James Northen’s research while affiliated with Milton Keynes College and other places

It is argued that privately run farm assurance schemes in the U.K. have been developed predominantly to signal the presence of desired level of food safety (and other credence) attributes to domestic multiple food retailers. It is hypothesized that these food retailers will only buy 'farm assured' meat from abattoirs, therefore abattoirs must buy and process 'farm assured' livestock. Other factors, including abattoir size, procurement policy, level of processing and hygiene levels, are also hypothesized to affect the probability of an abattoir selling meat to large multiple retailers. The hypotheses are tested through a survey of abattoirs in the United Kingdom and a logistic regression is used to assess significance. It is found that buying farm assured livestock is a highly significant positive factor in selling meat to large multiple retailers; in addition, the procurement policy of abattoirs (affecting traceability of product) and abattoir size are also found to be significant determinants of the probability of this trade. The empirical evidence supports the hypothesis that industry-led farm assurance schemes are indeed used by large multiple food retailers as a credible signal of food safety (and other credence) attributes.

This paper develops a conceptual framework, based on quality attributes and quality cues, to demonstrate the necessary requirements for effective communication of quality cues to customers in the supply chain and consumers at place of purchase. The “perceived quality” approach to product quality is adopted and the links between intrinsic/extrinsic cues and experience/credence attributes of a product are developed. The framework is applied to the UK meat sector by considering which attributes/cues are altered by farm assurance schemes and, hence, which type of cue is needed to signal these attributes, and what elements are necessary for effective signalling of this type of cue. It is shown that the necessary requirements for effective communication of each type of cue (intrinsic and extrinsic) vary considerably. Farm assurance schemes are shown to affect credence attributes; hence extrinsic cues must be used to signal these standards. It is concluded that the credibility of scheme standards and inspections to those standards is of crucial importance for the assurance scheme extrinsic cue (certificate/label) to be effective in predicting these credence attributes.

The paper employs structural equation modelling to explore the process by which consumers assess the safety of beef at the point of purchase. The data employed in the analysis are collected through a telephone survey in six European Union member states. The results indicate differences in the process by which the safety of beef is assessed by consumers between the study countries. The implications of the results for policy within the European Union are discussed.

In the UK, cost-benefit analysis of coastal protection schemes that expect to receive grant assistance is required by H.M. Government. A recommended procedure for evaluating the recreational benefits of coastal protection is based on a variant of contingent valuation methodology (CVM), and involves the estimation of the gains and losses in the value of enjoyment by beach users associated with different project scenarios (including the option of allowing erosion to occur). The paper reports the results of a study which applies this approach to coastal protection at an important UK seaside resort. It focusses on the suitability of the value of enjoyment (VOE) elicitation method, and stresses the need to test the validity of the results from all such studies that apply this approach.

This paper reports the results of a study of the costs and benefits associated with the implementation and operation of HACCP in the UK dairy processing sector. The results suggest that the major cost of implementing and operating HACCP in dairy processing plants is staff time required to document the system. The costs of capital investment and external technical expertise are less important. The most important benefit is the enhanced ability to retain existing customers. The results have implications for the adoption of HACCP in the UK dairy processing sector as well as the food industry as a whole.

The retail market for food in the UK is dominated by a small number of large multiple retailers which have developed considerable brand loyalty through, amongst other things, the development of own-branded products. Own-branded products now represent in excess of 37 per cent of total grocery sales. However, the multiple food retailers have not integrated backwards into food manufacture but instead procure own-branded products from autonomous suppliers.

Whilst major multiple food retailers in the UK have gained commercial advantage from increased sales of own-branded food products, this trend has exposed them to greater risks of product failure. In a bid to manage these risks, multiple food retailers have implemented complex and very costly food safety control systems in the procurement of own-branded products. Using a transaction costs framework, the paper suggests that multiple food retailers have encouraged the development of third party agencies as institutions through which the costs associated with food safety controls can be reduced, whilst maintaining an acceptable risk of product failure. © 1998 John Wiley & Sons, Inc.