Modeling heterogeneity in consumer preferences for select food safety attributes in China

Food safety issues often arise from asymmetric information between consumers and suppliers with regards to product-specific attributes. Severe food safety scandals were observed recently in China. These events not only caused direct economic and life losses, but also created distrust in the Chinese food system domestically, as well as internationally. While much attention has focused on the problems plaguing the Chinese government’s food inspection system, little research has been dedicated to analyzing Chinese consumers’ concerns surrounding food safety. In this paper, we measure consumer preferences for select food safety attributes in pork and take food safety risk perceptions into account. Several choice experiment models, including latent class and random parameters logit, are constructed to capture heterogeneity in consumer preferences. Our results suggest that Chinese consumers have the highest willingness-to-pay for a government certification program, followed by third-party certification, a traceability system, and a product-specific information label. The results of this study call for the direct involvement of the Chinese government in the food safety system. A stricter monitoring system will not only improve consumer well-being in the short-run, but also restore consumers’ trust leading to a social welfare increase in the long run.     

The views of key stakeholders on an evolving food risk governance framework: Results from a Delphi study

Evidence of a decline in public trust associated with food risk governance over recent years has called into question the appropriateness of the current dominant risk analysis framework. Within the EU-funded SAFE FOODS project a novel risk analysis framework has been developed that attempts to address potential shortcomings by increasing stakeholder (including consumer) input, improving transparency, and formally incorporating benefit and non-health aspects into the analysis. To assess the viability of this novel framework, the views of food risk experts from the EU and beyond were sought using a distributed online questionnaire process called Delphi. In this paper the main results of this survey are described, revealing varying levels of support for the key innovations of the novel framework. Implications of our results for the new and old frameworks, for the future of risk analysis, and for the policy community more widely, are discussed.     

Strategic use of private standards to enhance international competitiveness: Vegetable exports from Kenya and elsewhere

The paper examines how European retailers are using private standards for food safety and ‘quality’ as risk management and competitive tools and the strategic responses of leading Kenyan and other developing country supplier/exporters to such standards. Despite measures to harmonize a ‘single market’, the European fresh produce market is very diverse in terms of consumer preferences, structural dynamics and attention to and enforcement of food safety and other standards. Leading Kenyan fresh produce suppliers have re-positioned themselves at the high end, including ‘high care’, segments of the market – precisely those that are most demanding in terms of quality assurance and food safety systems. An array of factors have influenced this strategic positioning, including relatively high international freight costs, the emergence of more effective competition in mainstream product lines, relatively low labor costs for produce preparation, and strong market relationships with selected retail chains. To succeed in this demanding market segment, the industry has had to invest substantially in improved production and procurement systems, upgraded pack house facilities, and quality assurance/food safety management systems.     

Consumers’ willingness-to-pay for food safety labels in an emerging market: The case of fresh produce in Thailand

Food safety systems in emerging markets are currently facing a transformation period, becoming more stringent because of an increasing demand for safer food. Consequently, policy makers need to find strategies to increase food safety while giving the industry time to improve their performance. In Thailand, policy makers have adopted the strategy of upgrading food safety standards gradually. Government and private food safety brands and labels were introduced onto the market but little is known whether Thai consumers have preferences for them or not. This study is aimed at evaluating Thai consumers’ preferences for food safety labels and brands on fresh produce, using a surveyed based on discrete-choice experiments. A sample of 350 Thai consumers was surveyed in Bangkok and Nonthaburi in 2013. Quota sampling according to the shopping outlets and convenience sampling methods were adopted. Two hundred respondents were recruited at fresh-food markets and 150 respondents were recruited at supermarkets. We found that consumers are willing-to-pay more for both government led food safety label and private brands, but that there is high heterogeneity in their preferences. The high degree of social desirability for food safety labels confirms that food safety labelling policy should be supported. However, the provision of information and credibility are vital in order to mitigate the risk of consumer deception by self-claimed labels.     

Food risk communication: Some of the problems and issues faced by communicators on the Island of Ireland (IOI)

In this paper we consider the findings of a number of interlinked pieces of research, both qualitative and quantitative, that have investigated aspects of food risk communication on the island of Ireland. These findings are set in the context of international risk communication research. The findings are examined using the three basic elements of a simple communications framework: the message sender; the channel through which the message is communicated and the receiver of the message. The barriers to effective communication are examined and special reference is made to the barriers affecting the communication of domestic food safety risk. Barriers identified include personal, infrastructural and message related factors, such as lack of interest, lack of appropriate facilities and conflicting messages. Based on an evaluation of the views of the scientific community and the public, we make suggestions on how future food safety communications could be tackled to better address the identified barriers. Both suggested long and short term policies are considered in the context of a heterogeneous public and scientific community. Short term suggestions provide an opportunity to address the challenges faced by those who are currently exposing themselves to a high level of domestic food safety risk. The long term suggestions reflect on the underlying barriers impacting on public domestic food safety practices.     

