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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.

APPROACH: In order to ensure an accurate and timely execution of the objectives and meet the goals set forth under this project the implementation of this proposal will occur in four main phases: 1. Subsector study of the safety of imported food product. 2. American consumers study comprised of a choice experiment survey. 3. Chinese producer study comprised of a field interviews and experiments. 4. Information dissemination via conference papers, journal articles and academic presentations.

PROGRESS: 2013/01 TO 2013/12
Target Audience: Academics, Researchers, Government Officials, Food Policy Makers, Students in the the United States and the East Asia and Pacific Region Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? This project contributed greatly to the PI's professinal development by providing him opportunities to present research and interact with scholars in his area, both domestically and internationally. The PI gathered experience collecting primary data both in the U.S. and through field work in China. As part of this project, the PI accepted an invitation to teach an undergraudate course at Inner Mongolia Agricultural University (China). Additionally, the PI was able to succesfully pursue an opportunity to work with leading researchers at The University of Queensland in Australia who are researching Chinese food policy isues. How have the results been disseminated to communities of interest? Over 5 journal articles have been developed and are either published or under review. Over 10 academic presentation were delivered at nationally and internationally recognized conferences in the U.S. and abroad (mainly China and Australia). What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

IMPACT: 2013/01 TO 2013/12
What was accomplished under these goals? U.S consumer willingness to pay for various credence attributes in imported food products from China were estimated. These included enhanced food safety practices, use of antibiotic in production, eco-friendly production practices as well as certifying and verifying entities (U.S. government, Chinese Government and U.S. Third Party). Products under consideration included shrimp and tilapia. The effects of information shocks were also tested. Chinese producers willingess to change or adopt production practices were calculated. These included enhanced food safety practices, use of antibiotic in production, eco-friendly production practices as well as certifying and verifying entities (U.S. government, Chinese Government and U.S. Third Party). Producers' value system and how their preferences affects on-farm decision making was also studied. Market failures and potential soultions were explored in the Chinese-U.S. import supply chain. Findings from this study were disseminated through a wide variety of channels which included journal articles and academic presentation among others.

PUBLICATIONS (not previously reported): 2013/01 TO 2013/12
1. Type: Journal Articles Status: Accepted Year Published: 2014 Citation: Ortega, D.L., H. Holly Wang, and Nicole J. Olynk, 2013 accepted. âAquaculture Imports from Asia: An Analysis of U.S. Consumer Demand for Select Food Quality Attributes.â Agricultural Economics
2. Type: Theses/Dissertations Status: Published Year Published: 2013 Citation: Ortega, D.L., 2013. An Economic Exposition of Chinese Food Safety Issues. PhD Dissertation. Purdue University
3. Type: Journal Articles Status: Accepted Year Published: 2013 Citation: Ortega, D.L, Collin G. Brown, Scott A. Waldron, H. Holly Wang, 2013 accepted. âAgricultural Marketing and Food Safety in China: A Utility Perspective.â Journal of Agribusiness in Developing and Emerging Economies.
4. Type: Journal Articles Status: Awaiting Publication Year Published: 2014 Citation: Ortega, D.L., H. Holly Wang, Wu Laping and Nicole J. Olynk Widmar, 2014. âChinese Producer Behavior: Aquaculture Farmers in Southern China.â China Economic Review, 28: 17-24.
5. Type: Journal Articles Status: Published Year Published: 2013 Citation: Wang, H.H., Xu Zhang, David L. Ortega, and Nicole J. Olynk Widmar, 2013. âInformation on Food Safety, Consumer Preference and Behavior: The Case of Seafood in the US.â Food Control, 33 (1): 293-300.
6. Type: Journal Articles Status: Submitted Year Published: 2013 Citation: Ortega, D.L., H. Holly Wang, and Nicole J. Olynk Widmar. âWelfare and Market Impacts of Food Safety Policies in China.â
7. Type: Journal Articles Status: Submitted Year Published: 2013 Citation: Ortega, D.L., H. Holly Wang, and Nicole J. Olynk Widmar. âEffects of Media Headlines on Consumer Preferences for Food Safety, Quality and Environmental Attributes.â
8. Type: Journal Articles Status: Submitted Year Published: 2013 Citation: Ortega, D.L., Soo Jeong Hong, Nicole J. Olynk Widmar, H. Holly Wang, Laping Wu. âChinese Aquaculture Farmersâ Value System and On-farm Decision Making.â