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Comparative Producer Costs Of Gap And Ghp Standards: Can The Playing Field Be Made Level?

Author

Listed:
  • Paggi, Mechel S.
  • Yamazaki, Fumiko
  • Ribera, Luis A.
  • Knutson, Ronald D.
  • Anciso, Juan
  • Palma, Marco A.
  • Noel, Jay E.

Abstract

A number of microbial contamination incidents have continued to raise questions regarding the safety of the U.S. food supply with calls for improved food safety control initiatives and standards by both the private and public sectors. As a reaction to these incidents, there have been increased efforts to enhance food safety by the government and industry groups. Increasingly, process standards are being specified that recommend or prescribe Good Agricultural Practices (GAP) standards for production, Good Handling Practices (GHP) standards for handling products, and Good Management Practices (GMP) for responsibilities in overseeing production and handling operations. A primary concern is the potential that the costs associated with implementing food safety related standards will prohibit small producers and handlers from taking part in certain market segments, such as supplying the supermarkets that sell most of the production in developed and more advanced developing countries. Previous study results are presented that suggest economies of scale effects for larger farm size operations leading to lower per-unit compliance cost. This analysis utilized specialty crop representative farm stochastic simulation models that were designed to analyze the impacts of current and changing market conditions and government policies on a number of key operating variables (KOV). The results of the analysis provide an initial indication that the cost associated with compliance to regulatory standards does have an effect on the profitability of individual enterprises.

Suggested Citation

  • Paggi, Mechel S. & Yamazaki, Fumiko & Ribera, Luis A. & Knutson, Ronald D. & Anciso, Juan & Palma, Marco A. & Noel, Jay E., 2010. "Comparative Producer Costs Of Gap And Ghp Standards: Can The Playing Field Be Made Level?," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116406, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa115:116406
    DOI: 10.22004/ag.econ.116406
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    References listed on IDEAS

    as
    1. Palma, Marco A. & Ribera, Luis A. & Bessler, David A. & Paggi, Mechel S. & Knutson, Ronald D., 2010. "Potential Impacts of Foodborne Illness Incidences on Market Movements and Prices of Fresh Produce in the U.S," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(4), pages 1-11, November.
    2. Mollie Woods & Suzanne Thornsbury & Kellie Curry Raper & Richard N. Weldon, 2006. "Regional Trade Patterns: The Impact of Voluntary Food Safety Standards," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 531-553, December.
    3. Okello, Julius Juma & Narrod, Clare & Roy, Devesh, 2007. "Food safety requirements in African green bean exports and their impact on small farmers:," IFPRI discussion papers 737, International Food Policy Research Institute (IFPRI).
    4. Hamilton, Lynn L., 2006. "California Institute for the Study of Specialty Crops," Research Project Reports 121622, California Polytechnic State University, San Luis Obispo, California Institute for the Study of Specialty Crops.
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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.

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