The quality of food risk management in Europe: Perspectives and priorities

In this paper, we address the issue of food risk management as practised in Western Europe. We begin by considering how food risks are managed, and then go on to consider how well they are managed. There are multiple answers to the ‘how well’ question, which are related to the varied perspectives of the different key stakeholders – from the food risk managers and producers, to the general public and the media. Consequently, there is no clear answer to the question of quality. What our review does identify is two priorities relevant to our understanding of effective food risk management: first, a need for further research to determine the source and nature of the different evaluative perspectives, and second, a need for the key stakeholders to appreciate and understand the alternative perspectives in order to enhance the effectiveness of the food risk management process.     

The welfare impact of food pathogen vaccines

Vaccines against several common foodborne pathogens are being developed and could substantially alter the policy tools available to address foodborne illness. However, little analysis is available to suggest how social welfare would be affected by consumer and industry responses to these new vaccines. To address this void, we use stated-preference data to estimate consumer willingness to pay (WTP) for food safety vaccines and then simulate the welfare impacts of subsidizing consumer purchases of the vaccine given two different industry responses: maintaining current levels of food safety vigilance and reducing food safety vigilance due to a moral hazard response that undermines consumer confidence in food safety. To obtain consumer preferences for the vaccine, we simultaneously estimate a three-equation model that recognizes the recursive nature of responses to questions probing respondents’ willingness to purchase vaccines and perceptions of the probability and severity of possible foodborne illness incidents and the joint distribution of unobservable components. Our simulations show large consumer WTP if vaccines are relatively inexpensive while the presence of moral hazard increases respondents’ willingness to pay and voluntary uptake of vaccine.     

Good governance? Perceptions of accountability,transparency and effectiveness in Irish food risk governance

In an attempt to govern increasingly globalised, industrialised and risky food chains, food safety authorities (FSAs) have been established worldwide as part of a catalogue of food risk governance reforms undertaken in response to continuing food crises. Despite these significant shifts in governing arrangements however, little work has been conducted regarding how consumers respond to, resist and/or engage with these new governance systems in everyday, non-crisis contexts. As such, this paper explores the everyday governance of food risk from the perspective of those whose voices typically go unheard in food policymaking processes – consumers. Drawing on empirical results from focus groups conducted with publics across the Republic of Ireland, consumer perceptions, priorities and lived experiences relating to food risk governance, and the Food Safety Authority of Ireland (FSAI) in particular, are explored. This analysis is couched within a normative frame of multi-scalar governance and what makes it ‘good’ or effective. Accordingly, the paper advances food risk policy debates through a lens of normative good food risk governance, including analysis of the perceived accountability, transparency and effectiveness of Irish food risk governing structures from a consumer perspective. Identifying limitations in current governing regimes, the paper concludes by critically reflecting on the opportunities and challenges for adopting more adaptive forms of governance in the multi-scalar and evolving policy context that typifies food risk.     

Social media as a useful tool in food risk and benefit communication? A strategic orientation approach

Although considerable progress has been made in understanding the determinants of risk perception and in identifying the necessary components of effective food risk and benefit communication, this has not been matched with the development of efficient and appropriate communication tools. Little work has been done examining the implications of the explosion of new media and web technologies, which may offer potential for improving food risk and benefit communication. First, this study examines the views of stakeholders (n = 38) and experts (n = 33) in the food domain on the potential use of these emerging media for food risk/benefit communication. Based on in-depth interviews in six European countries (Belgium, Ireland, Italy, Latvia, Spain and The Netherlands), strengths, weaknesses, opportunities and threats (SWOT) of social media in food risk and benefit communication were identified. Second, a Strategic Orientation Round (SOR) was used to evaluate the relative importance of the SWOT components according to stakeholders (n = 10) and experts (n = 13). Results show that both stakeholders and experts confirm a future role of social media in food risk and benefit communication. Strengths as speed, accessibility and interaction make social media an interesting tool in crisis communication or issue awareness raising. Weaknesses as the lack of a filter, low trust, the risk of information overload and a communication preference for traditional media are acknowledged.     

Risk perceptions and food-handling practices in the home

Unsafe food-handling practices in the home are linked with foodborne illnesses that represent sizable costs on the US healthcare industry and welfare losses to households. Past consumer food-safety education programs have only been modestly successful. Optimism bias may distort food-safety risk perceptions encouraging participation in risky food behaviors. Using multiple years of the FDA Food Safety Survey data, we explore the link between behavior-specific risk perceptions and three food-handling practices: handwashing, avoiding cross-contamination, and proper refrigeration of cooked foods. This approach describes risk perceptions as endogenous variables and allows for the decomposition of factors that directly influence food-safety behaviors, from those that indirectly influence behavior by changing risk perceptions. Our results suggest well-designed targeted information campaigns aimed at improving people’s safe food-handling practices must first decrease people’s optimism in the safety of their current practices. Given the lack of regulatory options to influence behavior in the home, this may provide an effective tool to address issues in performing safe food handling.     

