The efforts of the Missouri Research Team focused on research sub-objectives 1 and 3 of the proposed research. In relation to
research sub-objective 1, which was to "develop a conceptual and empirical framework for understanding how consumers and the general public perceive risks associated with biotechnology in the food system," our research focused on consumer risk perceptions and communication. Several published papers and book chapters resulted from this work (see below). Our work complements and adds to the published literature. Our findings are as follows:
- Based on a review of the literature we used the framework elaborated by Paul Slovic and colleagues to investigate media coverage of biotech foods. According to the psychometric model, consumers evaluate potential risks of a new technology on the basis of two main factors-the degree to which it is dreaded: its consequences are catastrophic, uncontrollable, potentially fatal, not equitable in their distribution, pose high risk to future generations, are not easily reduced, and are involuntarily imposed; and the degree to which the risk is an unknown risk: it is not observable, not evident to those exposed, its effects are delayed, and its risks are not definitively known to science. Consistent with the existing literature we find that the psychometric model is a useful and proven approach for conceptualizing risk perceptions. We used the approach as a means to evaluating media risk messages (Marks & Kalaitzandonakes, 2001; Marks, Kalaitzandonakes and Zakharova, 2002; Marks et al., 2003).
- In applying this model, we found that the media has an agenda-setting function. Hence, its effect is likely to be subtle, indirect, and cumulative over time (Marks & Kalaitzandonakes, 2001).
- We also found that the bulk of the controversy in media coverage of biotech foods occurred in 1998 and 1999. Since 1999 media coverage of biotech foods has declined in both the US and UK (Marks, Kalaitzandonakes, and Zakharova, 2002). UK newspapers have generally been more negative than US newspapers over the period 1990 to 2001 although overall coverage is cyclical and event driven.
- Both food safety and biosafety events have influenced reporting of potential risks (and benefits) of biotech foods in the US and UK media. Some events are general in nature (e.g., the Monarch Butterfly controversy) and emerge as truly international by the very fact that global media choose to report them. However, not all food safety and biosafety events are reported internationally. The commingling of GM canola with conventional seed was largely reported in the UK press. Starlink, on the other hand, was much more heavily reported in the US.
- Our findings also suggest that it would be a mistake for agribusiness firms to ignore what might initially appear to be unrelated, or at least less relevant, media events. The research of Dr. Arpad Pusztai (which indicated that rats were harmed when fed with GM potatoes), while predominantly a food safety issue, triggered more broad risk communication in the UK media in 1998 and 1999. Hence, monitoring, managing and being ready to respond to industry-wide issues will be an increasingly important public relations strategy for global agribusiness firms.
In relation to
sub-objective 3, which was to "develop more efficient supply chains for biotech foods" we investigated the strategies put in place by supply chains to mitigate consumer risk generated by the controversy over biotech foods. The role of food processors, manufacturers and retailers in European consumer biotech food purchasing decisions was investigated. In particular, the research focused on understanding how supply chains put in place by European food retailers precluded sale of biotech foods in European markets. We found that the incentives and strategies of key players in the global food industry may be driving public acceptance of agrobiotechnology as much as consumer attitudes (Kalaitzandonakes and Bijman, 2003). In particular, many European food retailers and manufacturers quickly removed GM ingredients from their branded products during the peak of the controversy in 1999. The success of the retail chains in removing GM ingredients from their products deemed labeling regulations by the European Union practically irrelevant. Subsequent actions to remove GM ingredients from animal feed exceeded EU regulatory standards and affected substantially larger markets as GM crops are used mostly for animal feed production. As a result, getting GM foods back on grocers' shelves may take more than public acceptance of biotechnology. Some practices by food retailers have ultimately limited consumer choice for a while to come.
Journal Articles
Kalaitzandonakes, N. and Bijman, J. 2003. Who is Driving Biotechnology Acceptance? Nature Biotechnology 21, 366-369.
