Source: OHIO STATE UNIVERSITY submitted to
MANAGING AND MARKETING AGRICULTURAL AND FOOD QUALITY ATTRIBUTES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
TERMINATED
Funding Source
Reporting Frequency
Annual
Accession No.
0189883
Grant No.
(N/A)
Project No.
OHO00211
Proposal No.
(N/A)
Multistate No.
(N/A)
Program Code
(N/A)
Project Start Date
Aug 1, 2001
Project End Date
Sep 30, 2006
Grant Year
(N/A)
Project Director
Hooker, N. H.
Recipient Organization
OHIO STATE UNIVERSITY
1680 MADISON AVENUE
WOOSTER,OH 44691
Performing Department
AGRICULTURE, ENVIRONMENTAL AND DEVELOPMENT ECONOMICS
Non Technical Summary
This project will advance our understanding of the most appropriate manner of managing and marketing agricultural and food quality attributes. Control of these attributes occurs at all stages of agricultural and food supply chains. Public welfare will be served through a better appreciation of the most appropriate level of food quality, particularly food safety, to be made available to consumers though the analysis of the costs, benefits, market performance, and international trade effects of various quality management and marketing systems.
Animal Health Component
20%
Research Effort Categories
Basic
70%
Applied
20%
Developmental
10%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6036110301080%
6036120301020%
Goals / Objectives
Research will include studies of firm, government, and consumer issues: * Surveys and case studies of industry-level, and individual, agribusiness compliance costs for food quality, and particularly food safety, regulations will be conducted. * Tracking the voluntarily adoption of quality management systems and related investments in physical or human capital selected by firms, will be achieved through various methods including reviews of system capabilities, interviews with industry associations, surveys and reviews of secondary data. Particular attention will be paid to the instigators of these systems. * The evolving nature of corporate and supply chain structures to better communicate and coordinate quality goals will be evaluated. This will include analysis of various identity preservation systems and their necessary vertical cooperation mechanisms. * The influence of quality management and marketing practices on industry structure at the production, processing, and retail stages will be assessed. * The use of information technology, in particular E-Business, strategies to communicate and coordinate quality attributes between firms (B2B) and between firms and consumers (B2C) is to be assessed through a series of web page evaluations and business surveys. * The analysis of ex ante and ex post net benefits, and the distribution of costs and benefits, of current and proposed public sector efforts to enhance food quality will require case studies, surveys, and secondary data analysis. * The role of government in food safety recalls, inspections, and certification will predominantly require conceptual and theoretical assessments of new policies. * The comparison of federal versus state-level control of food safety, and use of different mandatory controls will similarly require a mix of conceptual and applied research methodologies. * Assessments of the food safety provisions of international agreements, trade policy instruments, harmonization programs, and other management tools targeting or influencing the quality of agricultural and food products exchanged by trading partners will be continued. These studies will combine trade dispute and international trade flow data to assess the role of economics in selecting, and resolving, such quality-based conflicts. * The international comparison of various food safety and food standard setting regulatory structures with regard to their impacts on trade, public health, food sector performance, and other concerns requires the use of secondary data on foodborne illness, recalls, international trade detentions, and regulatory regimes within models of policy efficiency. * Consumer surveys will be developed to determine key concerns over food quality attributes and potential target markets for enhanced products. * Tracking the adoption of food safety risk mitigation strategies by consumers will require interdisciplinary research tools leading to focus groups, surveys, etc. * International comparisons of consumer concerns and reactions to various food quality management and marketing tools (e.g., labeling) can be achieved through collaborative applications of survey instruments wherever possible.
Project Methods
Dr. Hooker will apply various innovative economics, marketing, and managerial models to assess food safety quality differentiation, international policy and trade. These key developments in the research of the economics of agricultural and food quality attributes require a mix of primary and secondary data, and theoretical disciplinary and interdisciplinary studies. Where primary data is lacking novel techniques to proxy food safety impacts, in particular, will be applied (e.g., the continuing assessment of recalls). Dr. Hooker's extension work also lies within this Hatch topic, including various projects to communicate the threats and opportunities contained within the economics of quality to agribusinesses and other stakeholders. In addition, work with researchers in animal and food science and other units/departments within the interdisciplinary OSU Food Safety Center will permit Dr. Hooker to advance related collaborative research and extension programs. Applied research, education and extension activities in the area of E-Business and Information Technology use by agribusiness (termed E-Agribusiness) will also be developed around the Hatch topic.

