Food Insecurity, Food Storage, and Obesity

Although individuals with poor food security might be expected to have reduced food intake, and therefore a lower likelihood of being overweight, some empirical evidence has indicated that overweight status is actually more prevalent among the food insecure. As obesity is associated with excessive energy intake, and hunger reflects an inadequate food supply, such observations would appear to be paradoxical. We develop an economic model that shows that this apparently paradoxical result is consistent with rational behavior regarding food availability risk and the effectiveness of food storage options. The amount of internal storage increases as the variance of food productivity in the second period increases, which is consistent with the empirical observation of a positive relationship between food insecurity and the incidence of overweight.Food Security and Poverty,

New Directions in Consumer Behaviour Research

Consumer behaviour remains an evolving and fascinating area of research. In this article we highlight some of the current work by Canadian researchers in the areas of enhancing both the quality and application of consumer analysis. The work described below touches upon areas in which not just economic theory and methods, but also the policy process can be improved. The working papers cited here were all presented as part of the principal paper session, “What’s Going on in Consumer Behaviour?†held at the joint meeting of the Canadian Agricultural Economics Society and the Northeastern Agricultural and Resource Economics Association in Halifax, Nova Scotia in June 2004.Food Consumption/Nutrition/Food Safety, Marketing, Research Methods/ Statistical Methods,

HEALTH TRADEOFFS IN PESTICIDE REGULATION

EPA has the authority to ban pesticides to reduce health risks to consumers from food residues. Such bans influence the price of fruits and vegetables, and the resulting consumption shifts impact consumer health. We develop a framework to compare the direct and indirect health effects of pesticide regulation, and investigate the distribution of these effects across social groups. Under some plausible scenarios, the increased incidence of disease from reduced fruit and vegetable consumption outweigh the direct benefits of regulation. Furthermore, high income consumers receive the greatest direct health benefit from pesticide cancellations, whereas low and medium income consumers are most hurt by the resulting dietary changes.Crop Production/Industries, Health Economics and Policy,

FAT TAXES AND THIN SUBSIDIES: PRICES, DIET, AND HEALTH OUTCOMES

"Fat taxes" have been proposed as a way of addressing food-related health concerns. In this paper, we investigate the possible effects of "thin subsidies," consumption subsidies for healthier foods. Empirical simulations, based on data from the Continuing Study of Food Intake by Individuals, are used to calculate the potential health benefits of subsidies on certain classes of fruits and vegetables. Estimates of the cost per statistical life saved through such subsidies compare favorably with existing U.S. government programs.Health Economics and Policy,

Invasive Species Management: Importers, Border Enforcement, and Risk

Invasive species are a negative externality associated with imported goods. Policies aimed at excluding pests associated with imports include pre-shipment treatment requirements, varied inspection schemes, treatment at the border, penalties, and import bans or restrictions. Existing policies are based on the reasoning that increased enforcement effort will result in higher detection levels, or more specifically, that increased inspection will result in a higher number of interceptions and in turn, higher compliance. In addition to a deterrence effect, however, under which importers respond to increased enforcement with increased due care with respect to pest control, importers may respond in ways that regulators do not intend. For example, importers may choose to not bring goods into the country, may ship a reduced amount, or may switch ports-of-entry. Moreover, different types of firms are likely to respond to enforcement in different ways. In this paper, we present a framework to analyze invasive species border enforcement given heterogeneous importers and ports. We develop a theoretical model of firm response to border enforcement, analyze both the intended and unintended effects of this enforcement for different types of firms, and evaluate the tradeoffs associated with location. Firms not only consider the changes in the levels of enforcement and other conditions at a single port, they consider the cost and benefit tradeoffs associated with location e.g., differences in inspection intensity or port-entry fees versus distance to port-of-entry and final market across ports and may switch ports. The result is that increased inspection intensity may not result the overall damages from invasive species introductions.Resource /Energy Economics and Policy,

Indirect Effects of Pesticide Regulation and the Food Quality Protection Act

A driving factor behind pesticide regulation in Canada and the United States is the desire to protect consumers from harmful residues on food. The Food Quality Protection Act (FQPA) was unanimously passed by the U.S. Congress in 1996 and hailed as a landmark piece of pesticide legislation. It amended the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Federal Food, Drug, and Cosmetic Act (FFDCA), and focused on new ways to determine and mitigate the adverse health effects of pesticides. The FQPA is different from past legislation; it is based on the understanding that pesticides can have cumulative effects on people and that policy should be designed to protect the most vulnerable segments of the population. Recent research has investigated some of the impacts the FQPA’s provisions – many of which have yet to be fully implemented – may have on growers and consumers.Agricultural and Food Policy,

Canadian Chicken Industry: Consumer Preferences, Industry Structure and Producer Benefits from Investment in Research and Advertising

