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Compliance of producers and adoption by consumers in case of food safety practices: Synopsis
of cases from south Asia.
Devesh Roy
October 31st , 2019
• Foodborne diseases (FBD)-illnesses caused by contaminated, or naturally harmful, food or beverages.
• These hazards are: biological; chemical hazards & physical hazards such as foreign objects in food.
• FBDs health burden-borne disproportionately by poor countries-estimated to be comparable to malaria and
tuberculosis (Havelar et al 2015) that are still prevalent in different regions of south Asia.
• FBD also produce severe and lasting symptoms including paralysis, epilepsy, arthritis and birth defects (Grace
2018).
• FBD directly relate to SDG 3 i.e. good health and well being and SDG6 i.e. clean water and sanitation.
• FBD are associated with a wide range of economic costs including lost or low productivity due to illness, the costs of treatment
and cost of prevention (e.g. food safety governance, risk reducing practices) (Shaw & Grace, 2015).
• Alternatively, costs fall on different actors in the value chain including the government, food industry, consumers and the
institutional sector. Zoonotic diseases put additional burdens on the livestock sector.
• Apart from the health burden, food safety a major barrier in accessing high end international markets and have diminished
value generation in the domestic markets.
• In supermarkets or other outlets, farmers and other agents are hardly rewarded for delivering products with higher standard of
food safety.
• India-second largest producer of fruits and vegetables in the world but a failed exporter of these. Nepal being one of the largest
producers of ginger does not have commensurate export earnings from ginger.
• There also is ambiguity about whether the food safety requirements are a threat or an opportunity for the poor smallholders.
Also, FBD, mitigation and remedy are context specific and can vary across countries and even regions.
Primer on food safety and Food Borne Illness
• Food safety in most south Asian countries not been considered a development priority and managing FBD or delivering on food
safety often thought of as responsibility of the private sector
• Significant under-investment has occurred. This is partly since the burden of food borne diseases was not recognized or
measured for a long time. In 2015 WHO presented the first set of comprehensive measure of food borne diseases.
• In south Asian countries-consumption patterns are changing significantly, including greater consumption of perishables,
processed food and greater incidence of eating out and value chains are getting more complex.
• Recent initiatives on food safety. Examples include Global Food Safety Partnership, initiatives by African Union,
DFID, BMGF call for proposals for research on food safety in developing countries.
• Several national initiatives like setting up of Food Safety and Standards Authority in India and Bangladesh Food
Safety Authority.
• How to maximize the effectiveness of these new institutions and how it can be regionally coordinated remains an
unanswered question.
• Tradable sector versus the domestic markets in south Asia- extensive margins –trade costs are higher
• Food safety as a wealth creator
• Importantly, most risky foods like ASF are in the traditional sector in retailing across south Asian countries.
• With limits to regulatory capital, strengthening of food safety systems can happen only with consumer awareness that would
create a demand pull. How to foster greater demand pull such that all value chain participants get rewarded for delivering on
food safety?
