slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Consumer Acceptance and Willingness to Pay for Irradiated Products: Field Experiments Dr. Rodolfo M. Nayga, Jr. Professo PowerPoint Presentation
Download Presentation
Consumer Acceptance and Willingness to Pay for Irradiated Products: Field Experiments Dr. Rodolfo M. Nayga, Jr. Professo

Loading in 2 Seconds...

play fullscreen
1 / 88

Consumer Acceptance and Willingness to Pay for Irradiated Products: Field Experiments Dr. Rodolfo M. Nayga, Jr. Professo - PowerPoint PPT Presentation


  • 278 Views
  • Uploaded on

Consumer Acceptance and Willingness to Pay for Irradiated Products: Field Experiments Dr. Rodolfo M. Nayga, Jr. Professor Department of Ag. Economics Texas A&M University (rnayga@tamu.edu) Outline Food Safety: The Case of Food-borne Illness Food Irradiation

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Consumer Acceptance and Willingness to Pay for Irradiated Products: Field Experiments Dr. Rodolfo M. Nayga, Jr. Professo' - Jims


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Consumer Acceptance and Willingness to Pay for Irradiated Products: Field Experiments

Dr. Rodolfo M. Nayga, Jr.

Professor

Department of Ag. Economics

Texas A&M University

(rnayga@tamu.edu)

outline
Outline
  • Food Safety: The Case of Food-borne Illness
  • Food Irradiation
  • Consumer Acceptance and Willingness to Pay: Ground Beef and Mangoes
  • Market Trials
  • Trade Developments
us food safety system
US Food Safety System
  • Tradition - precaution and science-based risk analyses
  • Regulatory process - open and transparent manner
  • Previous focus - chemical hazards
  • Recent focus - microbial pathogens and comprehensive farm-to-table approach
foodborne illness the situation in us
Foodborne Illness:The Situation in US

Listeria

Salmonella

E. coli 0157:H7

*Unknown Agents ** Known Agents

slide5

Public health burden of foodborne diseases

  • Each year an estimated 76 million cases
    • 1 in four Americans gets a foodborne illness each year
    • 1 in 1000 Americans is hospitalized each year
    • $6.5 billion in medical and other costs
why is foodborne illness emerging
Why is Foodborne Illness Emerging?
  • Globalization of food supply
  • Pathogens introduced to new areas
  • Travel
  • Change in microorganisms
  • Change in human population
  • Change in lifestyle
vulnerability of our food supply
Vulnerability of Our Food Supply
  • The food supply comprises thousands of classes of foods, domestic and imported
  • Ever-more centralized production and processing with wide distribution
  • Unintentional foodborne outbreaks have happened over large, dispersed, geographical areas
  • This delays recognition of the

outbreak and complicates

identification of the source

who is most susceptible to foodborne illness
Who is most susceptible to foodborne illness?

Children are susceptible because their immune systems are not fully developed.

The elderly are also susceptible to food-borne illness and suffer more severe reactions because their immune system is weaker.

initiatives
Initiatives
  • PulseNet - CDC’s national computer network of public health laboratories rapidly identify foodborne illness
  • FoodNet - surveillance “sites” across the US for foodborne diseases and related epidemiologic studies
  • Fight BAC! - public awareness program backed by coalition of industry, producer, and consumer groups
slide12
The chain of production from farm to table:

A generic prevention scenario

On-farm sanitation, safety of

animals' food and water

biosecurity, probiotics, and other

"Good Agricultural Practices"

Production

Processing

Factory sanitation, quality control

HACCP, inspection and other

"Good Manufacturing Processes"

Final preparation

and cooking

Consumer education,

Foodhandler certification,

Restaurant inspection

slide13
The chain of production from farm to table:

A generic prevention scenario

On-farm sanitation, safety of

animals' food and water

biosecurity, probiotics, and other

"Good Agricultural Practices"

Production

Processing

Factory sanitation, quality control

HACCP, inspection and other

"Good Manufacturing Processes"

Pathogen killing step

Food Irradiation?

