Source: IOWA STATE UNIVERSITY submitted to
FIRM PROFITABILITY, FIRM STRUCTURES AND MARKETS IN MEETING THE NEEDS OF FOOD CONSUMERS
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
HATCH
Reporting Frequency
Annual
Accession No.
0226325
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Jul 1, 2011
Project End Date
Jun 30, 2016
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Project Director
Jensen, HE, HA.
Recipient Organization
IOWA STATE UNIVERSITY
2229 Lincoln Way
AMES,IA 50011
Performing Department
Economics
Non Technical Summary
Agricultural and food policies play a role in making a safe and nutritious food supply widely available and accessible. These policies, as well as consumer preferences and choices can affect the production, processing, and marketing sectors and affect the health and well-being of families and individuals. The design of effective policies and programs depends on understanding the role of consumer choices of food, as well as underlying relationships in agricultural production and processing that lead to a safe and nutritious food supply. Consumers want consumer-specific food attributes, high quality food products that are convenient and safe. However, problems continue to exist in markets due to failure of parties throughout the chain from farm to final retail to protect quality. Often communication and information in market channels from farm or producer to final consumer fail. Often, the information flows depend upon the organizational forms of firms along the supply chain. The public sector is involved in food and agricultural markets through regulation of markets in an effort to protect public health, assure truthful market information and the quality of foods available to consumers. Considerations of public policies are often supported by evaluations of public risks, costs and benefits of various policies. Economic behaviors and factors play an important role in determining and managing food system risks. The results of research can inform the development of appropriate policies to improve the quality and safety of foods available to consumers. This project is designed to provide better understanding of how the food and agricultural sector meets the needs of food consumers. Through careful evaluation of the food system and related public policies, the research will provide guidance to better public policies for food markets and to assure a safe and nutritious food supply. The project will lead to new knowledge about the food sector and how firms respond to consumer preferences. This new knowledge will be applied to the development of more efficient markets and improved public policies that support the availability and access to a safer and high quality food supply.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6016030301020%
6036030301040%
6076030301040%
Knowledge Area
601 - Economics of Agricultural Production and Farm Management; 603 - Market Economics; 607 - Consumer Economics;

Subject Of Investigation
6030 - The farm as an enterprise;

Field Of Science
3010 - Economics;
Goals / Objectives
The overall goal of this project is to provide better understanding of how the food and agricultural sector meets the needs of food consumers. Through careful evaluation of the food system and related public policies, the research will provide guidance to better public policies for food markets and to assure a safe and nutritious food supply. The project will lead to new knowledge about the food sector and how firms respond to consumer preferences. This new knowledge can be applied to the development of more efficient markets and improved public policies that support the availability and access to a safer and high quality food supply. The specific objectives of the project are to: (1) Investigate the role of information in markets and firm incentives to deliver variety, quality, and safety in food markets; (2) Evaluate the design of regulation and public policies to control and manage food safety and quality risks, including consumer response; (3) Develop a better understanding of information problems and private motives for maintaining agricultural biosecurity, and implications for changes in public policy; and (4) Evaluate the effect of agricultural and food policies, food production and processing, marketing and the effects on consumer choices, nutrition and health outcomes. Based on the new knowledge generated through this project, the expected outcomes of this project are: (i) the development of more efficient markets that meet the needs of consumers; and (ii) improved public policies that support the availability and access of consumers to a safe and high quality food supply. The output will include publication and presentation of results and findings, and the training and involvement of graduate students in the research. Dissemination of specific outcomes includes publication in professional journals and other outlets, presentations at professional conferences, and through national scientific committees. The importance of food safety and quality, and dietary choices to the future of agricultural and food producers and policy will lead to direct presentations of the research at industry, state and federal-level policy-related discussion forums.
Project Methods
The research will involve several approaches. In general the efforts will include development of economic and behavioral models to establish what can be inferred from the basic tenets of economic theory. Data will be collected from available national and other surveys, or through the development and implementation of surveys themselves. As example, data will include information on firm practices, contract stipulations; underlying physical and epidemiological data for food production (field or animal production and product processing); consumer purchase records collected through electronic scanner methods; reported dietary intake data; school meal records; and from experimental studies of consumer response and valuation of product attributes. Some of these data will be used under cooperative agreement with federal (USDA) agencies, as is the case for the use of the NASS/USDA Agricultural Resource Management Survey (ARMS) data, or ACNielsen HomeScan data. The research will use empirical methods when data are publicly available or when it is possible for the researchers to collect data. Data on market prices may also be used to evaluate the perception of consumers of regulations or the reaction of consumers to food safety incidents. Empirical analyses will use available statistical and econometric methods to determine and test underlying relationships with the data. In some cases, and particularly when we are seeking to extend the findings of our analyses to a larger audience, the output may be of a more synthetic and descriptive style. Research results will be published in professional journals and other outlets, and presented at professional, industry, state and federal-level policy-related discussion forums.

Progress 07/01/11 to 06/30/16

Outputs
Target Audience:Multiple audiences are targeted to receive the information generated in this project including academic researchers in research institutions, as well as advisors to the food, agriculture, and livestock industry, international bodies, scientific committees and other non-governmental organizations, and technical and regulatory agencies. Agricultural and applied economists at other academic institutions are a target audience to provide critical review and comment on the work and to assist in communications and applications of the results of the output. The audiences include targeted groups at the state, national and international levels. The information generated by this project is further extended to the target audiences through scientific publications, working papers and through presentations at professional meetings. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? The results have been made widely available to academic and governmental communities through journal publications, chapters in books and edited volumes, as well briefing reports and working papers available through web-based sites. In addition, the project investigators have made presentations at regional, national and international meetings. Results have been made available to national and international science bodies, such as the National Academies National Research Council and National Academy of Health and Medicine (Institute of Medicine); the INRA French National Institute for Agricultural Research; USDA Economic Research Service, the Organization of Economic Cooperation and Development; and the World Health Organization's Foodborne Disease Burden Epidemiology Reference Group (FERG). What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Consumer preferences for safe, high quality products have led to the development of markets that differentiate and protect product attributes in processing and retail. Concerns about the safety of products, especially fresh produce and imported foods, have led to efforts to include science-based regulations on the process and product controls. Improvements in production practices and management are supported with better information flows in the production channels. Analysis of use and control of antibiotics in animal feeds confirms the contribution of management and improved information flows in production and limitations of antibiotic use in animal production. Research conducted under this project shows that the food safety and quality regulations can lead to changes in market products and production practices, and support the design of new regulations in the Food Safety Modernization Act and approaches to antibiotic use in animal production. Other research shows that price as well as product attributes guide consumer food choices, and food assistance programs encourage healthier food choices and health related outcomes. Objective (1) Investigate the role of information in markets and firm incentives to deliver variety, quality, and safety in food markets Market information and firm incentives affect the variety, quality and safety of food in markets, including the effects on trade. Research by Jensen and colleagues found that premium incentives are associated with improved quality of dairy products. Hennessy found that improved information flows and more routine production practices can improve product quality and reduce costs. Other evidence on improved food safety production practices and relative costs come from studies of the leafy greens produce industry in California. Objective (2) Evaluate the design of regulation and public policies to control and manage food safety and quality risks, including consumer response Investigations of regulations and trade policies established that public and private quality standards and their impacts on markets can be complex, and may vary by production and trade conditions. Beghin and colleagues examined public and private quality standards and their impact in food markets, international trade, and global supply chains. Beghin, Maertens, and Swinnen (2016) found these standards have complex effects. The evidence is mixed regarding standards as catalyst for or impediment against trade and development. These conclusions are supported by studies by Jensen and Zhou on fresh vegetables market channels in China and by Jensen and Song on trade in international honey markets. Metcalfe and Beghin (2015) examined the design of trade and environmental policy, with pollution linked to trade and released in consumption, and showed sufficient conditions for welfare-improving reforms of trade and environmental policies when producers control the level of pollution and face incentives to abate both types of pollution. Objective (3) Develop a better understanding of information problems and private motives for maintaining agricultural biosecurity, and implications for changes in public policy Animal health inputs affect productivity and product quality in many ways. Hennessy offered a model to emphasize how time on feed, feed density and biosecurity choices interact and respond to external shocks including animal welfare strictures and restraints on use of medication. Better information flows within and across firms can improve efficiencies in production and reduce frictions along the supply chain. These findings are consistent with evidence provided by Jensen and Hayes (2015) on response to changes in regulation of antibiotics in animal production in Denmark. Objective (4) Evaluate the effect of agricultural and food policies, food production and processing, marketing and the effects on consumer choices, nutrition and health outcomes The design of food programs can affect consumer choice. Policies that require offering healthier food choices encourage selection of more fruits and vegetables at lunch through the National School Lunch Program (Cullen et al., 2015; Ishdorj, Crepinsek and Jensen 2013). Oh, Jensen and Rahkovsky (2016) found that changes in the WIC food packages that encourage increased whole grains selection are related to households in the WIC program selecting more whole grains. Other research showed that consumer product choice is also affected by product appearance, having "natural" ingredients and processing (Grebitus et al. 2015). Understanding consumer response to information and labeling is key to developing effective policies on product labelling and warnings.

