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Adoption of food safety measures on milk production in Nepal: Impact on smallholders’ farm-gate prices and profitability
Institution:1. International Livestock Research Institute (ILRI), Box 5689, Addis Ababa, Ethiopia;2. International Livestock Research Institute (ILRI), Box 30709, Nairobi, Kenya;1. Department of Agricultural and Resource Economics, University of Maryland, College Park, MD 20742-5535, USA;2. Economic Research Service, U.S. Department of Agriculture, Washington, DC 20250-0002, USA;1. College of Economics and Management, Northwest Agriculture & Forestry University, Yangling, 712100, Shanxi, PR China;2. College of Science, Northwest Agriculture & Forestry University, Yangling, 712100, Shanxi, PR China;1. Department of Agricultural and Resource Economics, Colorado State University, B332 Clark Building, Fort Collins, CO 80523, USA;2. Department of Agricultural and Resource Economics, Colorado State University, B327 Clark Building, Fort Collins, CO 80523, USA;3. W.P. Carey School of Business – Morrison School of Agribusiness, Arizona State University, 7231 E. Sonoran Arroyo Mall, Santan 235D, Mesa, AZ 85212, USA;4. The Pennsylvania State University, 207-C Armsby Building, University Park, PA 16802, USA;1. School of Economics, Zhejiang University, Hangzhou, Zhejiang 310027, China;2. China Academy of Rural Development, Zhejiang University, Hangzhou, Zhejiang 310058, China;3. Food Safety Research Base of Jiangsu Province, Jiangnan University, Wuxi, Jiangsu 214122, China;4. Institute for Food Safety Risk Management & Research, Wuxi, Jiangsu 214122, China;1. ICAR-Zonal Project Directorate, Zone-VII, Jabalpur 482004, MP, India;2. ICAR-National Dairy Research Institute, Karnal, Haryana, India
Abstract:One way to ensure food safety is by enhancing compliance at the farm level. This study investigates the status, estimates the cost, identifies the determinants, and assesses the impact of compliance with food safety measures (FSM) in milk production in Nepal. The study is based on primary data collected from six high milk producing districts that captures the geographical and institutional diversity of milk production. Results show that the status of farm level compliance with FSM is not very encouraging. Also, the intensity of adoption of FSM exhibits significant inter- and intra-district variations. It varies positively with herd size but the additional cost of compliance with FSM varies negatively with herd size. Among other determinants, access to information, and incidence of inspection for conformity with safety and quality standards are also associated with higher adoption of FSM. Finally, we also estimate the impact of FSM on farm-gate prices and farmers’ profits and conduct several robustness checks.
Keywords:Food safety  Milk  Dose-response  Farm-gate prices  Profits  Nepal
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