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Article
Publication date: 28 October 2013

Ying Xiong, Zhong Chen Lv and Ya Ding

The purpose of this paper is to understand farmers’ moral hazard in safe farming in China and quantify the degree to which farmers’ moral hazard is prevented by incentive or…

Abstract

Purpose

The purpose of this paper is to understand farmers’ moral hazard in safe farming in China and quantify the degree to which farmers’ moral hazard is prevented by incentive or constraint means or their combinations.

Design/methodology/approach

The logit model is used to analyze farmers’ moral hazard in safe farming and the effects of determinants by applying survey data of 560 vegetable and fruit farmers in China.

Findings

The result reveals that farmers’ moral hazard in safe farming is prevented by a combination of incentives and constraints. Among incentive factors, profits from safe agro-products are verified to affect farmers’ moral hazard negatively, whereas the effect of safe certification subsidy is not clear. In constraint factors, production environmental supervision (PESUPV) and agricultural input supervision (AISUPV) have significant effects in reducing farmers’ moral hazard, whereas the effects of production process supervision and market access supervision are not clear. Further, the incentives from higher profits of safe agro-products play a greater role in the prevention of farmers’ moral hazard than the constraints from PESUPV and AISUPV. The results indicate that farmers’ moral hazard in safe farming is more likely to be prevented by incentives compared with constraints.

Research limitations/implications

The study has some limitations that should be taken into account in future research. First, food safety incidents happen frequently in China, which caused widespread social concern. These affairs may spark a rethink for farmers about how to produce safe agro-products. From this prospective, farmers’ moral hazard in safe farming may be prevented by their social responsibility. However, the survey did not show it. This may be related to the beginning stage of safe farming in China. With the development of safe farming, the effect of social responsibility on the prevention of farmers’ moral hazard would constitute an interesting extension of the work. Second, the study focusses on farmers’ production of safe vegetables and fruits in three areas of China. Covering more activities and areas is likely to commit fruitful results.

Originality/value

Based on the theoretical analysis of farmers’ moral hazard in safe farming through using a principal-agent model, the paper proposes hypotheses of incentives and constraints affecting farmers’ moral hazard in safe farming and verifies them through logit model with the survey data from 15 counties (or cities) in Jiangsu, Jiangxi and Sichuan Provinces of China. The result provides some evidences that farmers’ moral hazard in safe farming is simultaneously affected by a combination of incentives and constraints and may be taken as proofs for China's policy-making and focusses implementation in preventing farmers’ moral hazard in safe farming.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 3 no. 2
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 2 March 2015

Iddrisu Yahaya, Fred A. Yamoah and Faizal Adams

The purpose of this paper is to assess consumer motivation and willingness to pay (WTP) for “safer” vegetables from the use of non-treatment options of wastewater use in…

1039

Abstract

Purpose

The purpose of this paper is to assess consumer motivation and willingness to pay (WTP) for “safer” vegetables from the use of non-treatment options of wastewater use in urban/peri-urban vegetable production.

Design/methodology/approach

As a theoretical basis, consumer theory of maximizing utility being an indicator of individual preference was examined through choice experiment (CE) method to measure the WTP for value of safety within the context of health reduced risk (pathogen reduction) of illness. WTP was tested empirically using survey data from 650 households in the two largest cities in Ghana (Accra and Kumasi) that are characterized by a number of well-established vegetable producers who use wastewater in their production and a large urban and peri-urban vegetable consumer market.

Findings

Experience of vegetable borne diseases drives the need for safer vegetables and income and gender are key demographic factors influencing WTP. It was further found that consumers are willing to pay an average amount of GH¢ 4.7 ($2.40) per month for a technology change that would result in the production of “safer” vegetables.

Research limitations/implications

Understanding WTP offers insight into consumer concerns, behaviour and their readiness to pay for safer vegetable options. However, a further consideration of the impact of the combinations of the various non-treatment options on pathogen reduction and the assessment of the financial viability of each option will collectively ensure an efficient and cost-effective implementation of the technologies.

Practical implications

WTP insight gained has implications for vegetable production, marketing and public health policy. The understanding from the findings forms a solid basis to canvass for certification system for urban/peri urban vegetables. The information provided also helps to formulate effective public education on the safety of vegetables.

