    (Economic Research Service of US Department of Agriculture)

  • Satish Joshi

    (Department of Agricultural Food and Resource Economics of Michigan State University)

Abstract

The article empirically examines the timing of initial decisions to adopt food safety systems and subsequent decisions to maintain the certification. Survival models are used to evaluate firm-level decisions among seafood processors in the Philippines. Whereas initial certification decisions were influenced mainly by easily obtainable a priori indicators such as output price, scale of production, and association membership, decisions to continue certification were influenced by a larger number of less-visible factors including price differentials across markets and cost structures. Managerial hubris may have played a role in initial certification decisions, but decertification decisions were more informed by realized cost–benefit comparisons. Results highlight tendencies to initially overestimate of benefits and underestimate costs of food safety certifications, resulting in unrealistically optimistic projections and may lead to adverse firm performance.

Suggested Citation

  • Catherine Ragasa & Suzanne Thornsbury & Satish Joshi, 2017. "Dynamics of EU food safety certification: a survival analysis of firm decisions," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-25, December.
    • Handle: RePEc:spr:agfoec:v:5:y:2017:i:1:d:10.1186_s40100-017-0080-2
    DOI: 10.1186/s40100-017-0080-2
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    References listed on IDEAS

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    2. Lambrecht, Isabel Brigitte & Ragasa, Catherine, 2018. "Do development projects crowd-out private sector activities? Evidence from contract farming participation in Northern Ghana," Food Policy, Elsevier, vol. 74(C), pages 9-22.

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    More about this item

    Keywords

    HACCP; Food safety; Survival analysis; Seafood industry;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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