Costs and risks of conforming to EU traceability requirements: the case of hard red spring wheat
AbstractEuropean Union (EU) traceability requirements impose added costs and risks on suppliers. A stochastic simulation model is developed to determine optimal testing strategies and marginal costs to conform to EU traceability requirements for exports of non-genetically modified (non-GM) wheat from the United States. The optimal strategy is chosen to maximize an integrator's utility. Cost components include certified seed, certification and auditing, testing, traceability, quality loss, and a premium for the added risk of a dual traceability system over a single non-traceability system. Adventitious commingling risks are defined stochastically. Results indicate that traceability requirements can be conformed to with reasonable buyer and seller risk at a total cost of $18|non-GM mt. [EconLit Subject Descriptors: C150, C610, D810] © 2008 Wiley Periodicals, Inc.
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Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Agribusiness.
Volume (Year): 24 (2008)
Issue (Month): 1 ()
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Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297
Other versions of this item:
- Wilson, William W. & Henry, Xavier & Dahl, Bruce L., 2005. "Costs And Risks Of Conforming To Eu Traceability Requirements: The Case Of Hard Red Spring Wheat," Agribusiness & Applied Economics Report 23484, North Dakota State University, Department of Agribusiness and Applied Economics.
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