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2018 | Buch

Overview of Food Safety Economics Kapitel lesen Erstes Kapitel lesen

Food Safety Economics

Incentives for a Safer Food Supply

herausgegeben von: Tanya Roberts

Verlag: Springer International Publishing

Buchreihe : Food Microbiology and Food Safety

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft" , Springer Professional "Technik"

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Über dieses Buch

This book examines the economic incentives for food safety in the private marketplace and how public actions have helped shape those incentives. Noted contributors analyze alternative public health protection efforts and the benefits and costs associated with these actions to understand:why an excess of foodborne illness occurs
what policies have worked best
how regulations have evolved
what the path forward to better control of pathogens in the U.S. and the international food supply chain might look like

While the first third of the book builds an economic framework, the remaining chapters apply economics to specific food safety issues. Numerous chapters explore economic decision making within individual companies, revealing the trade-offs of the costs of food safety systems to comply with regulations, vs. non-compliance which carries costs of possible penalties, reputation damage, legal liability suits, and sales reduction. Pathogen control costs are examined in both the short run and long run.
The book's unique application of economic theory to food safety decision making in both the public and private sectors makes it a key resource for food safety professionals in academia, government, industry, and consumer groups around the world. In addition to Benefit/Cost Analysis and economic incentives, other economic concepts are applied to food safety supply chains, such as, principal-agent theory and the economics of information. Authors provide real world examples, from Farm-to-Fork, to showcase these economic concepts throughout the book.

Inhaltsverzeichnis

Frontmatter

Food Safety Economic Incentives in Regulations and in the Private Sector

Frontmatter
Chapter 1. Overview of Food Safety Economics
Abstract
The goal of this book is to introduce food scientists, policy analysts, academics, industry, and nongovernmental organization and consumer group managers to the principles and main applications of food safety economics. We focus on the economics of information, supply chain coordination, estimates of the burden of foodborne illness, and food safety policy. This chapter gives an overview of each section of the book and chapters therein. The first section of the book presents the main frameworks economists use to examine food safety private and public policy issues. The second part of the book discusses how economists measure and estimate the costs and burdens of food safety hazards. Then eight case studies, covering a range of applied food safety economics topics, comprise the third section. Some of the topics covered are economic incentives, food safety innovation, product testing, food hazards surveillance, antibiotic resistence to foodborne pathogens, political advocacy, public policy, and legal liability aspects of food safety. The last chapter of the book concludes and suggests future food safety policy and research challenges given the increasing global reach and complexity of food supply networks.
Diogo M. Souza Monteiro, Tanya Roberts, Walter J. Armbruster, Derrick Jones
Chapter 2. Pathogen Information Is the Basic Problem for Economic Incentives
Abstract
For the private marketplace to operate efficiently, buyers and sellers require information on products being bought or sold. The information problem for food safety is that pathogens in the food items for sale are not visible to the naked eye. Buyers in the food supply chain, from the farm to the restaurant or supermarket, do not have the “facts” of the current pathogen load of the product. Sellers may also be ignorant, unless they have exerted effort via pathogen testing of their inputs, control of their production/processing processes, and/or sampling and testing their finished food products. The inability to link 999/1,000 cases of US foodborne illness to the causative pathogen, food, and company causes weak incentives for companies to produce safe food. However, public or private actions can create pathogen data in the food supply chain and this data can be used to reward or punish companies for their food safety performance.
