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Minutes |
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Participants |
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Agenda |
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Report of CSREES Research Activities |
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Amendment (October 27, 1997) |
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Minutes |
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Participants |
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Agenda |
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Report of CSREES Research Activities |
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Amendment (October 27, 1997) |
Chairperson Julie Caswell opened the meeting at 1:05 p.m. on Monday, June 2 (see attached meeting agenda and list of those attending). After introductions, Julie turned the first session over to Laurian Unnevehr (Illinois) as moderator of HACCP: Benefit/Cost and Structural Impact Analysis: Discussion of Early Research Approaches and Results. Laurian pointed out that the global question regarding HACCP is identification of the most cost effective points of intervention. Sheila Martin from the Research Triangle Institute presented "Cost Analysis of HACCP Regulations for Foods under FDA Jurisdiction". The purpose of the work is to give FDA as much information as possible to answer "if/then" questions regarding compliance and regulation. Julie Caswell (UMass) then presented "An Economic Analysis of HACCP in the Seafood Industry" which attempts to measure the cost of HACCP adoption by breaded finfish producers in New England. Next, Sean Fox (Kansas State) presented "Benefits and Costs of Pre- and Post-Harvest HACCP for the Pork Industry". Jim MacDonald (ERS) followed with "A Study of Consolidation in Slaughter Industries." Laurian presented an overview of her research project "Food Safety in Pork: The Economic Impact of Reducing Transportation Stress" followed by an overview of a joint project with Helen Jensen (Iowa State), "The Impact of HACCP on Food Safety in the Pork Industry." The central theme of discussions that followed all of these presentations was the issue of measuring and assigning costs to HACCP. Several issues make the measurement of "HACCP costs" difficult, including data confidentiality issues, labor union issues, and plant scale/size differences. (One page summaries of the presentations will be posted on our website (http://www.umass.edu/NE165/) under the Virtual NE-165 button.)
The first session ended with a discussion of plans for the 1998 HACCP Conference. Both Laurian and Rich Williams (FDA) presented possible conference outlines with suggestions for questions to be addressed, possible keynote speakers, etc. Julie gave an overview of general plans for the conference. The most likely date is June 1998 with the call for invited/selected papers going out in early fall 1997. Laurian Unnevehr and Rich Williams are co-chairs for the conference. Discussion ensued as to content and scope. It was decided that the discussion should continue on Tuesday during the wrap-up session. Laurian volunteered to collect suggestions for "mini-sessions" to be reviewed during the wrap-up session. Discussion then turned to the strategy conference originally planned for mid-98. The plans are currently on hold until more concrete ideas surface. Possible sources/links for ideas are Jim MacDonald, Ron Cotterill, and Ian Sheldon. Possible conference topics suggested were the impact of agricultural industrialization on structure or a value-added emphasis.
Business Meeting
Julie opened the afternoon's second session, a business meeting, at 4:05 p.m. Introductions were followed by approval of the last meeting's minutes without changes. Julie invited comments from Susan Welsh, our co-advisor from CSREES. Susan reported on CSREES research activities including organizational issues, legislative and funding issues, NRI grants program, and science and education resources development (see report attached). She noted that the nomination of Dr. Catherine Woteki as Undersecretary for Food Safety should be positive for this group, as she has a heavy research background. Susan also noted that the initial dollar amount for research from Fund for Rural America (FRA) will likely be cut $20 million this week with those dollars going to disaster relief. Susan also pointed out that web pages for regional research projects, including NE-165, can be reached through the CSREES/USDA homepage. Susan introduced Don West who then addressed issues regarding the national initiative, "Managing Change in Agriculture" (see p. 14 of Welsh & Mathias' report). The first two areas---risk management and marketing---have application to our group.
Dan Rossi, Administrative Advisor to the group, discussed the reauthorization of Title VIII. Some of the issues being raised are: (1) the necessity and role of the agricultural extension system and its future direction, (2) formula versus competitive funds, (3) the relationship between the land grant system and ARS, (4) elimination of facilities funding, and (5) more emphasis on state and local input and review of funding. Overall, discretionary funds may take a hit over the next 3 to 4 years. On a positive note, he added that there is a possibility that FRA could continue. Dan commented that the NE-165 project has made good progress, especially in food safety, and provides a good example of a successful project. The webpage section on impacts is especially useful because it shows what taxpayers get for their dollar. Sally Thompson added that Illinois has been successful in obtaining increased state funding by showing a united front of researchers and users and by showing specific impacts on producers and consumers.