Publications

  • Type: Journal Articles Status: Published Year Published: 2016 Citation: Aue, Katja, Jutta Roosen and Helen H. Jensen. Poverty Dynamics in Germany: Evidence on the Relationship between Permanent Poverty and Health Behaviour. Social Science and Medicine. 2016. 153 (March): 62-70. doi number: 10.1016/j.socscimed.2016.01.040
  • Type: Journal Articles Status: Awaiting Publication Year Published: 2016 Citation: Beghin, J.C., B. Meade, & S. Rosen A Consistent Food Demand Framework for International Food Security Assessment. Journal of Policy Modeling
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Beghin, J.C., Disdier, A. C., and Marette, S. Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures, Canadian Journal of Economics 48(4) (2015), 1513-1536.
  • Type: Other Status: Under Review Year Published: 2017 Citation: Calvin, Linda, Helen Jensen, Karen Klonsky, and Roberta Cook. Food Safety Practices and Costs under the Leafy Greens Marketing Agreement. USDA, Economic Research Service.
  • Type: Journal Articles Status: Published Year Published: 2016 Citation: Dong, F., D.A. Hennessy, H.H. Jensen and R.J. Volpe. Technical Efficiency, Herd Size and Exit Decisions in U.S. Dairy Farms. Agricultural Economics 2016, 47: 533-545.
  • Type: Journal Articles Status: Under Review Year Published: 2016 Citation: Hennessy, D. and Jing Zhang. Animal Health Inputs, CAFOs, the Structure of Protein Production and Contract Information Flows that Reduce Supply Chain Frictions. Unpublished manuscript.
  • Type: Journal Articles Status: Under Review Year Published: 2016 Citation: Hennessy, D. Some Production Economics of Antibiotics in Animal Agriculture. Unpublished manuscript.
  • Type: Journal Articles Status: Under Review Year Published: 2016 Citation: Hennessy, D.A., and Miyoung Oh. Strategic Food Safety Interactions, Prevention, Risk Compensation, and the U.S. Food Safety Modernization Act. Unpublished manuscript. 2016.
  • Type: Journal Articles Status: Published Year Published: 2016 Citation: Oh, Miyoung, Helen H. Jensen and Ilya Rahkovsky. Did Revisions to the WIC Program Affect Household Expenditures on Whole Grains? Applied Economic Perspectives and Policy. 2016. 38 (4):578-598.


Progress 10/01/14 to 09/30/15

Outputs
Target Audience:Multiple audiences are targeted to receive the information generated in this project including academic researchers in research institutions, as well as advisors to the food, agriculture, and livestock industry, international bodies, scientific committees and other non-governmental organizations, and technical and regulatory agencies. Agricultural and applied economists at other academic institutions are a target audience to provide critical review and comment on the work and to assist in communications and applications of the results of the output. The audiences include targeted groups at the state, national and international levels. The information generated by this project is further extended to the target audiences through scientific publications, working papers and through presentations at professional meetings. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?The results have been made widely available to academic and governmental communities through journal publications, chapters in books and edited volumes, as well briefing reports and working papers available through web-based sites. In addition, the project investigators have made presentations at regional, national and international meetings. Results have been made available to national and international science bodies, such as the National Academies National Research Council and Institute of Medicine; the INRA French National Institute for Agricultural Research; USDA Economic Research Service, the Organization of Economic Cooperation and Development; and the World Health Organization's Foodborne Disease Burden Epidemiology Reference Group (FERG). What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? The overall goal of this project is to provide better understanding of how the food and agricultural sector meets the needs of food consumers. Investigations of food, food product quality, safety and trade policies focused on markets, consumers and welfare. Regulations designed to inform or protect consumers affect market prices and change opportunities of producers in their market supply. Better integration of food safety data and development of risk-based food safety policies help to establish a framework for improved public health. Import policies, developing supply networks, testing and traceability systems can assure safe production practices in food systems. Food programs and policies are effective at improving the healthfulness of consumer food choices. Objective (1) Investigate the role of information in markets and firm incentives to deliver variety, quality, and safety in food markets: Increasing global trade in food products has spurred interest in understanding factors that contribute to relatively high refusal rates for products from some countries. Border food inspections are meant to screen food imports to assure they meet US standards of quality and integrity. Jensen and Zhou (2015) provide an overview of food safety problems in China and the changes and efforts made by the government and private sectors to meet the needs for improved food safety. Evidence from the vegetables and vegetable processing sector illustrates the challenges faced in China to develop a coordinated quality and food safety system and the advantages that larger scale firms and integrated supply chains hold for competing in high quality markets. Developing supply networks to assure safe production practices and investing in greater control of products and traceability in the supply system will improve product safety. Establishing and enforcing a unified legal and regulatory food safety system in China would provide the foundation to maintaining quality and food safety in both domestic and export markets. Pouliot shows that economic variables can be used as indicators for increase in food safety risks identified in border inspections and can be used as early indicators of a surge in food adulteration. For instance, incidents that are not directly linked to production of safe food can impact prices of other commodities which then changes incentives for the production of safe food. The work uses an application to US imports of fish and seafood. Larue, Pouliot and Jeddy find that the number of buyers can affect a seller's revenue in livestock auctions: entry by Quebec packers had a significant positive impact on hog auction prices but sporadic participation by Ontario packers did not. Objective (2) Evaluate the design of regulation and public policies to control and manage food safety and quality risks, including consumer response: Jensen collaborated with others through a World Health Organization effort to develop and apply estimates of foodborne disease burden to improve policies to address food safety. Overall, the burden of foodborne disease can be reduced by incorporating scientific evidence of foodborne disease risk in setting country-level policies (Lake et al., 2015). The United States adopted Country Of Origin Labeling (COOL) for beef and pork in 2008. Many consumers interpret information on country of origin as a signal for the quality and safety of product. In the case of COOL for beef and pork, animals of Canadian and Mexican origins are often processed in the United States so that the label indicates origin as two countries. Pouliot and Sumner continue work on estimating the trade impacts of the COOL policy on Canadian livestock products. Beghin, Maertens, and Swinnen (2016) assess the literature on public and private quality standards and their impact in food markets, international trade, and global supply chains. They focus on their effects on welfare, trade, industrial organization, and labor markets and with special attention to the North-South context. By looking at studies investigating public and private standards and across various quantitative approaches and countries, they find these standards have complex effects. The evidence is mixed regarding standards as catalyst for or impediment against trade and development, reflecting the complexity of these effects and their specificity to industries and countries. The analysis of standard-like nontariff measures does not lead to sweeping prescriptions for policy reforms. In an applied study, Beghin, Disdier and Marette extend the trade restrictiveness index approach to the case of market imperfections and domestic regulations addressing them. By using standard-like non-tariff measures (NTMs) affecting cost of production and potentially enhancing demand by reducing negative externalities, they apply the framework and find a net trade-facilitating effect of these measures. Accounting for these effects significantly reduces previous measures of countries' trade policy restrictiveness obtained while constraining these NTMs to be trade reducing. Metcalfe and Beghin (2015) examine the design of trade and environmental policy, with pollution linked to trade and released in consumption. They show sufficient conditions for welfare-improving reforms of trade and environmental policies when producers control the level of pollution and face incentives to abate both types of pollution. Objective (3) Develop a better understanding of information problems and private motives for maintaining agricultural biosecurity, and implications for changes in public policy: Volpe et al. study the determinants of somatic cell count (SCC) for farm milk among U.S. dairies in order to identify the potential impacts of buyer-imposed penalties and incentives within the supply chain. Premiums in particular have the potential to reduce SCC where it is currently the highest. Hennessy is investigating animal health inputs and the structure of confined agriculture, and, in another study, congestion and disease in animal agriculture. Objective (4) Evaluate the effect of agricultural and food policies, food production and processing, marketing and the effects on consumer choices, nutrition and health outcomes: The design of food programs can affect consumer choice. Cullen et al. (2015) investigate changes in student food selection and consumption in response to the new National School Lunch Program meal patterns. The study included over 1500 students in elementary and intermediate schools in one Houston area school district. The intervention included daily posting of new meal patterns and an additional fruit or vegetable at lunch. Compared with students in the control schools, more intervention students selected fruit and vegetables at lunch and consumed them compared with control condition students. Oh, Jensen and Rahkovsky are examining the effect of changes in the WIC food packages on purchases of whole grains. They find the package change increased whole grain purchases. Today's consumer is interested in safe food products and foods with "natural" ingredients. Grebitus et al. (in press) examine consumers' purchasing decisions for ground beef labeled with different packaging technologies, specifically modified atmosphere packaging using carbon monoxide in the package atmosphere and "natural" ingredients such as rosemary extract. They use choice experiments with ground beef to quantify consumers' valuations of the technology-related attributes of shelf life, color and types of packaging. Informing consumers about the specific technologies used altered their preferences for the benefits of the associated technology. Consumers may be confused about the use of a technology that cannot be distinguished from the product itself, and this may dilute consumer trust in the product. Understanding consumer response to information and labeling is key to developing effective policies on product labelling and warnings.