Tanya Roberts, Robert L. Scharff
Chapter 3. Economics of Food Chain Coordination and Food Safety Standards: Insights from Agency Theory
Abstract
Over the past three decades, food markets became increasingly integrated, and contracts between upstream suppliers and downstream manufacturers, retailers, and food service business are increasingly the norm. Economic theory suggests that integrated companies will have fewer foodborne illness outbreaks, since these integrated companies have more control over their supply chain from farm to table. Yet, despite this change in global market structure, there have been many food safety outbreaks in the last decade. The prevention and mitigation of these outbreaks were significantly undermined by the existence of information failures, even within a single company. This chapter introduces agency theory, an economic framework that helps understand the role of information on the vertical contractual relations in the food supply chain. The change in economic incentives under different contract situations is explored. We further discuss how this framework can be used to examine alternative public policies and private strategies to improve supply chain coordination and reduce food safety risks, against some standard established either by the private sector or by government agencies.
Diogo M. Souza Monteiro
Chapter 4. Benefit/Cost Analysis in Public and Private Decision-Making in the Meat and Poultry Supply Chain
Abstract
Benefit/cost analysis (BCA) is a tool that can be used to examine either public or private decision-making. What differs is what variables are included in each BCA. Hazard Analysis and Critical Control Point/Pathogen Reduction (HACCP/PR) regulation was established in 1996 for US meat and poultry. From the US government’s perspective, the estimated benefits of HACCP were a reduction in foodborne illnesses of the American public citizens and their expenses (medical costs, productivity losses, and pain and suffering) vs. the costs to industry of implementing the HACCP regulations. The public health protection benefits were estimated to be in the billions of dollars, while the industry costs were in the millions of dollars.
A private firm’s decision whether to invest in poultry production in China, however, examines benefits and costs using variables to determine profitability. Some of the factors to be considered in this private BCA include (1) the increasing demand for poultry meat in China and other Asian countries with rising incomes; (2) the demand for the wide range of chicken parts in China; (3) the cost savings of raising chickens in China, including lax environmental regulations and enforcement; (4) the possibility of selling chicken breasts (and frozen chicken products) in the US market at a premium price that more than covers all costs, including transportation; and (5) competition with increasingly global food companies in Asian markets.
Tanya Roberts
Chapter 5. Economic Impact of Posting Restaurant Ratings: UK and US Experience
Abstract
This chapter provides a brief overview of UK and US experience from the introduction of restaurant hygiene rating schemes. Restaurant rating schemes have evolved over time and are known by a variety of names, depending on their location. They differ in their operational details and design, but they share common features and the same general intention—to display a simple hygiene score for a restaurant, based on the results of an official hygiene inspection, in order that consumers have access to the information at the point where they are making decisions about where to eat.
Derrick Jones

