ON THE EFFECTIVENESS OF PRIVATE FOOD STANDARDS

Eric Giraud-Heraud, Cristina Grazia and Abdelhakim Hammoudi

No 116408, 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany from European Association of Agricultural Economists

Abstract: This paper provides an original theoretical framework to better understand the raise of private quality standards in agrifood chains. Reasons for the development and conditions for the effectiveness of private quality standards are identified, by investigating firms’ strategic behaviour and, more precisely, both interactions among processing/retailing firms and upstream producers and the role of consumers’ behaviour. Considering different levels of consumers risk perception, we show that the incentive for firms to develop a more stringent private standard may increase with the level of the regulated minimum quality standard. Moreover, setting a private standard may reduce the risk of consumer dissatisfaction while increasing the marketed quantity. Unexpected positive effects of a strengthening of the minimum quality standard may arise, in the sense that both market access for upstream producers and consumer surplus are improved.

Keywords: Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Health Economics and Policy (search for similar items in EconPapers)
Pages: 37
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa115:116408

DOI: 10.22004/ag.econ.116408

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