Minimum quality standards, premium private labels, and European meat and fresh produce retailing

Abstract

This article treats the interaction between decisions of public policy makers and private enterprises in the definition and implementation of standards, in particular with respect to food safety. Based on the observation that European retail chains are becoming increasingly engaged in specifying the conditions of agrifood production, we describe the nature and determinants of the strategies adopted by retailers following the mad cow crisis. We compare these strategies in the beef and the produce (fruit and vegetables) sectors. Due to the different conditions facing both governments and private actors in the two sectors, this comparison permits us to characterize the variables that condition the strategies of the retailers, collectively and individually. The paper then analyses how the levels and the monitoring systems of the standards formulated and enforced by governments, influence the strategies of retail chains. That analysis leads to conclusions regarding what variables governments should take into account when they define minimum quality standards.