Marks, L.A., N. Kalaitzandonakes, K. Allison, and L. Zakharova. 2003. Media Coverage of Agrobiotechnology: Did the Butterfly have an Effect? Journal of Agribusiness, 21(1): 1-20.
Marks, L.A., N. Kalaitzandonakes and L. Zakharova. 2002. On the Media Roller-Coaster will GM Foods Finish the Ride? Choices, Spring, 6-10.
Marks, L.A. 2001. Communicating About Agrobiotechnology. (Editorial). AgBioForum, 4(3&4): 152-154.
Marks, L.A. and N. Kalaitzandonakes. 2001. Mass Media Communications about Agrobiotechnology. AgBioForum, 4(3&4), 199-208.
Book Chapters
Marks, L.A., N. Kalaitzandonakes, K. Allison, & Zakharova, L. 2002. Time Series Analysis of Risk Frames in Media Communication of Agrobiotechnology. In Market Development for Genetically Modified Agricultural Products, V. Santaniello, R.E. Evenson, and D. Zilberman (eds.), pp.217-225. Wallingford, UK: CABI Publishers.
Marks, L.A., S. Mooney, and N. Kalaitzandonakes. 2002. Quantifying Scientific Risk Communications of Agrobiotechnology. In Market Development for Genetically Modified Agricultural Products, V. Santaniello, R.E. Evenson, and D. Zilberman (eds.), pp. 205-215. Wallingford, UK: CABI Publishers.
Presentations
Marks, L.A. & Kalaitzandonakes, N. 2002. Media Communication of Trust Messages. Selected paper presented at the Risk Analysis Society Annual Meetings held in New Orleans, December 8-11.
Kalaitzandonakes, N. and L.A. Marks. 2002. Media Coverage of GM Foods in the US and UK. Selected paper presented at the 10th EAAE Congress, "Exploring diversity in the European Agri-food System," Zaragoza, Spain, August 28-31.
Marks, L.A. and N. Kalaitzandonakes. 2001. A Time Series Analysis of Informational Equity in Mass Media Coverage of Agrobiotechnology. Selected paper presented at the ICABR 5th International Conference on The Biotechnology, Science, and Modern Agriculture: A New Industry at the Dawn of the Century, Ravello, Italy, June 15 -18.
Marks, L.A. and N. Kalaitzandonakes. 2001. A Time Series Analysis of Source-Message Heterogeneity in Mass Media Coverage of Agrobiotechnology. Selected paper to be presented at the 2001 American Agricultural Economics Association Meetings, Chicago, IL, August 5-8.
Marks, L.A., S. Mooney, and N. Kalaitzandonakes. 2000. Quantifying Scientific Risk Communications of Agrobiotechnology. Selected paper presented at the 4th International Conference on Agrobiotechnology, Ravello, Italy, August 24th - 28th.
Marks, L.A., N. Kalaitzandonakes, K. Allison, & L. Zakharova. 2000. Risk Communication of Biotechnology: A Comparison of Agriculture and Pharmaceutical Industries. Selected paper presented at the 2000 American Agricultural Economics Association National Meetings, Tampa, FL, July 30 - August 2.
Marks, L.A. 2000. An Overview of the Media's Role in Mediating Trust. Organized Symposium on "The Public Debate on Agrobiotechnology: Improving on Trust and Communication" at the 2000 American Agricultural Economics Association National Meetings, Tampa, FL, July 30 - August 2.
Marks, L.A. and N. Kalaitzandonakes. 2000. Changing Consumer Values Toward Genetically Modified Foods. Selected Paper presented at the 2000 World Food and Agribusiness Forum, Chicago, IL, June 25.
Final Report
Designing Food Supply Chains to Enhance Public Acceptance of Agricultural Biotechnology
Submitted by Randall Westgren, University of Illinois
Westgren: r-westg@uiuc.edu
Accomplishments
Sub-objective 1, Develop a conceptual and empirical framework for understanding how consumers and the general public perceive risks associated with biotechnology in the food system
The work under this sub-objective has led o a series of publications and presentations on consumer risk evaluation with respect to risks associated with biotechnology events introduced into the supply chain. In addition, the research team has extended the work to other positive and negative attributes of corn, soybeans, and meat products. Negative attributes include BSE risk and other food-borne pathogens. Positive attributes include functional characteristics of soybeans. The results show some commonalities in risk attitudes and risk preference behaviors among consumers. Publications have appeared in marketing journals, agribusiness management journals, and in book chapters.
