Traceability and Demand Sensitiveness: Evidences from Italian Fresh Potatoes Consumption

When a traceability system takes place, either when mandatory or voluntary, many questions arise that need to be addressed and answered. One of the firsts concerns whether it introduces new costs with no gain in efficiency or, on the contrary, the system efficiency increases lowering costs and, as a consequence, market price of the good in hand. Among others, another issue that only rarely is addressed regards the effect of a price change on the final market. The objective of this paper was to simulate the effect on fresh Italian vegetables market of prices change due to a newer traceability procedure, focusing on early potato. Reasons why early potato was the main object of our study will be explained in detail later in the paper. Moreover, this study concerns a demand system estimation that has, as main goal, the measurement of own and cross price elasticities as well as expenditure elasticities. Such estimations are not strictly related with traceability because they measure any change in quantity demanded due to price changes due to any market perturbation. However, since early potato is experiencing a peculiar market and chain change in Italy, our simulation is meant to reason in terms of a “what if” approach, formally simulating the effect of any change in price due to an hypothesis of traceability system involved. In order to estimate a demand system, real household consumption data (3,000 observations) of a statistically representative sample of the Italian population of households was taken into account. Relevant measures of market variables were estimated by means of a Linear Almost Ideal Demand System implementing a large set of fresh vegetables: potato split in early and late, cabbage, salad, mushrooms, fruits vegetables, roots, asparagus, onion, tomatoes, peppers, cucumbers, beans, zucchinis and others.traceability, early potato, censored demand system estimation, sample selection approach., Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Research Methods/ Statistical Methods,

On the Segregation of Genetically Modified, Conventional, and Organic Products in European Agriculture: A Multi-Market Equilibrium Analysis

Evaluating the possible benefits of the introduction of genetically modified (GM) crops must address the issue of consumer resistance as well as the complex regulation that has ensued. In the European Union (EU), this regulation envisions the co-existence of GM food with conventional and quality-enhanced products, mandates the labelling and traceability of GM products and allows only a stringent adventitious presence of GM content in other products. All these elements are brought together within a partial equilibrium model of the EU agricultural food sector. The model comprises conventional, GM and organic food. Demand is modelled in a novel fashion, whereby organic and conventional products are treated as horizontally differentiated but GM products are vertically differentiated (weakly inferior) relative to conventional ones. Supply accounts explicitly for the land constraint at the sector level and for the need for additional resources to produce organic food. Model calibration and simulation allow insights into the qualitative and quantitative effects of the large-scale introduction of GM products in the EU market. We find that the introduction of GM food reduces overall EU welfare, mostly because of the associated need for costly segregation of non-GM products, but the producers of quality-enhanced products actually benefit.

Effects of Traceability on the Italian Fresh Vegetables Market: A Demand System Simulation

Traceability can serve various purposes in the food sector, including that of chain quality control. However, the aspects that seem to be most frequently required of traceability are those related to food safety. Nevertheless, traceability systems development has recently shifted its focus from the major aspects of food safety to a price premium search approach. Although such an approach often appears to lie behind production strategies, there is no technical or theoretical evidence to support it: traceability systems do not guarantee, per se, quality. On the other hand, a rigorous traceability system that pursues multiple objectives involves costly procedures that are very likely to feed all the way up to the consumer side. (more.....

Traceability and Demand Sensitiveness: Evidences from Italian Fresh Potatoes Consumption

When a traceability system takes place, either when mandatory or voluntary, many questions arise that need to be addressed and answered. One of the firsts concerns whether it introduces new costs with no gain in efficiency or, on the contrary, the system efficiency increases lowering costs and, as a consequence, market price of the good in hand. Among others, another issue that only rarely is addressed regards the effect of a price change on the final market. The objective of this paper was to simulate the effect on fresh Italian vegetables market of prices change due to a newer traceability procedure, focusing on early potato. Reasons why early potato was the main object of our study will be explained in detail later in the paper. Moreover, this study concerns a demand system estimation that has, as main goal, the measurement of own and cross price elasticities as well as expenditure elasticities. Such estimations are not strictly related with traceability because they measure any change in quantity demanded due to price changes due to any market perturbation. However, since early potato is experiencing a peculiar market and chain change in Italy, our simulation is meant to reason in terms of a “what if” approach, formally simulating the effect of any change in price due to an hypothesis of traceability system involved. In order to estimate a demand system, real household consumption data (3,000 observations) of a statistically representative sample of the Italian population of households was taken into account. Relevant measures of market variables were estimated by means of a Linear Almost Ideal Demand System implementing a large set of fresh vegetables: potato split in early and late, cabbage, salad, mushrooms, fruits vegetables, roots, asparagus, onion, tomatoes, peppers, cucumbers, beans, zucchinis and others

The influence of country of origin on German consumer preferences for peaches: a latent class choice model