Julie then turned the discussion to the NE-165 website. Parts of the site still need development. Specifically, the "virtual NE-165" section could be used to post such things as bibliographies and questionnaires and to generally facilitate sharing between members. Tanya suggested that members post notice by e-mail when something new is added to this section. Julie stated that we need more examples for the "Project Impacts" section and encouraged people to submit impacts of their research projects. Discussion followed about how to write CRIS reports targeted toward a broader audience such as laymen and policy makers. It was also suggested that the color combination on the homepage be changed. Julie pointed out that all NE-165 publications since 1996 are now on AgEcon Search (http://agecon.lib.umn.edu/). The Proceedings from the June 1996 conference Strategy and Policy in the Food System: Emerging Issues will be on soon. Valuing Food Safety and Nutrition has been declared out of print by Westview Press and will also be placed on AgEcon Search.
Sally Thompson, chair of the Food and Agricultural Marketing Consortium (FAMC), reported on the activities of that group. The group is approximately 5 years old and is modeled after the trade consortium. It is used as a vehicle to identify problems and cutting edge research in agricultural marketing and make that research more useful to end users. FAMC has a January 1998 conference on "Public and Private Roles in Promoting Exports of U.S. Agricultural Products" and FAMC is collaborating with ERS to commission a set of papers on consumer issues for January 1999. The draft of the call for papers was circulated. Sally pointed out that this group's interests fit well with those issues considered in the call for papers.
Julie then opened group discussion on whether or not a fall meeting is needed. The advantage of meeting in the fall is that the positive momentum in the food safety group could continue. A fall meeting could also provide an opportunity for members on the strategy side to discuss collaboration. However, travel budgets are tight and many members can only attend one meeting a year. Stan Fletcher (Georgia) questioned the possibility of holding a strategy meeting simultaneously with the food safety conference in June 1998. This would mean the next full project meeting would be in Fall 1998. Concern was voiced by several members that a delay of that length could impede collaboration on the strategy side of the project. It was decided that the issue of the Fall meeting should be discussed on the NE-165 list server to get input from members unable to attend this meeting.
Julie informed the group that Catherine Durham (Indiana) has resigned her position on the Executive Committee because of her move from Purdue to Oregon State. The Executive Committee decided to hold the election for her replacement in the fall when our usual elections are conducted. The group agreed.
The meeting ended with a discussion of NE-165 activities at the international meetings in Sacramento and the AAEA meetings in Toronto. Julie Caswell, Tanya Roberts, and Laurian Unnevehr will hold a discussion group on food safety in Sacramento. The three sessions will include (1) meat trade and safety, (2) labeling, and (3) an open session. The business meeting adjourned at 5:10 p.m.
The Big Picture: Funding of Projects in the NE-165 Research Areas
The second day of the meeting opened at 8:40 a.m. with a presentation by Julie Caswell. She presented an overview of current research activities and funding sources. Since 1994, NE-165 members reported $1.5 million in National Research Initiative (NRI) grants, $3.3 million in Fund for Rural America (FRA) proposals, and $2.6 million secured from other sources. Congratulations to Eileen van Ravenswaay who convinced the Michigan State Experiment Station to fund her participation in NE-165! Several members questioned the philosophy behind charging full overhead on the FRA grants. Dan Rossi added that there is pressure to do that and that NRI will likely move toward charging full overhead in the next few years. He stated that, given concerns over institutional differences in the proportion of overhead charged, it has been suggested by some that FRA and other proposals be judged on direct costs only in an effort to level the playing field. Susan Welsh pointed out web addresses and deadlines for other funding opportunities (see Welsh and Mathias' report) can be found via the USDA web page. Dan Rossi added that the nature of FRA is to support cross-discipline and cross-institutional research for which this group is well-positioned. There was discussion of how the President's food safety initiative will affect FRA awards and other funding in this area. The USDA-REE Advisory Board will decide priorities and those priorities will be passed down to the panels which award the funds. Randall Torgerson (Rural Business-Cooperative Service) briefly discussed the FRA funds ($1.7 million) directed specifically at developing new value-added cooperatives. The Rural Cooperative and Development Grant Program also has $1.7 million targeted at developing cooperatives. The goals of these programs are to encourage economic development and jobs in rural areas where commodities are grown. The session ended with the agreement that the number of grants and magnitude of outside funding is an indication of the success of NE-165.