Publications

  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Beghin, J.C., M. Maertens, and J.F.M. Swinnen. 2015. Nontariff Measures and Standards in Trade and Global Value Chains. Annual Review of Resource Economics 7:425-450.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Beghin, J.C., and A. Elobeid. 2015. The Impact of the U.S. Sugar Program Redux. Applied Economic Perspectives and Policy 37:1-33.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Cullen, K.W., T. Chen, J. Dave and H. Jensen. 2015. Differential Improvements in Student Fruit and Vegetable Selection and Consumption in Response to the New National School Lunch Program Regulations: A Pilot Study. Journal of the Academy of Nutrition and Dietetics, pii: S2212-2672(14)01590-1. doi: 10.1016/j.jand.2014.10.021.
  • Type: Book Chapters Status: Published Year Published: 2015 Citation: Jensen, H.H. and J. Zhou. 2015. Food Safety Regulation and Private Standards in China. in Food Safety, Market Organization, Trade and Development, edited by Abdelhakim Hammoudi, Yves Surry and Cristina Grazia. Cham, Germany: Springer.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Lake, R., B. Devleesschauwer, G. Nasinyama, A.H. Havelaar, T. Kuchenm�ller, J. Haagsma, H. Jensen, N. Jessani, C. Maertens de Noordhout, F.J. Angulo, J. Ehiri, L. Molla, A. Friday, S. Aungkulanon, Y. Kumagai, N. Speybroeck. 2015. National Studies as a Component of the World Health Organization Initiative to Estimate the Global and Regional Burden of Foodborne Disease. PLoS ONE 10(12):e0140319.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Larue, B., S. Pouliot and M. Jeddy. 2015. On the Number and Heterogeneity of Bidders in Livestock Auctions. Canadian Journal of Agricultural Economics. DOI: 10.1111/cjag.12075
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Marquis, G.S., E.K. Colecraft, O. Sakyi-Dawson, A. Lartey, B. Ahunu, K.A. Birks, L.M. Butler, M. B. Reddy, H.H. Jensen and E. Huff-Lonergan. 2015. An integrated microcredit, entrepreneurial training, and nutrition education is associated with better weight- but not height-related indicators among preschool-aged children in rural Ghana. Journal of Nutrition. 145:335-343 (February). First published on line December 2014: doi:10.3945/jn.114.194498.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Metcalfe, M., and J.C. Beghin. 2015. Piecemeal Reform of Trade and Environmental Policy When Consumption Also Pollutes. Economics Bulletin 35:2282-2269.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Miao, Ruiqing, and D.A. Hennessy. 2015. Optimal Protein Segregation Strategies for Wheat Growers. Canadian Journal of Agricultural Economics 63:309-331.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Volpe, R. J., T. A. Park, F. Dong and H.H. Jensen. 2015. Somatic Cell Counts in Dairy Marketing: Quantile Regression for Count Data. European Review of Agricultural Economics. doi: 10.1093/erae/jbv021.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Wang, T. and D.A. Hennessy. 2015. Strategic Interactions Among Private and Public Efforts when Preventing and Stamping Out a Highly Infectious Animal Disease. American Journal of Agricultural Economics 97(2):435-451.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Wei, X., W. Lin, and D.A. Hennessy. 2015. Biosecurity and Disease Management in Chinas Animal Agriculture Sector. Food Policy 54:52-64.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Li, Yuan, and J.C. Beghin. 2014. A Protectionism Index for Non-Tariff Measures: An Application to Maximum Residue Levels. Food Policy 45:5768.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Senia, M.C., H.H. Jensen and O. Zhylyevskyy. 2014. Time in Eating and Food Preparation among Single Adults. Review of Economics of the Household. DOI: 10.1007/s11150-014-9258-5
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Xiong, B. and J.C. Beghin. 2014. Disentangling the Demand-Enhancing and Trade-Cost Effects of Maximum Residue Regulations. Economic Inquiry 52:11901203.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: Hennessy, D.A. January 30, 2015. Animal Health Economics: The Plumbing in Models. Presentation made remotely to INRA, French National Institute for Agricultural Research, Meta Program on Multi-Scale Modelling, from Animal Intra-Host to Metapopulation (MIHMES), Plenary Scientific Meeting, Nantes, France.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2015 Citation: H.H. Jensen. An Economist's Perspective on Policies to Target Nutrition and Dietary Choices. 41st Annual James C. Snyder Memorial Lecture, Purdue University, West Lafayette, IN. April 10, 2015.
  • Type: Theses/Dissertations Status: Other Year Published: 2014 Citation: Oh, Miyoung. 2014. PhD. Dissertation, Iowa State University. Three Essays on Consumer Choices on Food.
  • Type: Other Status: Awaiting Publication Year Published: 2015 Citation: Hennessy, D.A. and A. Rault. Farm Level Modelling: Techniques, Application and Policy. CABI.


Progress 10/01/13 to 09/30/14

Outputs
Target Audience: Multiple audiences are targeted to receive the information generated in this project including academic researchers in research institutions, as well as advisors to the food, agriculture, and livestock industry, international bodies, scientific committees and other non-governmental organizations, and technical and regulatory agencies. Agricultural and applied economists at other academic institutions are a target audience to provide critical review and comment on the work and to assist in communications and applications of the results of the output. The audiences include targeted groups at the state, national and international levels. The information generated by this project is further extended to the target audiences through scientific publications, working papers and through presentations at professional meetings. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? The results have been made widely available to academic and governmental communities through journal publications, chapters in books and edited volumes, as well briefing reports and working papers available through web-based sites. In addition, the project investigators have made presentations at regional, national and international meetings. Results have been made available to national and international science bodies, such as the National Academies National Research Council and Institute of Medicine; the INRA French National Institute for Agricultural Research; USDA Economic Research Service, the Organization of Economic Cooperation and Development; and the World Health Organization's Foodborne Disease Burden Epidemiology Reference Group (FERG). What do you plan to do during the next reporting period to accomplish the goals? Project participants will continue work under each of the project objectives, and designed to accomplish the project goals. This will include work on the measurement and effectiveness of food safety controls in fresh produce production and in market channels; work on biosecurity, disease management policies and other initiatives intended to control the extent and costs of animal disease; work on interactions between animal production structure and food quality and safety; and consumer response in energy markets. Hennessy initiated a line of inquiry into when more food safety monitoring can adversely affect outcomes. Other investigations underway examine the associations among food assistance programs, food prices and environment on food choices and food insecurity.