Originality/value

Measuring WTP for safer vegetables by Ghanaian urban/peri-urban consumers is novel. The CE approach is robust and the findings can inform vegetable production and marketing decisions as well as public health policy formulation.

Details

British Food Journal, vol. 117 no. 3
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 6 July 2010

Morten Raun Mørkbak, Tove Christensen and Dorte Gyrd‐Hansen

The objective of this paper is to provide information that can guide governmental intervention strategies to increase demand‐driven supply of food safety. The secondary aim is to…

1523

Abstract

Purpose

The objective of this paper is to provide information that can guide governmental intervention strategies to increase demand‐driven supply of food safety. The secondary aim is to rank safety attributes relative to other quality characteristics that consumers associate with pork.

Design/methodology/approach

Consumers' preferences for safety as a quality characteristic in pork are investigated using choice experiments. An internet‐based survey was carried out with 1,322 Danish consumers.

Findings

There is a clear ranking of characteristics: domestic produce and low fat are valued as the most important attributes associated with minced pork, followed by reduced Salmonella risks, reduced use of antimicrobial agents, and increased animal welfare. In addition, it is found that consumers stated a clear willingness‐to‐pay for all the assessed product attributes – including the safety attributes.

Practical implications

The positive price premiums for safer food suggest that demand‐driven market‐based solutions might indeed be used to increase the supply of safer food – provided that adequate labelling allows consumers to distinguish between products that differ from each other only with respect to non‐visible safety characteristics. However, it is not suggested that food safety can be left entirely to be determined by market forces due to market failures, consumer preferences and large uncertainties.

Originality/value

Earlier studies have not identified a unique ranking of the importance of safety relative to other quality characteristics in meat products. The main concern is that the value of food safety may be overestimated when it is not valued relative to a full set or as close to a full set as possible of other quality characteristics, which has been attempted in the present survey.

Details

British Food Journal, vol. 112 no. 7
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 9 January 2020

Gustavo Barboza, Valerien Pede and Sergio Madero

The purpose of this paper is to model the role that stakeholders, and especially social responsible consumers play in the process of finding a win–win solution to control…

Abstract

Purpose

The purpose of this paper is to model the role that stakeholders, and especially social responsible consumers play in the process of finding a win–win solution to control production related negative externalities. In this regard, when information asymmetries are present and consumers become knowledgeable about them, consumers with d-preferences for corporate social responsibility (CSR) type of products becomes the driver of the firm strategy.

Design/methodology/approach

To accomplish the goals of this paper, the authors proceed to develop a series of theoretical models wherein the social gains and costs of alternative modes of intervention are illustrated. The authors begin with a standard Pigouvian tax model and construct a stakeholder equivalent tax model and finalize the analysis with consumers acting in a shared social responsible behavior with firms as the optimal solution model.

Findings

The authors show that proactive disclosure of information asymmetries regarding negative externalities develops a shared social responsibility between consumers and firms. Market-based solutions to the externality problem are achieved under this setting. This solution is preferred to a Pigouvian tax and to a stakeholder equivalent tax. It is concluded that shared social responsibility is the result of the interaction of consumers with d-preferences and the reaction of a socially responsible “firm” willing, and the authors are able to incorporate these preferences as drivers for its strategy.

Research limitations/implications

The main limitation of this paper is in its theoretical nature and specific applications to one case, that of negative externalities in production processes. The implication of this is that the model herein developed needs to be put to the empirical test.

Social implications

The overall social implications indicate that active reduction of information asymmetries is welfare improving and preferred to government intervention.

Originality/value

This paper is original as it makes use of economic principles to develop a parsimonious model to demonstrate that proactive actions of a firm in response to consumers and stakeholders demands leads to an overall social welfare improvement when negative externalities deriving from production are incorporated into the decision making process of both consumers and firms. These decisions prove superior to government regulations.

Article
Publication date: 2 September 2013

John Macharia, Ray Collins and Tim Sun

The final consumer has the exclusive right to define what constitutes value in a product or service. Under increasing pressures of globalization and urbanization, a…

2519

Abstract

Purpose

The final consumer has the exclusive right to define what constitutes value in a product or service. Under increasing pressures of globalization and urbanization, a consumer-focused approach to performance improvement in supply chains can lead to more satisfied consumers and improved returns to growers and retailers. This paper aims to demonstrate that such an orientation, though lacking in agri-food supply chains in developing countries, can mitigate threats to food safety, consumer health and environmental quality.

