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Voluntary approaches to food safety: New insights

Author

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  • Fares, M'Hand
  • Rouviere, Elodie

Abstract

Food safety economists have raised numerous questions according to the emergence and the multiplication of safety quality management system within the food supply chain. However, few research deal with the voluntary implementation by firms of these systems (Segerson, 1999; Venturini, 2003; Noelke- Caswell, 2000). Our paper aims to develop a unified analytical framework of these research. We obtain three results. First, in a market model when the mandatory threat is strong, the voluntary adoption of safety measures is an equilibrium without need of the cost differential assumption (Segerson, 1999) nor of a reputation effect (Venturini, 2003). Second, when the mandatory threat is weak the reputation effect and the rule of liability could induce the voluntary adoption on different extent depending on the situation of safety contamination. Third, in a supply chain model we introduce a retailer and show that a well designed contract offered by the retailer induce upstream firms to voluntarily implement safety measures. Private incentives are thus very powerful and can be used as the sole mechanism to implement the efficient system.

Suggested Citation

  • Fares, M'Hand & Rouviere, Elodie, 2006. "Voluntary approaches to food safety: New insights," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10081, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae98:10081
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    File URL: http://purl.umn.edu/10081
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    References listed on IDEAS

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    1. Loader, Rupert & Hobbs, Jill E., 1999. "Strategic responses to food safety legislation," Food Policy, Elsevier, vol. 24(6), pages 685-706, December.
    2. Kathleen Segerson, 1999. "Mandatory versus voluntary approaches to food safety," Agribusiness, John Wiley & Sons, Ltd., vol. 15(1), pages 53-70.
    3. Laurian J. Unnevehr & Helen H. Jensen, 1996. "HACCP as a Regulatory Innovation to Improve Food Safety in the Meat Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 764-769.
    4. Laurian J. Unnevehr & Helen H. Jensen, 1999. "Economic Implications of Using HACCP as a Food Safety Regulatory Standard, The," Center for Agricultural and Rural Development (CARD) Publications 99-wp228, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Henson, Spencer & Heasman, Michael, 1998. "Food safety regulation and the firm: understanding the compliance process1," Food Policy, Elsevier, vol. 23(1), pages 9-23, February.
    6. Buzby, Jean C. & Frenzen, Paul D., 1999. "Food safety and product liability," Food Policy, Elsevier, vol. 24(6), pages 637-651, December.
    7. Julie A. Caswell & Neal H. Hooker, 1996. "HACCP as an International Trade Standard," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 775-779.
    8. Henson, Spencer J. & Hooker, Neal H., 2001. "Private Sector Management Of Food Safety: Public Regulation And The Role Of Private Controls," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 4(01).
    9. Holleran, Erin & Bredahl, Maury E. & Zaibet, Lokman, 1999. "Private incentives for adopting food safety and quality assurance," Food Policy, Elsevier, vol. 24(6), pages 669-683, December.
    10. Noelke, Corinna M. & Caswell, Julie A., 2000. "A Model Of The Implementation Of Quality Management Systems For Credence Attributes," 2000 Annual meeting, July 30-August 2, Tampa, FL 21874, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Unnevehr, Laurian J. & Jensen, Helen H., 1999. "The economic implications of using HACCP as a food safety regulatory standard," Food Policy, Elsevier, vol. 24(6), pages 625-635, December.
    12. Segerson, Kathleen, 1998. "Mandatory vs. Voluntary Approaches to Food Safety," Research Reports 25188, University of Connecticut, Food Marketing Policy Center.
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