Sub-objective 2, Strategies for efficient chains: What makes chains successful or unsuccessful at mitigating consumer risk?
The research under this sub-objective has resulted in completed case studies on a number of grain and livestock supply chains around the world. In each case, the research team was able to isolate strategies for either (a) mitigating risks of adventitious contamination or (b) preserving value created on-farm by identity preservation downstream in the supply chain.
This case study approach has led to the development of some models of supply chain development that have been published in scientific journals and presented to scientific, government, and industry audiences over the past 4 years. A list of these outputs follows below.
Completed case studies of particular supply chains
- Non-GMO soybean sourcing in a proprietary supply chain for soymilk production in Belgium (AllPro Soya)
- Western Australia's grain quality system (SQF) owned by producer associations for identifying specific quality attributes and for latent identity preservation of biotechnology-enhanced wheat
- Two contract-based corn and soybean merchandising firms in Illinois that source and segregate non-GMO product to serve European and Asian markets
- Quality and traceability strategies for livestock products and poultry produced in France with explicit claims for quality, food safety, nonGMO feeds, and protected designation of origin (8 Label Rouge poultry chains, 4 chains for specialty ham and pork products, SOVIBA beef chain)
- Four lamb and beef supply chains in New Zealand that serve US and EU markets by meeting a multiplicity of sanitary and traceability requirements
Additionally, case studies have been completed on third-party certification strategies and systems that support traceability and quality assurance programs in an array of plant and animal supply chains. Included are organic certification programs in California, Illinois, and Wisconsin; certified pesticide residue-free produce in California; and the European certification agencies that respond to EU norm 45011.
Completed case studies of certification programs
- EcoCert, Europe's leading certification program for nonGMO and organic soybeans, as well as fresh vegetables, dairy products, and meat at both the farm and processing levels
- SGS, the global leader in certification of supply chains for a wide range of process attributes, product attributes, as well as risk mitigation
- SCS, a California company that specializes in product testing and process management for supply chains that guarantee zero pesticide residues to retailers and consumers
- CCOF, the California Certified Organic Farmers organization which offers certification services under the new USDA regulations
Indirect Outcomes and Grant Leverage
The progress on this research grant has attracted additional funding to the research team for studies of a) producer-owned and managed certification systems for soybeans, b) value-adding through provision of services (quality assurance, segregation and identity preservation, certification) by producers as an alternative strategy to building processing plants, and c) studies of risk behaviors with respect to food safety. Five grants from the Illinois Soybean Checkoff Board totaling $211,860 have been made to investigate identity preservation strategies and certification of attributes in producer-centered supply chains. Three grants from State of Illinois and Hatch funds totaling $180,000 support additional research and a new extension program on supply chain management. Project team members have also received $198,000 of new grants to advance the empirical research on consumer attitudes and behaviors toward genetically modified foodstuffs. Significant grants (not including subsequent IMBA grants) are listed below.
Presentations and Publications
Since 2002, the project team has made more than forty presentations of results to scientific, industry, and government audiences based upon the research results from this project.
Among the local audiences were the Illinois Soybean Association and Illinois Soybean Program Operating Board, the Illinois Farm Bureau, the Illinois Extension Service Annual Conference, and the Illinois Agricultural Leadership Program. A list of other presentations to national and international audiences is presented below.
The body of work has supported outreach programs centered on the concept of creating value in agricultural supply chains as an alternative to commodity marketing systems. Team members Westgren and Goldsmith have presented to a variety of audiences in North America and South America over the past three years.
Other Outcomes
Two Masters theses were completed with the support of this project.
