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Economic Incentives for Firms to Implement Enhanced Food Safety Controls: Case of the Canadian Red Meat and Poultry Processing Sector

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  • Udith Krishantha Jayasinghe-Mudalige
  • Spencer Henson

Abstract

This study assesses quantitatively the economic incentives for firms to adopt food safety controls and the potential impact of a number of firm- and market-specific characteristics on this behavior, focusing on the red meat and poultry processing sector in Canada. The results suggest that market-based (private) incentives have a greater impact on the food safety responsiveness of firms in this sector than government regulatory actions. This creates challenges for regulators in defining policy instruments that promote greater levels of food safety control in food processing sectors rather than constraining firms from taking initiatives that exceed regulatory requirements.

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  • Udith Krishantha Jayasinghe-Mudalige & Spencer Henson, 2006. "Economic Incentives for Firms to Implement Enhanced Food Safety Controls: Case of the Canadian Red Meat and Poultry Processing Sector," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(4), pages 494-514.
    • Handle: RePEc:oup:revage:v:28:y:2006:i:4:p:494-514.
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    2. Eric Giraud‐Héraud & Abdelhakim Hammoudi & Ruben Hoffmann & Louis‐Georges Soler, 2012. "Joint Private Safety Standards and Vertical Relationships in Food Retailing," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(1), pages 179-212, March.
    3. Melanie Fritz & Gerhard Schiefer, 2008. "Food chain management for sustainable food system development: a European research agenda," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 440-452.
    4. Bulut, Harun & Lawrence, John D., 2007. "Meat Slaughter and Processing Plants' Traceability Levels Evidence From Iowa," Staff General Research Papers Archive 12791, Iowa State University, Department of Economics.
    5. Ochieng’, Brian J. & Hobbs, Jill E., 2016. "Incentives for cattle producers to adopt an E. Coli vaccine: An application of best–worst scaling," Food Policy, Elsevier, vol. 59(C), pages 78-87.
    6. 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.
    7. Li, Kai & Zhou, Jie-hong & Liang, Qiao & Huang, Zuhui, 2015. "Food safety controls and governance structure varieties in China's vegetable and fruit sector," 2015 Conference, August 9-14, 2015, Milan, Italy 212046, International Association of Agricultural Economists.
    8. Zhou, Jiehong & Liu, Qing & Liang, Qiao, 2018. "Cooperative membership, social capital, and chemical input use: Evidence from China," Land Use Policy, Elsevier, vol. 70(C), pages 394-401.
    9. Henson, Spencer & Masakure, Oliver & Cranfield, John, 2011. "Do Fresh Produce Exporters in Sub-Saharan Africa Benefit from GlobalGAP Certification?," World Development, Elsevier, vol. 39(3), pages 375-386, March.
    10. Ochieng, Brian J. & Hobbs, Jill E., 2016. "Factors affecting cattle producers’ willingness to adopt an Escherichia coli O157:H7 vaccine: a probit analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(3), November.
    11. Jin, Shaosheng & Guo, Haiyue & Mao, Feiying & Zhou, Lin & Cheng, Guangyan, 2016. "Willingness To Pay For Implementing Haccp Systems In China’S Small And Medium-Sized Food Enterprises," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(2), pages 1-13, April.
    12. Zhou, Jiehong & Yue, Chengyan, 2010. "Investigating Chinese Vegetable Processing Firms’ Economic Incentives to Enhance Quality and Safety Controls," Journal of Food Distribution Research, Food Distribution Research Society, vol. 41(3), pages 1-12, November.

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