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Modeling Strategies to Ensure Food Safety in the US Fresh Produce Supply Chain

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  • Kumar, Kushal
  • Ge, Houtian
  • Gomez, Miguel

Abstract

Economic models of contamination and risk control often assume producers respond to incentives in a predictable and uniform manner. However, real-world producer behavior is characterized by heterogeneity, adaptive learning, and complex responses to policy interventions. In order to model this, we use an agent-based model (ABM) to simulate the decision-making of 1,000 producers across 10 regions over a 60-month period to analyze the effects of dynamic food safety testing regimes. The simulation with our designated parameters yielded counter-intuitive yet significant results: system-wide contamination rates decreased from 13.1% to below 1%, while the testing rate itself was reduced by 73 percentage points. This outcome was driven by a dramatic increase in producer risk-control effort, which grew 11-fold in response to the perceived effectiveness of the testing system. With our configuration, the investment in capital-intensive technology remained low (approximately 3%), suggesting that behavioral change was the primary driver of improved safety outcomes. The entire system costs fell by 97.3%, from $1.63 million to $43,800 over time as the contamination and testing requirements reduced. These findings suggest that dynamic, feedback-based testing policies can achieve superior food safety outcomes at substantially lower costs than static regulatory approaches.

Suggested Citation

  • Kumar, Kushal & Ge, Houtian & Gomez, Miguel, 2025. "Modeling Strategies to Ensure Food Safety in the US Fresh Produce Supply Chain," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360891, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea25:360891
    DOI: 10.22004/ag.econ.360891
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