Risk preferences,risk perceptions,and risky food

This paper presents the results of a study that tests the hypothesis that the effect of risk preference on choice is a function of the specific risk-preference measure utilized. In addition, this study tests the hypothesis that the effect of risk preference on choice depends upon its interaction with risk perceptions. I elicit three distinct measures of risk preference: a standard real-money Holt and Laury measure, a hypothetical health-variant of the Holt and Laury measure, and a non-context-specific self-assessment measure. I also elicit information regarding risk perceptions (specifically, food safety). These data are combined with choice data focused on consumer preferences for raw oysters. Results indicate that, after controlling for key oyster attributes, perceived risk perception is highly significant. Additionally, the effect of risk preference is significant, and the effect depends on whether respondents held informative or non-informative risk perceptions. In a treatment that includes only named oyster varieties, I find that although respondents generally prefer named Atlantic coast oysters to named Gulf and Pacific coast oysters, those who hold non-informative risk perceptions are even less likely to choose Gulf and Pacific coast oysters as the magnitude of risk aversion increases. In another treatment that includes a generic “commodity” Gulf coast oyster, I find that although named Gulf coast oysters are generally preferred to the commodity Gulf coast oyster, respondents with non-informative risk perceptions are significantly less likely to choose named Gulf coast oysters as the magnitude of risk aversion increases.     

An industry viewpoint on the role of farm assurance in delivering food safety to the consumer: The case of the dairy sector of England and Wales

Food safety, alongside food quality, remains a primary concern of both consumers and those along the whole food supply chain, leading to regulation by government alongside private third party certification. Much has been written about the value of these systems primarily from the perception of the consumer. This paper reports on a study that examined industry perceptions on the regulatory and assurance systems within the dairy sector of England and Wales. It found that the primary producer found value in both systems, although from a food hygiene focus regulation was seen to be more rigorous. Other stakeholders along the dairy food supply chain saw the assurance scheme as more rigorous. All stakeholders recognised the need to reduce duplication in delivering food safety through combining key elements of both systems with the added potential for better communication of both food safety and quality to the final consumer.     

Identifying risk issues and research advancements in supply chain risk management

The purpose of this paper is to investigate the research development in supply chain risk management (SCRM), which has shown an increasing global attention in recent years. Literature survey and citation/co-citation analysis are used to fulfil the research task. Literature survey has undertaken a thorough search of articles on selected journals relevant to supply chain operations management. Meanwhile, citation/co-citation analysis uses Web of Sciences database to disclose SCRM development between 1995 and 2009. Both the approaches show similar trends of rising publications over the past 15 years. This review has piloted us to identify and classify the potential risk associated with different flows, namely material, cash and information flows. Consequently, we identify some research gaps. Even though there is a pressing need and awareness of SCRM from industrial aspect, quantitative models in the field are relatively lacking and information flow risk has received less attention. It is also interesting to observe the evolutions and advancements of SCRM discipline. One finding is that the intellectual structure of the field made statistically significant increase during 2000-2005 and evolved from passively reacting to vague general issues of disruptions towards more proactively managing supply chain risk from system perspectives.     

Chinese consumers’ preferences for food quality test/measurement indicators and cues of milk powder: A case of Zhengzhou,China

Many food regulations focus on test/measurement indicators, such as hazard analysis and critical control points (HACCP) and traceability, etc. Other than these indicators, the food industry uses various cues such as product origin as indicators of product quality. However, in an environment where consumers’ confidence in food safety is low due to frequent food safety scandals, little is known about the efficiency of these test/measurement indicators and cues. This paper used the primary data collected in Zhengzhou (China) to estimate consumers’ preferences for test/measurement indicators and a new cue of “own farm” for milk powder. Our results show that country of origin is the most important cue attribute, followed by price and own farm. The importance of test/measurement indicators such as organic, traceability, and HACCP certification is relatively low. Also, the individual parameter estimates show that consumers’ preferences for test/measurement indicators currently in the market are weak and fragile. Interestingly, price has an inverse-U-shaped relationship with consumer utility, implying that Chinese consumers may perceive low-price milk powder as low quality. The results of this study provide important insight for regulatory authorities and the food industry to develop more effective policies and programs to improve consumer preferences for milk powder.     