Progress 08/01/01 to 09/30/06

Outputs
Work in 2006 to conclude this project considered marketing and management impacts on agricultural and food quality. Food safety, functional food, organic and E-Business journal article and technical reports are reported. Two articles and several abstracts related to this work have been accepted/published in 2007. On-going research continues to explore the role of food quality attributes in marketing and managerial decision making.

Impacts
Innovative quantitative measures of the benefits and costs of food quality management practices are provided in a timely application of the fresh-cut (e.g., bagged salad) industry. Assessments of the nascent E-Grocery market channel highlight the process of quality management and marketing along with IT adoption by consumers and businesses and aid in the regional market selection process. The evolving market response to (qualified) health claims on functional foods and organic marketing regulations are evaluated. Firm adoption of risk management strategies is being evaluated with the goal of enhancing the use of science-based interventions with public benefits.

Publications

  • Ernst, Stan and Neal H. Hooker. 2006. Signaling Quality in an E-Commerce Environment: The Case of an Emerging E-Grocery Sector. Journal of Food Products Marketing. 12(4): pp. 11-25
  • Teratanavat, Ratapol P. and Neal H. Hooker. 2006. Consumer Valuations and Preference Heterogeneity for a Novel Functional Food. Journal of Food Science. 71(7) pp. S533-541
  • Fouayzi, Hassan, Julie A. Caswell and Neal H. Hooker. 2006. Motivations of Fresh-Cut Produce Firms to Implement Quality Management Systems. Review of Agricultural Economics. 28(1): pp. 132-146
  • Wood, Preston and Neal H. Hooker. 2006b. Qualified Health Claims on Dietary Supplements: Emerging Evidence. First Report. AEDE-FR-0017-06. Available online: http://aede.osu.edu/resources/docs/pdf/30T3CECO-ZBU7-LFP4-91PFLS9KOX6 I46SR.pdf 2 pp
  • Atalay, Tekle, Christopher Shanahan and Neal H. Hooker. 2006. Tracking the Organic Content of New Foods. First Report. AEDE-FR-0016-06. Available online: http://aede.osu.edu/resources/docs/pdf/ZFPYDAOI-NG9L-3QDR-EGJ4SHOAY5A B4BCU.pdf 2 pp
  • Wood, Preston and Neal H. Hooker. 2006a. Qualified Health Claims and Functional Foods: Emerging Evidence. First Report. AEDE-FR-0015-06. Available online: http://aede.osu.edu/resources/docs/pdf/Z84RVZCO-Z39Q-K2W7-JTWR8VCNG5U LL6GS.pdf 2 pp
  • Doohan, Doug, Neal H. Hooker, Jeff LeJeune, and Mark Tucker. 2006b. A Risk Analysis Approach to Educating Farmers about Invasive and Recalcitrant Weeds. Weed Science Society of America Abstracts 46:230
  • Ernst, Stan, Leslie Stoel, Neal H. Hooker, and Monica Skolmutch. 2006. IT and E-Commerce Use by Small Food Retailers: Preliminary Findings. Abstract in Journal of Food Distribution Research. 37(1): pp. 183-184


Progress 01/01/05 to 12/31/05

Outputs
Work in 2005 continues to assess marketing and management impacts on agricultural and food quality. Advances in the area of functional foods are reported elsewhere under a funded USDA IFAFS award. Food safety and E-Business applications are discussed here. Significant progress is made in the evaluation of food safety recalls (3 papers) and consumer adoption of E-Grocery services (2 papers and 1 abstract). Several other articles have been submitted and will be included in subsequent reports.

