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The Economics of Traceability for Multi-Ingredient Products: A Network Approach

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  • Souza Monteiro, Diogo M.
  • Caswell, Julie A.

Abstract

The consumption of multi-ingredient foods is increasing across the globe as consumers spend less time preparing meals. Traceability is now extensively used to reduce information imperfections in food markets and recent EU law suggests it will be implemented for manufactured meals as well. We present a model developed to understand how information on different ingredients flows through supply chains for multi-ingredient food products. The network model has three tiers linked by contracts for levels of quality and information. The model is useful for analyzing tradeoffs and network effects emerging in the choice of traceability levels.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19143.

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Date of creation: 2005
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Handle: RePEc:ags:aaea05:19143

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Related research

Keywords: Traceability; multi-ingredient foods; network models; Food Consumption/Nutrition/Food Safety;

References

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  1. Dickinson, David L. & Bailey, DeeVon, 2002. "Meat Traceability: Are U.S. Consumers Willing To Pay For It?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(02), December.
  2. Shogren, Jason F. & Shin, Seung Youll & Hayes, Dermot J. & Kliebenstein, James, 1994. "Resolving Differences in Willingness to Pay and Willingness to Accept," Staff General Research Papers 701, Iowa State University, Department of Economics.
  3. Starbird, S. Andrew & Amanor-Boadu, Vincent, 2004. "Traceability, Inspection, And Food Safety," 2004 Annual meeting, August 1-4, Denver, CO 20381, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Buhr, Brian L., 2003. "Traceability And Information Technology In The Meat Supply Chain: Implications For Firm Organization And Market Structure," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(03), November.
  5. S. Andrew Starbird, 2005. "Moral Hazard, Inspection Policy, and Food Safety," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 15-27.
  6. Matthew O. Jackson, 2003. "A Survey of Models of Network Formation: Stability and Efficiency," Game Theory and Information 0303011, EconWPA.
  7. Nicholas Economides, 1995. "The Economics of Networks," Working Papers 94-24, New York University, Leonard N. Stern School of Business, Department of Economics, revised Sep 1995.
  8. Golan, Elise H. & Krissoff, Barry & Kuchler, Fred & Calvin, Linda & Nelson, Kenneth E. & Price, Gregory K., 2004. "Traceability In The U.S. Food Supply: Economic Theory And Industry Studies," Agricultural Economics Reports 33939, United States Department of Agriculture, Economic Research Service.
  9. Hobbs, Jill E., 2003. "Consumer Demand For Traceability," Working Papers 14614, International Agricultural Trade Research Consortium.
  10. Meuwissen, Miranda P.M. & Velthuis, Annet G.J. & Hogeveen, Henk & Huirne, Ruud B.M., 2003. "Traceability And Certification In Meat Supply Chains," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 21(2).
  11. Kola, Jukka & Latvala, Terhi, 2002. "Demand For Credence Characteristics In Beef," 2002 Annual meeting, July 28-31, Long Beach, CA 19703, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  12. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-40, June.
  13. Golan, Elise H. & Krissoff, Barry & Kuchler, Fred & Nelson, Kenneth E. & Price, Gregory K. & Calvin, Linda, 2003. "Traceability for Food Safety and Quality Assurance: Mandatory Systems Miss the Mark," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 04.
  14. Jill E. Hobbs & DeeVon Bailey & David L. Dickinson & Morteza Haghiri, 2005. "Traceability in the Canadian Red Meat Sector: Do Consumers Care?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 47-65, 03.
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Citations

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Cited by:
  1. Bulut, Harun & Lawrence, John D., 2007. "Meat Slaughter and Processing Plants’ Traceability Levels Evidence From Iowa," 2007 Conference, April 16-17, 2007, Chicago, Illinois 37576, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
  2. Charlier, Christophe & Valceschini, Egizio, 2006. "Traceability, Trust and Coordination in a Food Chain," 99th Seminar, February 8-10, 2006, Bonn, Germany 7718, European Association of Agricultural Economists.
  3. Christophe Charlier & Egizio Valceschini, 2008. "Coordination for traceability in the food chain. A critical appraisal of European regulation," European Journal of Law and Economics, Springer, vol. 25(1), pages 1-15, February.
  4. Fritz, Melanie & Schiefer, Gerhard, 2009. "Tracking, tracing, and business process interests in food commodities: A multi-level decision complexity," International Journal of Production Economics, Elsevier, vol. 117(2), pages 317-329, February.
  5. Galliano, Danielle & Orozco, L., 2008. "Intra and Inter organisational determinants of electronic-based traceability adoption: evidences from the French agri-food industry," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43952, European Association of Agricultural Economists.

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