Incentive Systems under ex post Moral Hazard to Control Outbreaks of Classical Swine Fever in the Netherlands

Livestock Production/Industries,

A Bayesian Belief Network to Infer Incentive Mechanisms to Reduce Antibiotic Use in Livestock Production

Efficient policy intervention to reduce antibiotic use in livestock production requires knowledge about the rationale underlying antibiotic usage. Animal health status and management quality are considered the two most important factors that influence farmers’ decision-making concerning antibiotic use. Information on these two factors is therefore crucial in designing incentive mechanisms. In this paper, a Bayesian belief network (BBN) is built to represent the knowledge on how these factors can directly and indirectly determine antibiotic use and the possible impact on economic incentives. Since both factors are not directly observable (i.e. latent), they are inferred from measurable variables (i.e. manifest variables) which are influenced by these factors. Using farm accounting data and registration data on antibiotic use and veterinary services in specialized finisher pig production farms, a confirmatory factor analysis was carried out to construct these factors. The BBN is then parameterized through regression analysis on the constructed factors and manifest variables. Using the BBN, possible incentive mechanisms through prices and management training are discussed.Livestock Production/Industries,

Consumers' Perception of Milk Safety

Several times during the last decade consumers have been warned about different incidents concerning food safety, like, salmonella in eggs, cheese and poultry, and pesticides residues in tomatoes. The problem of food safety is still to be a largely latent concern for consumers. The main research goal of this paper is to investigate consumers' risk attitudes and risk perceptions concerning milk safety and to estimate their willingness to pay for extra-safe milk. The data was collected in the Netherlands using a mail survey. 211 usable questionnaires (26%) were returned. Results show that, in general, consumers are not concerned about the safety of milk. However, the results of consumers' perceptions of the "riskiness of milk contamination" for vulnerable groups of people show that babies are considered to be more sensitive to different sources of contamination than other groups. This study supports the results of previous food safety studies showed that consumers are willing to pay a price premium to the traditional purchase price to avoid some perceived risks. 58% of respondents are willing to pay an additional price for extra-safe milk. The conjoint experiment results indicate that the most important factors for consumers' preference are risk of contamination and presence of a label. Based on a conjoint analysis four segments of respondents were distinguished: "Balanced Shoppers"; "Safety-Seekers"; "Safety-Indifferent"; and "Extreme-Safety Seekers".food safety, questionnaire survey, risk attitudes, risk perceptions, willingness to pay, willingness to buy., Food Consumption/Nutrition/Food Safety,

Assessing Food Safety Concepts on the Dairy Farm: The Case of Chemical Hazards

Adaptive conjoint analysis was used to elicit farmers' and experts' preferences for attributes of improving food safety with respect to chemical hazards on the dairy farm. Groups of respondents were determined by cluster analysis based on similar farmers' and experts' perceptions of food safety improvement. Results show differences in priority of the more important attributes. However, respondents in all groups valued "identification of treated cows" as one of the most important attributes. The results provide the processing industry and extension service with a better understanding of aspects that may form farmers' perceptions of improving food safety, and thus help to define the message for targeting different farmer groups.food safety, dairy farm, conjoint analysis, cluster analysis, Food Consumption/Nutrition/Food Safety,

Are Product Recalls Insurable in the Netherlands Dairy Supply Chain?

Food Consumption/Nutrition/Food Safety, Production Economics,

Consumers' Perception of Milk Safety

Several times during the last decade consumers have been warned about different incidents concerning food safety, like, salmonella in eggs, cheese and poultry, and pesticides residues in tomatoes. The problem of food safety is still to be a largely latent concern for consumers. The main research goal of this paper is to investigate consumers' risk attitudes and risk perceptions concerning milk safety and to estimate their willingness to pay for extra-safe milk. The data was collected in the Netherlands using a mail survey. 211 usable questionnaires (26%) were returned. Results show that, in general, consumers are not concerned about the safety of milk. However, the results of consumers' perceptions of the "riskiness of milk contamination" for vulnerable groups of people show that babies are considered to be more sensitive to different sources of contamination than other groups. This study supports the results of previous food safety studies showed that consumers are willing to pay a price premium to the traditional purchase price to avoid some perceived risks. 58% of respondents are willing to pay an additional price for extra-safe milk. The conjoint experiment results indicate that the most important factors for consumers' preference are risk of contamination and presence of a label. Based on a conjoint analysis four segments of respondents were distinguished: "Balanced Shoppers"; "Safety-Seekers"; "Safety-Indifferent"; and "Extreme-Safety Seekers"

A Bayesian Belief Network to Infer Incentive Mechanisms to Reduce Antibiotic Use in Livestock Production

Efficient policy intervention to reduce antibiotic use in livestock production requires knowledge about the rationale underlying antibiotic usage. Animal health status and management quality are considered the two most important factors that influence farmers’ decision-making concerning antibiotic use. Information on these two factors is therefore crucial in designing incentive mechanisms. In this paper, a Bayesian belief network (BBN) is built to represent the knowledge on how these factors can directly and indirectly determine antibiotic use and the possible impact on economic incentives. Since both factors are not directly observable (i.e. latent), they are inferred from measurable variables (i.e. manifest variables) which are influenced by these factors. Using farm accounting data and registration data on antibiotic use and veterinary services in specialized finisher pig production farms, a confirmatory factor analysis was carried out to construct these factors. The BBN is then parameterized through regression analysis on the constructed factors and manifest variables. Using the BBN, possible incentive mechanisms through prices and management training are discussed

Genetically modified animals in the food and pharmaceutical chains: economics, public perception and policy implications

This paper presents ongoing results of the EU project PEGASUS (Public Perception of Genetically modified Animals – Science, Utility and Society, 7th FP).The overall objective is to provide support for future policy regarding the development, implementation and commercialisation of genetically modified (GM) animals, both terrestrial and aquatic, together with the foods and pharmaceutical products derived from them. Food products derived from GM animals have not yet entered the market. Nonetheless, the ongoing discussion about GM crops and the recently initiated discussions about the safety and ethics of foods and pharmaceutical products derived from cloned animals have set the stage for the socio-economical issues that will surround the introduction of GM animals in the food and pharmaceutical chains. This papers shows the economic and governance pros and cons of GM applications in the animal and pharmaceutical chains, as well as the factors affecting their adoption. Public and producers acceptance, technical improvements and public policies are considered as the main factors affecting the application of GM animals techniques in livestock and pharmaceutical chains