Market power and food safety in the China pork industry

Huashu Wang, Tian Xia and Zhengfei Guan

Agribusiness, 2019, vol. 35, issue 1, 97-113

Abstract: Using data collected from a pork firm survey, we develop a modeling framework and use the conjectural variation method to examine the effect of market power on the food safety of the pork industry in China. Probit models with a two‐step Heckman selection procedure are applied to identify the determinants of the likelihood and degree of food safety violations. Market power is found to reduce the likelihood of violation but not the degree of violation. Other factors such as traceability systems, adoption of risk control systems and industry standards, and the scale and scope of operations also impact food safety violations. Findings suggest that market power in China’s pork industry provides incentives for firms to mitigate risk and improve food safety. However, firms may continue to have challenges in meeting food safety obligations when moving toward mega‐size and product diversification.

Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://doi.org/10.1002/agr.21591

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:35:y:2019:i:1:p:97-113

Access Statistics for this article

Agribusiness is currently edited by Ronald W. Cotterill

More articles in Agribusiness from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().