IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v132y2025ics0306919225000594.html
   My bibliography  Save this article

Economic evaluation of lettuce traceability systems in mitigating foodborne illness risks

Author

Listed:
  • Lee, Young Gwan
  • Horeh, Marziyeh Bahalou
  • Elbakidze, Levan

Abstract

Foodborne illnesses in fresh produce markets pose a significant public health risk. Although traceability systems are recognized for their potential to mitigate contamination impacts, the economic benefits of such systems remain underexplored. This study addresses this gap by evaluating the value of traceability in managing foodborne illness outbreaks using lettuce as a case study. We quantify the economic benefits of lettuce traceability and assess its sensitivity to contamination severity (quantity and virulence of the pathogen), pathogen persistence (survival of the pathogen on produce over time), and illness latency (time from exposure to symptoms of infection). Using an economic model with a pathogen dose–response formulation, we simulate the economic and health impacts of E. coli contamination originating from irrigation water. The results indicate that traceability benefits range from $4 to $91 million per outbreak, depending on shelf life, contamination severity, and latency of illness symptoms. Shorter shelf lives and contamination severity amplify the benefits. Traceability reduces illness by swiftly identifying and removing contaminated produce from the supply chain. The findings highlight the cost-effectiveness of traceability systems, especially for managing frequent or severe outbreaks. The study also demonstrates the contextual sensitivity of tracing benefits that stakeholders, including producers, retailers, and policymakers, should consider. Future studies should consider alternative contexts where benefit and costs may deviate from the estimates in this study.

