TRACEABILITY AND INFORMATION TECHNOLOGY IN THE MEAT SUPPLY CHAIN: IMPLICATIONS FOR FIRM ORGANIZATION AND MARKET STRUCTURE

The traditional food supply chain is arranged as a complex array of producers, handlers, processors, manufacturers, distributors, and retailers. As the food supply chain grew in complexity over time, little emphasis was placed on preserving information regarding the origin of raw materials and their transformation, often by multiple handlers, into consumer-ready products. This paper provides case illustrations of the implementation of information systems for support of traceability in Europe. Observations on these firms coupled with the literature on information asymmetry and transactions costs is used to provide insights into how traceability implementation might affect U.S. meat-industry structure.Agribusiness, Industrial Organization,

TRACEABILITY, TRADE AND COOL: LESSONS FROM THE EU MEAT AND POULTRY INDUSTRY

The traditional food supply chain is arranged as a complex array of producers, handlers, processors, manufacturers, distributors, and retailers. As the food supply chain grew in complexity over time, little emphasis was placed on reserving information regarding the origin of raw materials and their transformation, often by multiple handlers, into consumer ready products. This paper provides case illustrations of the implementation of information systems for support of traceability in Europe. Emphasis is on the firm level costs and benefits as well as the broader market structure and governance issues inherent in information economics of the firm.traceability, economics of the firm, information systems, internet, food supply chain, Food Consumption/Nutrition/Food Safety, International Relations/Trade, Livestock Production/Industries,

E-COMMERCE: A NEW BUSINESS MODEL FOR THE FOOD SUPPLY/DEMAND CHAIN

The use of electronic commerce for quality control and cost cutting efficiencies by the food and agricultural industries in the United States is the focus of this paper. The food industry engages in e-commerce through 1.) Internet shopping for consumers called business-to-consumer (B2C) e-commerce 2.) Business-to-business (B2B) Internet market discovery exchanges used by food suppliers at any point in the supply chain, and 3.) Business-to-business (B2B) relationships that reduce costs and increase efficiencies in the procurement, storage and delivery of food to retail stores or distribution centers. This third use of e-commerce is the most highly developed and widely adopted. It allows retailers to share information about consumers' purchases and preferences with food manufacturers and farmers and for tracking food products' characteristics, source, and movement from production to consumer. This circle of information allows high quality and consistent products to be consumed at lower prices. This paper is about the development of e-commerce in the food industry, the economic concepts and goals that it meets, and the changes it brings to the industry. E-commerce both fosters and demands vertical coordination. It favors consolidation of firms. It changes the business culture from one of adversarial relationships to one of cooperation and trust. It changes the historical supply chain into a supply/demand loop while it lowers the cost of food. Policy issues arise around monopoly power, privacy, a diminution of variety, and the demise of small, undercapitalized firms.Industrial Organization, Marketing,

After the Bubble: The Survival and Ownership of Internet Marketplaces for Farmers and Agribusiness

This paper presents a theory of how industry structure and beliefs about Internet marketplace use have driven choice and ownership of marketplaces. The theory's predictions suggest that surviving Internet marketplaces will be those with strong historical linkages in an industry and those owned by or affiliated with major commodity buyers. Comparisons of these predictions with actual outcomes provide validation of the theory. Where predictions differ from results, observations are made as to the nature of the deviations.agricultural markets, electronic commerce, Internet markets, network externalities, technology adoption, Agribusiness,

A GUIDE TO SWINE MARKETING CONTRACTS

Livestock Production/Industries, Marketing,

Economic impacts of growth promotants in the beef, pork and poultry industries

Advances in biotechnology have resulted in the potential for use of growth promotants in commercial livestock production. Somatotropins and beta-agonists are the two growth enhancers most likely to be used in beef, pork, and chicken production. The growth promotants increase production efficiency and also result in improved lean composition of meat;Commercial availability of growth promotants will have impacts on all participants in meat production, including producers, processors, consumers, crop producers, and the government, and their possible use has been controversial. The objective of this study is to determine the likely economic impacts of the adoption of growth promotants by beef and pork producers through the use of systematic ex ante evaluation framework. Key issues which must be addressed to determine the likely economic impacts of growth promotants include the timing and level of producer adoption, and consumer acceptance of meats treated with growth enhancers. Survey information and prior studies of the adoption of technology are used to determine likely producer adoption response. An experimental economics approach is used to estimate consumer acceptance of meat products produced by animals treated with growth promotants. Finally, a dynamic supply-demand econometric model of the beef, pork, and poultry industries was estimated, and used as the basis for simulating the likely impact of these technological changes;Results of the producer adoption survey suggest that beta-agonists are more likely to be adopted and to be adopted more rapidly than somatotropins. In addition, large producers and producers with greater management sophistication are likely to adopt more rapidly than others;Results of the consumer experiments suggest that consumers are willing to pay more for the leaner meat products obtained with the use of growth promotants, although consumers are initially concerned about the safety of the products. These results are subject to information provided with respect to the safety of growth promotants and the quality of the treated meat products;Results of the simulation of the adoption of growth promotants suggest that early adopters are likely to receive increased profits from the use of growth promotants. However, as more producers adopt, industry profits return to normal levels. Quantities of meat are more plentiful, and farm and retail prices for meat decline. Thus, consumers are the primary beneficiaries of the use of growth promotants in meat production

