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Imperfect Food Certification, Opportunistic Behaviors and Detection AgEcon
Liang, Jing; Jensen, Helen H..
In response to the recent outbreaks of food-borne illness, the “Good Agricultural Practices” program has been widely adopted to ensure consistency of food safety. This paper presents a theoretical framework to analyze the performance of the program with respect to output quality based on the assumption of predetermined productive capacity (farm size), heterogeneous farms and exogenous detection. Our main results are: (i) farms respond to the monitoring and enforcement not only by reducing fraudulent output, but also by increasing truly high-safety output until the perfect compliance level is achieved. (ii) the monitoring agency takes farm strategies as given and its optimal inspection policies are: If the monitoring budget is not enough to cover the...
Tipo: Conference Paper or Presentation Palavras-chave: Marketing.
Ano: 2007 URL: http://purl.umn.edu/9714
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Potential HPAI Shocks and Welfare Implications of Market Power in the U.S. Broiler Industry AgEcon
Liang, Jing; Fabiosa, Jacinto F.; Jensen, Helen H.; Miller, Gay Y..
Recent outbreaks of highly pathogenic avian influenza (HPAI) in Asia, Europe, and Africa have caused severe impacts on the broiler sector through production losses, trade restrictions and negative shocks to demand. This study develops a multimarket econometric model that is the basis of simulations to assess the spread and market implications of a potential HPAI outbreak in U.S. broiler industry. It takes into account market power that might exist within the livestock and meat sectors and endogenizes the optimal production condition on the model system. The results imply that the HPAI shocks affect prices at different marketing levels unequally and change the price margins along the supply chain with the existence of market power. The change in the price...
Tipo: Conference Paper or Presentation Palavras-chave: Animal disease; Broilers; HPAI; Market power; Meat market price margins; Agricultural and Food Policy.
Ano: 2010 URL: http://purl.umn.edu/61496
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Marketing Agreement, Food Safety and Contract Design AgEcon
Liang, Jing; Jensen, Helen H..
Recent outbreaks of food-borne illness related to fruit and vegetables have led to increased concerns about the safety of produce. In response, the industry has adopted marketing agreements to ensure consistency of product safety. Contracts now are widely used between processors and growers to specify product safety attributes. This paper uses a principal-agent model to examine how the inclusion of a marketing agreement influences the behavior of growers and processors under processor-grower contracts. We conclude that: (1) the processor offers a contract with a higher premium and a lower base payment under the contract with a marketing agreement (2) contract parameters change in similar manner under the two contracts (3) under a contract with a marketing...
Tipo: Conference Paper or Presentation Palavras-chave: Contract; Food safety; Principal-agent; Market agreements; GAPs; On-farm inspection; Food Consumption/Nutrition/Food Safety; Marketing.
Ano: 2008 URL: http://purl.umn.edu/6434
Registros recuperados: 3
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