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Objectiveness in the Market for Third-Party Certification: Does market structure matter?

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  • Anders, Sven M.
  • Souza Monteiro, Diogo M.
  • Rouviere, Elodie

Abstract

The globalization of trade in high quality foods is stimulating the development of international food standards and certification systems. Third-party certification as evolved as a means of ensuring that product information and signals on quality and safety attributes are sound and reliable. Certification can only provide credible market signals if it operates objectively and independently. This paper investigates the potential trade-off between certifiers objectivity and the level of competition in the rapidly expanding market for third-party certification of quality foods. Based on a theoretical supply chain framework a nested panel analysis is applied to a set of accredited certifiers for the EurepGAP fruits and vegetables standard. Our results indicate that increasing economies of scale and market share in certification do matter.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:eaa105:7894
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    References listed on IDEAS

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    1. Spencer Henson & James Northen, 1998. "Economic determinants of food safety controls in supply of retailer own-branded products in United Kingdom," Agribusiness, John Wiley & Sons, Ltd., vol. 14(2), pages 113-126.
    2. Fulponi, Linda, 2006. "Private voluntary standards in the food system: The perspective of major food retailers in OECD countries," Food Policy, Elsevier, vol. 31(1), pages 1-13, February.
    3. Hatanaka, Maki & Bain, Carmen & Busch, Lawrence, 2005. "Third-party certification in the global agrifood system," Food Policy, Elsevier, vol. 30(3), pages 354-369, June.
    4. Alessandro Lizzeri, 1999. "Information Revelation and Certification Intermediaries," RAND Journal of Economics, The RAND Corporation, vol. 30(2), pages 214-231, Summer.
    5. Miguel Carriquiry & Bruce A. Babcock & Roxana Carbone, 2003. "Optimal Quality Assurance Systems for Agricultural Outputs," Center for Agricultural and Rural Development (CARD) Publications 03-wp328, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    6. Giovanni Anania & Rosanna Nisticò, 2004. "Public Regulation as a Substitute for Trust in Quality Food Markets: What if the Trust Substitute cannot be Fully Trusted?," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(4), pages 681-681, December.
    7. McCluskey, Jill J., 2000. "A Game Theoretic Approach To Organic Foods: An Analysis Of Asymmetric Information And Policy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), April.
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    Cited by:

    1. Bar, Talia & Zheng, Yuqing, 2015. "Strategic Selection of Certifiers: Evidence from the BRC Food Safety Standard," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205570, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    2. 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;Western Agricultural Economics Association.
    3. Zheng, Yuqing & Bar, Talia, 2017. "Audit Grades in Food Safety Certification," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252714, Southern Agricultural Economics Association.
    4. Talia Bar & Yuqing Zheng, 2016. "Leniency and Loyalty in the Choice of Certifiers: Evidence from the BRC Food Safety Standard," Working papers 2016-22, University of Connecticut, Department of Economics.
    5. Padilla Bravo, Carlos Antonio & Spiller, Achim & Villalobos, Pablo, 2012. "Are Organic Growers Satisfied with the Certification System? A Causal Analysis of Farmers’ Perceptions in Chile," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 15(4).
    6. Xujin Pu & Huanzhen Zhang, 2016. "Voluntary Certification of Agricultural Products in Competitive Markets: The Consideration of Boundedly Rational Consumers," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-13, September.
    7. Friederike Albersmeier & Holger Schulze & Achim Spiller, 2009. "Evaluation and reliability of the organic certification system: perceptions by farmers in Latin America," Sustainable Development, John Wiley & Sons, Ltd., vol. 17(5), pages 311-324.

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