Learning Process and Contract Adaptation with Quality Uncertainty: Some Paradoxes in Retailer-Producer Relationships

The optimal level of formalisation of contracts and their dynamic is at stake in the economic literature on the optimum design of ex post renegotiation with third party enforcement. Another theoretical interpretation is that contract adaptations may also reflect mutual learning process between contractors. Why transactors write explicit contract that they know cannot be court enforced? The central idea is that explicit contract terms makes it clearer to the transactors what has been agreed upon, thus are decreasing the cost of private enforcement sanctions (Klein, 1996). Empirical evidences are provided by the diachronic analysis of the full set of tri-partite contracts between one of the top-ten french large retailer and its beef suppliers before and after the BSE crisis (period 1993-1999). The analysis emphasizes also the role of this increased codification of supply contracts with a progressive change in the internal retailer's organization, i.e. increased centralization of decision and supervision mechanisms. Contract design and organizational choices are then strongly interrelated.Contract design, Hold-up problems, beef sector, Self-Enforcement, Agribusiness,

FARM CERTIFICATION AND THE IMPLEMENTATION OF HACCP IN AGRICULTURE: A COST/BENEFIT ANALYSIS

This article aims to highlight the methodological bases and principles, sometimes implicit, that have served as support for the development of a referential similar to the one retained as part of the French decree on "Agriculture Raisonnée", namely the Quali'Terre referential. We show that the innovations introduced by this referential are of various natures: i) a change of perspective by taking a position at the level of the farming system and not of a given parcel of land or production, ii) use of the HACCP method for identification and most especially the prioritization of risks and the preventive measures to be implemented, iii) the introduction of the concept of continual improvement for the farmer. Even, if from an agronomic point of view, the application of this type of referential does not seem insurmountable, we show that, based on a study of about one hundred farms in Picardie, its global approach on farm management, unstead of just applying technical requirements, involves changes in farmer's practices that are more difficult than what was expected first.HACCP, methodology, cost/benefit analysis, farming system, risk assessment., Farm Management, Q16, Q20, M11, D21,

Geographical indications as global knowledge commons: Intellectual property rights and discursive strategies in polycentric governance

Geographical indications as global knowledge commons. Intellectual property rights and discursive strategies in polycentric governance. 10. International Conference in Interpretive Policy Analysis (IPA

Multilateral reputation mechanisms and contract law in agriculture : complement or substitutes

The enforcement of contracts is necessary for efficient exchange in economic activities. The predominance in agriculture of informal contracts leads in many countries to the implementation of specific legal rules for contract law. This article emphasises the complementarities between public and private ordering when contracts are informal. We analyse the role of private contract-enforcement institution (CEI) as a support for multilateral reputation mechanisms. Our case study is focusing on interprofessional organisations, which are usually analysed as cartels having a negative impact on welfare. We demonstrate that under specific conditions, they can improve contract enforcement and thus efficiency

Learning Process and Contract Adaptation with Quality Uncertainty: Some Paradoxes in Retailer-Producer Relationships

The optimal level of formalisation of contracts and their dynamic is at stake in the economic literature on the optimum design of ex post renegotiation with third party enforcement. Another theoretical interpretation is that contract adaptations may also reflect mutual learning process between contractors. Why transactors write explicit contract that they know cannot be court enforced? The central idea is that explicit contract terms makes it clearer to the transactors what has been agreed upon, thus are decreasing the cost of private enforcement sanctions (Klein, 1996). Empirical evidences are provided by the diachronic analysis of the full set of tri-partite contracts between one of the top-ten french large retailer and its beef suppliers before and after the BSE crisis (period 1993-1999). The analysis emphasizes also the role of this increased codification of supply contracts with a progressive change in the internal retailer's organization, i.e. increased centralization of decision and supervision mechanisms. Contract design and organizational choices are then strongly interrelated

Integrated Agriculture Labelling and consumer information: retailer's strategies and regulatory issues in the European context