Final preparation

and cooking

Consumer education,

Foodhandler certification,

Restaurant inspection

public health breakthroughs
Public Health Breakthroughs
  • Pasteurization of Milk
  • Immunizations
  • Chlorination of water supply
  • Food Irradiation?
intervention strategies used by the beef processing industry to control e coli o157 h7
Intervention strategies used by the beef processing industry to control E. coli O157:H7
  • Lactic Acid Carcass Wash
  • Steam Vacuum
  • Hand Trimming to remove fecal contamination
  • Acidified Sodium Chlorite Spray
  • Steam Pasteurization
slide16
E. coli O157:H7 Organisms Remaining after Application of Intervention Technology (initial cell population 1,000,000 cells/gram)
antimicrobial intervention strategies
Antimicrobial Intervention Strategies
  • All current antimicrobial intervention strategies reduce the level of pathogenic microorganisms in ground beef.
  • Irradiation reduces pathogenic microorganisms by 99.99 to 99.999%.
  • Only “cooking” completely destroys all pathogenic microorganisms.
slide18
What can Food Irradiation Do?
  • destroy foodborne pathogens
  • delay the ripening and spoilage of fresh fruits and vegetables
  • extend the shelf-life of perishable products like beef, poultry, and seafood
  • commercially sterilize foods
shelf life extension of strawberries
Shelf-life extension of Strawberries

Non-irradiated

After 7 days storage

Electron beam irradiated

After 17 days storage

slide20
What can Food Irradiation not Do?
  • reverse the spoilage process
  • substitute for good handling and processing
  • effectively destroy viruses, toxins, possibly prions
  • prevent recontamination of food
  • cannot be used on food claimed “organic”
concerns expressed by anti irradiation groups
Concerns Expressed by Anti-Irradiation Groups
  • Misuse to avoid plant sanitation
  • Environmental safety of irradiation facilities
terry stokes ceo national cattlemen s beef association may 29 2003

Terry Stokes, CEONational Cattlemen’s Beef AssociationMay 29, 2003

“Irradiation complements, but does not replace proper food handling and cooking practices, and the numerous testing and safeguard measures already in place.”

slide23
What Current Uses are Approved in US?
  • spices
  • fruits and vegetables
  • wheat/wheat flour
  • pork and chicken
  • red meats
  • shell eggs
  • seeds for sprouts
  • pet foods
  • food for space program
  • Pending Approval: Ready-to-Eat Foods
slide24
What Current Uses are Approved in Canada?
  • Potatoes
  • Onions
  • Spices
  • Dehydrated seasonings
  • Wheat
  • Flour
  • Pending Approval: poultry, beef, shrimp, prawns, mangoes
slide25
What Current Uses are Approved in EU?
  • Until 1999, use in Europe varied from country to country
  • Recently, EU Parliament has issued directives to establish community list
  • Dried aromatic herbs
  • Spices
  • Vegetable seasonings
slide26
Impact of Food Irradiation
  • If 50% of meat and poultry were irradiated:
  • 880,000 fewer cases
  • 350 fewer deaths
  • 8,500 fewer hospitalizations
slide27

“Until children have routine access to irradiated hamburger, we will continue to experience life-threatening outbreaks of Escherichia coli O157:H7 infections in this vulnerable population."

Michael T. Osterholm, PhD, MPH

Director of the University of Minnesota

Center for Infectious Disease

Research and Policy.

slide28

“Not one child should be sacrificed so that Americans can have cheaper meat!”

Barbara Kowalcyk

Mother of deceased Son,

in who’s name the new

Meat & Poultry Pathogen Reduction Act

is being named.

KEVIN’s LAW

slide31

Electron Beam Irradiation Process

  • uses electricity
  • accelerates electrons
  • scans product
  • makes food safe…

…in SECONDS!

us regulation on labeling
US Regulation on Labeling
  • Inclusion of the radura symbol
  • Labels:
    • “treated with radiation”
    • “treated by irradiation”
    • “irradiated for food safety”
    • These must be printed on the package, unless the word “irradiated” is part of the product name
    • Marketers can also now petition the FDA to use label “electronically pasteurized” for e-beam irradiated foods
market status
Market Status
  • Not yet a major factor in today’s food processing environment – but slowly growing
  • Spices and herbs – largest area of application
  • Ground beef – fastest mover
data samples and locations
Data: Samples and Locations
  • Randomly selected walk-in shoppers at the entrance (total of 474 shoppers)
  • Use irradiated or non-irradiated ground beef and money as experimental tools
  • At 13 HEB grocery stores in Texas, namely,
    • Austin (3 stores, 119 shoppers)
    • San Antonio (3 stores, 111 shoppers)
    • Houston (4 stores, 139 shoppers) and
    • Waco (3 stores, 115 shoppers)
methodology
Methodology