Impacts
Innovative quantitative measures of the benefits and costs of food quality management practices are provided. These include an early assessment of a novel regulatory regime - retailer disclosure during food recalls. Additional implications of poor crisis and risk management efforts, of optimal regulatory design, and performance of recall efforts guide further policy development and redesign. The assessments of the nascent E-Grocery market channel highlight the process of IT adoption by consumers and businesses and aid in the regional market selection process.

Publications

  • Shang, Wenjing and Neal H. Hooker. 2005. Improving Recall Crisis Management: Should Retailer Information be Disclosed? Journal of Public Affairs. 5, August-November: pp. 329-341
  • Rha, Jong-Youn, Neal H. Hooker and Richard Widdows. 2005. Customer Relationship Management for the E-Grocery Sector. International Journal of Human Ecology. 6(1), June: pp. 41-59
  • Teratanavat, Ratapol, Victoria Salin and Neal H. Hooker. 2005. Recall Event Timing: Measures of Managerial Performance in U.S. Meat and Poultry Plants. Agribusiness: An International Journal. 21(3): pp. 351-373
  • Berning, Casie, Stan Ernst and Neal H. Hooker. 2005. Are E-Grocers Serving the Right Markets? Choices. http://www.choicesmagazine.org/ 20(1), Spring: pp. 77-79
  • Hooker, Neal H., Ratapol Teratanavat and Victoria Salin. 2005. Crisis Management Effectiveness Indicators for U.S. Meat and Poultry Recalls. Food Policy. 30(1): pp. 63-80
  • Berning, Casie, Neal H. Hooker and Stan Ernst. 2005. Where are E-Grocers, and Why? Abstract in Journal of Food Distribution Research. 36(1): p. 19


Progress 01/01/04 to 12/31/04

Outputs
Work in 2004 continues to assess marketing and management impacts on agricultural and food quality. Advances in the area of functional foods are reported elsewhere under a funded USDA IFAFS award. Food safety and E-Business applications are discussed here. Significant progress is made in the evaluation of food safety recalls. Theoretical and empirical pieces are presented below. Survey and laboratory work to evaluate consumer understanding of product labeling changes provided by the National Organic Program has been extended. A journal article reports empirical comparisons of the performance of E-Grocery websites, an abstract compares the geographical locations of these services. Similar studies are considering the impact of the Internet on rural retailers in Ohio. Several other articles have been submitted and will be included in subsequent reports.

Impacts
Innovative quantitative measures of the benefits and costs of food safety management practices are provided. These include a presentation of efficiency changes as a broader dimension of regulatory costs. Implications of poor crisis and risk management efforts, of optimal regulatory design, and performance of recall efforts guide policy development.

