Private Regulation, Supply Chain and Contractual Networks: The Case of Food Safety

Abstract

Within agriculture industry chains, important changes have taken place. Both vertical integration and vertical disintegration are occurring. These transformations may have effects on the adoption of private standards, but more importantly, may also affect the functions that private standards may play within the chain. I develop a coordinated approach that integrates the value supply chain perspective with regulatory theory to show that co-evolutionary patterns explain the changes in the supply chain and the increasing use of transnational private regulation. I then focus on different coordination mechanisms that are, or can be, used in food chains, and propose a wider deployment of contractual networks to improve effectiveness of food safety regulation. I distinguish between contractual networks directed at information production and transfer and contractual networks concerning risk assessment and risk management. I conclude with some policy recommendations.