IDEAS home Printed from https://ideas.repec.org/a/ags/jlofdr/139433.html
   My bibliography  Save this article

GAPs Compliance Costs for North Carolina Fresh Produce Producers

Author

Listed:
  • Baros, Jonathan R.
  • Brown, Blake A.

Abstract

The certification of fresh produce producers in Good Agricultural Practices (GAPs) has become a common requirement by wholesale and retail buyers. The Food Safety Modernization Act has provisions for the adoption of traceability systems by farms with fresh produce. The US Food and Drug Administration (FDA) provides guidance for GAPs, but some requirements within these documents, such as traceability, are changing rapidly. Several traceability systems are currently being used by produce producers, and range from professional systems to farmer created systems. This study focuses on two; FoodLogiQ® and farmer created traceability. A focus group composed of various produce farming operations has been tasked to shed light on the challenges produce producers face in implementing traceability systems. Implementation of a sophisticated, professional system requires a large monetary commitment from the producer. The following figures are estimates producers provided specifically for this study. Initial costs using a FoodLogiQ® system is priced at $5,000-$7,500, and requires additional software such as FAMOUS to handle the operations accounting needs at a cost of $40,000- $50,000. Yearly subscription/maintenance fees of $1,200-$8,500 will also be necessary costs for the producer. Survey questions addressed to the focus group aimed at evaluating two main areas; cost of adoption and managerial time with adoption. Results show a distinct difference between small producers (gross sales of $100,000 per year) and large producers (gross sales of $500,000 or greater per year). Small operations feel the burden of adoption with the initial technology costs (e.g. field scanner, label printer, software). Larger operations noted that the heaviest burden of implementation comes in the added cost of personnel. Participants were asked to place a value on survey questions using a 1-3 scale with 1 being no additional cost, 2 minimal additional cost, and 3 significant additional cost. As a result, producers indicated a field scanner (2.3), printing case labels (2.5), and additional office personnel (2.5) as the most costly. Participants were asked to evaluate how implementing a traceability system will affect their management time. Average response yielded between minimal additional time and significant additional time (2.7). The results of the study will provide guidance to producers, farm organizations and policy makers on the costs and potential structural changes occurring as a result of GAPs adoption.

Suggested Citation

  • Baros, Jonathan R. & Brown, Blake A., 2012. "GAPs Compliance Costs for North Carolina Fresh Produce Producers," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(1), March.
  • Handle: RePEc:ags:jlofdr:139433
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/139433
    Download Restriction: no

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlofdr:139433. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/fdrssea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.