Food safety in policy
Inter-sectoral linkages
• With industry
• With services such as tourism
• HRI sector an important element of the story
Just to set the stage (things are getting complex)
11/5/2019 5
Then there is taste, customs, preference
and priority
11/5/2019 6
• Bangladesh, India, and Nepal , Sri Lanka
• Need to address knowledge, attitudes and practices with respect to
production and consumption of food across the supply chain
• Covers two ends of the food chain; Farm production and Household
consumption
• Example dairy:::::::
• Coverage: 998 consumers and 512 producers in Anuradhapura, Kandy,
Nuwara Eliya, Badulla and Kurunegala districts during October-December,
2016
• Slight modifications to the structured questionnaire used in Nepal to suit
the Sri Lankan context
IFPRI multi-country study on food safety
03/03/2017 7
Dairy milk consumption pattern in Sri Lanka
03/03/2017 8
Expenditure on
milk and milk
products (LKR)
Average household
monthly
Consumption of
powdered milk (Kg)
% expenditure on
milk and milk
products
%
Expenditure
on powdered
milk
% Expenditure
on powdered
milk out of total
milk and milk
products
Urban 1858 1.6 9.8 6.91 70.51
Rural 1293 1.2 8.6 6.50 75.56
Estate 1268 1.3 8.7 7.02 80.68
Sri Lanka 1389 1.3 8.9 6.64 74.59
1600
1500
1200
1100 1100
1000
900
1100 1100
0
200
400
600
800
1000
1200
1400
1600
1800
Western
Central
Southern
Northern
Eastern
NorthWestern
NorthCentral
Uva
Sabaragamuwa
g/month
Average Monthly Household Consumption of Powdered Milk by Districts 2012/13 in Sri
Lanka
0
100
200
300
400
500
600
700
0
500
1000
1500
2000
2500
1 2 3 4 5 6 7 8 9 10
ml/month
g/month
Average Monthly Consumption of Milk Powder and Cow Milk by Expenditure Decile
2012/13 in Sri Lanka
Milk Powder
Cow Milk
03/03/2017 9
Food Safety – Animal Hygiene (Percentage)
No
Food Safety Practices with respect to Animal Hygiene
Extensive Semi Intensive Intensive
1 Milking is done in separate place from stall 41.63 30.28 18.63
2 Regularly wash the animals 84.69 87.32 99.38
3 Washing hands before milking 91.87 91.55 98.14
4 Washing hands before milking each buffalo/cow 58.85 46.48 41.61
5 Drying of hands before milking 79.43 63.38 75.78
6 Sanitizing hands before milking 51.67 51.41 71.43
7 Clean udder and teats before milking 92.34 88.73 96.27
8 Drying of udder and teats before milking 75.12 57.04 72.67
9 Sanitizing of udder and teats before milking 52.15 44.37 69.57
10 Lubricant aren’t used in udders and teats before milking 65.07 54.22 26.70
11 Use of utensils in milking are without any joint 74.44 73.24 74.53
12 Drying of utensils before milking 92.82 90.14 95.03
13 Cleaning of utensils before milking 93.30 91.55 98.76
14 Sanitizing of utensils before milking 63.64 67.61 83.23
15 Washing of utensils before milking 52.15 45.77 49.07
03/03/2017 10
Food Safety- Milk Storage (Percentage)
No Food Safety Practices with respect to Milk Storage Extensive Semi Intensive Intensive
1 Storing milk of diseased animal separately 56.94 65.49 72.67
2 Milk storage area is separate from place buffaloes/cows milked 68.90 77.46 76.40
3 Well drain floor of milk storage area 58.37 76.06 65.22
4 Well drained milk storage area 4.18 2.11 4.35
5 Well Swept milk storage area 79.90 88.03 93.79
6
Milk storage area is free from birds, vermin, cats and dogs
61.24 84.51 87.58
7 Milk bulking is not practiced 85.65 77.46 57.76
8 Washing of the containers before bulking milk 11.96 21.13 26.09
03/03/2017 11
Food Safety- Hygienic Environment (Percentage)
No Food Safety Practices with respect to Hygienic Environment Extensive
Semi
Intensive
Intensive
1 Cleaning of floor for Stall Feeding Area 7.18 9.86 7.45
2 Well Swept stall feeding area 6.70 9.86 7.45
3 Well clean floor of stall feeding area 46.89 59.15 82.61
4 Dispose of dung immediately after extraction 60.68 54.23 60.87
5 Dispose of urine immediately after extraction 53.59 50.00 59.63
6 Chemicals are used in dairy area 2.39 3.52 13.04
7
Keep veterinary medicines within farm (drugs, de-wormer,
antibiotic, etc.)