Impacts
What was accomplished under these goals? Investigations of food product quality, safety and trade policies focused on markets, consumers and welfare. Regulations designed to inform or protect consumers affect market prices and change opportunities of producers in their market supply. Examples include Country of Origin label (COOL) requirements and Maximum Residue Limits (MRL). Import policies affect food safety risks to consumers. Food import inspection, MRL policies, and scientifically-based controls during production of animal products and fresh produce can lead to improved food safety and reduced risks for consumers. Other investigations show the importance of the value of consumer time to food-related outcomes. Market information and firm incentives affect the variety, quality and safety of food in markets, including the effects on trade. Pouliot and Sumner investigate whether COOL created differential costs of segregation for cattle according to their country of origin. COOL depressed prices for fed cattle in Canada relative to US prices and reduced US imports of Canada feeder cattle. Xiong and Beghin examine the effects of MRLs on pesticides imposed by high-income OECD countries and find that MRLs enhance the import demand and hinder foreign exporters' supply, especially exporters from the less and least developed countries. Hennessy, Jensen and colleagues investigated interactions between animal production structure and product quality in the dairy sector. Farm operator age and retirement intentions affect decisions on investment and management that can affect product quality. Management practices and investment in buildings and technologies also affect product quality. Pouliot and co-authors show that adding buyers in an auction may cause a decline in average prices. They use Quebec hog auction data to show that short-lived invitations to Ontario buyers had no impact on prices; entry and exit by Quebec packers impacted prices. Pouliot and Babcock investigate implications of US biofuel policies. Miao and Hennessy investigate the potential effects of a technology that can measure wheat grain protein concentration and then segregate grain based on measurements during harvesting. They find that with this technology for wheat in the U.S. Pacific Northwest region over 1991-2011, on average a Hard Red Winter (respectively, Hard Red Spring) wheat grower should be willing to pay about 17.7 (30.8) cents for segregating one bushel of wheat. Several investigations addressed the design of regulations to control and manage food safety and quality risks. Border food inspections are meant to screen food imports to assure they meet US standards of quality and integrity. Pouliot shows that economic variables can be used as indicators for increase in food safety risks and can be used as early indicators of a surge in food adulteration. Pouliot, Larue and Kotchoni show that the WTO's tariff simplification effort through the promotion of ad valorem tariffs is not incentive compatible. This explains many countries' resistance to simplify their tariff schedule. Jensen and Pouliot investigate the design and effectiveness of US food safety and quality policies and industry guidance related to the Leafy Greens Marketing Agreement and FDA's Food Safety Modernization Act (FSMA). They determine costs and effectiveness of practices related to the quality of irrigation water in leafy greens production to improve farm level food safety. Jensen and colleagues conducted interviews with major leafy greens growers and handlers in California to develop measures of the costs of improved food safety in leafy greens production. Pouliot investigated the effect of an exemption for small firms included in the Act and shows that under certain conditions, a stricter food safety standard coupled with an exemption to small firms can cause entry by small firms and the average food safety to decline. Hennessy and Oh investigate strategic interactions regarding extent of food safety efforts among firms and consumers. Jensen and Zhou investigate China's efforts to develop food safety controls in the food supply under new Chinese food safety regulation that encourages both public and private efforts. Several studies address information problems, policies and private motives to maintain agricultural biosecurity. Hennessy and Wang model producers' interdependent incentives to participate in a voluntary livestock disease control program and find plausible conditions under which temporary government subsidies to the least cost-effective producers cause tipping toward full participation. They use a case example from the literature on Johnes' disease. Jensen and Hayes review recent evidence on the implementation and effectiveness of Denmark's policies restricting the use of subtherapeutic antibiotics in animal feed. Recent policies restrict levels of use but give rise to problems in management of herd health; levels of resistance for human health have not dropped significantly. Agricultural and food policies, food production and processing, and marketing efforts affect food choice, nutrition and health outcomes. Beghin and Elobeid analyze various welfare costs, transfers, trade, and employment consequences of the current U.S. sugar program for U.S. consumers, other sugar users, sugar refiners, cane and beet growing and processing industries, associated agricultural sectors, and world markets. Removal of the sugar program would increase U.S. consumers' welfare by $2.9 to $3.5 billion each year and generate modest job creation of 17,000 to 20,000 new jobs in food manufacturing and related industries. World price increases would be equivalent to about 1 cent per pound. Beghin and co-author extend the trade restrictiveness indices (TRIs) approach to the case of market failures and domestic regulations addressing them, and find the impact of non-tariff measures on trade is ambiguous depending on the relative strength of the supply cost and demand enhancing effects. Accounting for externalities and anti-protective effects reduces the measure of trade policy restrictiveness for most countries. Beghin studies food security in a several countries using a parsimonious demand modeling approach developed for USDA-ERS for its International Food Security Assessment. The calibrated model decomposes the impact of income, prices, and exchange rates on food consumption, with a 2012 baseline. The proposed approach is illustrated for Tanzania. Projected demand for food is estimated to double by 2023 given the projected real income per capita (+18%), real world price for corn (-49%) real exchange rate (-22%), and population (+35%). Per capita food demand is projected to grow by 48%. The interaction of population growth and per capita demand is responsible for 17% growth of total demand. Jensen and colleagues developed a database that accounts for differences in quality, time and safety of food items prepared from fresh and processed foods from available US data. The total value of the foods was sensitive to assumptions on the value of time in food preparation. Jensen and colleagues evaluated promotion and changes in fruit and vegetable offerings in school meals to determine the effect of school policies on children's lunch choices in a school district in Texas. Promotion of the revised school offerings increased fruit and vegetable intake, but with higher costs. Jensen and Zhylyevskyy use data from the Current Population Survey and the American Time Use Survey (ATUS) to investigate the effect of food prices and local environment on food insecurity among children. Senia, Jensen and Zhylyevskyy examine factors that affect how much time single individuals devote to eating and food preparation. These individuals devote relatively less time to food preparation, spend relatively more time eating away from home and engage in multi-tasking while eating when the opportunity cost of time increases (wages rise).

Publications

  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Jensen, H. H., S. Pouliot, T. Wang and M. T. Jay-Russell. 2014. Development of a Cost Effectiveness Analysis of Leafy Green Marketing Agreement Water Provisions. Journal of Food Protection 77(6):1038-1042.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Jensen, H. H. and D. J. Hayes. 2014. Impact of Denmarks Ban on Antimicrobials for Growth Promotion. Current Opinion in Microbiology (Ecology and Industrial Microbiology Section) 19:3036.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Li, Y. and J.C. Beghin. 2014. A Protectionism Index for Non-Tariff Measures: An Application to Maximum Residue Levels. Food Policy 45:5768.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Muth, M. K., S. A. Karns, M. Zmuda, M. C. Coglaiti, M. Koyanagi, K. Duffey, C. Dunn, H.H. Jensen, and C. Gregory. 2014. Price, Nutrition, Time, and Other Trade-offs: A Web-Based Food Value Analysis Application to Compare Foods at Different Levels of Preparation and Processing. Nutrition Today 49(4):176-184.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Pouliot S. and B.A. Babcock. 2014. The Demand for E85: Geographical Location and Retail Capacity Constraints. Energy Economics 45:134-143.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Pouliot, S. and D.A. Summer. 2014. Differential Impacts of Country of Origin Labeling: COOL Econometric Evidence from Cattle Markets. Food Policy 49:107-116.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Pouliot, S. 2014. The Production of Safe Food According to Firm Size and Regulatory Exemption: Application to FSMA. Agribusiness 30:493-512.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Xiong, B., and J.C. Beghin. Disentangling the Demand-Enhancing and Trade-Cost Effects of Maximum Residue Regulations. Economic Inquiry 52(3):11901203.
  • Type: Other Status: Published Year Published: 2014 Citation: Beghin, J. C., J.-C. Bureau, and A. Gohin. 2014. The Impact of an EU-US Transatlantic Trade and Investment Partnership Agreement on Biofuel and Feedstock Markets. ISU Economics Working Paper, WP #14024.
  • Type: Other Status: Published Year Published: 2014 Citation: Beghin, J. C., B. Meade, S. Rosen. 2014; Revised on December 2014. A Consistent Food Demand Framework for International Food Security Assessment. ISU Economics Working Paper, WP #14023.
  • Type: Other Status: Published Year Published: 2014 Citation: Pouliot, S. and B.A. Babcock. 2014. Impact of Increased Ethanol Mandates on Prices at the Pump. CARD Policy Brief 14-PB-18. Available at: www.card.iastate.edu/policy_briefs/display.aspx?id=1218.
  • Type: Other Status: Published Year Published: 2014 Citation: Pouliot, S. and H. H, Jensen. Fall 2014. Food Safety Modernization Act: The Case for Complementary Public Regulation and Private Standards, CARD Agricultural Policy Review. Available at: www.card.iastate.edu/ag_policy_review/display.aspx?id=24.
  • Type: Other Status: Published Year Published: 2014 Citation: Beghin, J. 2014. The Protectionism of Food Safety Standards in International Agricultural Trade. CARD Agricultural Policy Review. Online: www.card.iastate.edu/ag_policy_review/display.aspx?id=15
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Senia, M.C., H.H. Jensen and O. Zhylyevskyy. 2014. Time in Eating and Food Preparation Among Single Adults. Review of Economics of the Household. Pre-publication on line. DOI: 10.1007/s11150-014-9258-5.
  • Type: Theses/Dissertations Status: Published Year Published: 2014 Citation: Oh, M. 2014. Three Essays on Consumer Choices on Food. PhD dissertation, Iowa State University.