Publications

  • Lim, Heejin, Julia Heilig, Stan Ernst, Richard Widdows, and Neal H. Hooker. 2004. Tracking the Evolution of E-Grocers: A Quantitative Assessment. Journal of Food Distribution Research. 35(2): pp. 66-82
  • Teratanavat, Ratapol and Neal H. Hooker. 2004a. Understanding the Characteristics of U.S. Meat and Poultry Recalls: 1994-2002. Food Control. 15(5): pp. 359-367
  • Berning, Casie, Neal H. Hooker and Stan Ernst. 2004b. Where are E-Grocers, and Why? Abstract forthcoming in Journal of Food Distribution Research
  • Cho, Bo-Hyun and Neal H. Hooker. 2004b. The Opportunity Cost of Food Safety Regulation - An Output Directional Distance Function Approach. Working paper AEDE-WP-0038-04. Available online: http://aede.osu.edu/resources/docs/pdf/G600LKGM-43CE-4MJI-3HRPG33ZNTA 4UBDS.pdf 21 pp
  • Cho, Bo-Hyun and Neal H. Hooker. 2004a. Selection of Food Safety Standards. Working paper AEDE-WP-0036-04. Available online: http://aede.osu.edu/resources/docs/pdf/K6ZPBTMU-EDBA-AN2Y-GOMD6SXL0R8 N8PHM.pdf 18 pp
  • Berning, Casie, Leslie Stoel, Stan Ernst and Neal H. Hooker. 2004. How are Rural Retailers in Ohio using the Internet? AEDE-RP-0047-04. Available online: http://aede.osu.edu/resources/docs/pdf/F8003B2W-A3QL-Y5OF-ML5870UE6I0 QJNBL.pdf 12 pp
  • Hooker, Neal H., Ratapol P. Teratanavat, and Victoria Salin. 2004. Timing of Meat and Poultry Recalls: Measuring Managerial Performance. First Report. AEDE-FR-0014-04. Available online: http://aede.osu.edu/resources/docs/pdf/SWKGB0SR-X0G3-Q2FF-BX18ST4HQE2 M9YON.pdf 2 pp
  • Hooker, Neal H., Batte, Marvin T. and Jeremy Beaverson. 2004. A Consumer Survey of Specialty Food Shoppers: Understanding of the National Organic Program and Willingness to Pay. AEDE-RP-0044-04. Available online: http://aede.osu.edu/resources/docs/pdf/H5X5IUNP-AXQ3-F4JS-ZMWPL76BC05 NST84.pdf 10 pp
  • Berning, Casie, Stan Ernst and Neal H. Hooker. 2004a. E-Grocery: Who is the Ideal Consumer? AEDE-RP-0043-04. Available online: http://aede.osu.edu/resources/docs/pdf/YHHVZNO8-ME32-7O5S-FOSWBRE94DL LMVY4.pdf 14 pp
  • E-Agribusiness Working Group. 2004. Assessing E-Grocers: Three Years of Evolution. AEDE-RP-0042-04. Available online: http://aede.osu.edu/resources/docs/pdf/WUJ7JH93-NR6G-J4FA-X6PGK3VJHIE I4YMC.pdf 4 pp


Progress 01/01/03 to 12/31/03

Outputs
Work in 2003 continues to assess marketing and management impacts on agricultural and food quality. Advances in the area of functional foods are reported elsewhere under a funded USDA IFAFS award. Food safety and E-Business applications are discussed here. Hooker played a role on a NAS/IOM report evaluating performance standards, with an-going collaboration with ERS-USDA extending this research. Survey and laboratory work to evaluate consumer understanding of product labeling changes provided by the National Organic Program has been initiated (reports presented below). A working paper taken from a recent dissertation evaluating E-Business trends is under revision for submission to a journal. Several other articles have been submitted and will be included in subsequent reports.

Impacts
Innovative quantitative measures of food safety impacts inform industry of indirect costs of insufficient management practices and provide regulators with evidence of ex post compliance burdens of a broader dimension than forecasted ex ante. Implications of poor crisis and risk management efforts, of optimal regulatory design, and performance of recall efforts guide policy development.