Samuel Kane (2002) The Innovation/Performance Paradox: An Investigation of Producer Behavior in the Food Supply Chain.
Lance Oliver (2003) Strategic Role of Flexible Supply Chain Architectures
A final set of outcomes for this project was the incorporation of results from the case studies and the consumer research into undergraduate teaching in the Department of Agricultural and Consumer Economics and in the Department of Business Administration. The case studies have been included into two courses: Strategic Management in Food and Agribusiness and the International Business Immersion Course. The former course has a unique module on supply chain governance for attribute preservation as an inter-firm strategy. The latter course is unique in North America. Students do significant on-campus preparation on global supply chains, then they follow soybeans from farm to processor and from farm to export facility in the US. Then they follow the chain backwards from retail products to import facility (e.g. Rotterdam) in Europe, with on-the-ground experience in traceability, identity preservation, and the EU regulatory regime for genetically-enhanced oilseeds. This course has been replicated in Brazil, with emphasis on emerging soy and livestock supply chains.
Publications
Wansink, Brian, Marketing Nutrition: Soy, Functional Foods, Biotechnology, and Obesity, Champaign, IL: University of Illinois Press (2005).
Wansink, Brian, Steven Sonka, Peter Goldsmith, Jorge Chiriboga, and Nilgün Eren, "Increasing the Acceptance of Soy-Based Foods," Journal of International Food and Agribusiness Marketing, (2005) 16:1, forthcoming.
Pennings, Joost M.E. and Brian Wansink), "Channel Contract Behavior: The Role of Risk Attitudes, Risk Perceptions, and Channel Member Market Structures," Journal of Business, 77:4 (October 2004), 697-723.
Van Ittersum, Koert, Joost M.E. Pennings, Brian Wansink, and Hans C.M. van Trijp, "A Multidimensional Approach to Measuring Attribute Information," Advances in Consumer Research, (2004) Volume 31, 84-85.
Van Ittersum, Koert, Joost M.E. Pennings, Brian Wansink, and Hans C.M. van Trijp, "Improving Attribute-Importance Measurement: A Reference-Point Approach," Advances in Consumer Research, (2004) Volume 31, 86-87.
Goldsmith, P.D., and K. Bender. "Ten Conversations About Identity Preservation." Journal on Chain and Network Science. (4), 2004:111-123.
Goldsmith, P.D. "Supply Chain Management and Enhanced Grain Contracts and Pricing." An International Buyers' Guide to US Soybean Procurement. Edited by Peter Thorton. The American Soybean Association. 2004.
Ng, Desmond, Steven Sonka, and Randall Westgren. "Co-evolutionary Processes in Supply Chain Networks", Journal of Chain and Network Science, Vol. 3:1 (2003), pp. 45-58.
Goldsmith, P.D., Gabriel Ramos, and Carlos Steiger. "Intellectual Property Protection and the International Marketing of Agricultural Biotechnology: Firm and Host Country Impacts." Economic and Social Issues in Agricultural Biotechnology. Edited by R.E. Evenson, V. Santaniello, and D. Zilberman. CABI Publishing. Oxon, United Kingdom. Chapter 17. 2002. pp. 309-324.
Presentations
Westgren, Randall E. "Research Needs on Supply Chains", presented at the Food and Agricultural Marketing Policy Section research conference, Washington, DC, 5 May 2005.
Westgren, Randall E. "Creating and Capturing Value in Agricultural Product Supply Chains, presented to the annual meeting of the Agricultural Producers Association of New Brunswick, Fredericton, NB, 5 January 205.
Westgren, Randall E. "Value Chains - Managing and Prospering in the Supply Chain", presented to the annual general meeting of the Alberta Pork Producers, Calgary, December 8, 2004.
Westgren, Randall E. "Creating and Capturing Value in Supply Chains", presented to the National Farm Income Symposium (Agriculture and Agri-Food Canada and The Canadian Federation of Agriculture", Ottawa, 15 November 2004.