Focus on ERS Research Projects
Several researchers from ERS presented overviews of current research projects. First, Steve Crutchfield (ERS) gave an overview of "Food Safety Research at ERS.". The visibility of this area is increasing with the President's initiative on food safety. Discussion following this presentation included the possibility of writing a joint National Needs proposal with ERS and universities to fund Ph.D. dissertations in this area. Fred Kuchler (ERS) then presented "The Value of a Statistical Life." Discussion included the merits and disadvantages of different approaches to this problem. Mark Messionnier (Centers for Disease Control and Prevention) followed with an "Overview of the 1996 Foodborne Cyclospora Outbreak." The ensuing discussion included the possibility of a joint symposium with CDC, ERS, FDA, and NE-165. Tanya Roberts (ERS) then gave an "Overview of Risk Modeling Activities Relevant to NE-165 Work." She also distributed calls for papers on Epidemiology and Economics and for the E. Coli Conference, along with copies of USDA's FSIS/CDC/FDA Sentinel Site Study report. Discussion included separating variability from uncertainty. There was also discussion of whether other groups are doing benefits estimation work. FSIS has no economist, but the Society for Risk Analysis (SRA) is now doing some "economics of food safety" work and there may be room for joint work. The group then broke for lunch.
Research Focus: Voluntary and Mandatory Standards, Certification, and Labeling
The meeting reconvened at 1:00. Julie opened the session by pointing out that food quality issues are connected to structure and performance and that NE-165 has become very active in this research area. Spencer Henson (University of Reading-U.K.) presented "Research on Voluntary Accreditation/Certification" which included an overview of how this system has developed in the U.K. and how "due diligence" has played a crucial role. Carolyn Dimitri (University of Maryland) then presented her research on how contracts evolved in the U.S. fruits and vegetables markets. Her presentation included a discussion of how marketing institutions developed in this area, how these institutions work, and whether the institutions result in higher quality fruits and vegetables for the consumer. It was noted that in the U.S., fruits and vegetables are traded through public agencies (quality certification) but that in the U.K., quality standards are imposed by private companies. Laurian Unnevehr followed with a presentation on "Health Claims." Her study is an attempt to determine consumers' willingness to pay for soy-based bakery products when consumers are informed about the health benefits of soy protein. This is done through an experimental auctions for specific products. The primary finding is that the relative value of the soy product increases after the introduction of health benefit information. Julie Caswell then presented "Standards, Certification, and Labeling Research at UMass." Her current research addresses manufacturers' response to the Nutritional Labeling and Education Act (NLEA) by analyzing pre-NLEA and post-NLEA data on several products. (One page summaries of the presentations will be posted on the NE-165 website under the Virtual NE-165 button.)
Wrap-Up
After a short break, the group reconvened at 3:00 to wrap up the meeting and finalize plans. There was discussion of a possible NE-165 conference in the U.K., perhaps in 2000. Potential topics include due diligence as a way of regulating food safety, as well as the implications for quality standards and for trade. Economic incentives and liability created by due diligence were also discussed. Tanya suggested that this conference might be scheduled in conjunction with a Society for Risk Analysis meeting. She also suggested that we look for links at the Agricultural Trade Consortium and/or OECD. There was discussion that this idea might overlap with the tentatively planned 1999 conference on Standards, Certification, and Labeling. However, one conference could be from the U.S. perspective while the other could be from the E.U. perspective, but there will need to be a distinguishing feature (i.e. heavier liability emphasis in the second or valuing brand capital).
Jim MacDonald then presented some conference ideas for the strategy side of NE-165. His idea was to do a conference with wide-ranging issues, but in a specific sector---for example, The Economics of Consolidation in the Meat Industry. The 2 major themes could be (1) private incentives for consolidation (this would include scale issues and externality issues) and (2) changes in markets/vertical coordination (to include developing contracts and different regulatory structures in states). Possible co-sponsors were discussed. Concern was voiced that this seemed very producer/supply oriented while NE-165 is very consumer-oriented. Julie pointed out that there is much current work within the project regarding the supply side and oligopsony questions and that these ultimately affect the consumer. For example, consolidation incentives could include retail price effects. Another approach is to consider retail prices more in terms of price linkages back to contracts and other coordination issues. The suggested time frame for this conference is January 1999.
On the subject of the HACCP conference, Laurian agreed to write up the bullets developed at this meeting and circulate those by e-mail for comment. The proposals for papers and sessions should go out in early fall. Suggested dates were June 8-9, 1998, June 11-12, 1998, and 15-16, 1998. These will also be circulated for comment via e-mail. Julie reminded the group that the Executive Committee election for 3 members will be held in the fall, including the election for Cathy Durham's replacement. She will circulate an e-mail regarding the desirability of a fall meeting. Suggested locations were Washington, D.C., Providence, RI, or Las Vegas, NV. The fall meeting would include updates on food safety research and perhaps a strategy day with Packers and Stockyards Administration. The meeting was adjourned at 4:00 p.m., June 3, 1997.