An empirical analysis of supply chain risk management in the German automotive industry

The purpose of this paper is the empirical analysis of supply chain risk management practices. The analysis is based on a survey with 67 manufacturing plants conducted in the German automotive industry. After investigating the vulnerability of supply chains in general and examining key drivers of supply chain risks, the paper identifies supply chain risks by analyzing their likelihood to occur and their potential impact on the supply chain. The results are visualized in the probability-impact-matrix distinguishing between internal and external supply chain risks. Furthermore, instruments for dealing with supply chain risks are investigated. Therefore, the impact of supply chain risk management on performance is tested. In order to distinguish between companies with a high degree of supply chain risk management and those with no or only limited implementation the plants are grouped by means of a cluster analysis based on factors reflecting the instruments of supply chain risk management. In particular, groups are created representing two different approaches to deal with supply chain risks, i.e. reactive and preventive supply chain risk management. The clusters are investigated concerning differences in terms of performance criteria. The analyses reveal that companies with a high implementation degree show a better supply chain performance. Furthermore, the results show that the group using reactive supply chain risk management has higher average value in terms of disruptions resilience or the reduction of the bullwhip effect, whereas the group pursuing preventive supply chain risk management has better values concerning flexibility or safety stocks.     

Social imaginary and dilemmas of policy practice: The food safety arena in Japan

Through the string of food safety scares that has rocked Japanese society since the early 2000s, conflicts between the traditional notion of socially acceptable risk and the idea of a science-based risk analysis approach have surfaced in the food safety arena. Elites, including government officials and those members of scientific communities who support the science-based risk analysis approach, have become responsible for communicating seemingly contradictory ideas such as “food in Japan is safe” and “there is no such thing as zero risk with food.” This communication logjam has resulted in confusion and created public distrust of both government and scientific experts. Against this backdrop, this paper aims to examine the struggles and challenges faced by government officials in explaining and practicing policies that pertain to highly controversial food safety issues. The primary data used for illuminating the discourses is the official minutes of governmental committees including the Agriculture, Forestry and Fisheries Committee and the Consumer Commission.     

Consumer valuation of information about food safety achieved using biotechnology: Evidence from new potato products

This study focuses on the role of food labels and information for affecting consumers’ valuation of food safety achieved through application of biotechnological (biotech) methods. In 2002, potato products cooked to a high temperature were first reported to contain the human carcinogen acrylamide. Research discoveries using genetic engineering can substantially reduce carcinogenic-forming potential, and thereby increase food safety of potato products. Adult consumers from three distant regions of the U.S. were the subjects in lab auctions of potato products. They engaged in distinct rounds of bidding, first without packaged information and again after receiving information about the food safety risks and benefits of new biotech potato products. The study finds that willingness-to-pay (WTP) for these new potato products are not significantly different from conventional potato products under no information. However, exposure to a scientific perspective and scientific plus industry perspectives increases participants’ willingness-to-pay for the new potato products and reduces willingness-to-pay for conventional products. Exposure to the negative perspective on the new technology significantly reduces willingness-to-pay. Consumer valuation of the new potato products is affected by food labels, information, and consumer attributes. A consumer information program could be needed to gain consumer acceptance of these potato products or other foods that have been genetically modified to increase certain food safety dimensions.     

Consumer-perceived risk model for the introduction of genetically modified food in Spain

Since the last part of the 20th century, the search for new forms of cultivation and food has basically centred on the application of biotechnology, giving rise to GM foods. Consumer acceptance is conditioned by the risk that they perceive from introducing food into their consumption habits processed through technology that they hardly understand. Besides, information is insufficient in the consumer ambit and moreover, it is influenced by ideological and ethical determining factors. The factors were analysed that influence this consumer-perceived risk through a structural equation model. This study was conducted in Spain, concretely in the province of Alicante, located in the southeast of this country.     

Consumer preferences and the international harmonization of organic standards

Harmonization of technical standards is often advocated as a means to remove technical barriers that reduce the welfare gains available from international trade. Organic standards are not currently harmonized internationally. If domestic organic standards reflect consumer tastes, and consumers have strong preferences for those standards, then harmonization to a common standard may reduce the benefits consumers receive from organic products. Through a consumer survey, conjoint analysis was used to explore the preferences of consumers in the US, the UK and Canada for organic food. The results suggest that consumers in the three countries do not have a strong attachment to the current national organic standards and that international harmonization may be a legitimate food policy goal.     

Consumer willingness to pay for traditional food products

Reflecting the growing interest from both consumers and policymakers, and building on recent developments in Willingness to Pay (WTP) methodologies, we evaluate consumer preferences for an archetypal traditional food product. Specifically we draw on stated preference data from a discrete choice experiment, considering the traditional Hungarian mangalitza salami. A WTP space specification of the generalized multinomial logit model is employed, which accounts for not only heterogeneity in preferences but also differences in the scale of the idiosyncratic error term. Results indicate that traditional food products can command a substantial premium, albeit contingent on effective quality certification, authentic product composition and effective choice of retail outlet. Promising consumer segments and policy implications are identified.