Germany is an important world level market for fresh fruit. Spain and Italy are the main suppliers of fresh fruit on the German market while the main imported products are apple, grapes, peaches and oranges. The aim of this paper is to assess the role country of origin plays in the preferences of German consumers for peaches. Since German legislation requires fresh fruit sold on the market to clearly display the product’s country of origin, German consumers usually make their choice with this information to hand. How important is such information, and what is the trade-off between country of origin and price or organic production system? We attempted to investigate such concerns through a choice experiment approach conducted by means of a questionnaire-based survey administered to a representative sample of 300 German households. In the experiment, respondents were asked to choose their favorite peach among four alternatives. Each peach was described as imported from four specific countries (Italy, Spain, Turkey and France) and available at a specific price; some of the peaches were certified Organic or PDO. The stated choices are analyzed using a latent class choice model to derive estimates of preferences for peaches. Results indicate the presence of three distinct consumer segments in the German peach market. The largest segment (48%) showed a strong preference for Italian peaches as well as for organic and PDO certification. For this segment, price was not an important attribute. The second segment (41%) showed a strong preference for Spanish produce and organic certification. Price was important in this case. The third segment (11%) had a negative preference for Italian and Spanish peaches, with price being the main attribute.Germany peach market, consumer preferences, latent class choice models, Agricultural and Food Policy,

Consumption Corridors as a new paradigm of sustainability

Sufficiency perspective involves a new and deep re-examination of individual moral principles such as the personal values system in the time of environmental crisis. To illustrate, it seems to be evidence of an urge to follow the guideline of moral and ethical dimensions of consumption, supporting social and wellbeing standards for all individuals taking into account the planetary boundaries. More specifically, it is recommended that, in the future, the transition towards the achievement of sufficiency models should be devoted to the area of complex concepts that bring together upper and lower limits of resources consumption, also named consumption corridors

The role of modern retailers to ensure quality in the food sector: the case of organic strawberry consumption in Italy

Major changes have occurred in the agri-food sector, generating new and more complex concepts of food quality. One of the most significant indicators of these changes is market restructuring, in terms of rapid concentration among retailers, the dominance of chain stores and their imposition of cost and quality constraints. Retailers currently play a more important role in ensuring food product quality and safety than public authorities. To analyze this new aspect in the food sector, we carried out a survey on organic strawberry consumption in Italy. This segment of the organic sector is particularly interesting because the conventional strawberry may be considered an unsafe product due to the large use of chemical inputs in the production process. Nevertheless, the demand for organic strawberries demand is fairly low. We attempted to investigate such concerns through a questionnaire-based survey submitted to a representative sample of 318 Italian households. The questionnaire was structured into three areas of information to collect data related to consumer preferences for different characteristics of organic strawberries and psychometric and socio-economic variables. The data were analyzed using a Logit model to derive a demand estimate for organic strawberries. Our first results indicate the presence of a major role played by modern retailers and consumer lifestyles to drive the final demand of high-quality and safe food products.food quality and food safety, organic strawberry consumption, modern retail, Logit model., Food Consumption/Nutrition/Food Safety,

An integrated methodology for the evaluation of organic farming support scheme environ-mental effects supported by Geographic Information Systems (GIS)

Within the current Common Agricultural Policy (CAP) framework, Member States are obliged to evaluate their respective Rural Development Plans (RDPs). The aim of the evaluation is to verify the efficiency and efficacy of the implementation process, particularly as concerns the objective of integration of environmental issues in the agricultural policy. In this context, a more comprehensive evaluation methodol-ogy is needed. Particularly, the spatial structure of the territory the intervention targets must be inte-grated in the analysis. Geographic Information Systems (GIS) have been widely considered a useful tool to encompass the spatial aspects in the evaluation process. GIS, in fact, are able to perform spatial analysis as well as estimate quantitative indicators referred to different geographic frames. In this short paper we propose a GIS-based analysis of the effects of organic farming aid scheme implementation and we report the results of an application of such a methodology

On the Segregation of Genetically Modified, Conventional and Organic Products in European Agriculture: A Multi-market Equilibrium Analysis

Evaluating the possible benefits of the introduction of genetically modified (GM) crops must address the issue of consumer resistance as well as the complex regulation that has ensued. In the European Union (EU), this regulation envisions the co-existence of GM food with conventional and quality-enhanced products, mandates the labelling and traceability of GM products and allows only a stringent adventitious presence of GM content in other products. All these elements are brought together within a partial equilibrium model of the EU agricultural food sector. The model comprises conventional, GM and organic food. Demand is modelled in a novel fashion, whereby organic and conventional products are treated as horizontally differentiated but GM products are vertically differentiated (weakly inferior) relative to conventional ones. Supply accounts explicitly for the land constraint at the sector level and for the need for additional resources to produce organic food. Model calibration and simulation allow insights into the qualitative and quantitative effects of the large-scale introduction of GM products in the EU market. We find that the introduction of GM food reduces overall EU welfare, mostly because of the associated need for costly segregation of non-GM products, but the producers of quality-enhanced products actually benefit

Political Consumerism and Food Community Networks

European society, with its steadily increased welfare levels, is not only concerned about food (safety, prices), but also on other aspects such as biodiversity loss, landscape degradation, pollution of water, soil and atmosphere. To a large extent these concerns can be translated into a wider concept named sustainable development defined as a normative concept by Morgan and Sonnino (2008). Sustainability in the food chain means approaching a new emerging vision of a sustainable agro-food system introducing an institutional dimension to take into account. Among different attempts to conjugate such concepts, there is one that is taking place in many Regions of Italy. In the last years spontaneous aggregations of consumers are developing. They are named Solidarity Purchase Group (SPG). In short, they are characterized by an economy, not necessarily local, ethical and equitable, where social and economic territorial relations tend to develop districts and networks. One of the main characteristics of a SPG is the direct relations between small farms, and their customers with a high content of participation and specialization. The study means to tackle issues related to organizational frameworks, at farm and chain level, and to assess those elements that mark consumer’s choices and satisfaction