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12a. What Is Food Policy & What Are The Key Issues? (Knutson Ch. 14, 15)

12a. What Is Food Policy & What Are The Key Issues? (Knutson Ch. 14, 15). Larry D. Sanders Fall 2005. Dept. of Ag Economics Oklahoma State University. Introduction. Purpose: to understand food policy issues & options Learning Objectives: 1. Become aware of food policy issues.

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12a. What Is Food Policy & What Are The Key Issues? (Knutson Ch. 14, 15)

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  1. 12a. What Is Food Policy & What Are The Key Issues?(Knutson Ch. 14, 15) Larry D. Sanders Fall 2005 Dept. of Ag Economics Oklahoma State University

  2. Introduction • Purpose: • to understand food policy issues & options • Learning Objectives: 1. Become aware of food policy issues. 2. Understand key food issues, options & consequences.

  3. Food Policy Issues • Price & Availability • Marketing Share • Structural Changes • Food Safety • Food Nutrition & Obesity • Hunger

  4. Rank the most serious food safety hazards (1=most serious) ____Deliberate food additives ____environmental contaminants (lead/mercury) ____foodborne diseases ____malnutrition ____naturally occurring toxins ____pesticide residue

  5. The Myth of Regulation: How may regs to make a fast-food burger?

  6. Food Price Policy Options ? • Price Controlsblack markets • Export Embargoesshortrun price drop • Reduced Import Restrictions--WTO, etc.-may harm domestic producers/agribusiness • Marketing Order Controls--more regs? • Farm Program Provisions--who is helped? • Antitrust Restraints--structutural change vs. competition vs. global change-may weaken competitiveness • Other Govt: tax, education, co-op promotionhigher taxes • Free Market--who gains/loses? question of stability

  7. Food Safety--Is It a Problem? • Estimates of numbers contracting food-borne illnesses from microbial pathogens (CDC): • 6 mil.-33 mil./yr. • As many as 9,000/yr. die • 1 case of E.coli OH157:H7 outbreak in Pacific Northwest (1992): • 4 deaths, over 800 ill in 4 states • Listeria meat recall of 2002 • 10 deaths? 45-50+ ill? • Other cases: • strawberries w/Hepatitis A • raspberries w/Cyclospora parasite (Guatamala) • unpasteurized apple cider w/E. Coli

  8. Food Safety--What’s the Problem? • Restaurants & Consumers don’t know how to handle/prepare food? • Farmers/ranchers are using unsafe practices & nasty chemicals? • Food handlers & processors are using unsafe practices & nasty chemicals? • Mysterious bacteria are popping up to make food unsafe? • Them “durn furiners” are sending us dangerous food? • Bio-engineered food opens up a “Pandora’s box” of new threats to human health (“Frankenfoods”)?

  9. Food Safety: Are consumers the problem? • Bad Habits Study (FDA, May 97) • 50% consumers eat raw/undercooked eggs • 23% consumers eat undercooked hamburger • 17% consumers eat raw clams/oysters • 26% consumers don’t wash cutting boards after cutting raw meat/poultry

  10. Food Safety:Are producers the problem? • Some of the public is concerned about pesticide use/residue • While HACCP* hasn’t yet targeted producers, “traceback” could do so • Animal waste blamed for some health problems • Food Quality Protection Act imposes new responsibilities on chemical use *Hazard Analysis Critical Control Point

  11. Food Safety:Are handlers/processors the problem? • New Food Safety regs (HACCP) target this group more than others • The media often pins the blame here

  12. Food Safety:New Mysterious Bugs the problem? • E coli (CDC study): • 1982--first recognized as pathogen (ground beef) • 1984-child care center • 1985--associated w/acute kidney failure in children • 1987--more common than Shigella in US • 1990--drinking water • 1991--lake swimming; apple cider • 1992--most common bacterial cause of diarrhea in US • 1993--multi-state outbreak--fast-food burgers • 1999--unpasteurized apple cider in Oklahoma • 2000+--continuing recalls, other cases

  13. Food Safety:New Mysterious Bugs the problem? • Other “bugs” highlighted in media (may be microbial pathogens or parasites) • Salmonella • Campylobacter • Cryptosporidium • Pfiesteria • Cyclospora

  14. Food Safety:Is imported food the problem? • Over 30 bil. Tons food imported each yr --40% of fruit consumed; 12% of vegs • FDA samples less than 1% • In short: we don’t know.

