The rise of private food quality and safety standards: illustrations from Brazil
The International Food and Agribusiness Management Review · 2001 · 181 citations · 5 references
In recent years, the private sector has rapidly developed private food standards to fill gaps in public regulation, differentiate products, and enforce quality and safety across supply chains, imposing significant compliance costs on suppliers while benefiting a small subset that gains market opportunities. These dynamics are illustrated through case studies of Brazil’s dairy, coffee, wheat, and coconut product chains.
Over the past decade, the private sector has rapidly built up an array of private food standards to assure quality and safety in a fiercely competitive market. These private standards have sometimes been to fill in for missing public standards, especially for safety, and to differentiate products and build reputation, for both quality and safety. Moreover, private standards are increasingly related to meta-management systems assuring both quality and safety at all levels of a chain, enforcing and certifying the implementation of process standards. The privatization of standards has been important for both buyers and suppliers in the chain. They tend to be formulated and imposed by buyers (retailers and processors), and are key to their cost control and reputation with consumers, thus overall competitiveness. They are imposed on suppliers, who often find that the standards imply very substantial outlays for reporting, new equipment, and training. The lucky—a relatively small subset of the original set of suppliers—tend to find that meeting the standards, with formal certification in hand, benefits their business, opens new opportunities. The excluded tend to find themselves relegated to waning and unprofitable markets. The above points concerning the determinants and effects of the formulation and implementation of private standards are illustrated with cases from the dairy, coffee, wheat products, and coconut product chains in Brazil.
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