Paper #637

Title:

Quality assurance mechanisms in agrifood: The case of the Spanish fresh meat sector

Authors:

Manuel González-Díaz, Marta Fernández-Barcala and Benito Arruñada

Date:

September 2001 (Revised: March 2002)

Abstract:

The largest fresh meat brand names in Spain are analyzed here to study how quality is signaled in agribusiness and how the underlying quality -assurance organizations work. Results show, first, that organizational form varies according to the specialization of the brand name. Publicly-controlled brand names are grounded on market contracting with individual producers, providing stronger incentives. In contrast, private brands rely more on hierarchy, taking advantage of its superiority in solving specific coordination problems. Second, the seemingly redundant coexistence of several quality indicators for a given product is explained in efficiency terms. Multiple brands are shown to be complementary, given their specialization in guaranteeing different attributes of the product.

Keywords:

Quality assurance, co-branding, agriculture, vertical integration, contracts

JEL codes:

D23, L14, L22, Q13

Area of Research:

Business Economics and Industrial Organization

Published in:

International Journal of Technology Management and International Journal of Agricultural Resources Governance and Ecology, 2(3-4), 2003, 361-382

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