Progress 01/01/13 to 09/30/13

Outputs
Target Audience: Multiple audiences are targeted to receive the information generated in this project including academic researchers in research institutions, as well as advisors to the food, agriculture, and livestock industry, international bodies, scientific committees and other non-governmental organizations, and technical and regulatory agencies. Agricultural and applied economists at other academic institutions are a target audience to provide critical review and comment on the work and to assist in communications and applications of the results of the output. The audiences include targeted groups at the state, national and international levels. The information generated by this project is further extended to the target audiences through scientific publications, working papers and through presentations at professional meetings. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? The results have been made widely available to academic and governmental communities through journal publications, chapters in books and edited volumes, as well briefing reports and working papers available through web-based sites. In addition, the project investigators have made presentations at regional, national and international meetings. Results have been made available to national and international science bodies, such as the National Academies National Research Council and Institute of Medicine; the INRA French National Institute for Agricultural Research; the OECD; and the World Health Organization’s Foodborne Disease Burden Epidemiology Reference Group (FERG). What do you plan to do during the next reporting period to accomplish the goals? Project participants will continue work under each of the project objectives, and designed to accomplish the project goals. This will include work on the measurement and effectiveness of food safety controls in fresh produce production and in market channels; work on biosecurity, disease management policies and other initiatives intended to control the extent and costs of animal disease; work on interactions between animal production structure and food quality and safety; and consumer response in energy markets. Other investigations underway examine the associations among food assistance programs, food prices and environment on food choices and food insecurity.

Impacts
What was accomplished under these goals? Investigations of food product quality and safety and trade policies continue. Jensen and Pouliot investigated the design and effectiveness of food safety and quality policies and industry guidance. They conducted an analysis of costs and effectiveness of practices related to the quality of irrigation water in the leafy greens production to improve food safety at the farm level. Jensen and colleagues finalized and conducted a survey of leafy greens growers and handlers to estimate the costs of improved food safety in leafy greens production. Pouliot and Sumner show how increased traceability protects the reputation of industries by limiting the size of recalls. They identify and describe the relationship between traceability and food safety for competitive firms and for firms that act collectively. Hennessy continued work on biosecurity, disease management policies and other initiatives intended to control the extent and costs of animal disease. Hennessy, Jensen and colleagues have also initiated work on interactions between animal production structure and food quality and safety. New technologies in food processing can provide advantages to consumers and producers but are applied in different, country-specific regulatory climates. There is a question of consumer acceptance under different market, regulatory and cultural environments. Modified atmosphere packaging with the inclusion of carbon monoxide extends the shelf life of fresh meat and stabilizes color. Grebitus, Jensen and Roosen conducted consumer choice experiments to analyze preferences of US and German consumers towards the meat attributes enhanced by the packaging. They find that longer shelf life is preferred by consumers in the US as long as the technology is understandable. Consumers in both countries have clear preferences for cherry red meat color. However, providing information on the use of carbon monoxide in the packaging decreases US consumers’ willingness to pay and increases some German consumers’ willingness to pay for the product. Food safety and quality have become important in trade as well. Maximum residue levels (MRLs) regulations in plant products can create unnecessary trade barriers on one hand and enhance demand via risk mitigation or quality assurance on the other. Xiong and Beghin stipulate a generalized gravity equation model to disentangle the effects of MRLs on the import demand and foreign exporters’ supply. Applying the framework to the MRLs on pesticides imposed by high-income OECD countries, Xiong and Beghin find that the MRLs jointly enhance the import demand and hinder foreign exporters’ supply. Regulations, policies and market design affect outcomes for consumers and market participants. Beghin and Elobeid analyze the welfare costs, transfers, trade, and employment consequences of the current U.S. sugar program for U.S. consumers, other sugar-users, sugar refiners, cane and beet growing and processing industries, other associated agricultural sectors, and world markets. Larue, Jeddy and Pouliot study the relationship between a seller’s revenue and the number of participants in an auction. They show that under certain conditions, the addition of a buyer may decrease the revenue of a seller. Theoretical predictions are tested using hog auction data in Quebec, Canada. Pouliot estimates how motorists arbitrage between gasoline and ethanol in Brazil’s motor fuel market. Although the study applies to the Brazil motor fuel market, the outcomes of this econometric study have direct application to the choice of fuel in the United States and consumers. Little is known of the US demand for blends of gasoline with ethanol content. The estimates contribute to understanding of the US total demand for ethanol as US mandates for ethanol increase. Babcock and Pouliot analyze the potential consumption of E85, a blend of gasoline that contains 85 percent ethanol. The briefs bring estimates of the demand for E85 based on the location of flex vehicles and the location of retail station that offer E85. The briefs offer guidance to EPA in setting the annual ethanol mandates. Jensen, Ishdorj and Crepinsek completed work on the effects of school meals and food policies on fruit and vegetable intakes and found that school meal participants consume more total fruits and vegetables, with relatively more at school and less away from school compared to nonparticipants. School food policies had little effect on participation itself. Jensen and Cullen estimate the effectiveness of promoting fruit and vegetables and the cost of implementing revised food standards in participating elementary schools in Texas. They found promotion of the revised school offerings to be effective at increasing fruit and vegetable intake. Jensen and Oh are examining the effect of the WIC program on select food expenditures using household scanner data. Senia, Jensen and examine factors that affect how much time single individuals devote to eating and food preparation and find that as the opportunity cost of time increases (wages rise), individuals devote relatively less time to food preparation, spend relatively more time eating away from home and engage in multi-tasking while eating. Jensen and others examined the association of children’s dietary choices and outcomes and participation in the Supplemental Nutrition Assistance Program (SNAP). The dietary results are mixed: some components are better and some are worse for the SNAP participants compared to other low income children. In other work, Jensen and Zhylyevskyy are investigating the effect of food prices and local environment on food insecurity among children. Outcome findings: The results from Jensen and Pouliot’s study of the effectiveness of safety related practices in leafy green production show that field and experimental data can be combined to evaluate the costs and cost effectiveness of practices designed to improve the safety of fresh produce. Based on available data for lettuce production, they find that the water testing provisions of the Leafy Green Marketing Agreement had a cost efficiency ratio of 7.48 log CFU per dollar of cost. Xiong and Beghin found that the compliance costs associated with MRLs put exporters from the less and least developed countries at a disadvantage in the world market for plant products. However, MRL stringency does not hinder the creation of new trade partnerships. The findings contribute to the debate of SPS measures and effective trade barriers. Xiong and Beghin show that regulatory policies can achieve legitimate goals without impeding international trade in their cumulative effects. Beghin and Elobeid find that the removal of the sugar program would increase U.S. consumers’ welfare by $2.9 to $3.5 billion each year and generate a modest job creation of 17,000 to 20,000 new jobs in food manufacturing and related industries. Imports of sugar containing products would fall dramatically especially confectioneries substituting for domestic inputs under the sugar program. Sugar imports would rise substantially to 5 to 6 million short tons raw sugar equivalent. World price increases would be minor, equivalent to about 1 cent per pound. Jensen and colleagues find that school meal policies that encourage fruit and vegetable consumption can improve diets both at and away from school. School policies and promotion can increase the fruit and vegetable consumption in school. These results are important to improving the design of nutrition education and food policies.

