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Does traceability play a role in retailer’s strategies for private labels?

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  • Banterle, Alessandro
  • Souza Monteiro, Diogo M.
  • Stranieri, Stefanella

Abstract

Traceability is helping retailers manage food safety risks and support product differentiation. This paper aims to investigate how traceability may be used to screen supplier for private labels dedicated provider pools. Retailers in the UK and Italy have several private label product lines and increasingly select dedicated suppliers. The choice of providers is a typical agency problem as retailers contract the production for their private labels, having incomplete information on types and effort of their suppliers. Different contracts must be designed for suppliers of private labels depending on position of the product line and its food safety risk. A case study, based on the second largest Italian retailer reveals that traceability and quality assurance schemes are used together to manage suppliers of private labels

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File URL: http://purl.umn.edu/50933
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Bibliographic Info

Paper provided by Agricultural Economics Society in its series 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland with number 50933.

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Date of creation: 01 Apr 2009
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Handle: RePEc:ags:aesc09:50933

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Related research

Keywords: Traceability; dedicated providers; food products; retailing; vertical coordination; Marketing; Q13; Q18; L81; L66; L15;

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References

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  1. Souza Monteiro, Diogo M. & Caswell, Julie A., 2006. "Traceability Adoption at the Farm Level: An Empirical Analysis of the Portuguese Pear Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21132, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Spencer Henson & James Northen, 2000. "Consumer Assessment of the Safety of Beef at the Point of Purchase: A Pan-European Study," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(1), pages 90-105.
  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. Alessandro Banterle & Stefanella Stranieri, 2008. "Information, labelling, and vertical coordination: an analysis of the Italian meat supply networks," Agribusiness, John Wiley & Sons, Ltd., vol. 24(3), pages 320-331.
  5. Henson, Spencer & Reardon, Thomas, 2005. "Private agri-food standards: Implications for food policy and the agri-food system," Food Policy, Elsevier, vol. 30(3), pages 241-253, June.
  6. 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.
  7. 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.
  8. Hobbs, Jill E., 2004. "Traceability in the Canadian Red Meat Sector," Economic and Market Information 55304, Agriculture and Agri-Food Canada.
  9. Caswell, Julie A., 1998. "How Labeling Of Safety And Process Attributes Affects Markets For Food," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(2), October.
  10. Banterle, Alessandro & Stranieri, Stefanella, 2008. "The consequences of voluntary traceability system for supply chain relationships. An application of transaction cost economics," Food Policy, Elsevier, vol. 33(6), pages 560-569, December.
  11. Hatanaka, Maki & Bain, Carmen & Busch, Lawrence, 2005. "Third-party certification in the global agrifood system," Food Policy, Elsevier, vol. 30(3), pages 354-369, June.
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Cited by:
  1. Alessandro Banterle & Stefanella Stranieri, 2013. "Sustainability Standards and the Reorganization of Private Label Supply Chains: A Transaction Cost Perspective," Sustainability, MDPI, Open Access Journal, vol. 5(12), pages 5272-5288, December.

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