Bruce Traill

The demand for food safety : Market imperfections and the role of government

Abstract This article reviews and comments upon a number of models of consumer choice of foods and diets with different real or perceived risks and benefits associated with them. The article proceeds to discuss the imperfections and externalities in the market which result in a market solution which may provide too much or (more typically) too little food safety for individual consumers and for society. The likely societal magnitudes of some of the costs of food-borne ill-health are also discussed. The case for government intervention is quite clear, but care must be taken not to impose too high a level of food safety.

AN EVALUATION OF THE UK FOOD STANDARDS AGENCY'S SALT CAMPAIGN

Excessive salt intake is linked to cardiovascular disease and several other health problems around the world. The UK Food Standards Agency initiated a campaign at the end of 2004 to reduce salt intake in the population. There is disagreement over whether the campaign was effective in curbing salt intake or not. We provide fresh evidence on the impact of the campaign, by using data on spot urinary sodium readings and socio-demographic variables from the Health Survey for England over 2003-2007 and combining it with food price information from the Expenditure and Food Survey. Aggregating the data into a pseudo-panel, we estimate fixed effects models to examine the trend in salt intake over the period and to deduce the heterogeneous effects of the policy on the intake of socio-demographic groups. Our results are consistent with a previous hypothesis that the campaign reduced salt intakes by approximately 10%. The impact is shown to be stronger among women than among men. Older cohorts of men show a larger response to the salt campaign compared to younger cohorts, while among women, younger cohorts respond more strongly than older cohorts.

Measuring international competitiveness: The case of the European food industry

Indices of international competitiveness are generally trade based, such as the index of revealed comparative advantage. This paper argues that international production should be taken into account in the measurement of international competitiveness in an age when it often exceeds trade. Consequently, based on alternative views of the relative importance of inward and outward foreign production, various modifications of traditional indices are presented and discussed. An empirical application carried out for the food processing sectors of France, Germany, Italy and the United Kingdom, shows that the modified indices differ substantially from the conventional ones in both the level and, more importantly, the trends in the competitiveness measures.

The European food system: Results from the EC FAST programme

Abstract The food industry is becoming more science based and consumers are becoming more conscious of relations between diet and health. The approach of 1992 will require changes in attitudes and in industry structures. This report of some of the findings of the European Communitys FAST programme asks how the food system will develop to the turn of the century, and whether there are new Community-level actions which might help it develop in a more balanced and efficient manner. Actions which promote consumer confidence and those which provide technological support to small agro-food firms are suggested.

Price and Non-Price Competition and Market Structure in the Single European Market

Recent work by industrial economists reverses the traditional direction of causation (structure-conduct-performance), suggesting that market structure is endogenous and depends, among other things, on the nature of price and non-price competition. This paper considers the implications of one such model (Sutton, 1991) for food manufacturing structure and firm size as the Single European Market, officially completed in 1993, gradually becomes a practical reality. It suggests that there are a number of price and non-price competitive forces (not related to economies of scale) which will encourage the trend towards greater concentration and firm size.

The effects of government policies on agricultural input markets

Abstract Agricultural policies in most developed countries involve elements of price support. The primary objective appears to be the support of farm incomes, but effects of the policies are more wide ranging than this. The impact of price support on agricultural input markets in the UK is highlighted in this article and it is shown that the main effects of raising farm prices are to increase the wealth of landowners, increase capital intensity and reduce employment and wages of hired labour. These are not generally recognized as primary goals of the CAP. It is suggested that the British government might offset some of these effects through judicious reduction of capital grant rates.

Trends in Food Consumption in the European Union: Towards a Euro Diet?

Economics, demographics, life styles and consumer attitudes to food are all tending to converge within Europe and beyond. The extent to which this process progresses has important implications for the strategies of firms and for the organisation and management of food systems throughout Europe. It is also important for the orientation of agricultural and food research programmes in individual countries and the EU. This paper explores some of the issues and reviews some of the recent literature and evidence on convergence. Clearly food consumption patterns have become more similar across countries, but some big questions remain unanswered: how far will the process go and how quickly? It is suggested that rather than look at countries in aggregate, it would be better to consider segments of consumers with similar consumption behaviour and ask to what extent such segments will cross national borders and to what extent the size of the segments will converge across countries.

EC industrial policies : Impact upon the food industries

Abstract In this Viewpoint the author discusses current definitions of industrial policy, and the arguments advanced in support of it. The EC Commission has a schizophrenic attitude to the issue, reflecting its attempts to reconcile various conflicting views and interests. Industrial policies could affect the food industries in a variety of ways. Whether such options are taken up depends on whether the interventionists in the EC succeed in defining food as a strategic sector.