Publications

  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Zhylyevskyy, O., H.H. Jensen, S.B. Garasky, C.E. Cutrona and F. Gibbons. 2013. Effects of Family, Friends, and Relative Prices on Fruit and Vegetables Consumption by African American Youths. Southern Economic Journal 80(1):226-251.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Miao, Zhen, J.C. Beghin, and H.H. Jensen. 2013. Accounting for Product Substitution in the Analysis of Food Taxes Targeting Obesity. Health Economics 22:1318-1343.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Pouliot, S., and D.A. Sumner. 2013. Traceability, Food Safety and Industry Reputation. European Review of Agricultural Economics 40:121-142.
  • Type: Other Status: Published Year Published: 2013 Citation: Larue, B., M. Jeddy and S. Pouliot. 2013. On the Number of Bidders and Auction Performance: When More Means. Structure and Performance of Agriculture and Agri-Products Industry Network working paper #2013-03. Available at http://goo.gl/78f5jv.
  • Type: Other Status: Published Year Published: 2013 Citation: Pouliot, S. 2013. Arbitrage Between Ethanol and Gasoline: Evidence from Motor Fuel Consumption in Brazil. Available at http://ageconsearch.umn.edu/handle/150964.
  • Type: Other Status: Published Year Published: 2013 Citation: Babcock, B. A., S. Pouliot. 2013. Price It and They Will Buy: How E85 Can Break the Blend Wall. CARD Policy Brief 13-PB-11. Available at: http://www.card.iastate.edu/publications/synopsis.aspx?id=1187.
  • Type: Other Status: Published Year Published: 2013 Citation: Babcock, B.A., S. Pouliot. 2013. Impact of Sales Constraints and Entry on E85 Demand. CARD Policy Brief 13-PB-12. Available at: http://www.card.iastate.edu/publications/synopsis.aspx?id=1188.
  • Type: Other Status: Published Year Published: 2013 Citation: Babcock, B.A., S. Pouliot. 2013. The Economic Role of RIN Prices. CARD Policy Brief 13-PB-14. Available at: http://www.card.iastate.edu/publications/synopsis.aspx?id=1212.
  • Type: Other Status: Published Year Published: 2013 Citation: Babcock, B.A., S. Pouliot. 2013. How Much E85 Can Be Consumed in the United States? CARD Policy Brief 13-PB-15. Available at: http://www.card.iastate.edu/publications/synopsis.aspx?id=1213.
  • Type: Other Status: Published Year Published: 2013 Citation: Babcock, B.A., S. Pouliot. 2013. RFS Compliance: Death Spiral or Investment in E85. CARD Policy Brief 13-PB-16. Available at: http://www.card.iastate.edu/publications/synopsis.aspx?id=1214.
  • Type: Books Status: Published Year Published: 2013 Citation: J. Beghin, ed. 2013. Non-Tariff Measures with Market Imperfections: Trade and Welfare Implications in the Frontiers of Economics and Globalization series Emerald Press, Volume 12.
  • Type: Book Chapters Status: Published Year Published: 2013 Citation: Xiong, B., and J.C. Beghin. 2013. Stringent Maximum Residue Limits, Protectionism, and Competitiveness: The Cases of the US and Canada. In: J.C. Beghin, ed. Non-Tariff Measures with Market Imperfections: Trade and Welfare Implications in the Frontiers of Economics and Globalization series Emerald Press Volume 12:245-59.
  • Type: Book Chapters Status: Published Year Published: 2013 Citation: Yue, C., S. Marette, and J.C. Beghin. 2013. How to Promote Quality Perception in Wine Markets: Brand Advertising or Geographical Indication? In: J.C. Beghin, ed. Non-Tariff Measures with Market Imperfections: Trade and Welfare Implications in the Frontiers of Economics and Globalization series Emerald Press Volume 12:73-98.
  • Type: Book Chapters Status: Published Year Published: 2013 Citation: Beghin, J.C., A-C Disdier, and S. Marette. 2013. The Economics and Potential Protectionism of Food Safety Standards and Inspections. An Application to the U.S. Shrimp Market. In: J.C. Beghin, ed. Non-Tariff Measures with Market Imperfections: Trade and Welfare Implications in the Frontiers of Economics and Globalization series Emerald Press Volume 12:43-71.
  • Type: Book Chapters Status: Published Year Published: 2013 Citation: Beghin, J.C., A-C Disdier, S. Marette, and F. van Tongeren. 2013. A Cost-Benefit Approach for the Assessment of Nontariff Measures in International Trade. In: J.C. Beghin, ed. Non-Tariff Measures with Market Imperfections: Trade and Welfare Implications in the Frontiers of Economics and Globalization series Emerald Press Volume 12:15-41.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Blumenthal, Susan J., Elena E. Hoffnagle, Cindy W. Leung, Hayley Lofink, Helen H. Jensen, Susan B. Foerster, Lilian W.Y. Cheung, Marion Nestle, and Walter C. Willet. 2013. Strategies to Improve the Dietary Quality of Supplemental Nutrition Assistance Program (SNAP) Beneficiaries: An Assessment of Stakeholder Opinions. Public Health Nutrition. Accessible online: http://journals.cambridge.org/PHN.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Hennessy, D.A. June 2013. Behavioral Incentives in Animal Health Management Policy. Proceedings of OECD-Cooperative Research Program Conference Livestock Disease Policies: Building Bridges Between Animal Sciences and Economics, Paris, France.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Xu, Zheng, D.A. Hennessy, Kavita Sardana, and GianCarlo Moschini. May 2013. The Realized Yield Effect of GM Crops: U.S. Maize and Soybean. Crop Science 53:735-745.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Grebitus, C., H.H. Jensen and J. Roosen. 2013. U.S. and German Consumer Preferences for Ground Beef Packaged Under a Modified Atmosphere: Different Regulations, Different Behavior? Food Policy 40:109-118.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Ishdorj, A., M.K. Crepinsek and H.H. Jensen. 2013. Childrens Consumption of Fruits and Vegetables: Do School Environment and Policies Affect Choice At School and Away from School? Applied Economic Perspectives and Policy 35(2):341-359.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Leung, C., S. Blumenthal, E. Hoffnagle, H. Jensen, S. Foerster, M. Nestle, L. Cheung, D. Mozaffarian and W. Willett. 2013. Associations of Food Stamp Participation with Obesity and Dietary Quality in Children. Pediatrics 131:3, 463-472; published ahead of print February 25, 2013, doi:10.1542/peds.2012-0889.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Grebitus, C., H.H. Jensen, J. Roosen and J.G. Sebranek. Jan. 2013. Consumers Perceptions and Evaluation of Modified Atmosphere Packaging for Fresh Meat including Carbon Monoxide. Journal of Food Protection Volume 76:99-107.
  • Type: Other Status: Published Year Published: 2013 Citation: Capper, Judith L, Larry Berger, Mindy M. Brashears, and Helen H. Jensen. Sept. 2013. Animal Feed vs. Human Food: Challenges and Opportunities in Sustaining Animal Agriculture Toward 2050. CAST Issue Paper, No. 53.
  • Type: Book Chapters Status: Published Year Published: 2012 Citation: ennessy, D.A., and Tong Wang. 2012. Animal Disease and the Industrialization of Agriculture. In: Health and Animal Agriculture in Developing Countries, D. Zilberman, J. Otte, D. Roland-Holst and D. Pfeiffer eds. Springer, New York, on behalf of the Food and Agricultural Organization, United Nations, Chapter 5, p. 7799.
  • Type: Books Status: Published Year Published: 2012 Citation: McElwain, T., Connell, N., Hennessy, D.A., King, L.A., Le Duc, J., MacLachlan, N.J., Marsh, B., Salman, M., Torres, A., and C. Wolf. June 2012. Meeting Critical Laboratory Needs for Animal Agriculture: Examination of Three Options. Committee on an Analysis of the Requirements and Alternatives for Foreign Animal and Zoonotic Disease Research and Diagnostic Laboratory Capabilities; Board on Agriculture and Natural Resources; Board on Life Sciences; Division on Earth and Life Studies; National Research Council, Washington, DC, 166 pages. https://download.nap.edu/catalog.php?record_id=13454.
  • Type: Theses/Dissertations Status: Published Year Published: 2013 Citation: Li, Yuan. 2013. The trade effects, protectionism, and political economy of non-tariff measures. PhD Dissertation, Iowa State University, May.