Suggested Citation

  • Lee, Young Gwan & Horeh, Marziyeh Bahalou & Elbakidze, Levan, 2025. "Economic evaluation of lettuce traceability systems in mitigating foodborne illness risks," Food Policy, Elsevier, vol. 132(C).
  • Handle: RePEc:eee:jfpoli:v:132:y:2025:i:c:s0306919225000594
    DOI: 10.1016/j.foodpol.2025.102855
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306919225000594
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.foodpol.2025.102855?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Chantal Toledo & Sofia Berto Villas-Boas, 2019. "Safe or Not? Consumer Responses to Recalls with Traceability," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 519-541, September.
    2. Ruogu Li, 2015. "The Gold-exchange Standard," World Scientific Book Chapters, in: Reform of the International Monetary System and Internationalization of the Renminbi, chapter 2, pages 11-16, World Scientific Publishing Co. Pte. Ltd..
    3. Jason A. Winfree, 2023. "Collective reputation and food," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 666-683, June.
    4. Sébastien Pouliot & Daniel A. Sumner, 2008. "Traceability, Liability, and Incentives for Food Safety and Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 15-27.
    5. Souza Monteiro, Diogo M. & Caswell, Julie A., 2009. "Traceability adoption at the farm level: An empirical analysis of the Portuguese pear industry," Food Policy, Elsevier, vol. 34(1), pages 94-101, February.
    6. Ruogu Li, 2015. "The Gold Standard," World Scientific Book Chapters, in: Reform of the International Monetary System and Internationalization of the Renminbi, chapter 1, pages 3-10, World Scientific Publishing Co. Pte. Ltd..
    7. repec:oup:apecpp:v:40:y:2018:i:3:p:402-420. is not listed on IDEAS
    8. Jayson L Lusk & Jill McCluskey, 2018. "Understanding the Impacts of Food Consumer Choice and Food Policy Outcomes," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(1), pages 5-21.
    9. Carlos Arnade & Linda Calvin & Fred Kuchler, 2009. "Consumer Response to a Food Safety Shock: The 2006 Food-Borne Illness Outbreak of E. coli O157: H7 Linked to Spinach," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 734-750.
    10. Bruce A. McCarl & Thomas H. Spreen, 1980. "Price Endogenous Mathematical Programming As a Tool for Sector Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 87-102.
    11. Karl M. Rich & Alex Winter-Nelson, 2007. "An Integrated Epidemiological-Economic Analysis of Foot and Mouth Disease: Applications to the Southern Cone of South America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 682-697.
    12. 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), pages 1-13, April.
    13. Chong Wang & Xu Chen, 2013. "Fresh Produce Supply Chain Management Decisions with Circulation Loss and Options Contracts," Springer Books, in: Zhenji Zhang & Runtong Zhang & Juliang Zhang (ed.), Liss 2012, edition 127, pages 643-647, Springer.
    14. Aaron M. Shew & Heather A. Snell & Rodolfo M. Nayga & Mary C. Lacity, 2022. "Consumer valuation of blockchain traceability for beef in the United States," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(1), pages 299-323, March.
    15. Elbakidze, Levan, 2007. "Economic Benefits Of Animal Tracing In The Cattle Production Sector," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9510, Western Agricultural Economics Association.
    16. Aklesso Egbendewe-Mondzozo & Levan Elbakidze & Bruce A. McCarl & Michael P. Ward & John B. Carey, 2013. "Partial equilibrium analysis of vaccination as an avian influenza control tool in the U.S. poultry sector," Agricultural Economics, International Association of Agricultural Economists, vol. 44(1), pages 111-123, January.
    17. Kibble, Tom W.B., 2015. "The Standard Model of Particle Physics," European Review, Cambridge University Press, vol. 23(1), pages 36-44, February.
    18. Ashley Spalding & Rachael E. Goodhue & Kristin Kiesel & Richard J. Sexton, 2023. "Economic impacts of food safety incidents in a modern supply chain: E. coli in the romaine lettuce industry," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(2), pages 597-623, March.
    19. Liao, Pei-An & Chang, Hung-Hao & Chang, Chun-Yen, 2011. "Why is the food traceability system unsuccessful in Taiwan? Empirical evidence from a national survey of fruit and vegetable farmers," Food Policy, Elsevier, vol. 36(5), pages 686-693.
    20. Wang, Xiaojun & Li, Dong, 2012. "A dynamic product quality evaluation based pricing model for perishable food supply chains," Omega, Elsevier, vol. 40(6), pages 906-917.
    21. Okrent, Abigail M. & Alston, Julian M., 2012. "The Demand for Disaggregated Food-Away-from-Home and Food-at-Home Products in the United States," Economic Research Report 132469, United States Department of Agriculture, Economic Research Service.
    22. Caputo, Vincenzina & Lusk, Jayson L., 2022. "The Basket-Based Choice Experiment: A Method for Food Demand Policy Analysis," Food Policy, Elsevier, vol. 109(C).
    23. Elbakidze, Levan, 2007. "Economic Benefits of Animal Tracing in the Cattle Production Sector," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(01), pages 1-12, April.
    24. Ping Yan & Wen-liang Yang & Bo Tan & Bo-biao Yu, 2013. "Improving Ammunition Supply Chain Management with RFID Technology," Springer Books, in: Ershi Qi & Jiang Shen & Runliang Dou (ed.), Proceedings of 20th International Conference on Industrial Engineering and Engineering Management, edition 127, pages 1143-1154, Springer.
    25. Erik Lichtenberg, 2010. "Economics of Health Risk Assessment," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 53-75, October.
    26. James K. Hammitt & Kevin Haninger, 2007. "Willingness to Pay for Food Safety: Sensitivity to Duration and Severity of Illness," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1170-1175.
    27. 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 Economic Reports 33939, United States Department of Agriculture, Economic Research Service.
    28. Ye, Ling & Cheng, Zhijun & Wang, Qingqin & Lin, Haiyan & Lin, Changqing & Liu, Bin, 2015. "Developments of Green Building Standards in China," Renewable Energy, Elsevier, vol. 73(C), pages 115-122.