On actual survey, asked consumers sequentially on

  • Their willingness to buy before and after learning information about food irradiation
  • Their self-perception whether they would belong to one of the four consumer segments
  • Their willingness to pay (WTP) for the irradiated ground beef
information
Information
  • General statement about food irradiation excerpted from United States General Accounting Office (GAO), Washington, D.C.
  • “Food irradiation is the process of exposing food to controlled levels of ionizing radiation. Ionizing radiation is a type of energy similar to radio and television waves, microwaves, and infrared radiation. The high energy produced allows it to penetrate deeply into food, killing microorganisms without significantly raising the food’s temperature.“
willingness to pay experiment
Willingness To Pay Experiment
  • Each respondent was given a pound of non-irradiated ground beef and some money as a gift for survey participation
  • Each respondent was asked his/her willingness to exchange a pound of non-irradiated ground beef and the money “for” a pound of irradiated ground beef.
    • If the respondent accepted the bid, the WTP value is recorded as first bid value
    • If the respondent rejected the bid, he/she was asked again to exchange “a pound of non-irradiated ground beef and a half value (second bid) of the money” for a pound of irradiated ground beef. If the answer was “Yes” the second bid value is recorded as WTP, otherwise, the WTP is assumed to be lower than the second bid value.
comparison on reasons to food poisoning
Comparison on reasons to food poisoning

1(not important) ------------------------------------ > 10 (very important)

prior knowledge of food irradiation
Prior Knowledge of Food Irradiation

1 means zero knowledge, and 5 means very knowledgeable

buying decision irradiated ground beef after giving information on nature of irradiation
Buying Decision: Irradiated Ground Beef(after giving information on nature of irradiation)
wtp bid values after trying the product in percentage
WTP bid values after trying the product, in percentage

Out of 71 returned postcards from 3 cities, except Austin.

in summary
In Summary
  • The results clearly indicate that information about food irradiation leads to favorable changes in consumers’ perceptions and buying decisions
  • Consumers are willing to pay for reducing risk of food-borne illness
procedures
Procedures
  • Consumer surveys were conducted in field/grocery stores in the late winter/early spring of 2006
  • Irradiated mangoes were used as product of interest
  • Participants were provided a brief information sheet about mangoes with additional food irradiation information provided during the field experiment
objective of research
Objective of Research

Assess the effect of different types of information on consumers’ willingness to pay for irradiated mangoes

Why?

  • Presence of anti-irradiation groups in the US that disseminate negative information about food irradiation to the public
  • So it is important to know how to counter the negative (mostly not based on science) information from consumer activist groups
types of information treatments
Types of Information (Treatments)
  • Positive – Information about the benefits of food irradiation (source: GAO)
  • Negative – Consequential information about food irradiation (source: Public Citizen)
  • Mixed – Both forms of information presented (order of presentation alternated)
slide66

Positive Information: General statement about the benefit of food irradiation excerpted from the United States General Accounting Office (GAO)1, Washington, D.C.

Food irradiation is the process of exposing food to controlled levels of ionizing radiation. Ionizing radiation is a type of energy similar to radio and television waves, microwaves, and infrared radiation. However, the high energy produced by ionizing radiation allows it to penetrate deeply into food, killing microorganisms without significantly raising the food’s temperature.

An expert committee convened by the World Health Organization reviewed the findings of over 500 studies and concluded that food irradiation creates no toxicological, microbiological, or nutritional problems. These studies have not borne out concerns about the safety of consuming irradiated foods. For example, the studies indicated that chemical compounds in irradiated food are generally the same as those in cooked foods, and any differences do not put consumers at risk.

Many federal agencies have regulatory responsibilities related to food irradiation, including FDA, USDA, the Nuclear Regulatory Commission (NRC), the Occupational Safety and Health Administration, and the

Department of Transportation—with FDA having primary regulatory responsibility for ensuring the safety of irradiated foods.

