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.     

Getting rid of trans fats in the US diet: Policies, incentives and progress

Artificial trans fats in foods increase chronic disease risk in the US population. Federal nutrition label regulation enacted in 2003 requires mandatory disclosure of trans fat content on packaged foods. This action created incentives for the food industry to reduce trans fats both in response to consumer demand and through competition to maintain product reputation. Subsequent public actions include a ban on trans fat use in New York city restaurants and lawsuits against food companies, which created further incentives to remove trans fats, especially in the food service industry. Industry has reformulated packaged foods and found substitutes for restaurant fry oils and trans fats are disappearing from the US food supply. Market response extends throughout the supply chain, and has spurred research to alter oilseed crop characteristics. The widespread and relatively rapid industry response likely has improved the quality of US diets, and demonstrates the potential for policy actions to spur such improvements.     

An analysis of multi-stakeholder initiatives to reduce food loss and waste in an emerging country – Brazil

This paper aims to investigate the roles adopted by the distinct stakeholders that are engaged in a voluntary initiative to reduce food loss and waste (FLW) in the context of an emerging country. Data were collected by way of participant observation in multi-stakeholder events, observation visits and interviews with 54 food sector stakeholders, and from secondary data. The theoretical contribution of this paper is that it provides a systemic and realistic perspective for tackling FLW, as research in the field usually only focuses on one supply chain agent, or on consumer behaviour. Another contribution that may be replicated in other countries has to do with the role of each stakeholder in identifying the processes with which they are involved for reducing FLW. Activities and actions in a multi-stakeholder initiative change according to their positioning at the institutional or value chain level of analysis. Future studies should consider the extensive interplay that exists between the institutional and value chain levels in the food sector, and how they interact     

Pricing milk in Ecuador: the impact of transport costs

Economic regulation of the dairy industry in the Republic of Ecuador was imposed to assure consumers of an adequate supply of high quality milk at reasonable prices. Although prices were fixed at the producer and consumer levels, and various differentials were established to reflect the economic value of milk, no provision was made to reflect differences in the value of milk according to its geographical location. The implications of pricing milk according to its geographical location are examined.     

Private incentives for adopting food safety and quality assurance

The competitiveness of food companies in national and international markets depends upon their ability to adopt production processes which meet food safety and quality requirements. Food safety and quality assurance affect the cost of carrying out transactions, and therein lies the private incentive for adopting voluntary quality assurance systems. While quality assurance systems have the potential to reduce transaction costs by serving as the seller's guarantee of safety or quality, they may also serve as trade barriers.     

Reducing food waste and food insecurity in the UK: The architecture of surplus food distribution supply chain in addressing the sustainable development goals (Goal 2 and Goal 12.3) at a city level

The paradox that tonnes of food is wasted while people go hungry has raised concern from national and international authorities. In developed countries, reducing these problems has focused on surplus food distribution as a ‘win-win’ solution contributing to sustainable development goals. While the existing literature acknowledges the role of third-sector organisations, research on the supply chain of surplus food distribution and the coordination among actors is limited. This research explores actors and organisations in the value chain of surplus food distribution at the city level. Based on semi-structured interviews and participant observation, our findings highlight the need for a coordinated effort between actors as an essential arrangement to capture the value of surplus food. Despite the close cooperation, hierarchical power relationships exist between organisations in the supply chain. We unpack challenges in the surplus food supply chain, such as lack of a legislative framework for food donations and organisational sustainability issues that have forced third-sector organisations to work independently to reduce the uncertainties of food quality and quantity. We shed light on the practical implications by highlighting how multiple stakeholders could improve the efficiency of surplus food distribution.     

Private and public milk standards in Argentina and Brazil

This article focuses on the development of public and private standards for milk as an input to the dairy processing sector in Argentina and Brazil. From 1950 to 1990, the dominant trend was the development of public standards for basic safety and hygiene of milk. These induced the incipient modernization of dairy farming, post harvest, and processing technologies, even though implementation of the regulations was only partial. The dairy sectors were liberalized and privatized circa 1990. This spurred the rapid rise of private standards set by large processors over the 1990s and into the 2000s. These standards are much more stringent than public standards, and induced rapid concentration at the processing and farm levels due to stiff investment requirements. In Brazil, private standards were set mainly to drive down costs in the supply chain in order to reduce the consumer prices in the mass commodities market. In Argentina, private standards were used to develop quality differentiation in the product market. In both countries, in the 2000s a debate has emerged on new roles and approaches for public standards.     