Economic Impact of Bovine Tuberculosis on Minnesota’s Cattle and Beef Sector

Livestock Production/Industries,

Healthy Competition in the Animal Health Industry

Pharmaceutical Industry, Five Forces, Animal Health, Veterinary, Competition, Economics, Agribusiness, Livestock Production/Industries, Q13, Q18, L11, L22, L2, L66,

SOBRE O VALOR ECONÔMICO DO SISTEMA DE IDENTIFICAÇÃO ANIMAL DOS EUA (NAIS): NOTÍCIAS A RESPEITO DO MAU DA VACA LOUCA AFETAM O CONSUMO DE CARNES?

Esse artigo investiga os efeitos de notícias a respeito do mau da vaca louca ou BSE sobre o consumo das carnes bovina, suína e de aves nos EUA. Presume-se que o sistema nacional de identificação animal (NAIS) poderia em tese atenuar a percepção de risco dos consumidores sobre contrair o mau da vaca louca ao consumir carnes. Sistemas de equações de demanda são estimados incorporando-se, como proxy da percepção de risco do consumidor, três séries de índices de segurança do alimento separadamente construídos para as carnes bovina, suína e de aves considerando-se notícias veiculadas sobre BSE ou mau da vaca louca na imprensa escrita. Essas séries de índices são construídos somando-se o número de referências nos principais jornais norte americanos à problemas de food safety relacionados com cada uma das carnes. Utiliza-se o melhor modelo estimado, escolhido com base em testes de especificação, para se construir três cenários simulando-se respectivamente os casos em que o NAIS não está implementado, está implementado apenas para bovinos, e está implementado para suínos e bovinos. Utilizando-se as diferenças entre as receitas estimadas para cada cenário e para cada tipo de carne como uma medida do potencial ganho advindo da implementação do NAIS, conclui-se que o impacto do mau da vaca louca sobre o consumo de carnes nos EUA seria suficiente para cobrir os custos com a implementação do NAIS. Naturalmente, esse resultado fica condicionado a quanto dos ganhos com o NAIS seriam transmitidos aos pecuaristas que são aqueles que, em última instância, arcarão com os custos de implementação e manutenção do NAIS.----------------------------------------------This article investigates the willingness to pay for the National Animal Identification System (NAIS) in the US. We assume that with the NAIS in place, consumers’ concerns about Bovine Spongiform Encephalopathy (BSE) or mad cow disease will be reduced and by inference consumers will be willing to pay for the NAIS. To estimate this level of willingness to pay a generalized almost ideal demand system including beef, pork and poultry is estimated, including indexes of perception of BSE based on news coverage of BSE in the U.S. We found that while news indexes of BSE were not individually significant, that they were jointly significant in test of preferred models. Using the preferred model, we constructed three scenarios on the basis of hypothesized impacts of the NAIS on consumers' food safety concerns about meat. Our conclusion is that the impact of BSE on consumer demand for meat was in itself sufficient to cover previously estimated costs of implementing the NAIS. However, it does so at the expense of pork and poultry which lose consumption relative to beef if the NAIS reduces consumers concerns as assumed. Other disease and pathogen potential would be expected to further enhance its value.Sistema nacional de identificação animal, segurança do alimento, sistema de equações de demanda, setor de carnes, EUA, Animal Identification System, Food Safety, System of Demand Equations, Meat Industry, USA, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries,

A QUARTERLY ECONOMETRIC SIMULATION MODEL OF THE U.S. LIVESTOCK AND MEAT SECTOR

This paper develops a quarterly dynamic simulation model of the U.S. livestock sector which is useful for both policy analysis and technology assessment. The model includes a complete representation of the livestock and meat supply sector, processing or margin sector and meat demand. First the conceptual framework for the model is outlined. Second, the data used for the model is presented and, finally, the estimated and validation statistics of the model are presented.Livestock Production/Industries,