Giovannucci, Daniele and Reardon, Thomas (2000): Understanding Grades and Standards: and how to apply them. Published in: A Guide to Developing Agricultural Markets and Agro-enterprises (2000)
Download (285Kb) | Preview
With the expanding globalization of trade, grades and standards help to set the ‘rules of the game’ and their implications for developing countries are becoming increasingly relevant. While they are clearly important to trade, their formation and utilization is also undergoing a shift from being neutral market lubricants to also being tools of product differentiation. This implies a fundamental shift in the role of standards from just reducing transaction costs of commodity market participants, to serving as strategic tools for market penetration, system coordination, quality and safety assurance, brand complementing, and product niche definition.
The issues of who is forming standards, their privatization, motivations, and the impacts on various market participants and poor people must all inform the strategic responses to the changes in the roles and nature of standards. The definition of their usefulness and value goes beyond the sometimes artificial distinctions between quality and safety to more current distinctions between process and characteristics.
All of these distinctions are predicted to become more relevant than ever as industries and governments, even in the most developed countries, are faced with a new sort of food security issue. In terms of international trade, standards are becoming the hot topic of political economics in much the same way that tariffs were in the 1990s, with profound implications for regional and international agreements, particularly in terms of sanitary and phytosanitary (SPS) and technical barriers to trade(TBT).
|Item Type:||MPRA Paper|
|Original Title:||Understanding Grades and Standards: and how to apply them|
|Keywords:||food quality; food safety; public; private; volontary; international trade; poverty issues; barriers to entry; price incentives; market strategies; WTO; Codex|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance|
|Depositing User:||Daniele Giovannucci|
|Date Deposited:||22. Feb 2009 01:49|
|Last Modified:||11. Feb 2013 10:31|
Blowfield, M. 1999. "Ethical trade: a review of developments and issues, Third World Quarterly, 20 (4) 753-770.
Bockstael, N.E. 1984. "The Welfare Implications fo Minimum Quality Standards," American Journal of Agricultural Economics, November: 466-471
Caswell, J.A., M.E. Bredahl, and N.H. Hooker. 1998. “How quality management metasystems are affecting the food industry,” Review of Agricultural Economics, 20(2): 547-557.
Caswell, J.A. and G.V. Johnson. 1991. “Firm strategic response to food safety and nutrition regulation,” in J.A. Caswell (ed), Economics of Food Safety, New York: Elsevier.
Deodhar, S.Y. and H. Dave. 1999. “Securing HACCP in Agriculture to Build Brand Image: case studies from India,” Paper presented at the International Workshop on Markets, Rights, and Equity: rethinking Food and Agricultural Standards in a Shrinking World,” Michigan State University, 1-3 November.
Diaz, A. 1999. La calidad en el comercio internacional de alimentos. Lima, Peru: PROMPEX (Comision para la promocion de exportaciones).
Dirven, M. 1999. Clustering and declustering effects of globalization: based on case studies of the milk sector in Chile, Colombia, Uruguay, Argentina, and the Netherlands. Paper presented at the AAEA Preconference on Agroindustrialization, Globalization, and International Development, Nashville, August 6-7.
Farina, EMMQ. 1999. Grades and Standards in Food Systems, unpublished, Universidade do Sao Paulo, Brazil.
Farina, EMMQ, and P. Furquim de Azevedo. 1997. ˇMoinho Pacifico: Ajustamentos e Desafios do Livre-Mercado, in Farina, E. (ed.) 1997. Estudos de Caso em Agribusiness, Sao Paulo: Biblioteca Pioneira de Administracao e negocios.
Farina, EMMQ and E.L. Machado. 1999. “Government regulation and business strategies in the Brazilian fresh fruit and vegetable market,” unprocessed, Universidade do Sao Paulo, Brazil.
Fundacion ArgenINTA. 1999. Certificacion de productos, procesos o servicios agroindustriales y de maquinaria agricola: la diferenciacion por la calidad certificada,” Buenos Aires: Fundacion ArgenINTAA and Instituto Argentino de Normalizacion.
Hall, W. et al “Issues and Activities Involved in Agricultural Grades and Standards” USDA Agricultural Marketing Service. March 1999.
Hennessy, D.A. 1995. “Microeconomics of Agricultural Grading: Impacts on the Marketing Channel,” American Journal of Agricultural Economics, 77, November: 980-989.
Jank, M.S., E.MQ. Farina, and V.B. Galan. 1999. O Agribusiness do Leite no Brasil. Sao Paulo: Editora Milkbizz Ltda.
Jones, E. and L.D. Hill. 1994. “Re-engineering marketing policies in food and agriculture: issues and alternatives for grain grading policies,” in D.I. Padberg (ed.), Re-Engineering Marketing Policies for Food and Agriculture, Food and Agricultural Marketing Consortium, FAMC 94-1, Texas A&M.
Jones, R.B., H.A. Freeman, S. Walls, and S.I. Londner. 1999. “Improving the access of small farmers in Africa to global markets through the development of quality standards for pigeonpea,” Paper presented at the International Workshop on Markets, Rights, and Equity: rethinking Food and Agricultural Standards in a Shrinking World,” Micigan State University, 1-3 November.
Milgrom, P.R, and D.C. North. 1985. "The Role of Institutions in the Revival of Trade: the Law Merchant, Private Judges, and the Champagne Fairs." Economics and Politics 2(1): 1-23.
Ngige, J.M.T. and J.M Wagacha. 1999. “Impact of Food and Agricultural Standards in Kenya: A case study,” Paper presented at the International Workshop on Markets, Rights, and Equity: rethinking Food and Agricultural Standards in a Shrinking World,” Michigan State University, 1-3 November.
Northen, J. and S. Henson. 1999. ˇCommunicating credence attributes in the supply chain: the role of trust and effects on firms transactions costs, paper presented at the IAMA World Food and Agribusiness Forum, June 13-14, Florence.
Reardon, T., Codron, J-M, Busch, L., Bingen, J., Harris, C. Forthcoming. “Agrifood Grades and Standards in Less-Developed Countries: Issues of Inclusion and Exclusion,” International Food and Agribusiness Management Review.
Reardon, T. et al. 2001. Global Change in Agrifood Grades and Standards: Agribusiness Strategic Responses in Developing Countries. International Food and Agribusiness Management Review, 2(3).
Saes, MSM and EMMQ Farina. 1999. “Brazilian Coffee Industry Association – ABIC: Joint ventures and new challenges in the face of market restructuring,” unprocessed, Universidade do Sao Paulo, Brazil.
Stephenson, S.M. 1997. Standards and Conformity Assessment as Nontariff Barriers to Trade, Policy Research Working Paper no. 1826, Washington: Development Research Group, The World Bank.
Unnevehr, L.J., M.I. Gomez, and P. Garcia. 1998. “The incidence of producer welfare losses from food safety regulations in the meat industry,” Review of Agricultural Economics, 20(1): 186-201.
Unnevehr, L.J. and H.H. Jensen. 1999. “The economic implications of using HACCP as a food safety regulatory standard,” Food Policy.
Van Ravenswaay, E.O. and J.P. Hoehn. 1996. “The theoretical benefits of food safety policies: a total economic value framework,” American Journal of Agricultural Economics, 78, December: 1291-1296.
Zylberstajn, D. and M.F. Neves. 1997. Illycaffe: Coordenacao em Busca de Qualidade, in Farina, E. (ed.) Estudos de Caso em Agribusiness, Sao Paulo: Biblioteca Pioneira de Administracao e negocios.