ANNUAL REPORT OF COOPERATIVE REGIONAL PROJECTS

Supported by Allotments of the Regional Research Fund,
Hatch Act, as Amended August 11, 1955
January 1 to December 31, 1999

Project

Cooperating Agencies and Principal Leaders

Progress of the Work and Principal Accomplishments

Usefulness of Findings

Work Planned for Next Year

Publications Issued or Manuscripts Approved During the Year

Attachments: Theses, Manuscripts, Works in Press, Presentations

I. Project: NE-165 Private Strategies, Public Policies, and Food System Performance

 

II. Cooperating Agencies and Principal Leaders:

*Denotes Station Leader

Station Scientist
Arkansas *William Bailey
California-Berkeley *Jeffrey Perloff
California-Davis Rachael Goodhue
Catherine Morrison
*Richard Sexton
Connecticut (Storrs) *Ronald Cotterill
Kathleen Segerson
Georgia *Stanley Fletcher
Illinois Michael Mazzocco
Steven Sonka
Sarahelen Thompson
*Laurian Unnevehr
Michael Ward
Randall Westgren
Indiana *John Connor
Iowa Frances Antonovitz
David Hennessy
*Helen Jensen
Kansas *John Fox
Kentucky *Steven Vickner
Maryland Rimjhim Aggarwal
*Erik Lichtenberg
Massachusetts *Julie Caswell
Richard Rogers
Michigan Kellie Raper
*Eileen van Ravenswaay
Minnesota Terry Roe
*Rodney Smith
Montana *John Antle
Nebraska *Azzeddine Azzam
Jeffrey Royer
New Hampshire *Alberto Manalo
New Jersey Adesoji Adelaja
*Sanjib Bhuyan
New York (Cornell) Ralph Christy
*Willian Lesser
Edward McLaughlin
William Tomek
Ohio Wen Chern
*Ian Sheldon
Oregon Deana Grobe
Rhode Island James Anderson
*Cathy Wessells
Tennessee *R. Wesley Harrison
Texas *H. Alan Love
Rodolfo Nayga
Virginia *Everett Peterson
Washington *Jill McCluskey
Wisconsin *Robin Douthitt
Brian Gould
Lydia Zepeda
USDA, Economic Research Service (ERS) Phillip Brent
Jean Buzby
Stephen Crutchfield
Mark Denbaly
Paul Freznan
Anthony Gallo
Charles Handy
Phillip Kaufman
Carol Kramer-LeBlanc
Fred Kuchler
James MacDonald
Michael Ollinger
*Tanya Roberts
USDA, Rural Business-Cooperative Service (RBS) Donald Frederick
Thomas Gray
Carolyn Betts Liebrand
K. Charles Ling
Thomas Stafford
*Randall Torgerson
James Wadsworth
Roger Wissman
Other Cooperators
USDA, Agricultural Marketing Service *Kevin Kesecker
Larry Summers
USDA, Packers and Stockyards Administration Gerald Grinnell
Larry Haller
*Warren Preston
USDA, Office of Risk Assessment and Cost Benefit Analysis Ronald Meekhof
U.S. Centers for Disease Control and Prevention Anne Haddix
Mark Messonnier
U.S. Food and Drug Administration Richard Williams, Jr.
U.S. General Accounting Office Mary Kenney
Agriculture Canada James Wheelhouse
John Bamford
Brian Cozzarin
Federal University of Vicosa, Brazil Danilo Aguiar
State University of Campinas, Brazil Elisabete Salay
Farm Foundation Walter Armbruster
Institute Supérieur Agricole de Beauvais, France Loic Sauvée
Catholic University of the Sacred Heart, Italy Giovanni Galizzi
Luciano Venturini
Chiba University, Japan Tomoyoshi Matsuda
Iwate University, Japan Tamotsu Kawamura
Kyota University, Japan Masuru Kagatsume
Shiga Prefecture, Japan Takuji Sakurai
Research Triangle Institute Donald Anderson
Shelia Martin
Mary Muth
Roberta Morales
Gary Zarkin
Uludag University, Turkey Erkan Rehber
London Business School, United Kingdom William Putsis
University of London, United Kingdom Nigel Poole
University of Reading, United Kingdom James Burns
Spencer Henson
Alan Swinbank
Bruce Traill
University of Saskatchewan, Canada Gary Storey

 

III. Progress of the Work and Principal Accomplishments

In 1999, the third year of this NE-165 Project, the members presented two major research conferences in Washington, DC, did extensive work on conferences to be held in year 4 of the Project, and continued to be very productive in completing research. The publication list for the year includes 59 journal articles, 14 book chapters, 20 station and agency publications, and 5 theses and dissertations. A book from the June 1998 conference, titled The Economics of HACCP: Costs and Benefits, will be published early in 2000 by Eagan Press. Project members were very active in professional meetings and other fora across the United States and in Europe during the year, including at the summer meeting of the American Agricultural Economics Association in Nashville.

