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Optimal choice of Voluntary traceability as a food risk management tool

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

Abstract

Traceability systems are information tools implemented within and between firms in food chains to improve logistics and transparency or to reduce total food safety damage costs. Information about location and condition of products is critical when food safety incidents arise. This paper uses a principal-agent model to investigate the optimal choice of voluntary traceability in terms of precision of information on a given attribute at each link of a food chain. The results suggest that four scenarios may emerge for the supply chain depending on the costs of a system and whether or not the industry can internalize total food safety damages: no traceability, traceability for one link, equal traceability for all links, or different positive traceability levels across all links.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44394.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:44394

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Keywords: Traceability; food safety; principal-agent model; Food Consumption/Nutrition/Food Safety;

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  1. Pouliot, Sebastien & Sumner, Daniel A., 2006. "Traceability, Liability and Incentives for Food Safety and Quality," 2006 Annual meeting, July 23-26, Long Beach, CA 21121, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. 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.
  3. Hennessy, David A. & Roosen, Jutta & Miranowski, John, 2001. "Leadership and the Provision of Safe Food," Staff General Research Papers 10549, Iowa State University, Department of Economics.
  4. Starbird S. Andrew & Amanor-Boadu Vincent, 2007. "Contract Selectivity, Food Safety, and Traceability," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(1), pages 1-22, February.
  5. Resende-Filho, Moises & Buhr, Brian, 2006. "A Principal-Agent Model for Evaluating the Economic Value of a Beef Traceability System: A Case Study with Injection-site Lesions Control in Fed Cattle," MPRA Paper 467, University Library of Munich, Germany.
  6. Starbird, S. Andrew & Amanor-Boadu, Vincent, 2006. "Do Inspection and Traceability Provide Incentives for Food Safety?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(01), April.
  7. Moises A. Resende-Filho & Brian L. Buhr, 2008. "A Principal-Agent Model for Evaluating the Economic Value of a Traceability System: A Case Study with Injection-site Lesion Control in Fed Cattle," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 1091-1102.
  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.
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