Design/methodology/approach

Data were collected through random survey intercepts (n=418) at different retail outlets for fresh vegetables in Nairobi, Kenya in 2010. Multi-step cluster analysis (Ward Method, K-means) was used to classify fresh vegetable consumers, in terms of their product, production and marketing process preferences.

Findings

Four heterogeneous segments in terms of value preferences, behaviour and personal profiles (p<0.05) were derived. They were labelled Prestigious Shoppers (25 per cent), Market Enthusiasts (18 per cent), Ethics Crusaders (41 per cent) and Safety Sceptics (16 per cent). All segments expressed high or moderate preferences for product quality. In addition, the Prestigious Shoppers expressed a moderate preference for customer service. Market Enthusiasts attached the highest values to market conditions and customer service. Ethics Crusaders most highly preferred customer service, while Safety Sceptics most highly preferred safe production.

Research limitations/implications

Since it is difficult to predict consumer behaviour precisely, these findings may be contextual. Yet, the segments have unique value preferences despite actors treating them as homogeneous. Ignoring these differences can lead to unsustainable attempts to improve chain practice and policies.

Originality/value

This paper is the first of its kind. It advocates for use of universal value profiles as a basis for development of consumer-focused strategies for sustainable performance improvement in agri-food chains in developing countries.

Details

British Food Journal, vol. 115 no. 9
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 1 February 2016

Aidan J Connolly, Leona Shaojing Luo, Michael Woolsey, Mark Lyons and Kate Phillips-Connolly

– The purpose of this paper is to offer a blueprint, or outline considerations for the continuing evolution of the Chinese food safety system.

1037

Abstract

Purpose

The purpose of this paper is to offer a blueprint, or outline considerations for the continuing evolution of the Chinese food safety system.

Design/methodology/approach

The paper begins with the review of the current food safety system in China and the demonstration of the successes in national food safety programmes. It goes on to identify the specific problems through food sully China, and further to analyse the potential for implementing the key learnings from other national food safety programmes in the Chinese context.

Findings

The paper suggests a five-point Blueprint for food safety in China and other countries, allowing for the development of a robust food safety system, by combining the elements with best practice from system created by food safety practitioners internationally.

Research limitations/implications

It should be noted that even since the authors began developing this model China has already adopted a number of the recommendations covered by this Blueprint and is actively considering others.

Originality/value

This paper fulfills an identified information/resources need and offers a blueprint, or outline of considerations for the continuing evolution of the Chinese food safety system.

Details

China Agricultural Economic Review, vol. 8 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 26 August 2021

Hai Minh Ngo, Ran Liu, Seifeddine Ben Taieb, Masahiro Moritaka and Susumu Fukuda

Expanding the market share of safe food through a modern retail system has faced a lot of difficulties in Vietnam. Thus, a further understanding of consumer behaviour and loyalty…

Abstract

Purpose

Expanding the market share of safe food through a modern retail system has faced a lot of difficulties in Vietnam. Thus, a further understanding of consumer behaviour and loyalty towards such food is essential for food retailers. This study aims at exploring segments of consumer loyalty and its influential factors towards safe food brands in the country.

Design/methodology/approach

Based on a sample of 250 consumers buying safe food in Hanoi city in February 2019, two-step cluster and multinomial logistic regression analyses were applied.

Findings

The results show that four segments of brand loyalty were formed from the interaction between attitudinal and behavioural loyalty as the framework of Dick and Basu (1994), namely, true loyalty, spurious loyalty, latent loyalty and disloyalty. Notably, over 60% of the consumers were in latent loyalty and spurious loyalty, indicating variety-seeking behaviour, multi-brand loyalty or low recognition of the brand. Consumer satisfaction was the most vital motivating consumers to higher loyalty levels. Additionally, brand trust and brand familiarity played significant roles in developing true brand loyalty. An attractive selling store and friendly staff were also important in enhancing brand loyalty.

Originality/value

This study is one of the first to elicit consumer loyalty and identify factors driving the loyalty towards brands of safe food in a developing country like Vietnam.