Respectfully Submitted,
Kellie Raper, Secretary, NE-165
NE-165 Meeting, Washington D.C.
June 2-3, 1997
Meeting Participants:
Jean Buzby ERS
Julie Caswell University of Massachusetts
Steve Crutchfield ERS
Mark Denbaly ERS
Najinder Dhaliwal Agriculture and Agri-Food Canada
Carolyn Dimitri University of Maryland
Stan Fletcher University of Georgia
Sean Fox Kansas State University
Gerry Grinnell GIPSA
Charles Handy ERS
Spencer Henson University of Reading-U.K.
Helen Jensen Iowa State University
Fred Kuchler ERS
Jim MacDonald ERS
Sheila Martin RTI
Mark Messonnier CDC
Everett B. Peterson Virginia Tech. University
Warren Preston GIPSA
Katherine Ralston ERS
Kellie Raper University of Massachusetts
Tanya Roberts ERS
Daniel Rossi (Administrative Advisor)
Rutgers University
Sally Thompson University of Illinois
Randy Torgerson RBCDS-CS
Laurian Unnevehr University of Illinois
Susan Welsh CSREES
Don West CSREES
Richard Williams FDA
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NE-165: Private Strategies, Public Policies,
and Food System Performance
Agenda
June 2-3, 1997
Economic Research Service, 1301 New York Avenue NW
Washington, D.C.
Monday, June 2
9:30-11:30AM Executive Committee Meeting
1:00-1:15PM Opening Session of Full Committee Meeting
Introduction of New Members
Meeting Objectives
1:15-3:30PM HACCP Benefit/Cost and Structural Impact
Analysis: Discussion of Early Research
Approaches and Results
Laurian Unnevehr, Moderator
Presenters:
Sheila Martin (RTI), Seafood HACCP
Julie Caswell (UMass), Seafood HACCP
Helen Jensen (Iowa State), Pork Industry HACCP
Sean Fox (Kansas State), Pork Industry HACCP
Laurian Unnevehr (U. of Illinois), Farm Level
and Meat Processor HACCP
Jim MacDonald/Mike Ollinger (ERS),
Meat Industry HACCP
Comments led by:
Steve Crutchfield (ERS) and Rich Williams (FDA)
Planning for HACCP Conference in 1998:
Scope of Conference (e.g, Benefits Estimation,
Economic Incentives for New Technology, Legal
Liability), Structure, Timing
3:30-4:00PM Break
4:00-5:00PM NE-165 Business Meeting: Reports and Discussion
Approval of Minutes of Last Meeting
Comments from Administrative Advisor and
CSREES Representative
NE-165 Website and Publication Series
Activities of the Food and Agricultural
Marketing Consortium, Sally Thompson
Advance Planning for Future Meetings
NE-165 Activities at Toronto and Sacramento
Meetings
Tuesday, June 3
8:30-9:45AM The Big Picture: Funding of Projects in the
NE-165 Research Areas
How Much Funding Is There and Where Is It?
What Is the Pattern of How We Are Applying for
(and Receiving):
National Research Initiative Grants
Fund for Rural America Grants
Grants from Other Sources
Impact of Secretary of Agriculture's Initiative
on Food Safety
9:45-10:15AM Break
10:15-11:45PM Focus on ERS Research Projects
Presenters:
Steve Crutchfield, Review of Research
Activities of Food Safety Branch of the
Economic Research Service and How They Relate
to the Secretary of Agriculture's Initiative
on Food Safety
Fred Kuchler and Mark Messonier,
Valuation Issues
Tanya Roberts, Overview of Risk Modeling
Activities Relevant to NE-165 Work
Note: A second meeting room is available for
members who wish to meet around other
research topics.
11:45-1:00PM Lunch on Your Own
1:00-2:45PM Research Focus: Voluntary and Mandatory
Standards, Certification, and Labeling
Julie Caswell, Moderator
Presenters:
Spencer Henson (U. of Reading), Voluntary
Standards and Certification
Carolyn Dimitri (U. of Maryland), Fruit and
Vegetable Quality
Laurian Unnevehr (U. of Illinois),
Health Claims
Julie Caswell (UMass), Nutrition and
Process Attributes
Discussion: Plans for Possible NE-165
Conference and Publications in this Area.
Note: A second meeting room is available for
members who wish to meet around other
research topics.
2:45-3:00PM Break
3:00-4:00PM Meeting Wrap-Up, Discussion of Plans
4:00PM Meeting Adjourned
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As suggested by Ron Cotterill and approved by the group, the minutes of the NE-165 meeting held June 2-3, 1997 are hereby amended to reflect the activities of the strategy group as follows:
