Food safety – an introduction

1. Food safety – an introduction Lecture 35 Economics of Food Markets Alan Matthews

2. Lecture objectives • Why is food safety a growing issue? • What is the contribution of economists to the debate on food safety policy? • The notion of risk • EU food safety institutions

3. Reading • Kinsey overview

4. Dimensions of food safety • Three dimensions of food safety (Kinsey) • Safety from food poisoning • Safety from poor diets • Safety from bioterrorism

5. The scope of food safety regulation • The wide range of food safety regulation • Protection of the consumer against adulteration of food and drink one of the earliest examples of social legislation • Sanitary conditions in food preparation, packaging and handling; pesticide and hormone residues; packaging materials, food additives; labelling requirements; weights and measures legislation

6. The growing demand for food safety • Risks of food-borne diseases have increased • Economic growth increases consumer demand for quality attributes generally and food safety in particular • Because of changing consumption habits, the consumer now more dependent on public authorities for food safety • Economic studies in US suggest high costs to food-borne illnesses

7. Key questions • Do the benefits of growing food regulation outweigh their cost? Could we deliver a particular level of food safety more efficiently? • Food safety regulations differ from country to country, making food law a non-tariff barrier to trade. When is this legitimate consumer protection, and when industry protectionism?

8. Risk analysis • The three legs of risk analysis • Risk assessment • Risk management • Risk communication • To which we can also add • Control and enforcement • Now embodied in WTO rules. Implication is that regulatory decisions based on risk analysis should be consistent across different aspects of food safety

9. Issues arising from risk analysis • Techniques of risk assessment • Determination of the acceptable risk standard • Consumer perceptions of risk often different to expert assessments • Consumers may lack confidence in the public authorities conducting the risk management • What to do when scientific understanding is incomplete – the precautionary principle

10. The EU approach to food safety regulation • Totally overhauled following the BSE debacle in 1996, became the key priority for the Santer Commission • Green Paper on Food Law published in 1997 as basis for discussion • 2000 White Paper on Food Safety • Implementation overseen by DG SANCO under Commissioner David Byrne

11. The EU approach to food safety regulation • Risk assessment now undertaken by the European Food Safety Authority -> scientific advice • Risk management based on clear legislation proposed by Commission and implemented by Council. Massive overhaul of EU food law • Risk control – substantial strengthening of the EU framework for enforcement of food safety regulations overseen by the Food and Veterinary Office of the Commission • Risk communication – responsibility of the EFSA