IDEAS home Printed from https://ideas.repec.org/a/kap/ejlwec/v37y2014i1p111-130.html
   My bibliography  Save this article

Impact of liability rules on modes of coordination for food safety in supply chains

Author

Listed:
  • E. Rouvière
  • K. Latouche

Abstract

This article analyzes how the allocation of liability for safety defects could influence coordination in the food supply chain. To do so, we analyzed the strategic reaction of importers and supermarkets who import Spanish fresh produce into France. We considered the implementation and enforcement of the European General Food Law as an exogenous shock for French food operators. In France, depending on the situation, food operators can transfer their liability to someone else in the food supply and imports decisions are crucial indicators. After 2005, supermarkets transferred the liability risk linked to importing sensitive products to importers. We argue that this regulatory change also prompted French importers of fresh produce to develop a horizontal, collective governance structure to monitor the safety of imported produce. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • E. Rouvière & K. Latouche, 2014. "Impact of liability rules on modes of coordination for food safety in supply chains," European Journal of Law and Economics, Springer, vol. 37(1), pages 111-130, February.
    • Handle: RePEc:kap:ejlwec:v:37:y:2014:i:1:p:111-130
    DOI: 10.1007/s10657-013-9413-0
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10657-013-9413-0
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10657-013-9413-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Spencer Henson & James Northen, 1998. "Economic determinants of food safety controls in supply of retailer own-branded products in United Kingdom," Agribusiness, John Wiley & Sons, Ltd., vol. 14(2), pages 113-126.
    2. Loader, Rupert & Hobbs, Jill E., 1999. "Strategic responses to food safety legislation," Food Policy, Elsevier, vol. 24(6), pages 685-706, December.
    3. Sébastien Pouliot & Daniel A. Sumner, 2008. "Traceability, Liability, and Incentives for Food Safety and Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 15-27.
    4. David A. Hennessy & Jutta Roosen & John A. Miranowski, 2001. "Leadership and the Provision of Safe Food," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 862-874.
    5. Henson, Spencer & Caswell, Julie, 1999. "Food safety regulation: an overview of contemporary issues," Food Policy, Elsevier, vol. 24(6), pages 589-603, December.
    6. Hennessy, David A. & Roosen, Jutta & Jensen, Helen H., 2003. "Systemic failure in the provision of safe food," Food Policy, Elsevier, vol. 28(1), pages 77-96, February.
    7. Marian Garcia Martinez & Paul Verbruggen & Andrew Fearne, 2013. "Risk-based approaches to food safety regulation: what role for co-regulation?," Journal of Risk Research, Taylor & Francis Journals, vol. 16(9), pages 1101-1121, October.
    8. Elodie Rouviere & Raphael Soubeyran, 2011. "Competition vs. quality in an industry with imperfect traceability," Economics Bulletin, AccessEcon, vol. 31(4), pages 3052-3067.
    9. Schmitz, Patrick W., 2000. "On the joint use of liability and safety regulation," International Review of Law and Economics, Elsevier, vol. 20(3), pages 371-382, September.
    10. Elodie Rouviere & Raphael Soubeyran & Céline Bignebat, 2010. "Heterogeneous efforts in voluntary programmes on food safety," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 37(4), pages 479-499, December.
    11. Julie A. Caswell & Eliza M. Mojduszka, 1996. "Using Informational Labeling to Influence the Market for Quality in Food Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
    12. Holleran, Erin & Bredahl, Maury E. & Zaibet, Lokman, 1999. "Private incentives for adopting food safety and quality assurance," Food Policy, Elsevier, vol. 24(6), pages 669-683, December.
    13. John M. Antle, 1996. "Efficient Food Safety Regulation in the Food Manufacturing Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1242-1247.
    14. Rouvière, Elodie & Caswell, Julie A., 2012. "From punishment to prevention: A French case study of the introduction of co-regulation in enforcing food safety," Food Policy, Elsevier, vol. 37(3), pages 246-254.
    15. Frenzen, Paul D. & Buzby, Jean C. & Rasco, Barbara, 2001. "Product Liability And Microbial Foodborne Illness," Agricultural Economic Reports 34059, United States Department of Agriculture, Economic Research Service.
