Options
Title
Optimal provision of food quality attributes
Fields of Research (FoR) 2008:
Author(s)
Publication Date
2007
Socio-Economic Objective (SEO) 2008
Abstract
The paper examines the incentives and mechanisms for provision of food quality attributes within the food marketing chain. A mathematical program is used to model two objective specifications: one maximising whole-chain profits and the other maximising profits at the single stage of the chain at which provision occurs. Scenarios presented include a range of technological conditions at different stages of the food chain and the allocation of retail price premia amongst stages. Indicative Danish food industry data are used. Results list provision outcomes, profitability and its distribution amongst chain participants, and LaGrangian multiplier values. The different forms of scope economies at different stages of the chain have important implications for provision: particularly in the single stage model. Shares of price premia have little impact on provision in the whole chain model, but are very influential in the single stage model. Commercial and policy applications of the research include its focus on within-chain compensation, and the identification of appropriate targets and levels for subsidies.
Publication Type
Journal Article
Source of Publication
Journal on Chain and Network Science, 7(1), p. 21-33
Publisher
Wageningen Academic Publishers
Place of Publication
Netherlands
ISSN
1875-0931
1569-1829
Peer Reviewed
Yes
HERDC Category Description
Peer Reviewed
Yes
Statistics to Oct 2018:
Visitors: 106<br />Views: 99<br />Downloads: 0
Permanent link to this record