  15. Food Safety: Defining the Problem There is widespread concern whether the public has access to safe food supplies and can be assured that practical preparation techniques are available/in use. This concern relates to both domestic and imported foodstuffs, as well as concerns by foreign customers w/respect to US food product.

  16. Food Safety Policy: Alternatives to Resolve the Problem 1. Status Quo --Inspection, HACCP & education, private 2. Free Market --Let market signals work (pay for quality; tech. solutions) --Limited education programs (private/public support) 3. Increasing Regulation & Investment in Research & Technology Application --Expand regulation from inputs to/thru consumer --Expand education thru marketing chain --Expand public support for research --Expand public support to apply technological solutions

  17. Food Safety Policy: Background Issues FOOD ??? • Risk Acceptability--Tolerance Options: • Zero Tolerance • De Minimus (Negligible) Risk (1/1 mil) • No Significant Risk (1/100,000) • Risk Benefit (Benefits > Costs) • Biotechnology • Information & Labelling • Irradiation • “Traceback” • Free Market

  18. Is Our Food Supply Safe?Are Ag Chemicals a Health Hazard? • PRIVATE CHOICES & PUBLIC ISSUES: “Americans decide as a matter of public policy how much risk they are prepared to tolerate, but they do not do it in the same way at all times in all places & in all contexts. . . .” D. Kennedy, Former FDA Commissioner

  19. Is Our Food Supply Safe?Are Ag Chemicals a Health Hazard? • EXAMPLES • Saccharine • Caffeine • Alar & Apples • Nuclear Power • Tobacco • Autos • E.Coli/meat consumption • Alcohol • Cyanide/Grapes • Water • Red food dye/M&M’s • Sweets

  20. The Public Issue of Food Safety • “Determination of ‘safe’ food does not necessarily imply zero risk but rather a personal & societal judgment about the level of acceptable risk. The basic economic problem . . . is one of balance between acceptable risk . . . in terms of health consequences, & cost.” Sporleder & Kramer, ‘89 • Historical context to issue; 1960s (additives), 1980s (pesticides), 1990s (microbial) • Issue has shifted from scientific debate to consumer, media & political debate

  21. Cancer/Other Life-Threatening Risks of Common Substances (Ames, Wilson, Crouch) Source Risk PCB’s 1/15 million DDT/DDE 1/10 million Tap water 1/3.3 million Peanut Butter(2T) 1/115,000 Diet Cola 1/60,000 Background radiation 1/50,000 Raw mushroom(1/day) 1/35,000 Home accidents 1/9,000 Police work 1/4,500 Auto accident 1/4,200 Beer(12 oz/day) 1/1,200 Wine(8 oz/day) 1/750 cigarettes (pack/day) 1/300

  22. Top Food/Food Safety Hazards/ Concerns: Perception Vs. Reality • Consumer perception: 1990: pesticide residue in food 1997: both pesticides & food-borne diseases • SCIENTIFIC FACTS BASED ON ANALYSIS (ranked in order): 1. Food-borne diseases 2. Malnutrition 3. Environmental contaminants (lead/mercury) 4. Naturally occurring toxins 5. Pesticide residue 6. Deliberate food additives

  23. Food Safety: Scientific Studies--results • Ames study: • 99.9% of carcinogens in diets result of natural toxins in plant • By weight, natural toxins about 10,000 times more concentrated in plants than synthetic chemicals • Pesticide residue-tested food: • 67% --no residue • 96% --residue in allowable limits • <1% --exceeds federal tolerance

  24. Alternatives To Reduce Food Safety Concerns 1. General education on risks 2. Improve food prep skills 3. Eliminate environmental contaminants 4. Increase testing procedures/regulation 5. Certify foods as Pesticide-free 6. Eliminate chemical use