Goldsmith, Peter D. "Strategies for Commercializing New Crops: A Supply Chain Perspective." Plenary presentation at the 2nd Australian New Crops Conference. University of Queensland. September, 2004.
Westgren Randall E., "Why Should We Focus on Supply Chain Management?", presented to the annual general meeting of the George Morris Centre, Guelph, September 17, 2004.
Goldsmith, Peter D. "Traceability and identity preservation Policy: Private Incentives vs. Public Intervention." Presented at the annual meeting of the American Agricultural Economics Association. Denver. August, 2004.
Goldsmith, Peter D., N. Turan, and H. Gow. "Governments and Firms: Incentives to Supply Safe Food." Presented at the annual meeting of the International Food and Agribusiness Management Association. Montreaux, Switzerland. June, 2004.
Goldsmith, Peter D. "Alternative Marketing Channels: Four Rules" and "Getting the Right Skills, Assets and Knowledge Resources: Strategic Investment by the Illinois Agri-food Complex." Exploring Market Structure Alternatives. University of Illinois, Monsanto Room. June, 2004.
Goldsmith, P.D. "Soy Branding Strategies and Supply Chain Management." Invited Paper. The Annual Meeting of the Association of Marketing Theory and Practice. Destin, Florida. March, 2004.
Goldsmith, Peter D. "La soja en los próximos 20 años (The Soybean Complex in the Next 20 Years.)" Presented at the National Bank of Argentina. Buenos Aires. January, 2004.
Goldsmith, Peter D. " El Riesgo al Complejo de Soja: Impactos de Derechos Propriedades Intellectuales Debiles." (Risk for the Soybean Complex: The Impact of Weak Intellectual Property Rights.) Agribusiness Conference at Syngenta. Bueanos Aires. January, 2004.
Westgren, Randall E. "Quality Assurance and Identity Preservation: A Systems Approach", presented to the Agricultural Economics Department, Texas A&M University, 5 October 2003.
Goldsmith, P.D. and R.E. Westgren. "Information, Uncertainty, and Governance in the Strategy Space for Differentiated Products", American Agricultural Economics Association Annual Conference, AEM Organized Symposium, Montréal, Québec, 28 July 2003.
Westgren, Randall E. "Industry Supply Chain Management for Food Safety and Quality", presented to the USDA Economics Research Service, 21 November 2002.
Wansink, Brian A. "Increasing the Consumer Acceptance of Soy" International Soy Conference, Beijing, China. November 2002.
Wansink, Brian A."Channel Contract Behavior: The Role of Risk Attitudes, Risk Perceptions, and Market Structures," Marketing Science Conference, University of Alberta, June 2002.
Goldsmith, P. D., H. R. Gow, and R. E. Westgren. "Economic Analysis and Modeling of Traceability and Assurance Systems" American Agricultural Economics Association Annual Conference, FAMPS Principal Papers, Long Beach, CA, 29 July 2002.
Westgren, Randall E. "Strategy, Traceability, and Quality" Food and Agricultural Marketing Policy Section of the AAEA, Washington, DC, 10 January 2002.
Westgren, Randall E. "Identity Preservation and Quality Assurance: A Systems view" Alberta Agricultural Economics Assn., Red Deer, AB, 2 May 2002.
Research Funding obtained
Bender, K.L., and P.D. Goldsmith. "SoySelect Phase III: Extending and Integration with 1st Handlers and Processors." Illinois Department of Agriculture. 2003-2004. $72,163.
Goldsmith, P.D., and L.J. Unnevehr. "Food Safety in the Agri-food Supply Chain: The Case of Solae." Cross-Campus Initiative for Food Security. 2003-2004. $25,000.
Goldsmith, P.D., and K.Bender. "Business Feasibility of SoySelect." Illinois Soybean Program Operating Board. 2003-2004. $45,250.
Swanson, B., P.D. Goldsmith, and H. Gow. "Center for Global Supply Chain Studies". Illinois Extension Service and Office of Research, College of ACES, UIUC. 2002-2003. $50,000