Publications

  • Batte, Marvin T., Jeremy Beaverson and Neal H. Hooker. 2003. Organic Food Labels: A Customer Intercept Survey of Central Ohio Food Shoppers. AEDE-RP-0038-03. Available online: http://aede.osu.edu/resources/docs/pdf/DL17AFRV-ZRD8-OWNK-R8ETVPJMEKV M6E64.pdf 11 pp
  • Hooker, Neal H., Jeremy Beaverson, and Marvin T. Batte. 2003. A Year with the National Organic Program: What has Changed? First Report AEDE-FR-0013. Available online: http://aede.osu.edu/resources/docs/pdf/QYABMCT1-9VNX-GW1A-BAFBW09OXPE KM1K2.pdf 2 pp
  • Batte, Marvin T. and Neal H. Hooker. 2003. The National Organic Program: Implications for Ohio Producers. Farm Management Update. Spring. p. 4
  • Rha, Jong-Youn, Neal H. Hooker and Richard Widdows. 2003a. Who Knows Best? Optimal Customer Relationship Management Strategies for the E-Grocery Sector. Working paper AEDE-WP-0030-03. Available online: http://aede.osu.edu/resources/docs/pdf/83F1E5AF-3C56-4849-81CC20303B7 B34BC.pdf 28 pp
  • Committee Reports Institute of Medicine / National Research Council - National Academies of Sciences. 2003. Scientific Criteria to Ensure Safe Food. The National Academies Press, Washington, D.C. Also available online: http://www.nap.edu/catalog/10690.html


Progress 01/01/02 to 12/31/02

Outputs
Work in 2002 continues to assess marketing and management impacts on agricultural and food quality. Advances in the area of functional foods are reported elsewhere under a funded USDA IFAFS award. Food safety and E-Business applications are discussed here. A better understanding of the scale impacts of HACCP on compliance costs and partial exit (reduction in range of products offered - Hooker, Nayga and Siebert) and stock market reaction to recalls (Wang, et al.) has been achieved. Two papers report progress in the E-Business area, one focused on the potential for the Internet to serve consumers best interests in gaining countervailing power balancing sellers positions (Rha, et al.). The second paper evaluates key policy issues for B2B exchanges (Hooker, et al.) stressing the role of quality attributes in applying enhanced supply chain management techniques. A case study of E-Grocers is continuing involving collaborators at other universities and key industry players. This case uses consumer and business surveys and evaluations of industry-leading web pages. Work in progress to be published in the near future includes expanded statistical and econometric evaluations of meat and poultry recall data; explorations of credence attributes (food safety) within game theoretic models of firm-government-consumer interactions and directional distance function models; and surveys of food safety compliance costs for voluntary and mandatory quality management systems. Grant proposals submitted in 2002 would expand the scope of the E-Business research to evaluate smaller-sized agribusinesses marketing specialty food items online; extend the recall assessments to include foods regulated by FDA; and conduct extensive consumer and producer evaluations of the new USDA organic standard and labeling program.

Impacts
The nascent E-Agribusiness market has undergone little quantitative academic research. Research conducted under this project as part of the broader E-Agribusiness Working Group (see http://aede.osu.edu/programs/e-agbiz/) has provided guidance to industry leaders and policy makers in determining appropriate quality marketing and management practices. Innovative quantitative measures of food safety impacts inform industry of indirect costs of insufficient management practices and provide regulators with evidence of ex post compliance burdens of a broader dimension than forecasted ex ante.

Publications

  • Rha, Jong-Youn, Richard Widdows, Neal H. Hooker, and Catherine P. Montalto. 2002. E-Consumerism as a Tool for Empowerment. Journal of Consumer Education. 19/20: pp. 61-69.
  • Wang, Zijun, Victoria Salin, Neal H. Hooker, and David Leatham. 2002. Stock Market Reaction to Food Recalls: A GARCH Application. Applied Economics Letters. 9(15): pp. 979-987
  • Hooker, Neal H., Jong-Youn Rha, Stan Ernst and Richard Widdows. 2002. Policy Concerns for Online B2B Exchanges. Journal of Food Distribution Research. 33(1): pp. 1-6.
  • Hooker, Neal H., Rodolfo M. Nayga Jr, and John W. Siebert. 2002. On the Impact of HACCP on Costs and Product Exit. Journal of Agricultural and Applied Economics. 34(1): pp. 165-174.


