IDEAS home Printed from https://ideas.repec.org/p/ags/aaea25/360891.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/360891/files/75235_95957_105300_abm_food_safety_AAEA.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.360891?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ge, Houtian & Gray, Richard & Nolan, James, 2015. "Agricultural supply chain optimization and complexity: A comparison of analytic vs simulated solutions and policies," International Journal of Production Economics, Elsevier, vol. 159(C), pages 208-220.
    2. Daniel Kahneman, 2003. "Maps of Bounded Rationality: Psychology for Behavioral Economics," American Economic Review, American Economic Association, vol. 93(5), pages 1449-1475, December.
    3. Houtian Ge & James Nolan & Richard Gray, 2015. "Identifying Strategies to Mitigate Handling Risks in the Canadian Grain Supply Chain," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(1), pages 101-128, March.
    4. J. G. Shanthikumar & R. G. Sargent, 1983. "A Unifying View of Hybrid Simulation/Analytic Models and Modeling," Operations Research, INFORMS, vol. 31(6), pages 1030-1052, December.
    5. Fu, Qi & Zhu, Kaijie, 2010. "Endogenous information acquisition in supply chain management," European Journal of Operational Research, Elsevier, vol. 201(2), pages 454-462, March.
    6. Sébastien Pouliot & Daniel A. Sumner, 2008. "Traceability, Liability, and Incentives for Food Safety and Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 15-27.
    7. Trienekens, Jacques & Zuurbier, Peter, 2008. "Quality and safety standards in the food industry, developments and challenges," International Journal of Production Economics, Elsevier, vol. 113(1), pages 107-122, May.
    8. S. Andrew Starbird, 2005. "Moral Hazard, Inspection Policy, and Food Safety," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 15-27.
    9. Vriend, Nicolaas J., 2000. "An illustration of the essential difference between individual and social learning, and its consequences for computational analyses," Journal of Economic Dynamics and Control, Elsevier, vol. 24(1), pages 1-19, January.
    10. Sara McPhee-Knowles, 2015. "Growing Food Safety from the Bottom Up: An Agent-Based Model of Food Safety Inspections," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 18(2), pages 1-9.
    11. Akanle, O.M. & Zhang, D.Z., 2008. "Agent-based model for optimising supply-chain configurations," International Journal of Production Economics, Elsevier, vol. 115(2), pages 444-460, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ge, Houtian & Gray, Richard & Nolan, James, 2015. "Agricultural supply chain optimization and complexity: A comparison of analytic vs simulated solutions and policies," International Journal of Production Economics, Elsevier, vol. 159(C), pages 208-220.
    2. Ge, Houtian & Nolan, James & Gray, Richard & Goetz, Stephan & Han, Yicheol, 2016. "Supply chain complexity and risk mitigation – A hybrid optimization–simulation model," International Journal of Production Economics, Elsevier, vol. 179(C), pages 228-238.
    3. Yan, Minhao & Ge, Houtian & Gomez, Miguel I., 2023. "Risk Management Strategy of Food Safety: The Case of the US Fresh Produce Supply Chain," 2023 Annual Meeting, July 23-25, Washington D.C. 335580, Agricultural and Applied Economics Association.
    4. Utomo, Dhanan Sarwo & Onggo, Bhakti Stephan & Eldridge, Stephen, 2018. "Applications of agent-based modelling and simulation in the agri-food supply chains," European Journal of Operational Research, Elsevier, vol. 269(3), pages 794-805.
    5. repec:ags:aaea22:335580 is not listed on IDEAS
    6. Resende Filho, Moises de Andrade & Buhr, Brian L., "undated". "Economics of Traceability for Mitigation of Food Recall Costs," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126193, International Association of Agricultural Economists.
    7. Thomas Vempiliyath & Maitri Thakur & Vincent Hargaden, 2021. "Development of a Hybrid Simulation Framework for the Production Planning Process in the Atlantic Salmon Supply Chain," Agriculture, MDPI, vol. 11(10), pages 1-17, September.
    8. Chen, Shu-Heng, 2012. "Varieties of agents in agent-based computational economics: A historical and an interdisciplinary perspective," Journal of Economic Dynamics and Control, Elsevier, vol. 36(1), pages 1-25.
    9. Hommes, Cars & Lux, Thomas, 2013. "Individual Expectations And Aggregate Behavior In Learning-To-Forecast Experiments," Macroeconomic Dynamics, Cambridge University Press, vol. 17(2), pages 373-401, March.
    10. Ke Ma & Lichuan Wang & Yan Chen, 2017. "A Collaborative Cloud Service Platform for Realizing Sustainable Make-To-Order Apparel Supply Chain," Sustainability, MDPI, vol. 10(1), pages 1-21, December.
    11. Ge, Houtian & Gomez, Miguel I. & Jablonski, Rebecca B.R., 2025. "Values-Based Food Procurement and Vendor Bid Decisions," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 361192, Agricultural and Applied Economics Association.
    12. Houtian Ge & Miguel I. Gómez & Timothy J. Richards, 2024. "The effect of price and assortment of local products on store performance: An agent‐based modelling approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(3), pages 981-1003, September.
    13. Ng, Desmond W. & Salin, Victoria, . "An Institutional Approach to the Examination of Food Safety," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(2), pages 1-26.
    14. Fritz, Melanie & Schiefer, Gerhard, 2009. "Tracking, tracing, and business process interests in food commodities: A multi-level decision complexity," International Journal of Production Economics, Elsevier, vol. 117(2), pages 317-329, February.
    15. Saak, Alexander E., 2016. "Traceability and reputation in supply chains," International Journal of Production Economics, Elsevier, vol. 177(C), pages 149-162.
    16. Rouvière, Elodie, 2016. "Small is beautiful: firm size, prevention and food safety," Food Policy, Elsevier, vol. 63(C), pages 12-22.
    17. Behzadi, Golnar & O’Sullivan, Michael Justin & Olsen, Tava Lennon & Zhang, Abraham, 2018. "Agribusiness supply chain risk management: A review of quantitative decision models," Omega, Elsevier, vol. 79(C), pages 21-42.
    18. Rouviere, Elodie & Soubeyran, Raphael, "undated". "Small is Beautiful? Firm's Size, Prevention & Food Safety," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123410, Agricultural and Applied Economics Association.
    19. Claude Ménard & Gaetano Martino & Gustavo Magalhães de Oliveira & Annie Royer & Maria Sylvia Macchione Saes & Paula Sarita Bigio Schnaider, 2022. "Governing food safety through meso‐institutions: A cross‐country analysis of the dairy sector," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 1722-1741, December.
    20. John Romley & Tiffany Shih, 2017. "Product safety spillovers and market viability for biologic drugs," International Journal of Health Economics and Management, Springer, vol. 17(2), pages 135-158, June.
    21. Brofman Epelbaum, Freddy Moises & Garcia Martinez, Marian, 2014. "The technological evolution of food traceability systems and their impact on firm sustainable performance: A RBV approach," International Journal of Production Economics, Elsevier, vol. 150(C), pages 215-224.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea25:360891. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.