  25. Food Safety Policy Alternatives/Consequences: Status Quo • Inspection • HACCP • FQPA (Food Quality Protection Act) • FDA Guidelines • Education • Likely Consequences • Continued federal/state/local outlays for inspection/enforcement & education • Public acceptance of relative food safety levels • Private sector push to minimize HAACP implementation cost • FQPA is controversial, & commercial ag is seeking changes • Some increase in food prices

  26. HACCP--What is it? • Hazard Analysis & Critical Control Points • science-based preventive approach that sets new requirements for slaughter & processing plants • Industry identifies production, manufacturing & transportation points where contamination could occur, then implements control measures • All plants implementing HACCP since 2000

  27. HACCP (continued) • 7 Steps: 1. Analyze hazards 2. Identify critical control points 3. Establish preventive measures 4. Establish monitoring measures 5. Establish corrective actions 6. Establish effective recordkeeping 7. Establish verification procedures

  28. Food Safety Policy Alternatives/Consequences: Free Market • Let market signals work • Public, thru trial/error, would find where to purchase safe food, what brands to avoid, how to store/prepare food safely • Limited public education • Some ongoing federal/state/local public education programs informing producers/processors/retailers/ consumers about safe food handling, storage, preparation • Likely Consequences • Rise in incidence of disease/death • Increased expenditures on health care • Decline in food prices • Changes in consumer preferences/behavior

  29. Food Safety Policy Alternatives/Consequences: Increasing Regulation & Investment in Research/ Technology Application • Expand regulation from inputs to consumer • Expand education • Expand public support for research • Expand public support to apply technological solutions • Likely Consequences • Increased federal/state/local outlays • Increased public confidence in food safety • Mixed results on global competitiveness • Decline in food imports • Increase in food prices

  30. Food Safety Policy: What can consumers do? • Become more informed on issues, policies & safe food handling/ preparation techniques (County Extension can help) • Most residue, microbial & parasitic problems can be alleviated by practices such as proper storage, washing and cooking • Note the cleanliness of restaurants & their record of violations

  31. Food Safety Policy: What can farmers & ranchers do? 1. Become more informed about issues, policies & production practices that keep food safe (County Extension can help) 2. Proper use and disposal of chemicals (follow labels), & considering integrated pest management practices can minimize problems. 2. Educate the public on practices used

  32. Food Safety Policy: What can the voting public do? 1. Continue to let interest groups & elected representatives know their needs. 2. Become more aware of the policy alternatives & their consequences.

  33. Food Safety Policy: What can agribusiness do? 1. If you handle inputs into the food production process, be aware & advise producers on toxic effects 2. If you handle/process produced food to market direct/value-added, be aware of risk of marketing unsafe food 3. Be aware of & in compliance with appropriate regulations 4. Invest in R & D for safe food processing 5. Partner w/public educators to improve consumer awareness & responsibilities.

  34. Food Nutrition and Obesity—A Public Problem? There is widespread concern that Americans, especially children, are not eating nutritiously, in part contributing to the onset of many serious health problems, including obesity which may be at epidemic proportions.

  35. Food Nutrition/Health Policy Options • Education • Labeling • Food Assistance • Food Stamps • Food Distribution Programs • School Lunch Programs • WIC • Welfare Reform • Change farm bill programs • Free Market

  36. Summary • Food policy issues include: Price & availability Marketing share Structural changes Food safety Food nutrition Hunger--issue is economic (distribution/development) • Food safety--current primary issue • Government role--emerging issue • World hunger continues • With population pressures, this may be the single biggest issue

  37. APPENDIX • HACCP (slide 38) • E. coli (39-40) • FSRIA 02 Nutrition Programs (41-42) • Obesity (43-56) • Biosecurity (57-60)

  38. HACCP--ADDENDUM • Estimated “3-5 yrs to develop competent inspection force & undo 90 yrs of practice” (The Kiplinger Agriculture Newsletter, 10/24/97) • Traditional mechanism in place until phase-in complete • HACCP may cost Meat & poultry plants $1.3 bil over 20 yrs, but savings from reducing food risks 20% are estimated at $1.9 bil in health costs & lost productivity

