Improving product safety in an international agrifood supply chain

Abstract

International trade in agricultural and food (agrifood) products, particularly between an importer (retailer) in a developed country and an exporter (supplier) in a developing country, has surged. The rapid increase in agrifood trade has heightened concerns about agrifood product safety. Developed countries, such as the United States, have responded with robust regulatory systems encompassing government interventions to ensure product safety. This study delves into the effectiveness of these interventions, focusing on i) increasing inspection frequency and ii) increasing quality standards. The findings reveal that while heightened inspection frequency partially mitigates the risk to agrifood product safety, elevated quality standards yield mixed outcomes. We subsequently explore retailer strategies to achieve better outcomes regarding promoting transactions between the entities and imported agrifood product safety. We examine i) direct investment in supplier development and ii) the adoption of blockchain technology for enhanced traceability and transparency. We find that both direct investment and blockchain technology adoption can independently promote agrifood product safety. Their combined use may not be necessary, as each approach addresses different aspects of safety assurance through its own mechanism.