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Objectiveness in the Market for Third-Party Certification: Does market structure matter?

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  • Anders, Sven
  • Souza Monteiro, Diogo M.
  • Rouviere, Elodie

Abstract

The globalization of trade in high quality foods is stimulating the development of international food standards and certification systems. Third-party certification as evolved as a means of ensuring that product information and signals on quality and safety attributes are sound and reliable. Certification can only provide credible market signals if it operates objectively and independently. This paper investigates the potential trade-off between certifiers’ objectivity and the level of competition in the rapidly expanding market for third-party certification of quality foods. Based on a theoretical supply chain framework a nested panel analysis is applied to a set of accredited certifiers for the EurepGAP fruits and vegetables standard. Our results indicate that increasing economies of scale and market share in certification do matter.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 105th Seminar, March 8-10, 2007, Bologna, Italy with number 7894.

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Date of creation: 2007
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Handle: RePEc:ags:eaa105:7894

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Keywords: Third-party certification; objectiveness; market structure; nested panel analysis; EurepGAP; Marketing;

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  1. Miguel Carriquiry & Bruce A. Babcock & Roxana Carbone, 2003. "Optimal Quality Assurance Systems for Agricultural Outputs," Center for Agricultural and Rural Development (CARD) Publications 03-wp328, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  2. Alessandro Lizzeri, 1999. "Information Revelation and Certification Intermediaries," RAND Journal of Economics, The RAND Corporation, vol. 30(2), pages 214-231, Summer.
  3. Giovanni Anania & Rosanna Nisticò, 2004. "Public Regulation as a Substitute for Trust in Quality Food Markets: What if the Trust Substitute cannot be Fully Trusted?," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(4), pages 681-, December.
  4. Fulponi, Linda, 2006. "Private voluntary standards in the food system: The perspective of major food retailers in OECD countries," Food Policy, Elsevier, vol. 31(1), pages 1-13, February.
  5. McCluskey, Jill J., 1999. "A Game Theoretic Approach to Organic Foods: An Analysis of Asymmetric Information and Policy," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123706, Australian Agricultural and Resource Economics Society.
  6. Spencer Henson & James Northen, 1998. "Economic determinants of food safety controls in supply of retailer own-branded products in United Kingdom," Agribusiness, John Wiley & Sons, Ltd., vol. 14(2), pages 113-126.
  7. 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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