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Labeling for Food Safety: EU and US Experience

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1880s EU rejects US hog bellies for trichinae. 1890 US Federal ... 1940s, American Meat Institute (AMI) experiments with industry-managed beef-quality grading ... – PowerPoint PPT presentation

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Title: Labeling for Food Safety: EU and US Experience


1
Labeling for Food Safety EU and US Experience
  • Tanya Roberts, ERS
  • AAEA - Denver, August 2004

2
We need to put our faith in consumer ignorance
Source Harvard Business Review, April 2004
3
Market problems with food safety
  • Cannot see pathogens/residues in/on food
  • Asymmetric information
  • Uncertainty about information
  • Risk to consumers health?
  • New technology is unfamiliar and suspect
  • Role of government?
  • Process regulations
  • Performance standards for pathogens
  • Certification and labeling of products
  • Posting test information

4
Federal/industry role in US market
  • 1880s EU rejects US hog bellies for trichinae
  • 1890 US Federal Meat Inspection for pork exports
  • 1940s, American Meat Institute (AMI) experiments
    with industry-managed beef-quality grading
  • No acceptance by retail trade
  • Led to USDA grading
  • 1996, FSIS HACCP regs for meat poultry
  • 2003, Beef Industry Food Safety Council (BIFSCO)
    created to establish voluntary Best Practices
    for pathogen control in beef supply chain

5
Asymmetric information, uncertainty, risk, 3rd
party verification
  • Slow adoption-new technology
  • Pasteurized milk century ago (Sanitary Dairy
    common name)
  • Nuclear power 50 years ago
  • Irradiated meat/poultry recent
  • Adoption of GM food
  • Great concern in Europe
  • OK with most U.S. consumers

Source Photo Patricia Brown-Cordes "Consumer's
Resistance to Genetically Modified Foods The
Role of Information in an Uncertain Environment"
(2004) Huffman, Rousu, Shogren, Tegene
www.bepress.com/jafio/vol2/iss2/art8
6
USDA approves irradiated meat poultry -
requires labels, 1999
  • Display international symbol on package
  • Label product treated by irradiation
  • Meat poultry ingredients labeled
  • Unpackaged meat display symbol and statement at
    point of sale to consumers
  • Meat products can make claims
  • irradiated for enhanced food safety
  • No labeling required for restaurants
  • source www.usda.gov/news/releases/1999/12/0486

7
Sweden, 1980s and 2000s
  • 1980s, allow Salmonella-free label for poultry
  • In 2000s, do not label
  • Want to sell Swedish label
  • Implicit Salmonella-free
  • Consumer concern with Campylobacter in poultry
  • Label with photo of producers
  • EU membership
  • Poultry meat imports have to be free of
    Salmonella
  • But processed poultry imports have Salmonella

8
Denmark, 2004
  • Danpos label for Salmonella-free poultry
  • Sells at premium price
  • Producers receive higher price for
    Salmonella-free
  • Some farms also test free of Campylobacter and
    label

9
The Netherlands, 2004
  • Early February,
  • Ahold sold Salmonella-free labeled poultry
  • Earned 3 of its turnover
  • Late February,
  • Tests show Salmonella
  • Ahold pulls product
  • Plukon Poultry no tests
  • Raises questions tests, shelf-life, cold-chain

10
Concluding questions re food safety
  • Accuracy of information on food label?
  • Pay price premium for food safety?
  • Will EU meet goal of directive?
  • Salmonella-free broilers, 2008
  • Is the future web-based information?
  • New USDA residue violators list
  • http//www.fsis.usda.gov/regulations/residue_viola
    tors_list/index.asp
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