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 decis… Show more
“…E-commerce website can be used as information publishing front, all kinds of information integration, publishing, and other agricultural market information networking. In addition, e-commerce site can provide all kinds of information value-added services, such as information search, query, sales of similar products, prices, summary, comparison [6] .These features help users to reduce the cost of information search, improve the utilization of information and safety standards for agricultural products [7] . The product information includes product name, type, production date, fertilizer information, sowing information, packing information, storage method, transportation information, sales information, Number, picking information so that people achieve the value of vegetables and purpose of traceability.…”
Abstract. The traceability of agricultural products safety is becoming prominent, and consumers do not have a sufficient understanding of vegetable information. This paper summarizes that Vegetable information release system and we have made a milestone record of the growth cycle through the information summary automatic generation technology. Based on these, we propose a model of vegetable information release. People achieve the value of vegetables and purpose of traceability from the Internet platform. Consumer supervision will further strengthen the effective supervision of agricultural product quality, improve the safety of agricultural products and promote the process of agricultural standardization.
“…E-commerce website can be used as information publishing front, all kinds of information integration, publishing, and other agricultural market information networking. In addition, e-commerce site can provide all kinds of information value-added services, such as information search, query, sales of similar products, prices, summary, comparison [6] .These features help users to reduce the cost of information search, improve the utilization of information and safety standards for agricultural products [7] . The product information includes product name, type, production date, fertilizer information, sowing information, packing information, storage method, transportation information, sales information, Number, picking information so that people achieve the value of vegetables and purpose of traceability.…”
Abstract. The traceability of agricultural products safety is becoming prominent, and consumers do not have a sufficient understanding of vegetable information. This paper summarizes that Vegetable information release system and we have made a milestone record of the growth cycle through the information summary automatic generation technology. Based on these, we propose a model of vegetable information release. People achieve the value of vegetables and purpose of traceability from the Internet platform. Consumer supervision will further strengthen the effective supervision of agricultural product quality, improve the safety of agricultural products and promote the process of agricultural standardization.
“…For example, Starbird and Amanor-Boadu (2007), and Starbird (2005) aim at characterizing the conditions for the effectiveness of a private control system in detecting non compliant products. 17 In the same spirit, a recent paper by Rouvière and Latouche (2014) analyzes how the allocation of liability for safety defects could influence coordination in the food supply chain and notably the development of a collective governance structure by importers to monitor the safety of procurement. Other papers in the supply chain literature have addressed the design of appropriate mechanisms to induce supplier quality efforts (Balachandran and Radhakrishnan 2005;Hwang et al 2006).…”
Section: Liability Rules Control System and Private Standardsmentioning
This contribution aims at providing a focused discussion on the main economic issues associated with the emergence of private standards in agrifood chains. Public and private modes for food safety management are explored. Based on a critical review of the recent developments of Industrial Organization (IO) approaches, this contribution examines the rationale behind the emergence of private strategies for food safety governance, their effects on the food supply chain organization, and the strategic interactions between public regulator and private actors in the provision of food safety in agrifood markets. The analysis then draws the attention on the interactions between public regulatory instances (notably between the legislation and the official control system) and on their influence on the incentive for firms to develop voluntary standards. By focusing on buyer-supplier relations in international food supply chains, and based on recent theoretical developments in the IO literature, a simple formalization is finally proposed to investigate the role of public "output standards" and control imperfections in shaping buyer incentive to impose "process standards" over suppliers for import safety management purposes.
“…Rouvière and Latouche () analyze the influence of the allocation of liability for safety defects on the organization of food supply chains. These authors frame their analysis in the current European regulatory context.…”
We propose an industrial organization model to analyze the role of bargaining power and liability rules in creating incentives for downstream and upstream supply chain operators to invest in good practices. We investigate the case in which either upstream production practices or downstream distribution may cause product contamination resulting in noncompliance with the authorized thresholds of residues (maximum residue limit [MRL]). We provide a comparative analysis of the retailers' liability rule-based accountability and the liability rule "polluter pays," which penalizes an operator who is directly responsible for a noncompliant product. We show that choosing the optimal liability rule is a complex problem, as the choice depends on the effectiveness of food safety controls and on the magnitude of the fine associated with rejecting noncompliant products.Moreover, the choice of the liability rule can change the negotiating power of both operators and, according to the rule chosen, the retailer will have to pay a higher or lower input price. [EconLit citations: L15, L22, Q18].
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