The Project's premier accomplishments during 1999 were two major conferences. The first was a conference on Consolidation in the Meat Sector held in February in Washington, DC (for details see the NE-165 web site at http://www.umass.edu/ne165/conferences99/cms_program.html). The conference was chaired by MacDonald (USDA/ERS). The conference addressed the sharp structural changes in the sector that have raised concerns about market power, pollution control, and the reliability of traditional price reporting sources. This research conference was designed to encourage evaluation and discussion of research methods, data sources, and results. The 18 papers presented covered: the existence, extent, and effects of market power in livestock and meat industries; causal factors in consolidation, such as scale and scope economies, mergers, changes in product mix, innovation, and changes in contractual relations; vertical coordination, as compared to spot markets for transferring livestock, including summaries of recent developments and implications for the location, for product characteristics, and for price discovery; externalities associated with consolidation, including the effects of larger animal production facilities on pollution; and the effects of local control regulations on consolidation.

The second conference, titled Transitions in Agbiotech: Economics of Strategy and Policy was held in June in Washington, DC (for details see http://www.umass.edu/ne165/conferences99/ta_program.html). It was chaired by Lesser (NY). The conference was organized to provide current information on the economics of agricultural biotechnology, and to foster communication among universities, public agencies and industry. The conference papers were organized around six broad issues: farm-level effects of agbiotech, public sector role in agbiotech, private sector strategies and public acceptance, supply channels and regulation, institutional analysis and intellectual property rights, and trade and development. The conference was sponsored by Farm Foundation and the Food Marketing Policy Center.

A parallel, coordinated conference titled The Shape of the Coming Agricultural Biotechnology Transformation, emphasizing agbiotech issues in Europe and developing countries, was held on June 17-19, 1999 at the University of Rome, Tor Vergata. An internet-based proceedings with 39 chapters covering both biotechnology conferences is being published on AgEcon Search (http://agecon.lib.umn.edu/cgi-bin/pubview.pl?pubid=24), the leading search engine for research in the agricultural, food, and resource economics fields.

Because of the two conferences held in 1999, the Technical Committee did not meet again during the year. The planning committees for the three conferences to be held in 2000 (see below) met regularly during 1999 in person and through conference calls and email. During 1999, the Project continued to focus on improving communication among researchers and between researchers and decision makers. As noted above, our outputs are posted on the NE-165 web site and on AgEcon Search. This work is instantly available to researchers around the world. NE-165's core group at the Food Marketing Policy Center, University of Connecticut, and by subcontract at the University of Massachusetts, played a major role in supporting collaboration and communication. It organized the Project conferences, continued development of the NE-165 web site (http://www.umass.edu/ne165/) and maintained a listserv for the group. The Center continued to purchase and maintain 12 major data sets that are used on a regular basis by NE-165 members. The effectiveness of NE-165 research has been significantly enhanced by the availability of these detailed data sets. The core group also provides support for the NE-165 Working Paper and Reprint Series, which are distributed to over 200 economists, research libraries, and others worldwide. The Food Marketing Policy Center is funded by a CSREES Special Research Grant.

 

IV. Usefulness of Findings

In 1999, NE-165 research was used by policy makers and private parties through their direct discussions and interactions with Project members, access to publications and working papers, and Congressional testimony. The scope of this impact has become increasingly international. Many of NE-165's impacts are discussed on the Project's web site at (http://www.umass.edu/ne165/impacts.html). Under the Project's first objective, strategy and policy analysis, Project researchers participated in major discussions on pricing, vertical coordination, supply chain relationships, and antitrust issues in the U.S. and the European Union. They also prepared analyses of, and in some cases participated in, major antitrust cases in the United States. Project members contributed a broad range of useful research on the operation of food markets in the United States and the world, focusing on pricing, competition, and policy issues. The February 1999 conference on Consolidation in the Meat Sector provided timely information for the policy debate on increasing concentration in this sector.

Under the Project's first objective and its second, providing economic analysis of private and public strategies in order to assess their impact on improvement in food safety and other quality attributes, the Project's conference on Transitions in Agbiotech: Economics of Strategy and Policy was a focal point for policy relevant research. The conference was the first to bring together the quickly growing strands of research related to the many market impacts of agbiotech. The timely posting of this research on the internet has contributed to policy discussion worldwide.

