ECONOMIC IMPACTS OF MANDATED GRADING AND TESTING TO AVOID A NEGATIVE FOOD SAFETY EVENT: EX ANTE ANALYSIS OF THE FEDERAL MARKETING ORDER FOR PISTACHIOS

Richard Gray, Daniel Sumner, Julian Alston and Henrich Brunke

No 20031, 2004 Annual meeting, August 1-4, Denver, CO from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: The California pistachio industry led an initiative to establish a federal marketing order, which mandates quality standards and an inspection program to assure food safety and consistency in the quality of California pistachios. We develop a stochastic dynamic simulation model of the pistachio market to investigate quantitatively the likely effects of such collective action enforced by government mandates. Simulation results indicate that, across the full range of parameters used in the analysis, the benefit-cost analysis was always favorable to the proposed policy. The measured benefits to producers, the nation, or the world always well exceeded the corresponding measure of costs, typically by many times.

Keywords: Food; Consumption/Nutrition/Food; Safety (search for similar items in EconPapers)
Pages: 28
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea04:20031

DOI: 10.22004/ag.econ.20031

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