Economics of Foodborne Illness Metrics: When to Use What

Frontmatter
Chapter 6. Burden and Risk Assessment of Foodborne Disease
Abstract
Foodborne illness is typically associated with acute gastroenteritis, caused by intestinal infection by bacteria, viruses, or parasites. The actual scope of foodborne disease is however much broader than this. Intestinal infections with common pathogens such as Campylobacter or Salmonella may result in disabling complications, long-term health outcomes, or even death. Furthermore, foodborne hazards include a broad range of microbiological and chemical agents, several of which are able to cause extra-intestinal disease, e.g., central nervous system manifestations due to congenital toxoplasmosis or cancer due to heavy metal exposure.
In addition to the health impacts, the economic burden of foodborne disease affects many segments of society, e.g., the individual who becomes sick from consuming tainted food, the retailer who sells the contaminated product, the food producer who allows contamination, and the government agencies that monitor, investigate, and regulate all incur costs from foodborne disease. Accordingly, economists have been very interested in assessing the costs associated with foodborne disease.
In this chapter, we present an overview of the key methodological approaches that have been used to generate estimates of the health and economic burden of foodborne disease.
Brecht Devleesschauwer, Robert L. Scharff, Barbara B. Kowalcyk, Arie H. Havelaar
Chapter 7. The Global Burden of Foodborne Disease
Abstract
Foodborne diseases (FBD) represent a constant threat to public health and a significant impediment to socioeconomic development worldwide. At the same time, food safety remains a marginalized policy objective, especially in developing countries. A major obstacle to adequately addressing food safety concerns is the lack of accurate data on the full extent and burden of FBD.
In 2006, the World Health Organization (WHO) launched an initiative to estimate the global burden of FBD, which was carried forward by the Foodborne Disease Burden Epidemiology Reference Group (FERG). FERG quantified the global and regional burden of 31 foodborne hazards, including 11 diarrheal disease agents, 7 invasive disease agents, 10 helminths, and 3 chemicals and toxins. Baseline epidemiological data were translated into disability-adjusted life years (DALYs) following a hazard-based approach and an incidence perspective. Data gaps were addressed using statistical imputation models, and food attribution estimates were generated through structured expert elicitation.
In 2010, foodborne diseases were estimated to cause 600 million illnesses, resulting in 420,000 deaths and 33 million DALYs, demonstrating that the global burden of FBD is of the same order as the major infectious diseases such as HIV/AIDS, malaria, and tuberculosis. It is also comparable to certain other risk factors such as dietary risk factors, unimproved water and sanitation, and air pollution. Some hazards were found to be important causes of FBD in all regions of the world, while others were of highly focal nature, resulting in high local burden. Despite the data gaps and limitations of these initial estimates, it is apparent that the global burden of FBD is considerable and affects individuals of all ages, particularly children under the age of 5 and persons living in low-income regions of the world. By using these estimates to support evidence-based priorities, all stakeholders, both at national and international levels, can contribute to improvements in food safety and population health.
Brecht Devleesschauwer, Juanita A. Haagsma, Marie-Josée J. Mangen, Robin J. Lake, Arie H. Havelaar
Chapter 8. The Economic Burden of Foodborne Illness in the United States
Abstract
Economic burden of foodborne illness estimates is an important measure for setting policy priorities and assessing the efficacy of potential interventions. This chapter presents estimates for the health-related cost of foodborne illness in the United States. Updated models and data are used to examine illness costs across a number of dimensions. Specifically, two alternative economic models (similar to alternative approaches used by major regulatory agencies in the United States) are employed to assess total cost and cost per case estimates at the national, state, and pathogen levels.
Similar to previous studies, the approach used here integrates a replication of CDC’s illnesses model with the economic models to produce estimates that reflect uncertainty in both illness model and economic model parameters. Monte Carlo analysis is used to incorporate parameter distributions across the combined model.
I estimate aggregate economic costs for all foodborne illnesses in the United States to be $60.9 billion (90% CI, $37.2–$90.8 billion) or $90.2 billion (90% CI, $34.2–$161.8 billion), depending on model used. The corresponding cost per case estimates are $1275 (90% CI, $805–$1970) and $1887 (90% CI, $720–$3492), respectively. These costs vary substantially across pathogens and states.
Robert L. Scharff
Chapter 9. Improving Burden of Disease and Source Attribution Estimates
Abstract
Disease burden estimates provide the foundation for evidence-informed policy making and are critical to public health priority setting around food safety. Several efforts have recently been undertaken to better quantify the burden of foodborne disease, but there is still much work to be done. While burden estimates are crucial to raising awareness of foodborne diseases, estimating their public health impact, and ranking diseases according to their importance, they may be insufficient for policy making. Knowledge on the most important sources of foodborne disease is key to identifying and prioritizing food safety intervention strategies and preventing and reducing the burden of diseases in a population.
This chapter outlines areas of improvement that would lead to improved estimates including enhancing foodborne disease surveillance infrastructure and improving our understanding of the burden of foodborne chemical exposures and chronic sequelae and provides an overview of attributing the burden of foodborne disease to specific foods.
Barbara B. Kowalcyk, Sara M. Pires, Elaine Scallan, Archana Lamichhane, Arie H. Havelaar, Brecht Devleesschauwer

