Source: UNIVERSITY OF CALIFORNIA, DAVIS submitted to
VALUING PUBLICLY PROVIDED HEALTH INFORMATION
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
TERMINATED
Funding Source
Reporting Frequency
Annual
Accession No.
1002106
Grant No.
(N/A)
Project No.
CA-D-ARE-2215-H
Proposal No.
(N/A)
Multistate No.
(N/A)
Program Code
(N/A)
Project Start Date
Dec 16, 2013
Project End Date
Sep 30, 2018
Grant Year
(N/A)
Project Director
Chalfant, J.
Recipient Organization
UNIVERSITY OF CALIFORNIA, DAVIS
410 MRAK HALL
DAVIS,CA 95616-8671
Performing Department
Agricultural and Resource Economics
Non Technical Summary
Publicly funded programs that provide information to producers and consumers, aimed at increasing food safety, are subject to budget pressures in a time of austerity. It is difficult for policymakers to set priorities for public spending, without an understanding of the public-good nature of information, including why a particular industry does not provide this function. Cost-benefit analyses of public spending on agricultural research and infrastructure investments are commonly provided, but the returns to the public provision of information are more elusive. Examples can be found for the value of weather information or market information, but numerous other programs exist. This project will apply techniques of cost-benefit analysis to examine programs that provide information concerning animal health---specifically concerning the use of animal drugs in veterinary practice---to evaluate the appropriateness and effectiveness of public spending on such programs.
Animal Health Component
0%
Research Effort Categories
Basic
60%
Applied
40%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6013320301050%
6013450301050%
Goals / Objectives
Agricultural commodities and processed food products are subject to various health and food-safety regulations, designed to guarantee product quality and safety. Consumer confidence, and perception of the quality and safety of a food product, are critical determinants of demand and, ultimately, industry health. Outbreaks of contaminated farm products, concerns over bio-security, and generally heightened awareness on the part of consumers has led to an increased focus in the production practices that govern agriculture. Yet, food safety has many aspects that are difficult to observe, and which are "non-market" in nature. A consumer cannot buy a specific quantity of "safety units" and must instead have confidence in the regulatory system. Since the regulatory system---from the establishment of standards to their enforcement through monitoring and inspections---is publicly funded and provided, in many cases, it is subject to the same pressures for austerity that other public spending has experienced. The goal of this project is to develop cost-benefit analyses of the public provision of information about food safety that will help inform policymakers confronted with decisions about whether to reduce or eliminate spending on such programs.
Project Methods
The first step will be to expand on preliminary work that has been done on a program to provide information to veterinarians who either administer drugs to food animals or who advise on the use of such drugs. For instance, there is significant awareness and concern about residues from drugs given to beef and dairy cows---in beef and in milk. The Federal government funds a national program co-located at several universities, including UC Davis, known as FARAD---Food Animal Residue and Detection. On a relatively small funding base, FARAD provides information concerning extra-label use of various drugs, to veterinarians. For instance, a veterinarian who learns that a drug has been misused---perhaps given to a dairy cow for something other than what is approved on the drug label---can request advice concerning how long the milk from that animal should be disposed of. Incidents where drug contamination leads to the disposal of an entire shipment of milk, following a positive test for the presence of drug residues, are expensive for producers. Perceptions that drug residues are present, and not detected, lead to decreased consumer demand, as alternatives that are perceived to be safer are adopted. Thus, a program like FARAD, to the extent that it prevents drug residues from entering the food system, has the potential to bring very positive economic benefits, not only to the industry and to consumers, but to society, to the extent that there are also health benefits from the avoidance of contamination. This project will focus on more readily measured consequences of contamination---short-term costs, as opposed to longer term health consequences, which are more speculative and difficult to measure---to estimate the effectiveness of FARAD. Similar analyses for comparable programs will follow in the future.

Progress 12/16/13 to 09/30/18

Outputs
Target Audience:Although the research has reached some of the participants in the project we studied, FARAD, we have fallen short of our outreach goal, for the time being, while awaiting the completion and acceptance for publication of a more technically-oriented report, from which we would then draw outreach publications. This is still work that I plan to complete. 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?Since this is a final report, I don't want to check Nothing to Report, though some of this work is still under development. Although the project has officially ended, my work on it continues and I anticipate publications soon. I would like to orient these toward not only an agricultural economics audience but individuals whose focus is more food-safety regulation and veterinary practice. 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 main goal was to develop a cost-benefit approach to valuing information provided about the consequences of misuse of drugs administered to animals, with the goal of avoiding these chemicals in the human food chain. This goal was met, with a test case that showed a substantial rate of return from a modest investment of public funds.

Publications


    Progress 10/01/16 to 09/30/17

    Outputs
    Target Audience: Nothing Reported 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? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals?I intend to finish the planned publications from this project.

    Impacts
    What was accomplished under these goals? I have continued to work on a report from past work, but for 8 months during the reporting period, I was on administrative leave as chair of the UC Academic Senate. The remaining 4 months were devoted to sabbatical leave.

    Publications


      Progress 10/01/15 to 09/30/16

      Outputs
      Target Audience: Nothing Reported 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? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

      Impacts
      What was accomplished under these goals? I have been serving (on a relocation basis) in an administrative role for the entire review period, so work is on hold until my return to active research.

      Publications

      • Type: Journal Articles Status: Accepted Year Published: 2017 Citation: "Economic Viability of Steam as an Alternative to Pre-plant Soil Fumigation in California Strawberry Production" Rachael E. Goodhue, Yan Xu, James A. Chalfant, and Steven A. Fennimore. HortScience, forthcoming.
      • Type: Journal Articles Status: Published Year Published: 2016 Citation: "International Commodity Trade, Transport Costs, and Product Differentiation" Journal of Commodity Markets. Colin A. Carter, James A. Chalfant, Navin Yavapolkul, and Christine L. Carroll.


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

      Outputs
      Target Audience: Nothing Reported 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?I am working on completing journal and outreach publications from this work. 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 main findings are that the program analyzed, FARAD (Food Animal Residue Avoidance and Detection) provides benefits multiple times greater than the program's costs.

      Publications


        Progress 12/16/13 to 09/30/14

        Outputs
        Target Audience: Nothing Reported 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? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals? The next phase of the project will refine the economic interpretation of the results and disseminate them.

        Impacts
        What was accomplished under these goals? A cost-benefit analysis was conducted concerning information provided by the Food Animal Residue Avoidance Depletion (FARAD) program. A case study examined the value of information concerning the animal drug flunixin meglumine (Banamine), used in the beef/dairy industries. Research and outreach publications are currently in preparation.

        Publications