Remarks on Engineering Economy Studies from the Viewpoint of Statistical Decision Theory

Lack of credit during periods of financial stress can reduce sales in an entire supply chain. To reduce the reliance on external credit, we introduce a new financing framework in which key supply chain stakeholders accept delayed payment for a pre-agreed portion of their product or service. By doing so throughout the supply chain, each stakeholder must self-finance only their in-house activities—but not the cost of purchased components and services because those are in turn financed by their suppliers. Intended to account for only a small fraction of sales, this framework is limited to supplying customers who do not qualify for external financing. The payments from these customers are distributed among the value chain stakeholders according to an agreed-upon policy. These additional sales would otherwise be lost for lack of consumer credit. This approach increases sales and profitability for the entire supply chain and is especially advantageous during credit crunches. In addition to describing this new financing framework, this article places it in the context of other financing arrangements, provides an example with cash flow and net present value calculations, and identifies implementation challenges and characteristics of supply chains that are good candidates.     

Food health risk perceptions among consumers,farmers, and traders of leafy vegetables in Nairobi

Urban and peri-urban farming and supply chains are becoming increasingly important for delivering perishable produce to the urban centers of the developing world to meet the demands of a growing population. However, some production and handling practises and a short supply chain may expose consumers to substantial health risks. This study of consumers, peri-urban farmers, and traders attempts to quantify subjective risk judgments with regard to food safety hazards, and examines the extent of discrepancies in perceived risk relating to vegetables in domestic urban markets among the three groups. A conceptual model was developed to elicit subjective risk perceptions for a multidimensional construct. In general, differences were found between respondent categories in terms of both specific source risks and overall risks. Differences were also found with respect to the socio-demographic and structural determinants of the levels of perceived risks. These findings can help improve policies to promote food safety and reduce risky food handling along the supply chain, and present opportunities for change.     

The healthcare network economy: The role of Internet information transfer and implications for pricing

Over the past several decades, in an effort to increase quality and efficiency, more emphasis has been placed on preventive medicine, active participation of consumers in their healthcare, and healthcare networks that collaboratively provide medical care. This article addresses how the Internet has facilitated the development of new communication flows between networked stakeholders and the impact information transparency has on the demand for and the delivery of healthcare. Using actual patient treatment data, interviews with practitioners, and consumer interaction on Internet message boards, we discuss how increased information transfer shapes healthcare coverage and treatment options and the managerial implications for healthcare pricing along the value chain.     

Illegal activity in the UK halal (sheep) supply chain: Towards greater understanding

Food supply chain theory and practice assumes that the processes involved are legal and value adding. In this paper, using examples from the UK halal (sheep) meat supply chain, we outline a value extracting value chain through a mixed methods qualitative approach consisting of face-to-face-interviews and a documentary research strategy underpinned by Narrative Inquiry. Building on previous theoretical work on Illegal Rural Enterprise, we present a narrative of an individual rogue-farmer, and explore his involvement in the illegal halal (‘smokies’) trade over a fifteen-year period. The paper provides a compelling story that will enable investigators to better understand illegal enterprise from a supply chain perspective and more adequately address the concerns stated in the UK Fraud Act 2006. The paper will be useful to food standards agencies in that furthers our understanding of entrepreneurial practice and morality in the food industry. The results demonstrate that illegal rural enterprise is a multi-faceted concept that requires an understanding of business practices and processes alongside a multi-agency approach to enterprise orientated crime. Our approach suggests that supply chains can be ‘flipped’ in order to understand illegal processes in addition to conventional legal processes.     

