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Food Safety Concerns and Changing Procurement Arrangements by Food Processors: A Conjoint Analysis

Authors
Disciplines
  • Agricultural Science
  • Law
  • Medicine

Abstract

1 Food Safety Concerns and Changing Procurement Arrangements Food Safety Concerns and Changing Procurement Arrangements Food Safety Concerns and Changing Procurement Arrangements Food Safety Concerns and Changing Procurement Arrangements by Food Processors: A Conjoint Analysisby Food Processors: A Conjoint Analysisby Food Processors: A Conjoint Analysisby Food Processors: A Conjoint Analysis Naiquan Sang Randy Stringer ∗∗∗∗ 1. Introduction As the links between diet and health become more evident, modern consumers value more on food nutrition and safety attributes. A series of recent outbreak of food-borne diseases and controversial release of genetically modified organisms (GMOs) have intensified food safety concerns both at home and abroad. On the other hand, breakthrough of multilateral trade agreements on agriculture has led to lower tariff barriers, higher trade volumes and dramatic structural adjustments in both importing and exporting countries. The affected interests groups lobby hard for more technical barriers as alternative means of trade protection. The pressure from both consumers and interests groups has significant impacts on the related regulations and legislations in many countries. There have been global changes in food grades and standards, extending from performance criteria to process criteria. The farm to table approach, such as hazard analysis critical control point (HACCP), has been required. Food quality and safety assurance typically incurs additional transaction costs, arising from asymmetric information, moral hazards and monitoring activities (Unnevehr et al. 1999). It could have significant implications for the organization and competitiveness of agri-food systems (Caswell et al. 1998). This raises a question of how to save transaction costs while ensuring food safety at acceptable level. This issue is challenging both agribusinesses and g

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