76.08 68.31 54.66
8 Use of chemicals as per instruction 72.25 70.42 72.55
9 All chemicals stored in a lockable area away from the dairy 48.80 55.63 57.14
10
Inspection for conformity with safety and quality standards in dairy
farming
24.88 29.58 34.78
11 Workers wear suitable clean clothes 100.00 100.00 100.00
12 Workers hands and arms kept clean during milking 81.34 95.07 98.51
13 Nails are trimmed regularly by workers 66.03 85.92 86.65
14 Cuts/wounds covered with an appropriate, water-proof dressing 16.27 0.00 92.94
03/03/2017 12
Food safety – Animal Health (Percentage)
No Food Safety Practices with respect to Animal Health Extensive
Semi
Intensive
Intensive
1 Regularly cleaning of cow 83.73 87.32 95.31
2 Keep diseased animal separately 34.11 57.04 62.17
3 Follow milk withdrawal, after use of prescribed medicine 26.32 42.96 38.51
4 Practicing of DRY COW THERAPY for prevention of mastitis 25.36 42.25 80.00
03/03/2017 13
Knowledge level of consumers regarding
safety of milk
03/03/2017 14
Aspect Low income Medium
income
High income
Awareness on pasteurization 11.85% 15.34% 37.50%
Awareness about melamine episode 47.98% 60.38% 77.42%
Awareness about the point of contamination 27.66% 34.23% 30.75%
Awareness on fortification of milk 25.71% 33.09% 29.47%
Awareness on safety certification 41.50% 55.80% 68.40%
No statistical difference between groups
Attitude of consumers
03/03/2017 15
Attribute Urban Rural Estate Low
income
Middle
Income
High
Income
Trust on the safety of consumed milk
67.72 65.23 73.45 67.62 64.74 74.73
Keeping quality is the main issue associated
with fresh milk 51.81 46.70 48.02 47.46 48.88 56.84
Consuming fresh milk is it is not hygienic
31.08 39.09 31.64 26.84 36.25 48.42
Fresh milk is contaminated with bacteria
20.48 13.45 23.16 10.45 19.89 29.47
Fresh milk provide better nutrients 65.06 69.04 72.32 64.12 69.33 73.68
Main benefit of fresh milk is its freshness
50.12 46.45 107.91 47.74 51.12 40.00
Fresh milk has better quality
28.92 37.56 35.03 36.72 30.67 34.74
Opinion of consumers on food safety practices
03/03/2017 16
Attribute Urban Rural Estate Low
Income
Middle
Income
High
Income
Boiling is an effective way of reducing the food risk of milk
33.01 31.73 37.29 34.46 33.64 25.26
Refrigeration is also considered as an effective way of
reducing the food risk 18.31 14.47 16.38 16.10 18.40 6.32
Straining is an effective way of reducing the food risk of milk
2.65 7.61 11.86 7.34 5.58 6.32
Milk needed to be discarded after a certain period of time
3.13 2.54 4.52 6.50 1.30 2.11
Use of clean containers to store milk reduces the food risk
11.33 11.93 12.43 11.86 10.97 15.79
Consumption of powdered milk is another strategy they can
adopt to reduce the food risk 17.35 13.45 6.21 14.12 11.34 25.26
• Recall: Melamine Incidence
• 55.77% aware about the melamine episode
• Among them 55.1% did not change their
behavior
• Large majority switched their brand. Brand
switching is low among low income group
• Low income families change the consumption
pattern of powdered milk of only children
• Higher proportion of estate sector consumers
switched to fresh milk from powdered milk
compared to other two sectors
Food safety measures adopted by consumers
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Didnothing
switchbrand
Movetofreshmilk
Changeconsumption
Other
Response to Melamine incidence
03/03/2017 17
• In general the level of consumer knowledge on dairy food safety is low
• Large majority are unaware about the source of contamination and do not poses a good knowledge
on risk minimization strategies
• Consumer knowledge on safety of milk depends on the sector where they reside
• Powdered milk consumers have a faith on the milk they consume than fresh milk consumers
• However, compared to other two groups, higher percentage of consumers with high income
believes that fresh milk is not hygienic and it is contaminated with bacteria.
