Do producers respond to quality information disclosure? The HACCP certification in meat industry

Purpose - Food markets are characterized by asymmetric information between suppliers and consumers, which causes inefficiency of market and food safety risks. This paper studies how the food quality and safety information disclosed by the government affects the hazard analysis and critical control point (HACCP) certification decision of meat producers. The heterogeneity of the effects across different regions, provinces with different meat output scales and provinces with different intensities of food safety regulation is evaluated. Design/methodology/approach - This paper applies a unique database comprising information from multiple sources. Food quality and safety information disclosure is indicated by the number of failure records of food sampling inspections by the government in 2015–2018. Fixed-effect model is used in the analyses. Findings - The results demonstrate that food quality and safety information disclosure has a significant effect on the HACCP certification adoption by meat producers. The effect is heterogeneous across geographic regions, i.e. this effect is larger in the east and the middle of China than that in the west and the northeast. The heterogeneity across regions may be caused by the variance in meat output scales and fiscal expenditures on food safety among provinces. Originality/value - This research is one of the preliminary attempts to understand how producers respond in terms of HACCP certification to the amount of food quality and safety information disclosed by the government, based on the case of meat industry in China.