Responding to Consumer Concerns about Food, Health and Safety Helen H. Jensen Iowa State University

Research Priorities Users’ Views – (top 16) How households make decisions on health and convenience in food Economic impacts of science-based approach to food safety (HACCP) Benefits and costs of government regulation of agriculture on consumers

Research Priorities (cont.) Survey of Agricultural Economists – 1996 – shows relatively lower priority to: Household decisions about health and convenience of food Impact of HACCP – food safety How best to move an economy from “command” to market-based Key questions: Why the mismatch, and have the last few years changed the priorities?

Priorities “Never before has the linkage between agriculture and public health been more apparent, vital, or promising. The new research agenda will need to expand its role and resources to take advantage of this unprecedented opportunity.” NRC, Frontiers in Agricultural Research, 2003

Overview Changing consumer environment Challenges of a consumer-driven agriculture Consumer choice and information Setting priorities for health, nutrition and food safety policies and programs

Changing Consumer Environment Demographics Income The “New Food Economy” Scientific advances and new technologies Growing importance of food quality Safety of foods and bio-security threats

Current Topics ERS projects increased food consumption, especially fruits, fish, vegetables and food away from home food quality and convenience Nutrition and health = obesity problems Foods and fads – changing identity of “food” Consumer information (+,-) has a key role in food choice Bio-security of the food system

Challenges of a consumer-driven agriculture Information is critical From and to consumer Food systems approach important Type of linkages determine consequences Agriculture has a new role in “processing” pharmaceuticals and functional foods Importance of multi-disciplinary approaches Technical and behavioral changes

Table 1 Taxonomy of systemic risks in food production Table 1 Taxonomy of systemic risks in food production Table 1. Taxonomy of systemic risks in food production Causes of Systemic RiskConsequences A. System topology-Losses spread through much of the system B. Mistrust in communication-Uninformed consumers -Private branding -Consumer panic, market disruption C. Asymmetric information leading to coordination failure and distorted incentives -Under-provision of care to protect food quality -Under-provision of information D. Failure to develop state- conditioned technologies -System performance deteriorates when the platform cannot adapt -System performance varies as deterministic states change

Example: Food Safety Increased food safety risks Variety of foods and food sources Foods prepared/consumed away from home – markets, food system Ethnic diversity - demographics Decreased food safety risks Vertical integration of supply systems Contracting in supply networks Trace-back systems

Setting Priorities Increased multi-disciplinary focus on complex consumer decision processes and valuation of quality attributes: “applied economics” Methods of valuation Costs and benefits of health, nutrition and food safety policies and programs Systems approaches Data needs (e.g., NHANES, scanner) Broadening the set of public collaborators for research funding