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Factors Driving Quality Standard Compliance in the Polish Dairy Sector

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  • Agata Pieniadz
  • Heinrich Hockmann

Abstract

We construct a model to identify determinants of the diffusion rate of quality standards in a food chain. We argue that adoption decisions in the food chain are determined by farmers’ and processors’ economic considerations. Factors such as pricing behaviour, compliance costs and market structure are identified and discussed in the paper. The findings are used to test an econometric model utilizing data on Polish milk processing firms gathered between 2000 and 2002. The results indicate that input and output prices have a significant influence on the diffusion rate of standards; the dominance of large-scale holdings in the relevant procurement market significantly increases diffusion as well. Compared to their competitors, small cooperatives were found to face more significant problems in procuring high quality raw materials. Copyright International Atlantic Economic Society 2008

Suggested Citation

  • Agata Pieniadz & Heinrich Hockmann, 2008. "Factors Driving Quality Standard Compliance in the Polish Dairy Sector," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 36(1), pages 41-52, March.
    • Handle: RePEc:kap:atlecj:v:36:y:2008:i:1:p:41-52
    DOI: 10.1007/s11293-007-9101-y
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    References listed on IDEAS

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    1. Henson, Spencer J. & Jaffee, Steven, 2006. "A Strategic Perspective on the Impact of Food Safety Standards on Developing Countries," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25456, International Association of Agricultural Economists.
    2. Kiss, Piroska & Weingarten, Peter, 2003. "Cost of compliance with the aquis communautaire in the Hungarian dairy sector," IAMO Discussion Papers 55, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    3. Laurian J. Unnevehr & Helen H. Jensen, 2001. "Industry Compliance Costs: What Would They Look Like in a Risk-Based Integrated Food System?," Center for Agricultural and Rural Development (CARD) Publications 01-wp278, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Rau, Marie-Luise & van Tongeren, Frank W., 2006. "Modeling Differentiated Quality Standards in the Agri-Food Sector: The Case of Meat Trade in the EU," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25739, International Association of Agricultural Economists.
    5. Timothy E. Josling & Donna Roberts & David Orden, 2004. "Food Regulation and Trade: Toward a Safe and Open Global System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 347, January.
    6. Murray Fulton & Konstantinos Giannakas, 2001. "Organizational Commitment in a Mixed Oligopoly: Agricultural Cooperatives and Investor-Owned Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1258-1265.
    7. Hanf, Jon Henrich & Pieniadz, Agata, 2006. "Quality Management in Strategic Networks - Is there any Relevance in the Polish Dairy Sector?," 99th Seminar, February 8-10, 2006, Bonn, Germany 7770, European Association of Agricultural Economists.
    8. John M. Antle, 2000. "No Such Thing as a Free Safe Lunch: The Cost of Food Safety Regulation in the Meat Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 310-322.
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    Cited by:

    1. Lobanov, Mikhail (Лобанов, Михаил) & Zvezdvanovic-Lobanova, Jelena (Звезданович-Лобанова, Елена), 2017. "Specifics of Agricultural Policy in the Countries of Central-Eastern and South-Eastern Europe in 1990–2010s [Особенности Аграрной Политики В Странах Центрально- И Юго-Восточной Европы В 1990-2010-Х," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 3, pages 150-173, June.
    2. Gagalyuk, Taras, 2012. "Goal achievement in supply chain networks: A study of the Ukrainian agri-food business," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 64, number 64.
    3. DRIES, Liesbeth, 2015. "The Determinants Of Resource-Providing Contracts: Case-Study Of The Polish Dairy Sector," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 18(1), pages 1-10, March.

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    More about this item

    Keywords

    Product quality; Standards; EU enlargement; Industrial organization; L15; L66; Q12; Q13;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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