Information asymmetry and the role of traceability systems

Hobbs, Jill E.

doi:10.1002/agr.20020

Cited by 232 publications

(164 citation statements)

References 7 publications

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“…Thus, safety is not the sole motivator for traceability adoption. It may also correct market failures, reduce costs of identification of origins of products, and reduce transaction costs (Hobbs, 2004;Hobbs, Bailey, Dickinson, & Haghiri, 2005). This may explain why traceability is being so widely adopted in Europe and why retailers in the EU are pushing for more stringent systems than required by legislation.…”

Section: Introductionmentioning

confidence: 99%

“…The economic impacts of traceability adoption in food chains have only recently started to be played out. Hobbs (2004) focuses on the role of traceability in the food system and distinguishes ''ex post reactive systems that allow the traceback of affected products in the event of a contamination problem so as to minimize social costs, ex post systems that facilitate the allocation of liability, and information systems that provide ex ante quality verification'' (p. 397). Traceability has three main functions: (a) reduce costs associated with risks of food safety occurrences, (b) strengthen liability incentives, and (c) allow for ex ante verification of credence quality attributes.…”

Section: Operations Research and Economic Approaches To Traceability mentioning

confidence: 99%

“…A traceability system is a tool through which information flowing among parties in a supply chain can be more effectively and efficiently managed. It can also improve logistics operations and minimize the impact of food safety hazards (Hobbs, 2004;Meuwissen et al, 2003). However, traceability is costly, as it requires gathering, storing, and sharing information.…”

Section: Introductionmentioning

confidence: 99%

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The Economics of Voluntary Traceability in Multi‐Ingredient Food Chains

Souza-Monteiro

Caswell

2010

Agribusiness

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The consumption of multi-ingredient foods is increasing across the globe. Traceability can be used as a tool to gather information about and manage food safety risks associated with these types of products. The authors investigate the choice of voluntary traceability in three-tiered multi-ingredient food supply chains. They propose a framework based on vertical control and agency theory to model three dimensions of traceability systems: depth, breadth, and precision. Their analysis has three main results. First, full traceability is feasible as long as there are net benefits to a downstream firm that demands traceability across all ingredients. Second, horizontal network externalities are positive because an increase in the level of traceability in one ingredient requires a similar increase in others. Finally, vertical network effects will be positive insofar as willingness to pay and probabilities of food safety hazards increase. [EconLit Classification: Q130, L140]. r

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Section: Introductionmentioning

confidence: 99%

Section: Operations Research and Economic Approaches To Traceability mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Economics of Voluntary Traceability in Multi‐Ingredient Food Chains

Souza-Monteiro

Caswell

2010

Agribusiness

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“…Karipidis et al (2009) examine factors affecting the adoption of quality assurance systems in small food enterprises, identifying a set of internal and external benefits and costs of quality assurance systems at the firm level. Much of the prior literature has a heavy emphasis on the adoption of quality assurance systems as a component of food safety management systems (see, e.g., Herath and Henson, 2006;Hobbs, 2004). This literature often frames the analysis within the context of requirements by food retailers for the adoption of quality assurance requirements by suppliers (see, e.g., Hobbs, 1996;Mainville et al, 2006;Northen, 2001).…”

Section: Quality Assurance Systemsmentioning

confidence: 99%

Determinants of Wineries’ Decisions to Seek VQA Certification in the Canadian Wine Industry

2016

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The establishment of quality assurance systems is an important development in the wine sector, particularly so for new and emerging wine regions. Focusing on the Canadian wine industry, this article examines the determinants of a winery's decision to adopt Vintners Quality Alliance (VQA) certification for wines. The analysis also examines whether wineries seek VQA certification for higher-priced wines or whether VQA certification leads to higher wine prices. To examine the certification decision, a probit model is applied to a detailed data set of Canadian wines sold in Ontario over the period [2007][2008][2009][2010][2011][2012]. Wines from wineries that supply large volumes of wines (more than 1,000 cases) are more likely to have VQA certification, as well as ice wines and wines from specific regions. A Hausman specification test for endogeneity suggests that VQA certification leads to higher wine prices and not the other way around. (JEL Classifications: D22, L15, L66, Q13)

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“…resources to systems that channel information along the chain and favour the coordination among chain members (cf., Hammoudi et al 2009;Hobbs 2004;Martino and Perugini 2006;Ménard and Valceschini 2005;Unnevehr and Jenson 1999).…”

mentioning

confidence: 99%

Food safety and network governance structure of the agri-food system

2013

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The problem background of food quality and safetyOver the last decades, citizens, consumers and policy makers have become increasingly concerned about the challenges related to the agri-food system such as food security, food quality and safety, the free and informed choice of consumers, animal welfare, environmental protection and the mitigation of climate change. Troubled by the negative externalities of food production, as well as the occurrence of a great number of incidents including food law offences and fraudulent behaviour, consumers and policy makers call for more efforts to identify the failures in food markets and mitigate the corresponding credence quality problems and food risks. Hazards and food quality threats may arise at all levels of the food supply system, and safety precautions and controls may fail due to technological flaws and human errors or misbehaviours on any of these levels.Since food quality and safety depend on all members of the food supply chain, improving the chain's quality and safety performance requires collective action and the design of governance structures which facilitate organizational choices that overcome the information and coordination problems within the supply chain. In relation to the self-organization of food businesses, the general governance perspective can be related to private contracts and supply chain management. Supply chain management is about providing/sharing resources and aligning the activities of different supply chain members in order to reduce chain costs and increase chain benefits that can be distributed among the chain members (cf., Arshinder and Deshmukh 2008). In other words: technological and behavioural uncertainties may induce food businesses to make voluntary multi-lateral agreements and allocate

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Information asymmetry and the role of traceability systems

Cited by 232 publications

References 7 publications

The Economics of Voluntary Traceability in Multi‐Ingredient Food Chains

The Economics of Voluntary Traceability in Multi‐Ingredient Food Chains

Determinants of Wineries’ Decisions to Seek VQA Certification in the Canadian Wine Industry

Food safety and network governance structure of the agri-food system

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