Irradiation can be used as a pest control treatment on quarantined fruits and vegetables to prevent the importation of harmful pests—such as the Mediterranean fruit fly. To minimize this risk, USDA’s Animal and Plant Health Inspection Service’s quarantine procedures require the use of fumigation or heat (hot water or hot air) or cold treatment of fruit that is not ripe. Irradiation treatment is an effective alternative for many types of

fresh produce because it can be used on riper fruit and on fruit that cannot tolerate heat treatment. Moreover, a number of past quarantine treatments have recently been prohibited—an example being fumigation with ethylene dibromide.

An important benefit of irradiation is that it can prolong the shelf life of many fruits and vegetables. It does this by reducing spoilage bacteria and mold and inhibiting sprouting and maturation. As a result, products can

be harvested when fully ripened and can be transported and displayed for longer periods while maintaining desirable sensory qualities longer than non-irradiated products.

 According to the Institute of Food Technologists, it is highly doubtful that there would ever be any vitamin deficiency resulting from eating irradiated food. In its 1980 evaluation of food irradiation, the Joint Expert Committee convened by FAO, WHO, and IAEA concluded that irradiation caused no special nutritional problems in food.

slide67

Negative Information: General information about consequences of food irradiation excerpted from Public Citizen1, Washington, D.C.

Food irradiation is sometimes incorrectly compared to microwaving. The energy particles in a gamma ray used in food irradiation are up to 10 billion times more energetic than microwaves, making this a vastly different technology.

Irradiation can lead to the formation of Unique Radiolytic Products (URPs), mysterious chemical compounds that have not been adequately identified or studied for their potential harm to humans. One such type of chemical was recently found to promote the cancer-development process in rats, cause genetic damage in rats, and cause genetic and cellular damage in human and rat cells. This chemical is a radiation byproduct of palmitic acid, a type of fat that occurs in virtually every food.

In legalizing food irradiation, the FDA relied on laboratory research that did not meet modern scientific protocols, which federal laws require. Very little toxicological testing has been done on irradiated food during the past 20 years.

It is important to note that irradiation will not reduce the amount of fungicides, pesticides and herbicides used during the growing period. The most likely chemical reduction would come from reduced fumigation of fruits and vegetables. Yet, fruits and vegetables are very sensitive to irradiation (they break down easily following irradiation), so it is not a process likely to be used with these foods extensively.

Irradiation kills beneficial microorganisms, such as the yeasts and molds that can help keep botulism at bay, as well as the microorganisms that create the aromas that tell us when food has gone bad.

Irradiation can corrupt the flavor, texture and other physical properties of some foods, leading to meat that smells like a wet dog, onions that turn brown, and eggs that are runny.

Irradiation destroys vitamins, nutrients and essential fatty acids, including up to 80 percent of vitamin A in eggs and half of the beta carotene in orange juice. In some foods, irradiation can intensify the vitamin and nutrient loss caused by cooking, leading to “empty calorie” food.