Details

International Journal of Retail & Distribution Management, vol. 50 no. 4
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 15 May 2017

David L. Ortega and David L. Tschirley

Food safety in emerging and developing regions is receiving increased attention from economists, researchers and policymakers. The purpose of this paper is to provide a review of…

2657

Abstract

Purpose

Food safety in emerging and developing regions is receiving increased attention from economists, researchers and policymakers. The purpose of this paper is to provide a review of the literature on the economics of food safety in Asia and Sub-Saharan Africa (SSA). Of interest are studies exploring consumer demand and producer behavior regarding food safety. Particular attention is given to areas in need of additional research. The studies’ common implications for future research are discussed.

Design/methodology/approach

Two English language searches were conducted in the summer of 2013 to identify relevant studies on the economics of food safety, one each in Google Scholar and Web of Science. The authors carefully reviewed the abstracts of these studies for content, and select papers were identified that capture overarching themes found in the literature. Findings are presented by region.

Findings

Consumers in developing countries will become increasingly aware of food safety issues as urbanization proceeds and incomes continue to rise at robust rates. However, assuring food safety in modernizing food systems involves significant costs, and current incomes in developing SSA are far lower than in Asia. The authors find that overall consumer awareness of food safety problems in SSA is low relative to Asia. Moreover, knowledge of producer behavior and consumer demand for food safety in developing countries is very limited.

Research limitations/implications

Limitations include a lack of information available on domestic food safety issues and overall knowledge of how food safety affects developing agrifood systems.

Originality/value

The findings from this review contribute to a better understanding of the economics of food safety in emerging and developing regions.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 7 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 26 February 2021

Annemarie Groot-Kormelinck, Jacques Trienekens and Jos Bijman

The aim of this paper is to study the influence of quality standards on contract arrangements in food supply chains.

Abstract

Purpose

The aim of this paper is to study the influence of quality standards on contract arrangements in food supply chains.

Design/methodology/approach

A qualitative double case study was conducted on the dairy and citrus sectors in Uruguay. A transaction cost theoretical framework was used. All current public and private quality standards applied by processors were studied in relation to contract arrangements between processors and upstream producers as well as downstream buyers for each sector.

Findings

Quality standards complement contract arrangements for upstream transactions, leading to hierarchy-type contract arrangements. Quality standards substitute contract arrangements for downstream transactions, leading to market- or hybrid-type contract arrangements.

Research limitations/implications

Longitudinal studies that measure changes in contract arrangements over time are recommended.

Practical implications

Supply chain actors can reduce transaction costs by aligning quality standards with appropriate contract arrangements – further supported by public instruments.

Originality/value

Quality standards have differential influence on underlying transaction characteristics, and therefore on contract arrangements, depending on the location of the transaction in the supply chain.

Article
Publication date: 26 September 2008

Manisha Ramnauth, Françoise Driver and Parwin Bhugaloo Vial

The objective of this study, part of a larger overall project on food safety management in the fish producing and processing companies in Mauritius, is to generate information on…

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Abstract

Purpose

The objective of this study, part of a larger overall project on food safety management in the fish producing and processing companies in Mauritius, is to generate information on the knowledge, attitude and perception of key informants at the managerial level in these sectors with respect to food safety and its management.

Design/methodology/approach

A structured questionnaire was designed to evaluate the knowledge and understand the attitude and perception of the key informants. Personal interviews were carried out on‐board four fishing vessels and in seven fish processing establishments.

Findings

The main reason provided by all companies to have a documented food safety management system was to comply with the importing countries' legislative requirements. Interviewees expressed the need for technical experts, access to reliable information, more competent veterinarians and increased collaboration with government authorities. A low level of correct replies was obtained during the evaluation of the knowledge of respondents particularly regarding identification of hazards and risks pertaining to their products.

Research limitations/implications

Further in‐depth research is required to examine and understand the interplay between the factors that contribute to the low level of knowledge, the prevailing attitude and the behaviour with regard to food safety management at the managerial level.

Originality/value

The paper presents a body of information on the attitude and perception of fish business owners/managers with respect to food safety management in Mauritius, which was until now unavailable. It also provides evidence for the need to enhance knowledge with respect to food safety management even at the managerial level in the fish industry.

Details

British Food Journal, vol. 110 no. 10
Type: Research Article
ISSN: 0007-070X

Keywords

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