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

Outputs
The work in 2001 conducted within the scope of this Hatch project has included three main areas; E-Agribusiness, food safety, and functional foods. The E-Agribusiness work considers how to effectively communicate agricultural and food quality attributes online either to businesses or consumers. Extensive activity has centered on the techniques applied by E-Grocers in the US (see Rha, et al., ref). An E-Commerce assessment tool has been developed and applied to firms within the online food market on a quarterly basis. Grant proposals have been prepared to extend this preliminary research to better assess smaller agribusiness research needs. General presentations and papers describing the developing market, a comparison of US and UK applications, a discussion of the role of E-Consumerism, and the policy environment have been prepared. The food safety economics research conducted within this project has been varied, including the competition of a book (Hooker and Murano), a special journal issue (Hooker and Henson), a journal article (Salin and Hooker), a conference presentation/proceedings chapter (Hooker), and a chapter (Hooker and Roe). The most recent activity has focused on the inclusion of food safety controls within the 2002 Farm Bill. A conference presentation continues to be updated tracking Congressional debates at various levels. This work develops from the overall Hatch project applying general lessons of important consumer, agribusiness, and government responsibilities and responses to the management and marketing of food quality attributes through the enhanced tracking of production and processing practices. Several articles resulting from this general research are currently under review, including a report of firm survey data describing HACCP costs and benefits, extensions to our methodology valuing food safety recalls, and a discussion of the role of economists within interdisciplinary food safety training programs. This work has led to a better understanding of how to value private incentives to supply safer food. An international comparison of the efficacy of single food safety agencies and the role of agricultural and food quality measures within the WTO dispute resolution processes is underway. A USDA National Needs program proposal to fund 3 Ph.D. students within this area of food safety economics was prepared this year and is currently under review. This program will accelerate the work to be conducted under this Hatch project. The newest area within this Hatch proposal is the analysis of marketing and regulatory concerns for functional foods. As part of an interdisciplinary group, Hooker will assess the use of multiple health claims for individual products, refining consumer valuation techniques previously applied to food safety and traditional nutritional problems. An example product will be tracked from "crop-to-clinic-to-consumer" as a model for the future marketability of foods with enhanced nutritional attributes over and above those traditionally seen. This will require a range of research techniques and the close cooperation of the interdisciplinary team.

Impacts
The details of E-Business applications for agribusinesses when signaling quality attributes has allowed successful strategies to be identified. Public and private food safety innovations, particularly the recent incorporation of controls within the 2002 Farm Bill, are being assessed. New work considering functional foods will recommend effective marketing strategies.

Publications

  • Hooker, Neal H. and Brian Roe. 2001. The Role of Food Safety Systems in Cattle Marketing. Forthcoming in Managing for Today's Cattle Market and Beyond. 2nd Edition. 7 pp.
  • Rha, Jong-Youn, Julia Heilig, Stan Ernst, Richard Widdows, Curtis Haugtvedt, and Neal H. Hooker. 2001. Product and Firm Quality Signaling in E-Business: Interstices for Smaller Businesses. Forthcoming in special E-Commerce issue of Journal of Business and Entrepreneurship. 25 pp.
  • Salin, Victoria and Neal H. Hooker. 2001. Stock Market Reaction to Food Recalls. Review of Agricultural Economics. 23(1): pp. 33-46.
  • Hooker, Neal H. 2001e. Food Safety in the 2002 Farm Bill. Forthcoming in The 2002 Farm Bill: Issues and Alternatives. Conference proceedings. 24 pp.
  • Hooker, Neal H. and Spencer Henson. (Eds.) 2001. Forthcoming special issue of the International Food and Agribusiness Management Review. Private Sector Management of Food Safety. 4(1).
  • Hooker, Neal H. and Elsa A. Murano. (Eds.) 2001. Interdisciplinary Food Safety Research. CRC Press, Boca Raton, FL.
  • Henson, Spencer and Neal H. Hooker. 2001. Private Sector Management of Food Safety: Public Regulation and the Role of Private Controls. Forthcoming in special issue of International Food and Agribusiness Management Review. Private Sector Management of Food Safety. 4(1): 22 pp.