    29. Hoffman, Sandra & Maculloch, Bryan & Batz, Michael, 2015. "Economic Burden of Major Foodborne Illnesses Acquired in the United States," Economic Information Bulletin 205081, United States Department of Agriculture, Economic Research Service.
    30. Cai, Xiaoqiang & Chen, Jian & Xiao, Yongbo & Xu, Xiaolin & Yu, Gang, 2013. "Fresh-product supply chain management with logistics outsourcing," Omega, Elsevier, vol. 41(4), pages 752-765.
    31. Latino, Maria Elena & Menegoli, Marta & Lazoi, Mariangela & Corallo, Angelo, 2022. "Voluntary traceability in food supply chain: a framework leading its implementation in Agriculture 4.0," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    32. Alba J. Collart & Elizabeth Canales, 2022. "How might broad adoption of blockchain‐based traceability impact the U.S. fresh produce supply chain?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(1), pages 219-236, March.
    33. ., 2021. "The Outbreak of Pandonomics," Chapters, in: Pandemic Economics, chapter 3, pages 43-66, Edward Elgar Publishing.
    34. Angelo Corallo & Maria Elena Latino & Marta Menegoli & Pierpaolo Pontrandolfo, 2020. "A systematic literature review to explore traceability and lifecycle relationship," International Journal of Production Research, Taylor & Francis Journals, vol. 58(15), pages 4789-4807, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Horeh, Marziyeh Bahalou & Elbakidze, Levan, 2022. "Produce Tracing from Farm to Wholesale and Food Safety in the U.S," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322357, Agricultural and Applied Economics Association.
    2. Zhou, Xiongyong & Zhu, Qinghua & Xu, Zhiduan, 2023. "The role of contractual and relational governance for the success of digital traceability: Evidence from Chinese food producers," International Journal of Production Economics, Elsevier, vol. 255(C).
    3. Bulut, Harun & Lawrence, John D., 2007. "Meat Slaughter and Processing Plants’ Traceability Levels Evidence From Iowa," 2007 Conference, April 16-17, 2007, Chicago, Illinois 37576, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    4. Souza Monteiro, Diogo M. & Caswell, Julie A., 2008. "Optimal choice of Voluntary traceability as a food risk management tool," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44394, European Association of Agricultural Economists.
    5. Chantal Toledo & Sofia Berto Villas-Boas, 2019. "Safe or Not? Consumer Responses to Recalls with Traceability," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 519-541, September.
    6. Saak, Alexander E., 2016. "Traceability and reputation in supply chains," International Journal of Production Economics, Elsevier, vol. 177(C), pages 149-162.
    7. Brofman Epelbaum, Freddy Moises & Garcia Martinez, Marian, 2014. "The technological evolution of food traceability systems and their impact on firm sustainable performance: A RBV approach," International Journal of Production Economics, Elsevier, vol. 150(C), pages 215-224.
    8. Elbakidze, Levan, 2008. "Modeling of Avian Influenza Mitigation Policies Within the Backyard Segment of the Poultry Sector," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2), pages 1-17.
    9. Stranieri, S. & Cavaliere, A. & Banterle, A., 2015. "Voluntary traceability standards: which is the role of economic incentives?," 2015 International European Forum (144th EAAE Seminar), February 9-13, 2015, Innsbruck-Igls, Austria 206213, International European Forum on System Dynamics and Innovation in Food Networks.
    10. Liu, Chao & Lv, Jingyu & Hou, Ping & Lu, Danrong, 2023. "Disclosing products’ freshness level as a non-contractible quality: Optimal logistics service contracts in the fresh products supply chain," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1085-1102.
    11. Aditi S. Saha & Rakesh D. Raut & Vinay Surendra Yadav & Abhijit Majumdar, 2022. "Blockchain Changing the Outlook of the Sustainable Food Supply Chain to Achieve Net Zero?," Sustainability, MDPI, vol. 14(24), pages 1-21, December.
    12. Xiongyong Zhou & Madeleine Pullman & Zhiduan Xu, 2022. "The impact of food supply chain traceability on sustainability performance," Operations Management Research, Springer, vol. 15(1), pages 93-115, June.
    13. Shengnan Sun & Xinping Wang & Yan Zhang, 2017. "Sustainable Traceability in the Food Supply Chain: The Impact of Consumer Willingness to Pay," Sustainability, MDPI, vol. 9(6), pages 1-19, June.
    14. Rouvière, Elodie, 2016. "Small is beautiful: firm size, prevention and food safety," Food Policy, Elsevier, vol. 63(C), pages 12-22.
    15. Jinde Jiang & Shuhua Jiang & Guoyin Xu & Jing Li, 2024. "Research on Pricing Strategy and Profit-Distribution Mechanism of Green and Low-Carbon Agricultural Products’ Traceability Supply Chain," Sustainability, MDPI, vol. 16(5), pages 1-23, March.
    16. Chebolu-Subramanian, Vijaya & Gaukler, Gary M., 2015. "Product contamination in a multi-stage food supply chain," European Journal of Operational Research, Elsevier, vol. 244(1), pages 164-175.
    17. Montecchi, Matteo & Plangger, Kirk & West, Douglas C., 2021. "Supply chain transparency: A bibliometric review and research agenda," International Journal of Production Economics, Elsevier, vol. 238(C).
    18. Yu, Yanan & He, Yong & Guo, Xiaotong & Li, Dong & Huang, Hongfu, 2024. "Quality disclosure strategy with asymmetric demand information in food supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 183(C).
    19. Hart, Jarrett & MacEwan, Duncan & Noel, Jay & Gunasekara, Amrith, . "Pesticide Restrictions and Registration Delays: Implications of California’s Sustainable Pest Management for the Lettuce Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 50(2).
    20. Zheng, Qi & Zhou, Li & Fan, Tijun & Ieromonachou, Petros, 2019. "Joint procurement and pricing of fresh produce for multiple retailers with a quantity discount contract," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 16-36.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:eee:jfpoli:v:132:y:2025:i:c:s0306919225000594. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/foodpol .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.