Individual antecedents to consumer intention to switch to food waste bioplastic products: A configuration analysis

Food waste management remains a significant economic and sustainability problem and is being actively addressed by scholars, governments, and organizations around the world. Bioplastics, which are biodegradable plastics derived from food waste, are a recent innovation that might contribute to managing this waste in a more sustainable manner. Unfortunately, many of today's consumers are not necessarily ready to consider such alternatives. Consumer switching to sustainable products is a tenuous topic, as consumers often value other product attributes (i.e., cost, quality, and associated prestige) more than their sustainability attributes (i.e., fewer natural resources expended, lower carbon footprints, and end-of-life recoverability). A greater understanding of consumers' intention to switch to bioplastic products provides opportunities for firms to develop state-of-the-art, profitable, and sustainable food systems. Considering the complex set of inter-relationships surrounding consumer involvement in sustainable innovations and associated supply chain strategy, this research leverages complexity theory and a qualitative comparative analysis research approach to uncover eight different, yet equifinal, configurations of antecedents that motivate consumer intention to switch from new plastic products to equivalent products made from bioplastics.     

Consumer perceptions of best practice in food risk communication and management: Implications for risk analysis policy

As a consequence of recent food safety incidents, consumer trust in European food safety management has diminished. A risk governance framework that formally institutes stakeholder (including consumer) consultation and dialogue through a transparent and accountable process has been proposed, with due emphasis on risk communication. This paper delivers actionable policy recommendations based on consumer preferences for different approaches to food risk management. These results suggest that risk communication should be informed by knowledge of consumer risk perceptions and information needs, including individual differences in consumer preferences and requirements, and differences in these relating to socio-historical context associated with regulation. In addition, information about what is being done to identify, prevent and manage food risks needs to be communicated to consumers, together with consistent messages regarding preventative programs, enforcement systems, and scientific uncertainty and variability associated with risk assessments. Cross-cultural differences in consumer perception and information preferences suggest a national or regional strategy for food risk communication may be more effective than one applied at a pan-European level.     

Consumer trust in the food value chain and its impact on consumer confidence: A model for assessing consumer trust and evidence from a 5-country study in Europe

In order to measure consumer trust in food chain actors and its impact on consumer confidence in food and the technology with which it has been produced, a model was developed relating social trust, beliefs in trustworthiness, overall trust in food chain actors, and confidence in both the supply of food products and food technologies. Data were collected via an online survey in five European countries. Analysis provided support for the model and showed that consumer confidence is largely determined by consumer beliefs about the trustworthiness of food chain actors. In particular the beliefs about openness, and especially about the openness of food manufacturers, are strongly related to consumer confidence. Some national differences in trust and confidence exist. This instrument is shown to be suitable for monitoring the development of, and changes in, trust across countries over time.     

Using best–worst scaling to explore perceptions of relative responsibility for ensuring food safety

We examine stakeholders’ perceptions of the share of the overall responsibility of each stage in the food supply chain has in ensuring that the meat people cook and eat at home is safe to consume. We elicit these perceptions of relative responsibility via surveys using the best–worst scaling technique and analyse the data via Bayesian estimation of mixed logit models. Results are reported for two groups of stakeholders: consumers and farmers, and for two meat food chains: chicken and beef. The results reveal that consumers tend to think farmers are more responsible for ensuring meat safety than farmers do. Similarly, farmers tend to think consumers have a greater degree of responsibility than consumers believe they have themselves. Such beliefs might affect stakeholders’ willingness to take actions and reduce hazards in the supply chain. From a policy perspective, the research findings provide useful insights to support policymakers and other decision-makers in the industry in developing mitigation strategies. Communication with consumers and farmers about emerging food safety problems in a supply chain and their involvement in proactive practices would need to be attuned to their subjective perceptions of relative responsibilities in order for integrated risk management systems to be effective.     

Use of blockchain in the agri-food value chain: State of the art in Spain and some lessons from the perspective of public support.

The Common Agricultural Policy (CAP) of the European Union, in effect since January 2023, seeks to differentiate products on quality, provide greater transparency on food origin, and on the transactions and the actors involved in the supply chain. At the same time, in Spain, the adoption of new technologies for the digitization of the agri-food sector has been proposed as a solution to address structural issues such as lack of competitiveness and innovation. In fact, systems using blockchain-related technologies for food control and traceability have seen great progress in recent years and, currently, the use of blockchain in supply chain management is almost doubling year on year. In this context, this paper investigates the level of development of blockchain technology in the agri-food sector in Spain and its applications for certifying food production conditions within the supply chain, and how it is supported by public policies. It identifies several challenges that need to be addressed for a widespread adoption could take place, such as data recorded on the blockchain, lack of standards, limited scope of projects, and integration of data capture automatically or with other technologies like RFID and AI. The document proposes to reorient public development policies to address these challenges, such as reusing data from, already in place, European data collections for production control and food traceability, educating users and stakeholders about the use of blockchain technology, and fostering legal and technical provisions which ensure system transparency to facilitate a successful implementation of blockchain.     