    16. Kolstad, Charles D & Ulen, Thomas S & Johnson, Gary V, 1990. "Ex Post Liability for Harm vs. Ex Ante Safety Regulation: Substitutes or Complements?," American Economic Review, American Economic Association, vol. 80(4), pages 888-901, September.
    17. Jill E. Hobbs & William A. Kerr, 1992. "Costs of monitoring food safety and vertical coordination in agribusiness: What can be learned from the British Food Safety Act 1990?," Agribusiness, John Wiley & Sons, Ltd., vol. 8(6), pages 575-584.
    18. Innes, Robert, 2004. "Enforcement costs, optimal sanctions, and the choice between ex-post liability and ex-ante regulation," International Review of Law and Economics, Elsevier, vol. 24(1), pages 29-48, March.
    19. Loureiro, Maria L., 2008. "Liability and food safety provision: Empirical evidence from the US," International Review of Law and Economics, Elsevier, vol. 28(3), pages 204-211, September.
    20. Elodie Rouviere & Raphael Soubeyran, 2011. "Competition vs. quality in an industry with imperfect traceability," Economics Bulletin, AccessEcon, vol. 31(4), pages 3052-3067.
    21. Fulponi, Linda, 2006. "Private voluntary standards in the food system: The perspective of major food retailers in OECD countries," Food Policy, Elsevier, vol. 31(1), pages 1-13, February.
    22. Garcia Martinez, Marian & Poole, Nigel, 2004. "The development of private fresh produce safety standards: implications for developing Mediterranean exporting countries," Food Policy, Elsevier, vol. 29(3), pages 229-255, June.
    23. Garcia Martinez, Marian & Fearne, Andrew & Caswell, Julie A. & Henson, Spencer, 2007. "Co-regulation as a possible model for food safety governance: Opportunities for public-private partnerships," Food Policy, Elsevier, vol. 32(3), pages 299-314, June.
    24. Buzby, Jean C. & Frenzen, Paul D., 1999. "Food safety and product liability," Food Policy, Elsevier, vol. 24(6), pages 637-651, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fan, Jianchang & Ni, Debing & Fang, Xiang, 2020. "Liability cost sharing, product quality choice, and coordination in two-echelon supply chains," European Journal of Operational Research, Elsevier, vol. 284(2), pages 514-537.
    2. Magali Aubert & Geoffroy Enjolras & Zouhair Bouhsina, 2016. "How does the choice of a marketing channel influence the adoption of organic farming ?," Post-Print hal-01419767, HAL.
    3. Codron, Jean-Marie & Adanacioğlu, Hakan & Aubert, Magali & Bouhsina, Zouhair & El Mekki, Abdelkader Ait & Rousset, Sylvain & Tozanli, Selma & Yercan, Murat, 2014. "The role of market forces and food safety institutions in the adoption of sustainable farming practices: The case of the fresh tomato export sector in Morocco and Turkey," Food Policy, Elsevier, vol. 49(P1), pages 268-280.
    4. Liesbeth Dries & Domenico Dentoni, 2015. "Private sector investments to create market-supporting institutions: The case of Malawian Agricultural Commodity Exchange," Working Papers 2015/08, Maastricht School of Management.
    5. Donald Larson & Will Martin & Sebnem Sahin & Marinos Tsigas, 2016. "Agricultural Policies and Trade Paths in Turkey," The World Economy, Wiley Blackwell, vol. 39(8), pages 1194-1224, August.
    6. Latouche, Karine & Rouvière, Elodie, 2016. "Heterogeneity in international value chains: The economic function of French brokers in the fresh fruit and vegetables import industry," 149th Seminar, October 27-28, 2016, Rennes, France 244954, European Association of Agricultural Economists.
    7. Nguyen Thi Nha Trang & Thanh-Thuy Nguyen & Hong V. Pham & Thi Thu Anh Cao & Thu Huong Trinh Thi & Javad Shahreki, 2022. "Impacts of Collaborative Partnership on the Performance of Cold Supply Chains of Agriculture and Foods: Literature Review," Sustainability, MDPI, vol. 14(11), pages 1-28, May.
    8. Jesús Hernández-Rubio & Juan C. Pérez-Mesa & Laura Piedra-Muñoz & Emilio Galdeano-Gómez, 2018. "Determinants of Food Safety Level in Fruit and Vegetable Wholesalers’ Supply Chain: Evidence from Spain and France," IJERPH, MDPI, vol. 15(10), pages 1-15, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rouvière, Elodie & Royer, Annie, 2017. "Public Private Partnerships in food industries: A road to success?," Food Policy, Elsevier, vol. 69(C), pages 135-144.
