Economic rationale behind differences in the composition of seemingly identical branded food products in the Single Market

This report presents the results of a review of the economic literature about the problem of Difference in Composition of Seemingly Identical Branded Product (DC-SIP). The problem is also referred to as dual quality. Academic literature about DC-SIP is almost non-existent. Consequently, this report focuses on contributions that are indirectly related to the topic and yet are able to foster an understanding of the economic principles of DC-SIP. The report provides a conceptual analysis in order to explain the rationale for brand owners to use DC-SIP practices and policy related issues; it does not bring empirical evidence as it is not available in the literature.JRC.D.4-Economics of Agricultur

Economic analyses of differences in composition of seemingly identical branded food products in the Single Market

Differences in composition of seemingly identical, branded food products (DC-SIP) occur when a good is marketed in one country as being identical (labelling, and appearance on packaging) to goods marketed in other countries, while that good has significantly different composition. The DC-SIP issue was brought to policymakers’ attention in 2017 by tests conducted in several Eastern EU Member States, which showed that some brand owners sell products across the EU Single Market, which are of different composition, despite having the same or similar packaging. The European Parliament and the European Council stressed the importance of tackling the issue of dual quality products, and requested that the European Commission investigate these practices, and find a solution at the European level. As a response to this request, the European Commission’s Joint Research Centre (JRC), in collaboration with experts from Member States’ competent authorities and stakeholders in the food chain, developed and applied a harmonised methodology in 2018/2019, with the objective of bringing further evidence on whether the composition of various branded food products differed across Member States. In April 2018, the European Commission tabled a proposal for the amendment of the Unfair Commercial Practices Directive 2005/29/EC, aimed at introducing more specific rules on the DC-SIP issue. The European Parliament and the Council adopted these amendments on 27 November 2019. At the request of the European Parliament, the JRC carried out an economic analysis of DC-SIP in collaboration with DG GROW, to develop a better understanding of the drivers, and of the impact of this phenomenon. This report summarises the main finding of this pilot project. The specific objectives of this project were to: (1) Explain the rationale for brand owners to offer different versions of identically or similarly branded food products in different markets; (2) Analyse the impact of DC-SIP on consumers’ choices and welfare and (3) Identify the main determinants of the occurrence of DC-SIP across Member States.JRC.D.4 - Economics of Agricultur

Covid-19 pandemic and food waste: An empirical analysis

This paper investigates the impact of Covid-19 pandemic on food waste using an original dataset from 176 agrifood business operators in the European Union (EU). Our objective is to assess whether and why the pandemic crisis affected food waste level. Unlike previous studies that addressed the issue at a consumer level, our research focuses on pre-consumption waste covering stages of the agrifood supply chain from input suppliers to retailers. Considering the importance of waste reduction for the sustainability of food production, the study provides an insight into the ability of the agrifood supply chain to cope with a major shock and its resilience. A multinomial logit regression model is used to estimate the effect of Covid-19, testing whether the ability to innovate, the role in the supply chain, the magnitude of the shock and policy support were drivers of changes in food waste. We find that three main factors affect the change in a firm’s food-waste level during the Covid-19 pandemic: The magnitude of the disruption of the sale channel, the firms’ ability to adapt the business model to the new pandemic environment, and the adoption of public policies mitigating the lockdown effects. The first driver was associated with an increase in food waste, while the others were associated with a decrease.JRC.D.4 - Economics of Agricultur

Purchases of Fruit and Vegetables for at Home Consumption During COVID-19 in the UK: Trends and Determinants

This paper addresses the issue of fruit and vegetable purchases in the UK during the COVID-19 pandemic. The study is motivated by the importance of fruit and vegetables for human nutrition, health and reduction of population obesity, especially in the UK where per capita consumption is still below recommended levels. A rich panel dataset was used reporting actual shopping places and quarterly expenditure for at-home consumption of fruit and vegetable purchases of 12,492 households in years 2019 and 2020. The unique dataset allowed us to compare expenditure for fruit and vegetables before and after the COVID-19 outbreak and to identify the main drivers of changes in purchases. Regression analysis found that expenditure increased ~3% less than what expected given the overall increase in the numbers of at-home meals during lockdown. Also, Online shopping was found to be an alternative source for fruit and vegetables purchase during the pandemic. However, the expenditure for processed products grew more than the one for fresh products, resulting in a reduction of the relative share of the latter and possible deterioration of the diet quality.</jats:p

Covid-19 Pandemic and Food Waste: An Empirical Analysis

This paper investigates the impact of Covid-19 pandemic on food waste using an original dataset from 176 agrifood business operators in the European Union (EU). Our objective is to assess whether and why the pandemic crisis affected food waste level. Unlike previous studies that addressed the issue at a consumer level, our research focuses on pre-consumption waste covering stages of the agrifood supply chain from input suppliers to retailers. Considering the importance of waste reduction for the sustainability of food production, the study provides an insight into the ability of the agrifood supply chain to cope with a major shock and its resilience. A multinomial logit regression model is used to estimate the effect of Covid-19, testing whether the ability to innovate, the role in the supply chain, the magnitude of the shock and policy support were drivers of changes in food waste. We find that three main factors affect the change in a firm’s food-waste level during the Covid-19 pandemic: The magnitude of the disruption of the sale channel, the firms’ ability to adapt the business model to the new pandemic environment, and the adoption of public policies mitigating the lockdown effects. The first driver was associated with an increase in food waste, while the others were associated with a decrease.</jats:p

Data_Sheet_1_Purchases of Fruit and Vegetables for at Home Consumption During COVID-19 in the UK: Trends and Determinants.PDF

This paper addresses the issue of fruit and vegetable purchases in the UK during the COVID-19 pandemic. The study is motivated by the importance of fruit and vegetables for human nutrition, health and reduction of population obesity, especially in the UK where per capita consumption is still below recommended levels. A rich panel dataset was used reporting actual shopping places and quarterly expenditure for at-home consumption of fruit and vegetable purchases of 12,492 households in years 2019 and 2020. The unique dataset allowed us to compare expenditure for fruit and vegetables before and after the COVID-19 outbreak and to identify the main drivers of changes in purchases. Regression analysis found that expenditure increased ~3% less than what expected given the overall increase in the numbers of at-home meals during lockdown. Also, Online shopping was found to be an alternative source for fruit and vegetables purchase during the pandemic. However, the expenditure for processed products grew more than the one for fresh products, resulting in a reduction of the relative share of the latter and possible deterioration of the diet quality.</p

Benefits and costs of EU marketing standards for agri-food products

This Report summarizes the findings emerging from the online workshop on ‘Marketing Standards: Benefits and costs of EU marketing standards for agri-food products’ which was organized by the Directorate-General for Agriculture and Rural Development (DG-AGRI) and Joint Research Centre (JRC) on September 9th 2021. The discussion revolves around three main issues regarding the EU marketing standards: i) Do the benefits from current regulation exceed the costs? ii) What are the implications of EU regulations for international trade and producers? and iii) What are the possible effects of a change in regulation, updating EU marketing standards to promote a sustainable agrifood system and adjust to changes in consumer preferences and technology?JRC.D.4 - Economics of Agricultur