Jill E. Hobbs

Costs of monitoring food safety and vertical coordination in agribusiness: What can be learned from the British Food Safety Act 1990?

The British Food Safety Act 1990 may significantly affect the structure of agribusiness. The most important aspect of the new act is the introduction of the “due diligence” defence clause. Food companies must prove that they exhibited due diligence in ensuring that food in their possession conformed to the provisions of the act. This may significantly increase the monitoring costs facing food companies. As a result, alternative forms of vertical coordination that minimise the costs of compliance with the act may evolve. Agribusiness companies need to be aware of the potential impact of the due diligence clause on monitoring costs and policy makers need to consider the implications for industrial structure when framing food safety legislation.

Lamb‐buying preferences of Canadian abattoirs and producer marketing groups: implications for the Canadian supply chain

The Canadian lamb industry is small compared to lamb industries in many other countries and the supply chain for lamb is weak and fragmented. Without improvements in the flow of information, product quality and continuity of supply, the formal supply chain in Canada may collapse and Canadian lamb will become a local cottage industry with the retail chain and institutional markets serviced by offshore suppliers. Examines one of the key interfaces in the Canadian lamb supply chain. Conjoint analysis is used to assess the attitudes of the major commercial buyers of lambs ‐ abbatoirs and producer marketing groups ‐ towards key attributes of the lamb supply chain. The relative importance of a number of characteristics are assessed: a regular supplier, the basis of payment, reduced handling of lambs from farm to abattoir and the price paid for the lambs.