acceptance as measured by trust
Acceptance as Measured by Trust
  • Trust measured independent of WTP appears to follow the same pattern as WTP
    • Increases with Positive information
    • Decreases with Negative Information
      • Alone and with Positive
  • Differences (Post – Pre) are all statistically significant
    • Positive p = .002
    • Negative p = .0000
    • Mixed p = .0098
summary
Summary
  • Positive information
    • Overall, Positive information was observed to significantly increase WTP
  • Negative information
    • Decreases WTP but still positive (not negative)
      • Regardless of whether presented alone or Mixed with Positive
significant implication
Significant Implication
  • Information about nature and benefits of food irradiation can significantly increase consumers’ willingness to purchase and pay more for irradiated foods!
  • However, due to the weight attached by consumers to negative information vis-à-vis positive information, there is a tremendous need for a concerted effort to continuously educate consumers about the nature and benefits of food irradiation
minnesota model for educating consumers and marketing irradiated ground beef
Minnesota Model for Educating Consumers and Marketing Irradiated Ground Beef
  • Minnesota Beef Council led the way
  • Education and lots of free samples
  • series of trade shows at state fairs, major meetings and restaurant shows
  • series of press releases and media information widely distributed throughout Minnesota have created a model now accepted by other states
  • educational workshops, issues management and partnerships with public agencies, ground beef manufacturers, retailers and restaurateurs
  • State beef councils, cattle organizations and others are using the Minnesota Model to inform consumers, beef producers and marketers about the advantages and benefits of irradiated ground beef
hawaii pride marketing of irradiated fruits
Hawaii Pride: Marketing of Irradiated Fruits
  • Lots of free samples
  • Pushing fruit quality with posters, recipes, taste testing, and the strategic use of media coverage
  • Formed relationships with retailers on the mainland US
  • Since then, the sale of Hawaii Pride’s irradiated fruit has dramatically increased. In supermarket chains such as Albertson’s, Kroger and Safeway, operating in Minneapolis, Phoenix and Atlanta, sales have increased from 400% to, in some cases, 1,000%
market trials in us
Market Trials in US
  • Irradiated ground beef patties are available at an estimated 7,000 supermarkets and by mail order and home delivery.
schwan s
Schwan’s
  • Distribution: National through home delivery.
  • All of the non-cooked ground beef products that Schwan’s marketed are irradiated and have been since the summer of 2000.
omaha steaks
Omaha Steaks
  • Distribution: National through mail order. Omaha Steaks offers a variety of “Gourmet Burgers,” all of which are irradiated.
  • All ground beef marketed by Omaha Steaks has been irradiated since mid 2000.
huisken meats
Huisken Meats
  • In May 2000, introduced irradiated ground beef in 84 Minnesota stores.
  • Today - offers two irradiated ground beef products; 90 percent lean and regular ground beef.
  • Huisken BeSure irradiated patties are available in an estimated 2000 stores in some 20 states.
colorado boxed beef
Colorado Boxed Beef
  • Began marketing “New Horizon” brand irradiated ground beef in mid-2000.
  • New Horizon irradiated patties are available through Publix (700 stores) in the Southeast and Topp’s (300 stores) in the mid-Atlantic region.
ellison meats
Ellison Meats
  • Ellison Meats, based in Pipestone, MN, produces two types of irradiated ground beef patties for Simek’s of St. Paul Park, MN. Simek’s irradiated patties are available at retail through Cub Foods 65 supermarkets in Minnesota and Wisconsin and at Super America’s 400 convenience stores. All ground beef marketed by Simek’s is irradiated
wegman s
Wegman’s
  • Rochester, NY-based Wegman’s began marketing irradiated ground beef in 2001.
  • Wegman’s now offers Huisken irradiated ground beef frozen patties in all stores in New York, Pennsylvania, New Jersey and Virginia
results of these market trials
Results of these Market Trials
  • Informed consumers like and will buy irradiated foods
  • Reasons:
    • safety from food poisoning bacteria
    • increased shelf life
    • product quality
  • To date, no single test market of irradiated foods has been unfavorable when the consumer has been provided information about food irradiation.
results of these market trials86
Results of these Market Trials
  • The volume of irradiated food being marketed has increased significantly in recent years, but the full-market penetration is still small and growth potential is high
  • The number of supermarkets that offer irradiated meat products has increased in just three years from 84 to more than 7,000 from approximately 50 retail chains
  • Nearly 2,000 restaurants including those belonging to a major fast food chain, are serving irradiated meat
trade developments
Trade Developments
  • In October 2002, the USDA Animal and Plant Health Inspection Service (APHIS) approved the irradiation of fruits and vegetables via regulation entitled, “Irradiation Phytosanitary Treatment of Imported Fruits and Vegetables
  • APHIS described the regulation as the allowance for irradiation to be used as an alternative to current quarantine treatments
  • The treatments combat 11 types of exotic fruit flies and the mango seed weevil
  • Foreign facilities exporting to the U.S. will operate under compliance agreements with their National Plant Protection Organizations (NPPO)
international trade developments
International Trade Developments
  • NPPO will sign a work plan with the USDA that cites the legal authority each country has to allow irradiation as a quarantine treatment for imported fruit and vegetables, the type and level of monitoring that each country will require of the other country's irradiation treatments, and other conditions that must be established
  • USDA regulation stipulates that foreign irradiation treatments must be conducted under a pre-clearance plan that specifies the level of direct USDA oversight of the foreign irradiation treatment
  • The Phytosanitary Issues Management Staff of APHIS are responsible for negotiating the phytosanitary conditions for entry, including irradiation treatment, with prospective trading partners
  • Several countries including Brazil, Chile, Mexico, South Africa and Thailand are preparing to export irradiated fruit to the U.S.
  • India started exporting irradiated mangoes to US