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The Economics of Voluntary Traceability in Multi-Ingredient Food Chains

Author

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  • Diogo M. Souza-Monteiro

    (Kent Business School, University of Kent, Canterbury, Kent CT2 7PE, UK)

  • Julie A. Caswell

    (Department of Resource Economics, University of Massachusetts-Amherst, 215 Stockbridge Hall, 80 Campus Center Way, Amherst, MA 01003-9246)

Abstract

The consumption of multi-ingredient foods is increasing across the globe. Traceability can be used as a tool to gather information about and manage food safety risks associated with these types of products. The authors investigate the choice of voluntary traceability in three-tiered multi-ingredient food supply chains. They propose a framework based on vertical control and agency theory to model three dimensions of traceability systems: depth, breadth, and precision. Their analysis has three main results. First, full traceability is feasible as long as there are net benefits to a downstream firm that demands traceability across all ingredients. Second, horizontal network externalities are positive because an increase in the level of traceability in one ingredient requires a similar increase in others. Finally, vertical network effects will be positive insofar as willingness to pay and probabilities of food safety hazards increase. [EconLit Classification: Q130, L140]. © 2010 Wiley Periodicals, Inc.

Suggested Citation

  • Diogo M. Souza-Monteiro & Julie A. Caswell, 2010. "The Economics of Voluntary Traceability in Multi-Ingredient Food Chains," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 122-142.
    • Handle: RePEc:wly:agribz:v:26:y:2010:i:1:p:122-142
    DOI: 10.1002/agr.20233
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    References listed on IDEAS

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    Cited by:

    1. 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).
    2. Saak, Alexander E., 2016. "Traceability and reputation in supply chains," International Journal of Production Economics, Elsevier, vol. 177(C), pages 149-162.
    3. Banterle, Alessandro & Souza Monteiro, Diogo M. & Stranieri, Stefanella, 2009. "Does traceability play a role in retailer’s strategies for private labels?," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 50933, Agricultural Economics Society.
    4. Jennifer Lazzeri & Nathalie Fabbe-Costes, 2014. "La Traçabilite Totale Des Supply Chains : Concept Et Modele Theorique De Mise En Oeuvre," Post-Print hal-03292077, HAL.
    5. Danielle Galliano & Luis Orozco, 2013. "New Technologies and Firm Organization: The Case of Electronic Traceability Systems in French Agribusiness," Industry and Innovation, Taylor & Francis Journals, vol. 20(1), pages 22-47, January.
    6. Danielle Galliano & Luis Orozco, 2011. "Les déterminants industriels et spatiaux du processus d'adoption de technologies : Le cas des systèmes de traçabilité dans les firmes industrielles françaises," Géographie, économie, société, Lavoisier, vol. 13(2), pages 135-163.
    7. Winfree Jason, 2016. "Partial Adherence to Voluntary Quality Standards for Experience Goods," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 14(1), pages 81-89, May.
    8. Danielle Galliano & Luis Orozco, 2011. "The determinants of electronic traceability adoption: a firm‐level analysis of French agribusiness," Agribusiness, John Wiley & Sons, Ltd., vol. 27(3), pages 379-397, June.
    9. McCluskey, Jill J. & Winfree, Jason A., 2017. "Collective Reputation in Online Platforms and Private Quality Standards," 2018 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2018, Philadelphia, Pennsylvania 266302, Agricultural and Applied Economics Association.

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