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Impact of liability rules on modes of coordination for food safety in supply chains

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  • E. Rouvière

    ()

  • K. Latouche

    ()

Abstract

This article analyzes how the allocation of liability for safety defects could influence coordination in the food supply chain. To do so, we analyzed the strategic reaction of importers and supermarkets who import Spanish fresh produce into France. We considered the implementation and enforcement of the European General Food Law as an exogenous shock for French food operators. In France, depending on the situation, food operators can transfer their liability to someone else in the food supply and imports decisions are crucial indicators. After 2005, supermarkets transferred the liability risk linked to importing sensitive products to importers. We argue that this regulatory change also prompted French importers of fresh produce to develop a horizontal, collective governance structure to monitor the safety of imported produce. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • E. Rouvière & K. Latouche, 2014. "Impact of liability rules on modes of coordination for food safety in supply chains," European Journal of Law and Economics, Springer, vol. 37(1), pages 111-130, February.
  • Handle: RePEc:kap:ejlwec:v:37:y:2014:i:1:p:111-130
    DOI: 10.1007/s10657-013-9413-0
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    References listed on IDEAS

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    Cited by:

    1. Codron, Jean-Marie & Adanacioğlu, Hakan & Aubert, Magali & Bouhsina, Zouhair & El Mekki, Abdelkader Ait & Rousset, Sylvain & Tozanli, Selma & Yercan, Murat, 2014. "The role of market forces and food safety institutions in the adoption of sustainable farming practices: The case of the fresh tomato export sector in Morocco and Turkey," Food Policy, Elsevier, vol. 49(P1), pages 268-280.
    2. Liesbeth Dries & Domenico Dentoni, 2015. "Private sector investments to create market-supporting institutions: The case of Malawian Agricultural Commodity Exchange," Working Papers 2015/08, Maastricht School of Management.
    3. Donald Larson & Will Martin & Sebnem Sahin & Marinos Tsigas, 2016. "Agricultural Policies and Trade Paths in Turkey," The World Economy, Wiley Blackwell, vol. 39(8), pages 1194-1224, August.

    More about this item

    Keywords

    Food safety; Liability; Coordination; K22; L15; Q13;

    JEL classification:

    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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