• Consumers with high income consider consumption of powdered milk is a way of avoiding food risk
Summary findings
03/03/2017 18
Primer on dairy sector in Nepal (Thapa et
al 2016)
• Livestock contributes one-third of total ag GDP of Nepal.
• Among livestock, dairy is biggest and growing component contributing about two-third
of livestock GDP.
• 12 million cows/ buffaloes reared by 0.5 million farmers.
• No. of milking cows & buffaloes increased by 20 and 43 percent, respectively,
between 2002 and 2013.
• Milk production increased by about 45 percent, with 40 percent for cow milk and 47
percent for buffalo milk.
• Price of pasteurized milk increased from Rs 22 to Rs 50, a percentage increase of
127%
19
Food safety in dairy in Nepal
• In comparison to the international standard, the mean total bacterial count (TBC) was 9 times higher
on farm and 104 times higher in plant (Dahal et al. 2010).
• Cooperatives and processors frequently complain about the poor quality of milk brought by farmers.
• Consumers also have same concerns about the quality of milk- A study conducted by the NDDB in
2014
• Looking at producers and consumers
• The intensity of adopting food safety practices- wide inter- and intra-district variations.
• Positive relationship to herd size.
• The additional cost of compliance with food milk safety measures reveals an inverse relationship with herd size.
• factors associated with the adoption of food safety measures are caste, number of children and elderly people in a family, household
labor size, herd size, access to information, inspection for conformity with the safety and quality standards in dairy farming, perception
of households about food safety assistance provided by milk buyers, and market outlet types.
• Also provide evidence of the impact of food safety measures on farm-gate prices and farmers’ profitability.
• On consumer side estimates of greater expenditure for the food safety conscious
20
Bangladesh- same situation in Nepal –
lack of demand pull
Dimensions
Food Safety Adoption Index
D
All Contract Non-contract
Milk hygiene 55.7 (17.9) 55.6 (18.1) 55.8 (17.6)
Milk storage hygiene 63.2 (23.2) 64.6 (21.9) 62.0 (24.4)
General hygiene practice* 72.2 (27.9) 74.7 (26.8) 69.9 (28.8)
Animal health*** 42.6 (38.5) 50.5 (41.0) 35.1 (34.5)
Overall food safety adoption index 54.9 (17.7) 56.3 (17.9) 53.5 (17.4)
Food safety: dairy India
MORE THAN TWO THIRDS OF MILK TESTED IN INDIA DID NOT MEET THE STANDARDS SET
BY GOVERNMENT
Lower safety
Lower nutritional value
• Are concerns of the consumers adequately captured in the existing studies
• What are the concerns
• What should be the concerns
• What are the determinants of the concerns?
9:19 AM Research Question
Can something work?
The reason the high value chains are like this.
Possible reasons
People are poor
People do not know and cannot know
With diversity in incomes and information
Pluralistic sector
“Food safety is one part of life where diversity is not
something to celebrate”
THINK OF A DEMAND PULL SYSTEM
9:19 AM BTC
Demand pull: Income necessary but
not sufficient
Create a baseline of information
Null hypothesis 1- There are significant information gaps
related to food safety and nutrition that are systematic
Null hypothesis 2- With subjective beliefs about food safety
market is segmented based on size or reputation based on
historical record of safety
Null hypothesis 3- Information shocks move fringe consumers
to different state but there are many who remain phlegmatic
9:19 AM Research Question
Hand of GOD
11/5/2019 25
Yet-Who should undertake the certification for food safety
/nutrition attributes?