  39. E.coli 0157:H7--Addendum • Significant because: • Affects all age groups (diarrhea, abdominal pain, intestinal bleeding, kidney failure) • has low infectious dose • is acid-tolerant • is especially associated w/ruminants • Less than 10 cells may cause foodborne illness • Hardy, long survival • Successful prevention: reduce/eliminate presence, rather than preventing pathogen growth • HACCP can reduce risk, but not infallible

  40. E.coli 0157:H7--Addendum (continued) • What’s effective in killing it? • heat pasteurization (milk & juice) • ionizing radiation (meat*, fresh fresh fruits, vegs) • steam pasteurization (carcasses) • NOTE: not yet approved for beef & seafood • Incidence: • 3% of dairy calves; 2% of feedlot cattle • raw milk, apple cider, water • dry-cured salami • lettuce, produce from manure-fertilized gardens, potatoes, radish/alfalfa sprouts, yogurt, sandwiches

  41. FSRIA 02 Nutrition Program Update (May 04) • International School Lunch: USDA issued a final rule implementing the McGovern-Dole International Food for Education and Child Nutrition Program. • Nutrition: USDA implemented Food Stamp rule changes which simplify the program and allow many legal aliens to be eligible for program benefits on the same basis that citizens are eligible.

  42. FSRIA 02 Title IV – Nutrition Programs Update (May 04) • First Year: • Funded Farmers’ Market Nutrition Programs for seniors and for WIC recipients at over $30 million in FY 2003. • Implemented Food stamp rule changes which simplify the program and allow many legal aliens to be eligible on the same basis that citizens are eligible. • Provided $6 million to schools in a pilot to increase fruit and vegetable consumption. • Second Year: • Issued purchase specifications involving irradiated food products for use by schools wishing to purchase such products for school feeding programs. • Awarded $5 million in food stamp participation grants to State agencies. • Submitted EBT implementation report to Congress.

  43. The Claims about the Source of Obesity and Overweight Trends in the US • “The source is behavioral.” • Sedentary life/work • Affluence • Bad eating habits • Lack of exercise • “The source is the food system & that leads back to human behavior.” • Pre-packaged, over-processed foods • Fast food • High fat/cholesterol/sugar/carbohydrates • Food additives • “The source is govt payments to farm programs that cause low food prices that causes poor behavior.” • “The source is medical/organic (genetic, etc.).”

  44. Research & Claims about Obesity • Recent claims/studies suggest farm programs contribute to obesity • The argument: • Govt subsidies encourage production of foodstuffs that contribute to obesity (sweetener, hi carbs, hi fat, etc) • Other studies • The Journal of Economic Perspectives: lower food prices couldn't cause obesity....that prices simply have not fallen enough and food demand is not that elastic

  45. US Overweight and Obesity by Age, 1960-2002 (% of population)* Note: some youth data not available in 1960-70

  46. US Direct Government Payments, 1960-2004 1996 Farm Act 2002 Farm Act $ Billion $15.7 b. *Projected

  47. US Nutritional Program Spending, 1974-present ($m)

  48. Some Thoughts on Causation • Complex issue • Farm programs and nutrition programs have different goals, and different outcomes • Difficult to separate farm and nutrition programs/spending when medical profession disagrees on basic causes of obesity • Co-incidence of increasing trends in obesity and government farm program payments and nutrition program spending doesn’t prove causation • Correlation between obesity government payments and nutrition program spending doesn’t prove causation • If there is a relationship between what we encourage farmers to grow, what we educate the public on with respect to nutrition and obesity trends, it will likely take decades to change the current structure and support systems (consider tobacco as a model)

  49. Alternative Responses to the Obesity Situation in US • Status quo • Aggressive research programs funded by private sector and government • Reduction of nutrition program spending and government involvement, allowing private sector and consumers to find resolution • Reduction of farm program spending to reduce government incentives for existing mix of food production • Aggressive education program funded by private sector and government

  50. Status Quo: Likely/Potential Consequences • Continuation in trends of health problems • Continuation in trends of federal nutrition program spending • Continuation in trends of federal farm program spending • Continued opportunity for private sector response • Possible medical/medicinal responses that reduce or alter health problem trends for those who can afford it • Consumers could choose to change behavior with resulting improvement in health

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