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Traceability in the Canadian Red Meat Sector: Do Consumers Care?

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Listed:
  • Jill E. Hobbs
  • DeeVon Bailey
  • David L. Dickinson
  • Morteza Haghiri

Abstract

"Increased traceability of food and food ingredients through the agri-food chain has featured in recent industry initiatives in the Canadian livestock sector and is an important facet of the new Canadian Agricultural Policy Framework (APF). While traceability is usually implicitly associated with ensuring food safety and delivering quality assurances, there has been very little economic analysis of the functions of traceability systems and the value that consumers place on traceability assurances. This paper examines the economic incentives for implementing traceability systems in the meat and livestock sector. Experimental auctions are used to assess the willingness to pay of Canadian consumers for a traceability assurance, a food safety assurance, and an on-farm production method assurance for beef and pork products. Results from these laboratory market experiments provide insights into the relative value for Canadian consumers of traceability and quality assurances. Traceability, in the absence of quality verification, is of limited value to individual consumers. Bundling traceability with quality assurances has the potential to deliver more value." Copyright 2005 Canadian Agricultural Economics Society.

Suggested Citation

  • 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, March.
  • Handle: RePEc:bla:canjag:v:53:y:2005:i:1:p:47-65
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    References listed on IDEAS

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    1. Shogren, Jason F. & Seung Y. Shin & Dermot J. Hayes & James B. Kliebenstein, 1994. "Resolving Differences in Willingness to Pay and Willingness to Accept," American Economic Review, American Economic Association, vol. 84(1), pages 255-270, March.
    2. 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.
    3. Dermot J. Hayes & Jason F. Shogren & Seung Youll Shin & James B. Kliebenstein, 1995. "Valuing Food Safety in Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 40-53.
    4. Roxanne Clemens, 2003. "Meat Traceability and Consumer Assurance in Japan," Midwest Agribusiness Trade Research and Information Center (MATRIC) Publications 03-mbp5, Midwest Agribusiness Trade Research and Information Center (MATRIC) at Iowa State University.
    5. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    6. John D. Lawrence, 2002. "Quality Assurance "Down Under": Market Access and Product Differentiation," Center for Agricultural and Rural Development (CARD) Publications 02-mbp1, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    7. Golan, Elise H. & Crissoff, Barry & Kuchler, Fred & Nelson, Kenneth B. & Price, Gregory K. & Calvin, Linda, 2003. "Traceability in the US Food Supply: Dead End or Superhighway?," Choices, Agricultural and Applied Economics Association, vol. 18(2).
    8. Liddell, Sterling & Bailey, DeeVon, 2001. "Market Opportunities And Threats To The U.S. Pork Industry Posed By Traceability Systems," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 4(03).
    9. Fox, John A. & Hayes, Dermot J. & Kliebenstein, James & Shogren, Jason F., 1994. "Consumer Acceptability of Milk from Cows Treated with Bovine Somatotropin," Staff General Research Papers Archive 702, Iowa State University, Department of Economics.
    10. David Dickinson & DeeVon Bailey, 2003. "Willingness-to-Pay for Information: Experimental Evidence on Product Traceability from the U.S.A., Canada, the U.K., and Japan," Working Papers 2003-12, Utah State University, Department of Economics.
    11. John D. Lawrence, 2002. "Quality Assurance "Down Under": Market Access and Product Differentiation," Midwest Agribusiness Trade Research and Information Center (MATRIC) Publications 02-mbp1, Midwest Agribusiness Trade Research and Information Center (MATRIC) at Iowa State University.
    12. Jill E. Hobbs, 2004. "Information asymmetry and the role of traceability systems," Agribusiness, John Wiley & Sons, Ltd., vol. 20(4), pages 397-415.
    13. Roxanne Clemens, 2003. "Meat Traceability and Consumer Assurance in Japan," Center for Agricultural and Rural Development (CARD) Publications 03-mbp5, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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