Progress 01/01/12 to 12/31/12

Outputs
OUTPUTS: Several investigations consider food product quality and safety. Pouliot and Jensen conducted an analysis of costs and benefits of good agricultural practices in the leafy greens industry to improve food safety at the farm level. Jensen and colleagues developed a survey of leafy greens growers and handlers to estimate the costs of improved food safety in leafy greens production. Hennessy initiated work with Wanlong Lin at the China Agricultural University to provide an overview of biosecurity policies, infrastructure and vulnerabilities in China's food animal production sector. This work is designed to enhance understanding in the event of significant global food safety or animal health issues arising in the sector. Wang, Hennessy and O'Connor use new US census data for veterinarian occupations to study geographic shifts in veterinarian location between 1990 and 2010 and veterinarian time allocations to food animal species and companion animals. Pouliot and Larue show an expansion of import quotas can perversely trigger domestic price increases when firms in the importing country have market power. They apply their findings to the imports of poultry in Canada. Pouliot and Sumner examine differential market impacts of mandatory Country of origin labeling (COOL) on cattle raised in Canada and imported into the United States and find significant evidence of differential impacts of COOL through widening of the price bases and a decline in ratios of imports to total domestic use for both fed and feeder cattle. Li and Beghin look at the stringency of food quality standards, including related effects in international trade. They constructed indices of Non-Tariff Measures (NTMs) to quantify the protectionism relative to international standards and apply the indices to the national Maximum Residue Limit (MRL) regulations affecting agricultural and food trade using criteria embodied in Codex Alimentarius international standards. Li and Beghin, and Xiong and Beghin use the score indices to assess the implications of stringency in MRLs in plant and animal products for Canadian and US trade performance. Miao, Beghin and Jensen investigated tax policies to reduce added sweetener consumption and incorporate the implicit substitution between added sugars and solid fats into a comprehensive food demand system to evaluate the effect of taxes on sugars and fats on consumer demand and welfare. Jensen, Ishdorj and Crepinsek estimated the effects of school meals and food policies on fruit and vegetable intakes and found that school meal participants consume more total fruits and vegetables, with relatively more at school and less away from school compared to nonparticipants. School food policies had little effect on participation itself. Senia, Jensen and Zhylyevskyy initiated a study on factors that affect how much time individuals devote to eating and food preparation and find that as the opportunity cost of time increases (wages rise), individuals devote relatively less time to food preparation, spend relatively more time eating away from home and engage in multi-tasking while eating. PARTICIPANTS: Helen H. Jensen, John Beghin, David Hennessy, Sebastien Pouliot. TARGET AUDIENCES: Multiple audiences are targeted to receive the information generated in this project, including academic researchers in research institutions, as well as advisors to the food, agriculture, and livestock industry, international bodies, scientific committees and other non-governmental organizations, and technical and regulatory agencies. Agricultural and applied economists at other academic institutions are a target audience to provide critical review and comment on the work and to assist in communications and applications of the results of the work. The audiences include targeted groups at the state, national and international levels. The information generated by this project is further extended to the target audiences through scientific publications, working papers and through presentations at professional meetings. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Consumer and processor demand for high-quality products places increasing pressure on producers to achieve high product standards. Dong, Jensen and Hennessy find that in the dairy sector, international standards for somatic cell count (SCC) are becoming more stringent and may place US producers at a disadvantage and affect industry structure. The stricter international standards favor larger farms that are more committed to production and are less likely to be sole or family proprietorships. Wang and Hennessy's conceptual work on how disease certification programs can incentivize animal health program participation directly applies to how USDA might re-focus animal health programs that are presently in transition. Beghin and colleagues find that countries vary in the stringency of their food quality standards and degree of protectionism. Among countries, Australia ranks the most protectionist because of its tight default value. The Russian Federation ranks the most protectionist from scores based on established MRLs (no default). A few developing countries under-protect their consumers by setting MRLs below Codex levels. Among the North American Free Trade Agreement countries, Canada has tighter MRLs than the US and Mexico. There is little evidence that US imports are influenced by domestic stringency or those imposed by its trading partners. However, US exports are negatively affected by stringency in destination markets. Canada's stringent MRLs facilitate its exports of plant and animal products and these exports do not seem to be impeded by MRL stringency in destination markets. Canada's imports do not appear to be systematically influenced by either its own or its trading partners' MRL stringency. Pouliot and Larue find that an expansion of import quotas can trigger a domestic price increase when firms in the importing country have market power, a result that is in contrast with the typical conclusion that liberalization of markets yields to a decline in prices in an importing country. Policymakers are considering various policies to reduce obesity and their associated costs and this research can guide those policies. Miao, Beghin and Jensen find that both a tax on final product and a tax on ingredients or inputs can reach the same policy target of reducing added sweetener consumption and are regressive, however the tax on sweetener inputs targets sweeteners directly and leads to a loss in consumer surplus that is only one-fifth of that caused by the final consumption tax. When consumers substitute among low/high fat and low/high sweetened products, the tax impact on consumption patterns is understated and the induced welfare loss is overstated in comparison to the case when there is no substitution of products within food groups. Jensen and colleagues find that both fruit and vegetables prices and also parents' food choices affect the food choices (fruits and vegetable choices) of African-American youth. School meal policies that encourage fruit and vegetable consumption can improve diets both at and away from school. These results are important to improving the design of nutrition education and food policies.

Publications

  • Li, Y. 2012.The Trade Effects, Protectionism, and Political Economy of Non-Tariff Measures. PhD Dissertation, Iowa State University, December.
  • Li, Y. and Beghin, J.C. 2012. A Meta-Analysis of Estimates of the Impact of Technical Barriers to Trade. Journal of Policy Modeling 34(3):497-511.
  • Miao, Z., Beghin, J.C. and Jensen, H.H. 2012. Taxing Sweets: Sweetener Input Tax or Final Consumption Tax Contemporary Economic Policy 30(3):344-361.
  • Orden, D., Beghin,J.C. and Henry, G. 2012. Key Findings of the NTM-IMPACT Project. The World Economy 35(8):967-972.
  • Pouliot, S. 2012. Consumer Confidence in Food Safety and the 2010 Egg Recall. Available at: http://ageconsearch.umn.edu/bitstream/124769/2/Pouliot%20-%20Egg%20sa fety%20-%20AAEA%202012.pdf.
  • An, H., Pouliot, S. and Volpe, R.J. III. 2012. Local, Organic, Inexpensive and Safe: Can Large Retailers Do It All Available at http://ageconsearch.umn.edu/bitstream/124754/2/An-Pouliot-Volpe%20-%2 0AAEA%202012.pdf.
  • Beghin, J.C., Disdier, A.C., Marette, S. and van Tongeren, F. 2012. Measuring Costs and Benefits of Non-Tariff Measures in Agri-Food Trade. The World Trade Review 11:356-375.
  • Beghin, J.C. and Melatos, M. 2012. The Trade and Welfare Impacts of Australian Quarantine Policies: The Case of Pigmeat. The World Economy 35(8):1006-1025.
  • Dong, F., Hennessy, D.A. and Jensen, H.H. 2012. Factors Determining Milk Quality, and Implications for Production Structure Under SCC Standard Modification. Journal of Dairy Science.95(11):6421-6435.
  • Grebitus, C., Yue, C. and Jensen, H.H. 2011. Perceived quality on organic and conventional pork consumption. Food Economics: Acta Agriculturae Scandinavica, Section C, December 2011, 8:187-199.
  • Hennessy, D.A. and Wang,T. 2012. Animal Disease and the Industrialization of Agriculture. In Health and Animal Agriculture in Developing Countries. Zilberman, D., Otte, J., Roland-Holst, D. and Pfeiffer,D. eds, Springer, New York, on behalf of the Food and Agricultural Organization, United Nations, Chapter 5, pp. 77-99.
  • Ishorj, A., Jensen H.H. and Crepinsek M.K. 2012. Children's Consumption of Fruits and Vegetables: Do School Environment and Policies Affect Choice at School and Away from School Iowa State University, Center for Agricultural and Rural Development, CARD Working Paper,12-WP 531, September.
  • Pouliot, S. 2012. Food Safety: Background, Analysis and Recommendations. AEI-The 2012 Farm Bill. Available at: http://www.aei.org/paper/health/food-safety-background-analysis-and-r ecommendations.
  • Pouliot, S. 2012. On the Economics of Adulteration in Food Imports: Application to US Fish and Seafood Imports. Structure and Performance of Agriculture and Agri-Products Industry Network working paper #2012-15. Available at http://www.spaa-network.fsaa.ulaval.ca/uploads/tx_centrerecherche/Imp ort_adulteration_-_Pouliot_2012-15.pdf.
  • Pouliot, S. and Larue, B. 2012. Import Sensitive Products and Perverse Tariff-Rate Quota Liberalization. Canadian J. of Economics 45:903-924.
  • Pouliot, S. and Sumner, D.A. 2012. Differential Impacts of Country of Origin Labeling: COOL Econometric Evidence from Cattle Markets. Structure and Performance of Agriculture and Agri-Products Industry Network working paper #2012-14. Available at http://www.spaa-network.fsaa.ulaval.ca/uploads/tx_centrerecherche/Coo l_econometrics_-_SPAA_WP_2012-14.pdf.
  • Timilsina, G.R., Beghin, J.C., van der Mensbrugghe, D. and Mevel, S. 2012. The Impacts of Biofuels Targets on Land-Use Change and Food Supply: A Global CGE Assessment. Agricultural Economics 43(3):315-332.
  • Wang, T. 2012. Essays on the Economics of Disease, with Particular Reference to Livestock. PhD Dissertation, Iowa State University, December.
  • Wang, T., Hennessy, D.A. and O'Connor, A.M. 2012. Where are the Veterinarian Shortage Areas Anyway Preventive Veterinary Medicine 104(May):198-206.
  • Xiong, B. and Beghin, J.C. 2012. Does European Aflatoxin Regulation Hurt Groundnut Exporters from Africa European Rev. of Agricultural Economics 39(4):589-609.


