Labeling for Food Safety: EU and US Experience

1
Labeling for Food SafetyEU and US Experience

• Tanya Roberts, ERS
• AAEA - Denver, August 2004

2
We need to put our faith in consumer ignorance
Source Harvard Business Review, April 2004
3
Market problems with food safety

• Cannot see pathogens/residues in/on food
• Asymmetric information
• Uncertainty about information
• Risk to consumers health?
• New technology is unfamiliar and suspect
• Role of government?
• Process regulations
• Performance standards for pathogens
• Certification and labeling of products
• Posting test information

4
Federal/industry role in US market

• 1880s EU rejects US hog bellies for trichinae
• 1890 US Federal Meat Inspection for pork exports
• 1940s, American Meat Institute (AMI) experiments
  with industry-managed beef-quality grading
• No acceptance by retail trade
• Led to USDA grading
• 1996, FSIS HACCP regs for meat poultry
• 2003, Beef Industry Food Safety Council (BIFSCO)
  created to establish voluntary Best Practices
  for pathogen control in beef supply chain

5
Asymmetric information, uncertainty, risk, 3rd
party verification

• Slow adoption-new technology
• Pasteurized milk century ago(Sanitary Dairy
  common name)
• Nuclear power 50 years ago
• Irradiated meat/poultry recent
• Adoption of GM food
• Great concern in Europe
• OK with most U.S. consumers

Source Photo Patricia Brown-Cordes "Consumer's
Resistance to Genetically Modified Foods The
Role of Information in an Uncertain Environment"
(2004) Huffman, Rousu, Shogren, Tegene
www.bepress.com/jafio/vol2/iss2/art8
6
USDA approves irradiated meat poultry -
requires labels, 1999

• Display international symbol on package
• Label product treated by irradiation
• Meat poultry ingredients labeled
• Unpackaged meat display symbol and statement at
  point of sale to consumers
• Meat products can make claims
• irradiated for enhanced food safety
• No labeling required for restaurants
• source www.usda.gov/news/releases/1999/12/0486

7
Sweden, 1980s and 2000s

• 1980s, allow Salmonella-free label for poultry
• In 2000s, do not label
• Want to sell Swedish label
• Implicit Salmonella-free
• Consumer concern with Campylobacter in poultry
• Label with photo of producers
• EU membership
• Poultry meat imports have to be free of
  Salmonella
• But processed poultry imports have Salmonella

8
Denmark, 2004

• Danpos label for Salmonella-free poultry
• Sells at premium price
• Producers receive higher price for
  Salmonella-free
• Some farms also test free of Campylobacter and
  label

9
The Netherlands, 2004

• Early February,
• Ahold sold Salmonella-free labeled poultry
• Earned 3 of its turnover
• Late February,
• Tests show Salmonella
• Ahold pulls product
• Plukon Poultry no tests
• Raises questions tests, shelf-life, cold-chain

10
Concluding questions re food safety

• Accuracy of information on food label?
• Pay price premium for food safety?
• Will EU meet goal of directive?
• Salmonella-free broilers, 2008
• Is the future web-based information?
• New USDA residue violators list
• http//www.fsis.usda.gov/regulations/residue_viola
  tors_list/index.asp