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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
    DOI: 10.22004/ag.econ.7894
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    References listed on IDEAS

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    Cited by:

    1. Xujin Pu & Huanzhen Zhang, 2016. "Voluntary Certification of Agricultural Products in Competitive Markets: The Consideration of Boundedly Rational Consumers," Sustainability, MDPI, vol. 8(9), pages 1-13, September.
    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.
    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, vol. 15(4), pages 1-22, November.
    6. 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.
    7. 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.
    8. Ivanova, Daniela, 2018. "Сертификацията – Инструмент За „Зелени“ Комуникации В Глобалната Търговия [Certification - a tool for “green” communications in global trade]," MPRA Paper 96038, University Library of Munich, Germany.
    9. Tankam, Chloe & Vollet, Dominique & Aznar, Olivier, 2019. "Entre asymétrie d’information et incertitude partagée. Analyse des systèmes de certification biologique pour le marché domestique kenyan," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 369(July-Sept).
    10. Chloé Tankam & Dominique Vollet & Olivier Aznar, 2019. "Between information asymmetry and shared uncertainty, an analysis of organic certification systems for the Kenyan domestic market [Entre asymétrie d'information et incertitude partagée analyse des ," Post-Print hal-02534461, HAL.

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