Does On-Farm Quality Assurance Pay? A Cost-Benefit Analysis of the Grainsafe Program

Since the introduction of genetically modified (GM) crops, the commodity grain system has been under pressure to segregate GM and non-GM crops. Starting at the level of the grain handler, members of the grain supply chain have successfully used quality assurance and identity preservation programs to...

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Bibliographic Details
Published in:Journal of agricultural and applied economics 2007-12, Vol.39 (3), p.541-556
Main Authors: Karaca, Umit, Alexander, Corinne, Maier, Dirk
Format: Article
Language:English
Subjects:
@Risk
Commodities
commodity foods
commodity identification
Corn
Cost analysis
Cost benefit analysis
Crops
Elevators & escalators
Food contamination & poisoning
food labeling
Food quality
Food supply
Genetically altered foods
genetically modified foods
Grain
grains
Grainsafe program
human food chain
identity preservation
Labor costs
Marketing
on-farm quality assurance
Q12
Q16
Quality assurance
Quality control
Supply chains
transgenic plants
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Description
Summary:Since the introduction of genetically modified (GM) crops, the commodity grain system has been under pressure to segregate GM and non-GM crops. Starting at the level of the grain handler, members of the grain supply chain have successfully used quality assurance and identity preservation programs to segregate non GM crops. Producers delivering high-value, identity-preserved crops have become interested in implementing these quality management systems at the farm level. We conduct a cost-benefit analysis that shows that quality assurance program may be profitable for producers, depending on their farm size and equipment management strategy.
ISSN:1074-0708
2056-7405
1074-0708
DOI:10.1017/S1074070800023257