The development of consumer concerns in the European context about food safety and environmental consequences of farming systems lead to the recent multiplication of private technical specifications to be applied by farmers on the request of large retailers and agro-food firms. These technical specifications on production define what is called Good Agricultural Practices (GAP) guidelines, Environmental Management Systems (EMS) or integrated agriculture. However, the lack of harmonized and scientifically based definition of GAP guidelines creates a lot of confusion and difficulties for their implementation by a large number of farmers, but as well regarding consumers information. This paper analyses, based on Transaction Cost Economics (Williamson, 1996, Barzel 2004), the alternatives standard setting strategies developed in the european context in order to solve these impediments. The comparison focuses on the strategies developed by trans-national large retailer associations (EUREP system, BRC) and another option recently set up in France with a labelling regulation on integrated agriculture with a private certification system

Multilateral reputation mechanisms and contract law in agriculture : complement or substitutes

The enforcement of contracts is necessary for efficient exchange in economic activities. The predominance in agriculture of informal contracts leads in many countries to the implementation of specific legal rules for contract law. This article emphasises the complementarities between public and private ordering when contracts are informal. We analyse the role of private contract-enforcement institution (CEI) as a support for multilateral reputation mechanisms. Our case study is focusing on interprofessional organisations, which are usually analysed as cartels having a negative impact on welfare. We demonstrate that under specific conditions, they can improve contract enforcement and thus efficiency.Agricultural Finance,

La politique de la qualité agro-alimentaire dans le contexte international

[fre] La politique de la qualité mise en place en France, et plus récemment par l'Union Européenne, offre aux acteurs du secteur agro-alimentaire des dispositifs juridiques et institutionnels leur permettant de valoriser une réputation collective et de «vendre du territoire» par la différenciation de leurs produits. La principale innovation de ce système est de codifier les dénominations d'origine pour en faire des signaux de qualité crédibles. L'article analyse d'abord les facteurs de succès de cette politique. Ensuite, il met en évidence les perspectives de cette politique dans le contexte international, en soulignant les obstacles que va devoir affronter la réglementation européenne et les concurrences nouvelles que vont subir les dénominations d'origine. [eng] Quality policy in the agro-food sector in global economy - Quality policy becomes a central issue for agro-food sector. Distinctive regulatory strategies have been followed in France, and more recently in the European Union, in order to promote quality differentiation and consumer information about food products. We show that these strategies are all based on the two following rules, i. e the promotion of producer's collective reputation and the certification of «localized production systems». The main innovation introduced by these institutional arrangements is then to define the origin of products as a credible quality signal. The aim of this article is, first to characterize the main institutional factors that may explain the economic success met by this policy. Second, futures opportunities for their extension at the international level are emphasised, focusing more precisely on the possible hurdles they will have to overcome.

FARM CERTIFICATION AND THE IMPLEMENTATION OF HACCP IN AGRICULTURE: A COST/BENEFIT ANALYSIS

This article aims to highlight the methodological bases and principles, sometimes implicit, that have served as support for the development of a referential similar to the one retained as part of the French decree on "Agriculture Raisonnée", namely the Quali'Terre referential. We show that the innovations introduced by this referential are of various natures: i) a change of perspective by taking a position at the level of the farming system and not of a given parcel of land or production, ii) use of the HACCP method for identification and most especially the prioritization of risks and the preventive measures to be implemented, iii) the introduction of the concept of continual improvement for the farmer. Even, if from an agronomic point of view, the application of this type of referential does not seem insurmountable, we show that, based on a study of about one hundred farms in Picardie, its global approach on farm management, unstead of just applying technical requirements, involves changes in farmer's practices that are more difficult than what was expected first

Third-Party Certifications and the Role of Auditing Policies in Sustainability: The Time and Space of Materiality Within Combined Audits

In the European context, the proliferation of private agrienvironmental certifications leads many farmers to become subject to increasing controls by either independent, private third-party certifying bodies or public authorities. The aim of this study is thus to explore the potential benefits of and the organizational limits to the use of combined audits when farmers are involved in multiple private certifications. Our analysis especially emphasizes the role of time structuring during the audit process, the transition from checklist toward risk-based auditing and the role of knowledge artefacts for the reliability of the audit process and the certification. Our study offers insights on the possible transformative role of auditing policies in the governance of agrienvironmental certified schemes toward more sustainability in agriculture