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INVESTIGATOR: Ortega, D.

PERFORMING INSTITUTION:
MICHIGAN STATE UNIV
EAST LANSING, MICHIGAN 48824

AN INTEGRATED ECONOMIC STUDY OF U.S. FOOD SAFETY ISSUES FROM IMPORTED FOOD PRODUCTS.

NON-TECHNICAL SUMMARY: The globalization of the food industry has made food safety increasingly important to consumers, producers, and policymakers in the U.S. In recent years, China has emerged as an important supplier of food to the U.S. Highly publicized incidents of food contamination and adulteration in both the Chinese domestic and export markets have focused concern on the safety of food from China. The goal of this project is to improve the safety of food products supplied to the U.S. from China by examining both U.S. demand as well as Chinese supply of food safety and quality attributes using a modern econometric approach based on choice experiments. Results from this study will help reduce food safety risks by bridging market asymmetries, suggest optimal food safety policy, and ultimately ensure a safe food supply for all American consumers. The goal of this project is also achieved through an integrated educational component aimed at improving the current curriculum by including food safety education in a globalization context, and training the fellow as a scholar and educator in food safety with international expertise. This project benefits greatly from a multidisciplinary and international team of mentors and collaborators which will advise the fellow throughout the execution of his research plan aimed at improving food safety for all Americans. Furthermore, the proposed integrated educational activities will assist in the development of the fellow as an educator and professional researcher which will strengthen the intellectual capacity needed to meet the challenges facing our nation's agriculture and food systems.

OBJECTIVES: The goal of this project is to improve the safety of food products supplied to U.S. markets from international sources like China, through investigating key safety and quality verification and informational attributes recognized by U.S. consumers and accepted by Chinese producers. This information will help reduce food safety risks by bridging market asymmetries, suggest optimal food safety policy, and ultimately ensure a safe food supply for all American consumers. This study is comprised of a U.S. consumer and matching Chinese food producer study as well as a policy analysis section that will address and prescribe potential solutions to market failures ensuring a safe Chinese food import supply. Specific supporting objectives of this study are to: 1. Estimate U.S. consumers' willingness-to-pay (WTP) for important food safety and quality informational attributes embedded in imported food products from China; 2. Estimate Chinese producer's profitability and willingness-to-adopt (WTA) corresponding safety and quality attributes that are being demanded by U.S. consumers; 3. Pin-point potential market failures and identify solutions to such failures when American consumer's willingness-to-pay for a safety or quality attribute does not exceed Chinese producer's willingness-to-adopt that particular attribute; and 4. Disseminate findings and results through journal articles and academic presentations.