Case Studies in Applied Food Safety Economics

Frontmatter
Chapter 10. Economic Incentives for Innovation: E. coli O157:H7 in US Beef
Abstract
The 1993 outbreak of E. coli O157:H7 in hamburger inspired innovation in both the US public and private sectors. The Food Safety and Inspection Service in US Department of Agriculture declared E. coli O157:H7 an “adulterant” in 1994 and required meat and poultry companies to design and implement Hazard Analysis and Critical Control Point systems to control foodborne pathogens in 1996. In response to the outbreak and new regulations, companies invented the Bacterial Pathogen Sampling and Testing Program for the hamburger patty production line as well as steam pasteurization of sides of beef at the end of the slaughter line. These innovations were profitable to the inventors. The increased pressure by regulators to control pathogens also provided incentives for pathogen control, including the incentive of sales to USDA’s National School Lunch Program. One company did not comply, had an outbreak, and sold off its beef plants.
Tanya Roberts
Chapter 11. Benefits and Costs of Reducing Human Campylobacteriosis Attributed to Consumption of Chicken Meat in New Zealand
Abstract
The annual rate of human campylobacteriosis cases in New Zealand increased consistently after notification became compulsory in 1980; a large proportion of which were attributed to the consumption of chicken meat. In 2006, a Campylobacter Risk Management Strategy was developed that concentrated on optimising broiler chicken processing with regard to reducing carcass contamination and hence the number of human cases of campylobacteriosis. While it has been very successful with more than a 50% decrease in the number of notified foodborne human cases being achieved already by 2008, a greater reduction in the burden of human illness is still sought.
This chapter describes a cost-benefit evaluation of reducing the proportion of human campylobacteriosis attributable to consumption and handling of chicken meat in New Zealand. This includes examination of the relationship between financial benefits of reducing illness and industry’s costs in meeting regulatory limits for Campylobacter on chicken carcasses. In 2015 dollar terms, there has been a net benefit of at least $NZ 67.3 million annually attributable to implementation of the Campylobacter Risk Management Strategy.
Peter van der Logt, Sharon Wagener, Gail Duncan, Judi Lee, Donald Campbell, Roger Cook, Steve Hathaway
Chapter 12. Sweden Led Salmonella Control in Broilers: Which Countries Are Following?
Abstract
Sweden was the first country to achieve control of Salmonella in the production of broilers. In 1994, the World Health Organization’s Veterinary Public Health Unit published a report summarizing the steps Sweden took, such as monitoring critical control points in production with Salmonella tests and depopulating flocks when tests were positive. This chapter explores the evolution of Sweden’s successful control strategy and the role of economic incentives embodied in strong regulations, in private insurance policies, and in consumer demand. Spread of the control in other Nordic countries is discussed. Swedish researchers estimate that Salmonella control costs 2.6 US cents per broiler or less than 1 cent per pound of meat. Comparisons are made to the US poultry industry, US Salmonella regulations, and the demand for Salmonella control by retailers. The economic externalities imposed on the US public by the current low level of Salmonella control in broilers are also explored. One externality, the societal cost of foodborne salmonellosis, is estimated at $5–$16 billion annually (Chap. 8). The Centers for Disease Control and Prevention estimates that poultry, at 29%, is the largest cause of US Salmonella illnesses.
Tanya Roberts, Johan Lindblad
Chapter 13. The Role of Surveillance in Promoting Food Safety
Abstract
Foodborne illness surveillance systems are designed to collect, analyze, and disseminate information about foodborne illnesses. Consequently, they help solve critical information problems faced by consumers, firms, and government agencies. By providing better information to the market, these surveillance systems create incentives (accountability) that leads to safer foods and better consumer awareness. For public health officials, surveillance provides a means to identify and mitigate current outbreaks, prioritize resources, and craft better preventative interventions.
To illustrate the economic value of surveillance, we provide an analysis of one system (PulseNet) using updated economic data and models. PulseNet-related activities lead to substantial social benefits due to reductions in illnesses due to Salmonella spp. and E. coli O157:H7. Adjusting for underreporting and underdiagnosis, as many as 330,840 Salmonella- and 17,475 E. coli-related illnesses are averted each year due to PulseNet. This leads to economic benefits of up to $5.4 billion.
Robert L. Scharff, Craig Hedberg
Chapter 14. Economic Rationale for US Involvement in Public-Private Partnerships in International Food Safety Capacity Building
Abstract
The Food Safety Modernization Act (FSMA) places more responsibility on the private sector to ensure the safety of imported food. It also requires the US Food and Drug Administration (FDA) to provide international food safety capacity building on the new regulations and to monitor and evaluate those efforts. However, public resources to support programs abroad are limited. International capacity building supported by the private sector, which sometimes has its own standards that suppliers need to meet, can complement public efforts. This chapter discusses the market failures associated with food safety provision and why both the public and private sectors have been involved in international food safety capacity building. It reviews public and private sector efforts and some of the partnerships that have formed. It discusses the limitations of monitoring and evaluation efforts when relying solely on publicly available data. It argues that mobilizing public-private partnerships in monitoring and evaluation can make it easier to capture the collective impact of international food safety capacity-building efforts.
Clare Narrod, Xiaoya Dou, Cara Wychgram, Mark Miller
Chapter 15. The Political Economy of US Antibiotic Use in Animal Feed
Abstract
This chapter examines the evidence for antibiotic resistance in the United States and globally, the public health implications, and the impact of—and related industry and political responses to—antibiotic use in animal feed. In 1969, the Swann Report in the United Kingdom noted a dramatic increase in antibiotic-resistant bacteria in food animals receiving low levels of antibiotics in their feed. While the Food and Drug Administration of the United States sought to control antibiotics in animal feed as far back as 1977, only in 2016 were such regulations fully implemented. The farm-level costs of such controls are estimated by the US Department of Agriculture’s Economic Research Service to be minimal, while the Centers for Disease Control and Prevention’s estimates of the public health costs of antibiotic resistance without implementing controls are $7 billion annually. The complex interactions which exist between economic interests, regulatory policy, and human and animal health are explored in this chapter.
Walter J. Armbruster, Tanya Roberts
Chapter 16. The Role of Consumer Advocacy in Strengthening Food Safety Policy
Abstract
When Upton Sinclair wrote The Jungle in 1906, he raised public concern about the health, safety, and sanitation practices of the meatpacking industry, which Congress quickly addressed by enacting the Meat Inspection Act and the Pure Food and Drug Act. Since then, new food challenges have emerged as food production practices and longer supply chains evolved for a population demanding fresher food, more food eaten away from home, and more prepared food items for consumption at home. Late in the twentieth century, a large outbreak associated with E. coli O157:H7 spurred the federal government and its state partners to shift meat and poultry oversight away from a prescribed reactive approach to one that is more proactive and preventive and based on a science- and risk-based approach. Later, after repeated outbreaks associated with non-meat and poultry products, a similar effort was launched to provide stronger protections for other types of food. Consumer advocates made important contributions to secure the passage and implementation of both the 1996 Pathogen Reduction/Hazard Analysis and Critical Control Points Final Rule at USDA and the 2011 Food Safety Modernization Act at FDA, and they have led the way in developing other protections, such as improved labeling for foods. As scientific knowledge improves our understanding of food safety hazards, there is much more to be done if we hope to meet the ongoing and future food challenges, in particular, the emergence of antibiotic-resistant strains of foodborne bacteria.
Patricia Buck
Chapter 17. A Critical Appraisal of the Impact of Legal Action on the Creation of Incentives for Improvements in Food Safety in the United States
Abstract
Litigation serves as an incentive to increase food safety through a variety of mechanisms. The impact of litigation is an amplifying one. It drives media attention, resulting in increased pressure on both producers and enforcement. Legal incentives only work in outbreak situations because it is nearly impossible to prove the source of contamination in sporadic cases. The vast majority of food defects will never be discovered; thus, the economic incentives from litigation are relatively weak. Restaurants and branded producers are more highly influenced by litigation, and reputational economic damages drive investment into food safety. However, because most claims settle and suppression of information accompanies this outcome, the incentives of litigation are undermined. This chapter will first discuss how liability can be imposed on producers and retailers of unsafe food and second how the evolution of the law has both bettered and hampered litigation as an incentive and lastly raise the question of whether increased litigation increases food safety.
Denis Stearns

Concluding Thoughts

Frontmatter
Chapter 18. International Food Safety: Economic Incentives, Progress, and Future Challenges
Abstract
This book introduces the economic frameworks and tools commonly used to examine and support public and private sector strategies to solve food safety problems. It also summarizes the state of the art of private and public initiatives to improve the level of food safety in food supply chains and reduce outbreaks of foodborne diseases. Key insights are as follows: (1) Food safety is a major public health problem worldwide with large economic costs; (2) lack of information about pathogens is the economic problem; (3) the private and public sectors need to collaborate and share information to identify the foods and companies causing foodborne illness; and (4) pathogen control is not prohibitively expensive, and governments have the responsibility of protecting the public and of providing economic incentives for industry to minimize the amount of unsafe food in the markets.
Future food safety challenges discussed include the continued trend toward industrialized food production, the increasingly global impact of large food companies, and the impact of climate change.
Tanya Roberts
Backmatter
Metadaten
Titel
Food Safety Economics
herausgegeben von
Tanya Roberts
Copyright-Jahr
2018
Electronic ISBN
978-3-319-92138-9
Print ISBN
978-3-319-92137-2
DOI
https://doi.org/10.1007/978-3-319-92138-9

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