46.22
38.15
1.39 6.77
3.78 3.09 0.6
Government of India State Government Indian Retailer's Association
Farmer's Association International Agency NGOs
Other Specify
Determinants of awareness about food
safety- India case
270
10
20
30
40
50
60
70
80
Below Primary Below High School 10th Pass 12th Pass Graduate Post graduate
Percent of respondents who aware about Pasteurization according to their Education Level
Percent
Awareness about methods for measuring
fat content
28
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Organized Un-organized
15.4
22.2
26.7
29.9
Awareness about the system used for checking fat content in formal and informal sector
formal sector informal sector
Research questions
• Does information affect awareness
• What kind of information matters
• What is the effect of information on consumer awareness as
well as choices
• What kind of information matters- positive or negative?
• Several other research questions
• Our essential research questions relate to awareness and
practices
29
Milk consumption
• Food safety and nutrition
• What do households anchor on?
• What steps they take to conserve nutrition or improve food
safety?
• Sri Lanka- is there a tradeoff between food safety and nutrition?
30
What about milk consumption with
information shock from FSSAI
Research Question
• Low Demand for safer food in developing countries
• Is it because of ability to pay or lack of credible information
Research Question
• Low Demand for safer food in developing countries
• Is it because of ability to pay or lack of credible information
Results
• when informed about food safety and presented with a credible
third party certification, consumers are more likely to choose a
subjectively assessed safer product.
• the impact of the intensive information on those consumers with
high FSCI is greater than the impact of the same on consumers
with low FSCI
Food safety in developing countries: Research
• Evidence on developing country demand for safer food is scant
• Few recent studies found demand for safer food
• Stated preference methods: Krishna and Qaim (2008), Ehmke et al. (2008), Roy et
al. (2010)
• Field experiment: Masters and Sanogo (2002) but on special/atypical food (baby)
• Overall assumption: Consumers’ WTP for safer food is low due to their low
ability to pay (ATP) (Delgado, 2005)
• How about consumers in countries such as China and India, where
incomes are rising?
Theoretical Model: Credibility & WTP
• The uniform information treatment is postulated to affect health premium only through
changes in probability of certified delivering high health where consumers get to know
that the product is certified from an international agency. It works through the credibility
gap.
• Intensive versus extensive information
Credibility Gap Health gap
−∆ i
ciH ππ
))(( lh
nc
i
c
ii HHH −−=∆ ππ
Policy implications
• credible information and certification are the missing ingredients for
capturing consumer demand
• Positive potential for systems creating mechanisms such as
certifications, labeling, institutions
Evolution of Sri Lanka dairy sector:
continued
• Free flow of imported milk powders soon changed the composition of the
domestic milk market. Before the trade liberalization, the domestic milk
production was nearly 63% of local milk market with imports filling the balance.
• imported milk powder has become the dominant share of milk market at present
while the share of domestic milk production reduced to 24 per cent.
• Providing a glass of milk for children and using milk powder for tea whitening thus
became a way-of-life for the average Sri Lankan family.
Food safety policy and regulation
• Somewhat tilted in terms of focus on imports and exports ( the case of cinnamon
and other spices, tea possibly)
• Any scandals in Sri Lanka – like horsemeat in Europe or melamine in China?
• In 2008 in Sri Lanka, fears were raised about melamine contaminated imported
baby food, milk, and fish feed from China
• June 2011, concerns about E-coli contaminated canned fruits and vegetables
imported from Europe.
• Fears also raised - importation of bird flu-infected poultry.
• More recently, a shipment of stainless steel- and aluminum-based cookware with
exposure to cobalt 60 (a radioactive material) was detected at the port by the
Atomic Energy Authority in September 2012.
• Adulterated brown sugar mixed with sand imported from Brazil was confiscated
by the Consumer Affairs Authority in January 2013
Food safety policy and regulation
• Somewhat tilted in terms of focus on imports and exports ( the case of cinnamon
and other spices, tea possibly)
• Any scandals in Sri Lanka – like horsemeat in Europe or melamine in China?
• In 2008 in Sri Lanka, fears were raised about melamine contaminated imported
baby food, milk, and fish feed from China
• June 2011, concerns about E-coli contaminated canned fruits and vegetables
imported from Europe.