Sustainability program brands: Platforms for collaboration and co-creation

While CSR and sustainability have been widely debated topics over the past decades, there is still evidence of unethical practices by businesses, as witnessed through corporate scandals across a number of industry sectors. This highlights the need for firms to collaborate to actively prevent malpractices and instead find ways to improve standards along the whole value chain. With the increased pressure from various stakeholders, calling for firms to address these issues in a collaborative and holistic manner, the development of models facilitating collaboration is vital. Taking a communication perspective, this paper seeks to improve the knowledge on how organisations can manage diverse stakeholders to improve value chain collaboration towards more sustainable practices. Based on a multiple case study methodology, involving in-depth interviews with senior directors in the food and drink value chain, a framework is developed, depicting the value of a branded sustainability program as a useful platform for stimulating collaboration and co-creation from diverse and/or competing stakeholders. The framework builds on, and contributes to several literature strands including CSR/sustainability communication, coopetition and branding.     

Food scare crises and developing countries: The impact of avian influenza on vertical price transmission in the Egyptian poultry sector

A bivariate smooth transition vector error correction model is applied to monthly poultry price data to analyze the effects that avian influenza has had on price transmission along the Egyptian poultry marketing chain. In order to reflect consumer awareness of the crisis, an avian influenza food scare information index is developed and used within the model as a transition variable. Our results suggest that price adjustments to deviations from the market equilibrium parity depend on the magnitude of the avian influenza crisis. Further these adjustments are found to have very different implications for market equilibrium: during the crisis retailers use their market power to increase marketing margins. In contrast, wholesaler margins are found to decline. Results also suggest that food safety information indices contribute to understanding the economic effects of food scare crises in developing countries.     

Total and per capita value of food loss in the United States

There are few peer-reviewed or major published studies that estimate the total amount of food loss in developed countries and even fewer attempt to estimate the monetary value. We compiled estimates of the amount and value of food loss for more than 200 individual foods in the United States using the US Department of Agriculture’s Economic Research Service’s Loss-Adjusted Food Availability data and then aggregated these values to estimate the total value of food loss and the value by food group. The results indicate that in 2008, the estimated total value of food loss at the retail and consumer levels in the United States as purchased at retail prices was $165.6 billion. The top three food groups in terms of the value of food loss at these levels are: meat, poultry, and fish (41%); vegetables (17%); and dairy products (14%). Looking more closely at the estimates for the consumer level, this level of loss translates into almost 124 kg (273 lb) of food lost from human consumption, per capita, in 2008 at an estimated retail price of $390/capita/year. Food loss represents a significant share of household food expenditures: our estimates suggest that the annual value of food loss is almost 10% of the average amount spent on food per consumer in 2008 and over 1% of the average disposable income. This consumer level loss translates into over .3 kg (0.7 lb) of food per capita per day valued at $1.07/day. Our estimates of the total value of food loss in the United States and loss estimates by food group are useful in that they can generate awareness of the issue among the food industry members, governments, and consumers. Potential large-scale approaches and economic incentives to mitigate food loss in developed countries are also discussed.     

Quality certification vs. product traceability: Consumer preferences for informational attributes of pork in Georgia

Consumer willingness-to-pay for informational attributes of food products is important information for food producers and supply chain participants and policy makers. We examine consumer demand in the pork sector of the Republic of Georgia. Results of conditional and mixed logit estimation, conducted on choice experiment data, reveal that Georgian consumers treat quality certification and product traceability attributes as substitutes. We also find that producers and other supply chain participants should be concerned primarily with maintaining the appearance of pork products. Retailer specific factors such as location and type of outlet can also substitute for product traceability. Store location and product appearance, however, are complementary attributes. In light of the recent turbulence in Georgia these consideration may be of paramount importance as participants in the supply chain seek to rebuild damaged infrastructure.