The spread model of food safety risk under the supply-demand disturbance.

Jining Wang,Tingqiang Chen

doi:10.1186/s40064-016-2881-2

Abstract

In this paper, based on the imbalance of the supply-demand relationship of food, we design a spreading model of food safety risk, which is about from food producers to consumers in the food supply chain. We use theoretical analysis and numerical simulation to describe the supply-demand relationship and government supervision behaviors’ influence on the risk spread of food safety and the behaviors of the food producers and the food retailers. We also analyze the influence of the awareness of consumer rights protection and the level of legal protection of consumer rights on the risk spread of food safety. This model contributes to the explicit investigation of the influence relationship among supply-demand factors, the regulation behavioral choice of government, the behavioral choice of food supply chain members and food safety risk spread. And this paper provides a new viewpoint for considering food safety risk spread in the food supply chain, which has a great reference for food safety management.

Highlights

In a complete food supply chain from suppliers to consumers, any illegal economic behaviors occur in any one of the links from the raw materials suppliers to the food retailers, which will cause different kinds of food safety risk
Food safety risk incidents are caused by many factors, including the food markets failures which is from the food markets’ externality, and information asymmetry (Resende-Filho and Hurley 2012; Kim and Kim 2013; Jones and Davidson 2014; Fellmann et al 2014; Zissis et al 2015; Levi and Zhang 2015; Zhang et al 2015; Wang and Pallis 2014), and the mismatch between the costs and the benefits made the center of interest gravity shift toward the downstream of the industry, food companies paid too much attention to the market share, and the risks which were accumulated by the upstream interests contradiction to the extreme through the transmission of leverage effect (Lamboni and Azouma 2013; Hobbs et al 2014), etc
In our paper, we will consider the effect of the characteristic of the supply-demand relationship and government supervision behaviors on the risk spread of food safety and the behaviors of the food producers and the food retailers to find out the propagation law of food safety risk in the food supply chain and its influential factors and mechanism

Summary

Introduction

In a complete food supply chain from suppliers to consumers, any illegal economic behaviors occur in any one of the links from the raw materials suppliers to the food retailers, which will cause different kinds of food safety risk. The others factors caused food safety risk and its spread including the interest game imbalance between all the main participant bodies in the food supply chain (Henry and Wernz 2015), the “adverse selection” of members of the food supply chain (Gil et al 2015; Luning et al 2015; LeBlanc et al 2015) and “moral hazard” behavior of members of the food supply chain (Malekan and Dionne 2014; Wang and Pallis 2014; Weber 2015; Verrette 2015). These can lead to the spread effect of food safety risk in the food supply chain. Our objective is to understand the influence of the supply-demand relationship and government supervision behaviors on the risk spread of food safety and the behaviors of the food producers and the food retailers

Objectives

Conclusion