You get what you pay for: the link between price and food safety in Kenya

The lack of a reliably safe food supply in developing countries imposes both health and economic costs. Food safety is one of several dimensions of food quality that are typically unobservable at the time of purchase. Branding can overcome this information problem by allowing firms to build reputati...

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Autores principales: Hoffmann, Vivian, Moser, Christine
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2017
Materias:
Acceso en línea:https://hdl.handle.net/10568/148654
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author Hoffmann, Vivian
Moser, Christine
author_browse Hoffmann, Vivian
Moser, Christine
author_facet Hoffmann, Vivian
Moser, Christine
author_sort Hoffmann, Vivian
collection Repository of Agricultural Research Outputs (CGSpace)
description The lack of a reliably safe food supply in developing countries imposes both health and economic costs. Food safety is one of several dimensions of food quality that are typically unobservable at the time of purchase. Branding can overcome this information problem by allowing firms to build reputations based on the quality of their products. If a reputation for food safety is valued directly by consumers, or if food safety is correlated with other valued attributes, firms producing safer food should be able to use their brand equity to charge higher prices. In addition, firms with stronger brand equity have stronger incentives to meet food safety standards in order to maintain that equity. Using data from more than 900 maize flour samples representing 23 distinct brands in eastern and central Kenya, we explore the relationship between price and contamination with aflatoxin. Aflatoxin is a fungal toxin common in maize, groundnuts, and other crops around the world. We find a strong negative correlation between price and contamination at the brand level, consistent with the hypothesized positive relationship between brand equity and food quality.
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spelling CGSpace1486542024-10-25T07:58:24Z You get what you pay for: the link between price and food safety in Kenya Hoffmann, Vivian Moser, Christine food contamination food policies maize food safety aflatoxins food prices The lack of a reliably safe food supply in developing countries imposes both health and economic costs. Food safety is one of several dimensions of food quality that are typically unobservable at the time of purchase. Branding can overcome this information problem by allowing firms to build reputations based on the quality of their products. If a reputation for food safety is valued directly by consumers, or if food safety is correlated with other valued attributes, firms producing safer food should be able to use their brand equity to charge higher prices. In addition, firms with stronger brand equity have stronger incentives to meet food safety standards in order to maintain that equity. Using data from more than 900 maize flour samples representing 23 distinct brands in eastern and central Kenya, we explore the relationship between price and contamination with aflatoxin. Aflatoxin is a fungal toxin common in maize, groundnuts, and other crops around the world. We find a strong negative correlation between price and contamination at the brand level, consistent with the hypothesized positive relationship between brand equity and food quality. 2017 2024-06-21T09:25:20Z 2024-06-21T09:25:20Z Journal Article https://hdl.handle.net/10568/148654 en Wiley Hoffmann, Vivian; and Moser, Christine. 2017. You get what you pay for: the link between price and food safety in Kenya. Agricultural Economics 48(4): 449-458. https://doi.org/10.1111/agec.12346
spellingShingle food contamination
food policies
maize
food safety
aflatoxins
food prices
Hoffmann, Vivian
Moser, Christine
You get what you pay for: the link between price and food safety in Kenya
title You get what you pay for: the link between price and food safety in Kenya
title_full You get what you pay for: the link between price and food safety in Kenya
title_fullStr You get what you pay for: the link between price and food safety in Kenya
title_full_unstemmed You get what you pay for: the link between price and food safety in Kenya
title_short You get what you pay for: the link between price and food safety in Kenya
title_sort you get what you pay for the link between price and food safety in kenya
topic food contamination
food policies
maize
food safety
aflatoxins
food prices
url https://hdl.handle.net/10568/148654
work_keys_str_mv AT hoffmannvivian yougetwhatyoupayforthelinkbetweenpriceandfoodsafetyinkenya
AT moserchristine yougetwhatyoupayforthelinkbetweenpriceandfoodsafetyinkenya