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European Review of Agricultural Economics 2006 33(4):511-541; doi:10.1093/erae/jbl028
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© Oxford University Press and Foundation for the European Review of Agricultural Economics 2006; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org

Cost implications of improving food safety in the Dutch dairy chain

Natalia I. Valeeva1,, Miranda Meuwissen2, Alfons Oude Lansink3 and Ruud Huirne4

1 Agricultural Economics Research Institute and Institute for Risk Management in Agriculture, Wageningen University and Research Centre (WUR), The Netherlands
2 Institute for Risk Management in Agriculture, WUR, The Netherlands
3 Business Economics Group, WUR, The Netherlands
4 Institute for Risk Management in Agriculture, WUR, The Netherlands

Corresponding author: Natasha Valeeva, Agricultural Economics Research Institute, Wageningen University and Research Centre, Hollandseweg 1, 6706 KN Wageningen, The Netherlands. E-mail: natasha.valeeva{at}wur.nl

This paper examines control measures for improving food safety in the dairy chain, using an integer linear programming model. The chain includes feed (compound feed production and delivery), farm (dairy farm) and dairy processing (transport and processing of raw milk, delivery of pasteurised milk) blocks. Results show that 65 per cent of the maximum possible food safety improvement can be achieved at relatively low extra cost per ton of milk ({euro}4.27), fairly evenly distributed across the blocks. Higher safety levels can be attained by increasing the farm block's contribution, but at much higher extra cost ({euro}44.37 for the maximum attainable).

Keywords: cost effectiveness, integer linear programming, food safety, dairy chain

JEL classification: L10, Q13, Q18


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