Liability and traceability in agri-food supply chains

Abstract

Improving food safety, reducing the impacts of food safety problems, and providing a means to verify food quality attributes are driving the development of traceability initiatives in agri-food systems. Numerous and varied examples exist, from regulatory traceability initiatives, to industry-wide livestock traceability programmes, to individual supply-chain systems that combine traceability with quality verification. This paper explores the economic functions of traceability, examining the extent to which traceability can bolster liability incentives for firms to practice due diligence. The extent to which consumers value traceability per se, versus verifiable quality assurances delivered through traceability, is evaluated empirically using survey and experimental auction data.