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Economic aspects of segregation between GM and non-GM Crops along the Food Supply Chain

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  • Varacca, A.
  • Boccaletti, Stefano
  • Soregaroli, C.

Abstract

This work provides a methodological framework for the analysis of the Italian supply chain for non-GM soybean meal, with particular regard to the upstream stages between overseas producers, international traders and feed manufacturers. Using the information collected from a set of interviews with industry representatives, we describe the organizational arrangements that agents adopt to minimize transaction costs. Consistently with transaction cost economics, we examine the impact of asset specificity and uncertainty on the coordination arrangements. We focus on two dimensions of uncertainty, namely: productquality uncertainty and environmental uncertainty. We argue that the actual organizational arrangements between transactors are consistent with the theory: whereas product-quality uncertainty and some degree of asset specificity would lead to vertically integrated forms of governance, environmental uncertainty operate in the opposite direction.

Suggested Citation

  • Varacca, A. & Boccaletti, Stefano & Soregaroli, C., 2013. "Economic aspects of segregation between GM and non-GM Crops along the Food Supply Chain," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151428, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea13:151428
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    File URL: http://purl.umn.edu/151428
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    References listed on IDEAS

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    1. Pascal Tillie & Mauro Vigani & Koen Dillen & Emilio RodrĂ­guez Cerezo, 2012. "Markets for non Genetically Modified Identity Preserved crops and derived products," JRC Working Papers JRC76117, Joint Research Centre (Seville site).
    2. Williamson, Oliver E., 1987. "Transaction cost economics : The comparative contracting perspective," Journal of Economic Behavior & Organization, Elsevier, vol. 8(4), pages 617-625, December.
    3. Yulian Ding & Michele M. Veeman & Wiktor L. Adamowicz, 2012. "The Impact of Generalized Trust and Trust in the Food System on Choices of a Functional GM Food," Agribusiness, John Wiley & Sons, Ltd., vol. 28(1), pages 54-66, January.
    4. Riordan, Michael H. & Williamson, Oliver E., 1985. "Asset specificity and economic organization," International Journal of Industrial Organization, Elsevier, vol. 3(4), pages 365-378, December.
    5. Smyth, Stuart J. & Phillips, Peter W.B., 2001. "Competitors Co-Operating: Establishing A Supply Chain To Manage Genetically Modified Canola," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 4(01).
    6. Pelaez, Victor Manoel & Aquino, Dayani & Hofmann, Ruth & Melo, Marcelo, 2010. "Implementation of a Traceability and Certification System for Non-genetically Modified Soybeans: The Experience of Imcopa Co. in Brazil," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 13(1).
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    Keywords

    Agricultural and Food Policy; International Relations/Trade;

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