Project members continued to be at the forefront of analyzing the benefits and costs of changes in regulatory policy regarding food quality, particularly food safety. Areas of work included analysis of mandatory requirements by FDA and USDA/FSIS that companies use a Hazard Analysis Critical Control Points (HACCP) approach to food safety assurance and of the impact of mandatory nutrition labeling. Work also continued on analysis of other public and private quality assurance systems. Economic methodology was applied to analyze the operation of markets for quality attributes such as nutrition, pesticide residues, use of inputs produced with biotechnology, and other process attributes such as environmental friendliness. This research is directly used by private companies in their market analysis and by federal and state agencies in their rule-making.

V. Work Planned for Next Year

NE-165 is far along in the planning of three conferences for 2000 (for details see http://www.umass.edu/ne165/upcoming.html). It will be a lead organizer for a conference on The American Consumer in the Changing Food System, co-chaired by Denbaly (USDA/ERS) and MacDonald (USDA/ERS) to be held in May in Washington, DC. The overall objective of the conference is to take stock and improve our understanding of causes and effects of increasing concentration and coordination, particularly stressing the role of final consumer demand in driving these changes in industry organization.

NE-165 will also co-organize two additional conferences to be held in 2000. The first is Global Food Trade and Consumer Demand for Quality, co-organized with the International Agricultural Trade Research Consortium--IATRC, to be held June 26-27, in Montreal, Canada. The conference is co-chaired by Krissoff (USDA/ERS) and Bohman (USDA/ERS). This conference will focus on the confluence of consumer and trade economics, both from a methodological and empirical standpoint. The objective is to examine consumer demand for quality attributes (including food safety) in the context of a global economy and expanding international trade and the role of both private firm strategies and public policy in facilitating consumer choice and free trade.

NE-165 will also co-organize a conference on Valuing the Health Benefits of Food Safety to be held in September in Washington, DC. The conference is co-sponsored by the Food and Drug Administration (FDA), the Department of Agriculture (USDA), the Centers for Disease Control and Prevention (CDC), and the Environmental Protection Agency (EPA). The conference committee is chaired by Nardinelli (U.S. FDA). The conference will discuss economic issues related to valuing food safety risk reduction. It is intended to be a first step in developing a common approach to valuing risk reduction that will facilitate comparing programs across agencies.

 

VI. Publications Issued or Manuscripts Approved During the Year

CALIFORNIA-BERKELEY

Books, Chapters in Books

CALIFORNIA-DAVIS

Journal Articles

CONNECTICUT

Station and Agency Publications

Journal Articles

Books, Chapters in Books

FLORIDA

Station and Agency Publications

Journal Articles

GEORGIA

Journal Articles

ILLINOIS

Journal Articles

Book, Chapter in Books

INDIANA

Station and Agency Publications

Journal Articles

Books, Chapters in Books

IOWA

Journal Articles

Books, Chapters in Books

KANSAS

Journal Articles

KENTUCKY

Station and Agency Publications

Journal Articles

MASSACHUSETTS

Station and Agency Publications

Journal Articles

Books, Chapters in Books

MICHIGAN

Station and Agency Publications

Journal Articles

Book, Chapters in Books

NEBRASKA

Station and Agency Publications

Journal Articles

Books, Chapters in Books

NEW JERSEY

Station and Agency Publications

Journal Articles

NEW YORK

Station and Agency Publications

Journal Articles

Books, Chapters in Books

OHIO

Journal Articles

RHODE ISLAND

Journal Articles

TEXAS

Journal Articles

VIRGINIA

Station and Agency Publications

WISCONSIN

Journal Articles

ECONOMIC RESEARCH SERVICE--USDA

Station and Agency Publications

Book, Chapters in Books

 

VII. Attachments: Theses, Manuscripts, Works in Press, Presentations

CALIFORNIA-BERKELEY

CALIFORNIA-DAVIS

CONNECTICUT

GEORGIA

ILLINOIS

INDIANA

KENTUCKY

MASSACHUSETTS

NEBRASKA

NEW JERSEY

NEW YORK

RHODE ISLAND

TEXAS

WISCONSIN

ECONOMIC RESEARCH SERVICE--USDA

JAPAN

APPROVED:

Julie A. Caswell, Chairperson, Technical Committee
May 24, 2000

Daniel Rossi, Administrative Advisor
May 31, 2000

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