Progress 01/01/11 to 12/31/11

Outputs
OUTPUTS: Several investigations considered food product quality and safety. Pouliot and Jensen are developing methods to evaluate the costs and benefits of good agricultural practices in the leafy greens industry to improve food safety at the farm level. Jensen conducted a series of industry interviews to better understand food safety practices and costs. In another effort, Pouliot summarized food safety regulations in the United States and discussed the economic implications. He also developed a model that investigates the effect of the exemptions for small firms in the FDA Food Safety and Modernization Act. The model shows how the exemption affects welfare and food safety. The work on food safety in fresh produce was presented and discussed at national meetings of agricultural economists and with collaborators in the field of microbiology. In other work, Pouliot developed a model that shows how economic variables may be useful in guiding import inspections. Hennessy and Ruiqing Miao evaluated the benefits of a quality (protein) sorting technology. Hennessy, Tong Wang and Annette O'Connor conducted evaluations designed to better inform animal disease management policies, including the Veterinary Medicine Loan Repayment Program (VMLRP). Hennessy and Wang's work on the dynamics of a voluntary livestock disease program was presented as an invited paper at a conference in China. In related research, Hennessy is working with graduate student Juan Murguia on understanding how infectious disease losses externalities can affect equilibrium herd size and national hog herd production efficiency. Policies designed to reduce obesity and its associated costs were also considered. Miao, Beghin and Jensen investigated two tax policies to reduce added sweetener consumption: a consumption tax on sweetened goods and a sweetener input tax. Although a tax on retail goods can reduce the amount of sweeteners consumed, the research conducted by Miao, Beghin and Jensen also investigated taxing sweets at the processing levels. Applying a consumption tax to a specific sweetener-intensive food directly changes its price and thus, reduces the consumer demand for that food item. In contrast, applying a sweetener tax on inputs induces manufacturers to reduce their use in food processing. This research was discussed in several media reports and published in an academic journal. Zhylyevskyy and Jensen used data from the Family and Community Health Study survey of African-American youth to determine the role of family, peer (best friend) and economic factors on the consumption of fruits and vegetables for youth, parents and best friends. This work was presented at a special workshop of the Agricultural and Applied Economics Association. PARTICIPANTS: Helen H. Jensen, David Hennessy, and Sebastien Pouliot. TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
Hennessy and Miao found that quality sorting technology for grain (protein) is unlikely to be commercially viable as a stand-alone technology given price feedbacks and the limited market size. Wang, Hennessy and O'Connor's study on the market for veterinarians examines the 2010 Veterinary Medicine Loan Repayment Program (VMLRP) designed to address perceived regional shortages in certain veterinary occupations, including food animal practice. With county as the unit of analysis, this paper describes a pair of models to evaluate factors associated with being designated a private practice shortage area in 2010. On the whole the program appears to perform quite well. Comparative shortage is generally more severe in states that have no VMLRP designated private practice shortage counties than in states that do. Policymakers are considering various policies to reduce obesity and their associated costs including consumption taxes on high-calorie foods and specifically sweetened foods and taxes at the processing level on ingredients. By close examination of consumer demands for food products and the use of sweetener inputs, Miao, Beghin and Jensen find that both a tax on final product and a tax on ingredients or inputs can reach the same policy target of reducing added sweetener consumption and are regressive. The tax on sweetener inputs targets sweeteners directly and leads to a loss in consumer surplus that is only one-fifth of that caused by the final consumption tax. Previous analyses have overlooked this important point. Zhylyevskyy and Jensen find that both fruit and vegetables prices and also parents' food choices affect the food choices (fruits and vegetable choices) of African-American youth. The results are important to improving the design of nutrition education and food policies.

Publications

  • Jensen, H.H. 2011. Changing Nutritional Content of Food, in Oxford Handbook of the Economics of Food Consumption and Policy, edited by J. L. Lusk, J. Roosen and J. F. Shogren. New York: The Oxford University Press: Oxford, pages 629-648.
  • Jensen, H.H. 2011. Health Care and Systems Costs, Benefits, and Effectiveness: Perspectives on Risk-Benefit Assessment, in Planning a WIC Research Agenda: Workshop Summary. Institute of Medicine, National Academies. Washington, D.C.: The National Academies Press.
  • Miao, Zhen. 2011. Three Essays on Tax Policies Addressing the Obesity Epidemic and Associated Calorie Intake, PhD Dissertation, Iowa State University.
  • Miao, Z., J. Beghin and H.H. Jensen. September 2011. Taxing Sweets: Sweetener Input Tax or Final Consumption Tax Contemporary Economic Policy (Article first published online:DOI: 10.1111/j.1465-7287.2011.00278.x http://onlinelibrary.wiley.com/doi/10.1111/j.1465-7287.2011.00278.x/a bstract
  • Pouliot, S. 2011. Market Evidence of Packer Willingness to Pay for Traceability, American Journal of Agricultural Economics 93:739:755.
  • Pouliot, S. 2011. The Beginning Farmers' Problem in Canada. Structure and Performance of Agriculture and Agri-Products Industry Network working paper number 2011-9. Available at http://www.spaa-network.fsaa.ulaval.ca/uploads/tx_centrerecherche/Beg inning_farmers_-_Pouliot_Nov_2011_01.pdf
  • Pouliot, S. 2011. The FDA Food Safety and Modernization Act and the Exemption for Small Firms, available at http://ageconsearch.umn.edu/bitstream/103885/1/FDA%20-%20May.pdf.
  • Hennessy, D.A. and Tong Wang. 2012. Animal Disease and the Industrialization of Agriculture in Health and Animal Agriculture in Developing Countries, D. Zilberman, J. Otte, D. Roland-Holst and D. Pfeiffer eds. Springer, New York on behalf of FAO of the United States, Chapter 5, pages 77-99.
  • Wang, Tong, D.A. Hennessy, and Annette M. O'Connor. July 2011. Where Are the Veterinarian Shortage Areas Anyway American Agricultural Economics Association annual meetings poster presentation, Pittsburgh, PA.
  • Zhao, Huan. 2011. Four Studies on Beef Industry and Restructured Electricity Markets. PhD Dissertation, Iowa State University.
  • Zhou, Jiehong, H.H. Jensen and J. Liang. 2011. Implementation of Food Safety and Quality Standards: A Case Study of Vegetable Processing Industry in Zhejiang, China, The Social Science Journal 48(3) (2011): 543-552.