Does higher food safety assurance bring higher returns? Evidence from Taiwan

With increasing concern of the food safety issue, consumer's demand for certified food have induced the adoption of organic farming or traceability certification. There is, however, relatively limited research devoted to examining the determinants and economic outcomes of the two food safety as...

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Main Authors: Wun-Ji JIANG, Yir-Hueih LUH
Format: Article
Language:English
Published: Czech Academy of Agricultural Sciences 2018-11-01
Series:Agricultural Economics (AGRICECON)
Subjects:
Online Access:https://agricecon.agriculturejournals.cz/artkey/age-201811-0001_does-higher-food-safety-assurance-bring-higher-returns-evidence-from-taiwan.php
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author Wun-Ji JIANG
Yir-Hueih LUH
author_facet Wun-Ji JIANG
Yir-Hueih LUH
author_sort Wun-Ji JIANG
collection DOAJ
description With increasing concern of the food safety issue, consumer's demand for certified food have induced the adoption of organic farming or traceability certification. There is, however, relatively limited research devoted to examining the determinants and economic outcomes of the two food safety assurance certifications. The major intents of this study are to analyse the determinants of the farm household's adoption decisions of the organic and/or traceability certifications, and to investigate the economic consequences of different modes of adoption. It is found that while the log-odds of rice farmers' choice of organic certification over the choice of none of the certifications decreases significantly with age, the educational level is positively associated with the adoption of traceability certification. The results suggest the significance of the "Straybird Program", "One Hundred Young Farmers Counselling Program" and "The Farmers' Academy" in promoting the adoption of food safety assurance certification. Estimated average treatment effect after correcting for the self-selection problem indicates that the adoption of the traceability certifications leads to a better economic outcome for the Fuli rice farmers, compared with the adoption of organic or both certifications. This result thereby suggests that higher food safety assurance does not necessarily bring higher returns.
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spelling doaj.art-4fbb3f2eabe74a6ca2343b818f53812f2023-02-23T03:25:13ZengCzech Academy of Agricultural SciencesAgricultural Economics (AGRICECON)0139-570X1805-92952018-11-01641147748810.17221/154/2017-AGRICECONage-201811-0001Does higher food safety assurance bring higher returns? Evidence from TaiwanWun-Ji JIANG0Yir-Hueih LUH1Taiwan WTO and RTA Center, Chung-Hua Institution for Economic Research, Taipei, TaiwanDepartment of Agricultural Economics, National Taiwan University, Taipei, TaiwanWith increasing concern of the food safety issue, consumer's demand for certified food have induced the adoption of organic farming or traceability certification. There is, however, relatively limited research devoted to examining the determinants and economic outcomes of the two food safety assurance certifications. The major intents of this study are to analyse the determinants of the farm household's adoption decisions of the organic and/or traceability certifications, and to investigate the economic consequences of different modes of adoption. It is found that while the log-odds of rice farmers' choice of organic certification over the choice of none of the certifications decreases significantly with age, the educational level is positively associated with the adoption of traceability certification. The results suggest the significance of the "Straybird Program", "One Hundred Young Farmers Counselling Program" and "The Farmers' Academy" in promoting the adoption of food safety assurance certification. Estimated average treatment effect after correcting for the self-selection problem indicates that the adoption of the traceability certifications leads to a better economic outcome for the Fuli rice farmers, compared with the adoption of organic or both certifications. This result thereby suggests that higher food safety assurance does not necessarily bring higher returns.https://agricecon.agriculturejournals.cz/artkey/age-201811-0001_does-higher-food-safety-assurance-bring-higher-returns-evidence-from-taiwan.phpdeterminants of adoptioneconomic consequencesfuli rice farmersorganic certificationtraceability certification
spellingShingle Wun-Ji JIANG
Yir-Hueih LUH
Does higher food safety assurance bring higher returns? Evidence from Taiwan
Agricultural Economics (AGRICECON)
determinants of adoption
economic consequences
fuli rice farmers
organic certification
traceability certification
title Does higher food safety assurance bring higher returns? Evidence from Taiwan
title_full Does higher food safety assurance bring higher returns? Evidence from Taiwan
title_fullStr Does higher food safety assurance bring higher returns? Evidence from Taiwan
title_full_unstemmed Does higher food safety assurance bring higher returns? Evidence from Taiwan
title_short Does higher food safety assurance bring higher returns? Evidence from Taiwan
title_sort does higher food safety assurance bring higher returns evidence from taiwan
topic determinants of adoption
economic consequences
fuli rice farmers
organic certification
traceability certification
url https://agricecon.agriculturejournals.cz/artkey/age-201811-0001_does-higher-food-safety-assurance-bring-higher-returns-evidence-from-taiwan.php
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