The Canadian chicken industry has operated under supply management since the mid-1970s. Canadian consumer preferences for chicken have grown dramatically since then possibly in response to concerns about health and the levels of fat and cholesterol in red meats. However Canadian consumers are also looking for convenience with their food purchases. Canadians are buying their chicken in frozen further processed forms, fresh by cut without skin and bone and in a variety of other different ways reflecting their unique willingness to pay for various attributes. There is also an increasing trend for retailers and processors to brand the fresh chicken product sold through grocery stores (for example, Maple Leaf Prime). The preferences Canadian consumer have for various chicken products, the prices they are comfortable paying and the strategies followed by processors/retailers can directly affect the outcomes of industry wide strategies such as investment in generic advertising and research or the impact of international market changes such as border closures. This research is an initial attempt to quantify Canadian consumer preferences – for fresh product by type – for product by level of processing – for chicken product by cut - for fresh chicken by brand - to examine the impact of substitutability on a variety of market shocks. The various different disaggregations of Canadian chicken consumption are used in a number of simulation models to illustrate how important preferences are to producer returns when there are market shocks. If Canadians found all chicken products available in the grocery store to be perfectly substitutable then previous policy analysis assuming chicken is one homogeneous product would be sufficient for industry policy analysis purposes. If Canadians view all the different chicken products as imperfectly substitutable and given that various chicken products are produced in relatively fixed proportions (white and dark meat, for example) further understanding of how consumers make their purchase decisions could enhance the industries ability to predict outcomes. For example, border closing to Canadian exports ( as a result of an Avian influenza outbreak, for example) would result in a significant increase in the dark meat products available for sale through Canadian grocery stores. The results presented in this research could provide a clue as to how much dark meat prices might decline while white meat prices might remain unaffected. The results reported suggest that at the consumer level, chicken fresh and frozen products are not perceived to be perfect substitutes, within a narrow category such as fresh chicken breasts, they are not perceived as even close substitutes, within the fresh category branded products such as those developed by Lilydale and Maple Leaf are not perceived as perfect substitutes. As well, an initial look at the demand for individual chicken products by household suggests that there is far from a common buying pattern across Canadian households, even within a single province. The results also suggest that health and convenience attributes are driving Canadian consumer preferences. Simulation results highlight the fact that pricing strategies followed by major processors/retailers within Canada can influence the returns to generic advertising and research. Further research could provide additional robust estimates of the chicken product substitutability existing in the Canadian market and an increased understanding of the market characteristics currently operating. The results presented here suggest that further work in this area is important for the chicken industry to pursue.consumer behaviour, chicken consumption, differentiated products, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Marketing, D12, Q11, Q18,

The Role of Sensory Experiences and Information on the Willingness to Pay for Organic Wheat Bread

This study examined the size and the determinants of the price premium a sample of Edmonton-area consumers was willing to pay for organic wheat bread. The development of these premiums included consideration of providing information on health or environmental advantages of organic production and consideration of sensory (taste) acceptance. To do this conventional and organic wheat was grown under similar conditions and milled and baked into 60% whole wheat bread under identical conditions. Samples of these breads were presented to consumers for sensory acceptance and a survey of their attitudes, behaviours and characteristics. The survey included a closed-ended contingent valuation question to examine consumers' willingness-to-pay (WTP) premiums for the organic bread. A trained sensory panel was used to quantify differences in the sensory characteristics of the two breads. The results suggest that in the absence of taste information respondents' WTP when environmental information was provided was greater than WTP when health information was given. When sensory taste information was included, however, the WTP estimates under the health information treatment were about twice those under the environmental information. The trained sensory panel observed the two treatments of bread to differ in texture but not in flavor, aroma or colour characteristics. The implications of these findings are that successful marketing of organic foods depends on circumstance - in the absence of sensory experience the environmental benefits of organic production appear to be more appealing than potential health benefits. Health claims are only viewed positively when the product can be tasted. Sensory scientists should use caution in interpreting WTP estimates in that they must take into account the type of information and placement of WTP questions in their study designs. We also found that sensory variables when included in the regression model had statistically significant effects on WTP estimates. The economic significance of including these variables in the logit model was limited, however. Nevertheless we feel that under some circumstances economists may find it advantageous to include sensory information in their models of food demand.Organic foods, price premium, willingness to pay, taste, health, environment, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Q13, Q18,

Integrating Food Policy with Growing Health and Wellness Concerns: An Analytical Literature Review of the Issues Affecting Government, Industry, and Civil Society

Over the past few years, there has been growing global interest in the link between food and health. This paper provides a review of some of the recent literature describing these linkages. The first section provides an overview of findings that link the consumption of fruits and vegetables, meat, eggs, whole-grains, alcohol, sugar, dairy, fish, pulses, soy, and nuts to coronary heart disease, cancer, stroke, and diabetes. The authors then summarize various international and domestic non-government organizations' views about these issues. The third section centres on the food industry and its responses to growing health concerns. The fourth section is an overview of public policy relating to food and health, including the use of food policy to change consumption behaviour and address obesity. This section also includes a discussion of the relevance of policies designed to discourage smoking to the current debate on obesity. The Conclusion highlights ways in which Canadian food policy can be adapted in order to better promote health and wellness.Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Agribusiness,

Using coupons to encourage healthier child snack purchases in corner stores: results from the CHOMPS study

ObjectivesTo examine youths’ (ages 6–15 years) autonomous snack purchases in corner stores and pilot use of coupons to encourage more healthful snack purchases.MethodsThis pilot study involved four corner stores proximal to K-8 schools in Massachusetts. Kids-only coupons of varying discounts were provided in store and paired with simple visual and verbal economic and health messages. Observational data about youths’ autonomous snack purchases was recorded pre- and post-intervention. Outcomes of interest were snack item, price, and nutrient content. Comparisons of purchase characteristics and nutritional content across intervention conditions were made using Chi-squared and t-tests.ResultsAcross all stores, 2,973 purchase observations were recorded totaling approximately $6,000. Researchers estimated that about 55% of shoppers were 10–12 years old. Modest coupon usage (2.2% of purchases) was noted. However, candy purchases decreased, and the percentage of purchase events that included at least one healthier food item more than doubled, regardless of coupon use. Improvements in the nutritional content of snacks were also observed.ConclusionKids-only coupons have the potential to assist with shifting autonomous snack purchase behavior in outside of school settings