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The Business of Safe Food: An Assessment of the Global Food Safety Certification Industry

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  • Boys, Kathryn A.
  • Caswell, Julie A.
  • Hoffmann, Sandra A.
  • Colarusso, Samantha

Abstract

Business and consumer demand for private, third-party, and public systems that audit and certify food safety is growing both domestically and internationally. As it has been proposed that third-party certification systems be used to help assure the safety of imported food products governed by FSMA, demand for these standards is likely to further increase. It is unknown, however, to what extent the food safety certification industry has the capacity to accommodate this expanding demand. This is particularly true of regions where third-party firms which provide audits to food safety standards (certification bodies), do not have a large presence. This study offers a first, in-depth, and comprehensive effort at assessing the industrial organization of global food safety certification industry. Using a unique dataset developed for this study, we inventory the food safety certification industry and the firms that certify individual farms, food processors, and food manufacturers to a broad range of national and international food safety standards. An assessment of the geographic distribution of certification bodies is then undertaken to identify areas in potential need of additional food safety certification capacity. Implications of these findings are considered.

Suggested Citation

  • Boys, Kathryn A. & Caswell, Julie A. & Hoffmann, Sandra A. & Colarusso, Samantha, 2015. "The Business of Safe Food: An Assessment of the Global Food Safety Certification Industry," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205870, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea15:205870
    DOI: 10.22004/ag.econ.205870
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    References listed on IDEAS

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    1. Stéphan Marette & John Crespi, 2003. "Can Quality Certification Lead to Stable Cartels?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(1), pages 43-64, August.
    2. Sven Anders & Diogo Souza-Monteiro & Elodie Rouviere, 2010. "Competition and Credibility of Private Third-party Certification in International Food Supply," Post-Print hal-01323238, HAL.
    3. Gabriele Jahn & Matthias Schramm & Achim Spiller, 2005. "The Reliability of Certification: Quality Labels as a Consumer Policy Tool," Journal of Consumer Policy, Springer, vol. 28(1), pages 53-73, December.
    4. Anders, Sven M. & Souza Monteiro, Diogo M. & Rouviere, Elodie, 2007. "Objectiveness in the Market for Third-Party Certification: Does market structure matter?," 105th Seminar, March 8-10, 2007, Bologna, Italy 7894, European Association of Agricultural Economists.
    5. Froese, Rainer & Proelss, Alexander, 2012. "Evaluation and legal assessment of certified seafood," Marine Policy, Elsevier, vol. 36(6), pages 1284-1289.
    6. Ollinger, Michael & Muth, Mary K. & Karns, Shawn A. & Choice, Zanethia, 2011. "Food Safety Audits, Plant Characteristics, and Food Safety Technology Use in Meat and Poultry Plants," Economic Information Bulletin 117989, United States Department of Agriculture, Economic Research Service.
    7. John M. Crespi & St)phan Marette, 2001. "How Should Food Safety Certification be Financed?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 852-861.
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    Cited by:

    1. Calvin, Linda & Jensen, Helen & Klonsky, Karen & Cook, Roberta, 2017. "Food Safety Practices and Costs Under the California Leafy Greens Marketing Agreement," Economic Information Bulletin 259719, United States Department of Agriculture, Economic Research Service.
    2. Caswell, Julie A. & Boys, Kathryn A. & Danilow, Alyssa A. & Lynch, Kathryn E., 2017. "Food Certification Industry Capacity and Ability to Comply with FSMA Final Rule on Accredited Third-Party Certification," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258468, Agricultural and Applied Economics Association.

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    Keywords

    Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Industrial Organization; International Relations/Trade;
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