    2. Rouvière, Elodie & Caswell, Julie A., 2012. "From punishment to prevention: A French case study of the introduction of co-regulation in enforcing food safety," Food Policy, Elsevier, vol. 37(3), pages 246-254.
    3. Mainville, Denise Y. & Zylbersztajn, Decio & Farina, Elizabeth M.M.Q. & Reardon, Thomas, 2005. "Determinants of retailers' decisions to use public or private grades and standards: Evidence from the fresh produce market of Sao Paulo, Brazil," Food Policy, Elsevier, vol. 30(3), pages 334-353, June.
    4. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    5. Codron, Jean-Marie & Adanacioğlu, Hakan & Aubert, Magali & Bouhsina, Zouhair & El Mekki, Abdelkader Ait & Rousset, Sylvain & Tozanli, Selma & Yercan, Murat, 2014. "The role of market forces and food safety institutions in the adoption of sustainable farming practices: The case of the fresh tomato export sector in Morocco and Turkey," Food Policy, Elsevier, vol. 49(P1), pages 268-280.
    6. Jayasinghe-Mudalige, Udith K. & Henson, Spencer J., 2004. "Quantifying The Impact Of Economic Incentives On Firms' Food Safety Responsiveness: The Case Of Red Meat And Poultry Processing Sector In Canada," 2004 Annual meeting, August 1-4, Denver, CO 20419, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Adalja, Aaron & Lichtenberg, Erik, 2018. "Produce growers’ cost of complying with the Food Safety Modernization Act," Food Policy, Elsevier, vol. 74(C), pages 23-38.
    8. Giraud-Heraud, Eric & Grazia, Cristina & Hammoudi, Abdelhakim, 2007. "Agrifood safety standards, market power and consumer misperceptions," 105th Seminar, March 8-10, 2007, Bologna, Italy 7849, European Association of Agricultural Economists.
    9. Jan Mei Soon & Richard N. Baines, 2013. "Public and Private Food Safety Standards: Facilitating or Frustrating Fresh Produce Growers?," Laws, MDPI, vol. 2(1), pages 1-19, January.
    10. Linhai Wu & Pingping Liu & Yuxin Lv & Xiujuan Chen & Fu-Sheng Tsai, 2018. "Social Co-Governance for Food Safety Risks," Sustainability, MDPI, vol. 10(11), pages 1-14, November.
    11. Wang, Di & Liu, Guangqiang & Xie, Linlin, 2023. "Can compulsory liability insurance reduce agency costs? Evidence from China," Research in International Business and Finance, Elsevier, vol. 65(C).
    12. Goldsmith, Peter D. & Turan, Nesve A. & Gow, Hamish R., 2004. "Firms, Incentives, And The Supply Of Food Safety: A Formal Model Of Government Enforcement," 2004 Annual meeting, August 1-4, Denver, CO 20343, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Wang, Di & Guo, Liangju & Xing, Saipeng, 2024. "Compulsory liability insurance and excess cash holdings: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 91(C).
    14. Jean Marie Codron & M'Hand Fares & Elodie Rouviere, 2007. "From public to private safety regulation?," Post-Print hal-01323247, HAL.
    15. Jaffee, Steve & Masakure, Oliver, 2005. "Strategic use of private standards to enhance international competitiveness: Vegetable exports from Kenya and elsewhere," Food Policy, Elsevier, vol. 30(3), pages 316-333, June.
    16. Loureiro, Maria L., 2008. "Liability and food safety provision: Empirical evidence from the US," International Review of Law and Economics, Elsevier, vol. 28(3), pages 204-211, September.
    17. Fares, M'hand & Rouviere, Elodie, 2010. "The implementation mechanisms of voluntary food safety systems," Food Policy, Elsevier, vol. 35(5), pages 412-418, October.
    18. Hoffmann, Vivian & Moser, Christine & Saak, Alexander, 2019. "Food safety in low and middle-income countries: The evidence through an economic lens," World Development, Elsevier, vol. 123(C), pages 1-1.
    19. M.Z. Boutouis & A. Hammoudi & W. Benhassine & M.A. Perito, 2018. "Uncertainty of food contamination origin and liability rules: Implications for bargaining power," Agribusiness, John Wiley & Sons, Ltd., vol. 34(1), pages 77-92, December.
    20. Lichtenberg, Erik & Tselepidakis, Elina, 2014. "Prevalence and Cost of On-Farm Produce Safety Measures in the Mid-Atlantic," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 168210, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Food safety; Liability; Coordination; K22; L15; Q13;
    All these keywords.

    JEL classification:

    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:ejlwec:v:37:y:2014:i:1:p:111-130. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.