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The Economics of Voluntary Traceability in Multi-Ingredient Food Chains

Author

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  • Diogo M. Souza-Monteiro

    (Kent Business School, University of Kent, Canterbury, Kent CT2 7PE, UK)

  • Julie A. Caswell

    (Department of Resource Economics, University of Massachusetts-Amherst, 215 Stockbridge Hall, 80 Campus Center Way, Amherst, MA 01003-9246)

Abstract

The consumption of multi-ingredient foods is increasing across the globe. Traceability can be used as a tool to gather information about and manage food safety risks associated with these types of products. The authors investigate the choice of voluntary traceability in three-tiered multi-ingredient food supply chains. They propose a framework based on vertical control and agency theory to model three dimensions of traceability systems: depth, breadth, and precision. Their analysis has three main results. First, full traceability is feasible as long as there are net benefits to a downstream firm that demands traceability across all ingredients. Second, horizontal network externalities are positive because an increase in the level of traceability in one ingredient requires a similar increase in others. Finally, vertical network effects will be positive insofar as willingness to pay and probabilities of food safety hazards increase. [EconLit Classification: Q130, L140]. © 2010 Wiley Periodicals, Inc.

Suggested Citation

  • Diogo M. Souza-Monteiro & Julie A. Caswell, 2010. "The Economics of Voluntary Traceability in Multi-Ingredient Food Chains," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 122-142.
    • Handle: RePEc:wly:agribz:v:26:y:2010:i:1:p:122-142
    DOI: 10.1002/agr.20233
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    References listed on IDEAS

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    Cited by:

    1. Danielle Galliano & Luis Orozco, 2011. "Les déterminants industriels et spatiaux du processus d'adoption de technologies : Le cas des systèmes de traçabilité dans les firmes industrielles françaises," Géographie, économie, société, Lavoisier, vol. 13(2), pages 135-163.
    2. McCluskey, Jill J. & Winfree, Jason A., 2017. "Collective Reputation in Online Platforms and Private Quality Standards," 2018 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2018, Philadelphia, Pennsylvania 266302, Agricultural and Applied Economics Association.
    3. Saak, Alexander E., 2016. "Traceability and reputation in supply chains," International Journal of Production Economics, Elsevier, vol. 177(C), pages 149-162.
    4. Zhou, Xiongyong & Zhu, Qinghua & Xu, Zhiduan, 2023. "The role of contractual and relational governance for the success of digital traceability: Evidence from Chinese food producers," International Journal of Production Economics, Elsevier, vol. 255(C).
    5. Banterle, Alessandro & Souza Monteiro, Diogo M. & Stranieri, Stefanella, 2009. "Does traceability play a role in retailer’s strategies for private labels?," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 50933, Agricultural Economics Society.
    6. Winfree Jason, 2016. "Partial Adherence to Voluntary Quality Standards for Experience Goods," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 14(1), pages 81-89, May.
    7. Jennifer Lazzeri & Nathalie Fabbe-Costes, 2014. "La Traçabilite Totale Des Supply Chains : Concept Et Modele Theorique De Mise En Oeuvre," Post-Print hal-03292077, HAL.
    8. Danielle Galliano & Luis Orozco, 2013. "New Technologies and Firm Organization: The Case of Electronic Traceability Systems in French Agribusiness," Industry and Innovation, Taylor & Francis Journals, vol. 20(1), pages 22-47, January.
    9. Danielle Galliano & Luis Orozco, 2011. "The determinants of electronic traceability adoption: a firm‐level analysis of French agribusiness," Agribusiness, John Wiley & Sons, Ltd., vol. 27(3), pages 379-397, June.

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