The Economics of Traceability in Multi-ingredient Supply Chains

Souza Monteiro, Diogo M and Caswell, Julie A. (2010) The Economics of Traceability in Multi-ingredient Supply Chains. Agribusiness, 26 (1). pp. 122-142. ISSN 0742-4477. (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

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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.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculties > Social Sciences > Kent Business School > Marketing
Depositing User: Claire Krafft (on maternity leave)
Date Deposited: 11 Dec 2009 12:12
Last Modified: 22 Apr 2014 09:15
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