Documenting Food Safety Claims and Their Influence on Product Prices

In response to increasing customer attention to food attributes, agribusinesses are employing novel product differentiation strategies. As an example, we investigate the use of food safety claims on new packaged food products from the food manufacturers’ perspective. First, using two product innovation databases, we investigate claim use on labels in seven English-speaking countries over the period from 1980 to 2008. Then, based on manufacturer recommended selling prices and using U.S. data (from 2002 to 2008), we apply parametric and nonparametric hedonic methods to identify supply-side (agribusiness) valuations of chemical and microbiological claims in two food categories. We identify a significant 5 cent premium per ounce for a “preservative free†claim in spoonable yogurts. We do not find a statistically significant impact for “E. coli free†messages on meat and poultry products but find a significant price premium (19.3 cents and 25.7 cents per ounce in the two models) for “antibiotic free†claims in this category.food safety claims, parametric and nonparametric hedonic models, price premium, Marketing,

Exploring Consumer Valuation and Preference Heterogeneity for Functional Foods Using a Choice Experiment: A Case Study of Tomato Juice Containing Soy in Ohio

A discrete choice experiment is applied to examine consumer valuation of a new generation of functional foods. Data were collected from 1,704 households in Ohio through a mail survey. Results indicate health benefits and ingredient naturalness are positively valued but such preferences depend on individual's education, income, and food purchase behavior.Consumer/Household Economics,

REGULATORY TARGETS AND REGIMES FOR FOOD SAFETY: A COMPARISON OF NORTH AMERICAN AND EUROPEAN APPROACHES

Food quality, international trade, harmonization, mutual recognition, Food Consumption/Nutrition/Food Safety,

THE OPPORTUNITY COST OF FOOD SAFETY REGULATION - AN OUTPUT DIRECTIONAL DISTANCE FUNCTION APPROACH

This paper provides a novel methodology to measure the impact of food safety regulation. An output directional distance function approach is applied to estimate the opportunity cost of food safety regulation and the shadow price of food risk. Such measures should be included as part of the overall cost of compliance for a more precise comparison of the benefits and costs of food safety regulation. Further, comparing the implicit shadow price of food risk and willingness to pay for food safety can bridge the gap of understanding how valuable safer foods are from the perspective of two different market participants - consumers and firms respectively.Food Consumption/Nutrition/Food Safety,

MEASURING THE IMPACT OF FOOD SAFETY REGULATION-AN OUTPUT DIRECTIONAL DISTANCE FUNCTION APPROACH

This paper provides a novel methodology to measure the impact of food safety regulation. An output directional distance function approach is applied to estimate the opportunity cost of food safety regulation. Such a measure should be included as part of the overall cost for a more precise benefit-cost analysis of food safety regulation. Using US Census and food safety recall data, the value of potential output loss due to food safety regulation is suggested $2.5 billion.Food Consumption/Nutrition/Food Safety,

Where are E-Grocers, and Why?

Agribusiness,

Are E-Grocers Serving the Right Markets?

Food Consumption/Nutrition/Food Safety,

A QUANTITATIVE ASSESSMENT OF E-GROCERS

Agribusiness,

ASSESSING THE ECONOMICS OF FOOD SAFETY ACTIVITIES: STUDIES OF BEEF SLAUGHTER AND MEAT PROCESSING

Food Consumption/Nutrition/Food Safety,

ISO 9000 -- A MARKETING TOOL FOR U.S. AGRIBUSINESS

The relevance of the ISO 9000 series of quality management systems (QMS) for U.S. agribusiness is analyzed. Certified firms from several industries were surveyed to determine their before (ex ante) and after (ex post) perspectives of the QMS. Results for the agribusiness subsample are compared to those for firms from other industries to determine if they behave differently. Anticipated marketing advantages (increasing market share and providing access to new markets) of the QMS were critical factors that encouraged the pursuit of the certificate. The average cost to attain certification was $101.400 and to maintain certification was an additional$26,500 per year.Agribusiness, Marketing,