• Fears also raised - importation of bird flu-infected poultry.
• More recently, a shipment of stainless steel- and aluminum-based cookware with
exposure to cobalt 60 (a radioactive material) was detected at the port by the
Atomic Energy Authority in September 2012.
• Adulterated brown sugar mixed with sand imported from Brazil was confiscated
by the Consumer Affairs Authority in January 2013
Brief on private sector dairy in Sri Lanka
• Nestle is the largest private sector collector of milk in Sri Lanka
• Some evidence on adoption of HACCP standards (Mudalige et al
2015)
• Nearly 31.3% of tea processing firms already possess a system of
HACCP in the firm compared to just 20.6% of dairy processing firms.
• only 9.4% of tea processing firms have no plan to implement HACCP
as compared to 64.7% of dairy processing firms in the sample.
• Among the nine incentives, reputation (REP), anticipated
government regulation (AGR), commercial pressure (CPR) and cost
and financial implications (CST) were the most important
determinants and motivators of firms’ behaviour in relation to food
safety and adoption of HACCP.
• Leads to our demand pull system

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Compliance of Producers and Adoption of Consumers in the Case of Food Safety Practices: Cases from South Asia.

  • 1. Compliance of producers and adoption by consumers in case of food safety practices: Synopsis of cases from south Asia. Devesh Roy October 31st , 2019
  • 2. • Foodborne diseases (FBD)-illnesses caused by contaminated, or naturally harmful, food or beverages. • These hazards are: biological; chemical hazards & physical hazards such as foreign objects in food. • FBDs health burden-borne disproportionately by poor countries-estimated to be comparable to malaria and tuberculosis (Havelar et al 2015) that are still prevalent in different regions of south Asia. • FBD also produce severe and lasting symptoms including paralysis, epilepsy, arthritis and birth defects (Grace 2018). • FBD directly relate to SDG 3 i.e. good health and well being and SDG6 i.e. clean water and sanitation. • FBD are associated with a wide range of economic costs including lost or low productivity due to illness, the costs of treatment and cost of prevention (e.g. food safety governance, risk reducing practices) (Shaw & Grace, 2015). • Alternatively, costs fall on different actors in the value chain including the government, food industry, consumers and the institutional sector. Zoonotic diseases put additional burdens on the livestock sector. • Apart from the health burden, food safety a major barrier in accessing high end international markets and have diminished value generation in the domestic markets. • In supermarkets or other outlets, farmers and other agents are hardly rewarded for delivering products with higher standard of food safety. • India-second largest producer of fruits and vegetables in the world but a failed exporter of these. Nepal being one of the largest producers of ginger does not have commensurate export earnings from ginger. • There also is ambiguity about whether the food safety requirements are a threat or an opportunity for the poor smallholders. Also, FBD, mitigation and remedy are context specific and can vary across countries and even regions. Primer on food safety and Food Borne Illness
  • 3. • Food safety in most south Asian countries not been considered a development priority and managing FBD or delivering on food safety often thought of as responsibility of the private sector • Significant under-investment has occurred. This is partly since the burden of food borne diseases was not recognized or measured for a long time. In 2015 WHO presented the first set of comprehensive measure of food borne diseases. • In south Asian countries-consumption patterns are changing significantly, including greater consumption of perishables, processed food and greater incidence of eating out and value chains are getting more complex. • Recent initiatives on food safety. Examples include Global Food Safety Partnership, initiatives by African Union, DFID, BMGF call for proposals for research on food safety in developing countries. • Several national initiatives like setting up of Food Safety and Standards Authority in India and Bangladesh Food Safety Authority. • How to maximize the effectiveness of these new institutions and how it can be regionally coordinated remains an unanswered question. • Tradable sector versus the domestic markets in south Asia- extensive margins –trade costs are higher • Food safety as a wealth creator • Importantly, most risky foods like ASF are in the traditional sector in retailing across south Asian countries. • With limits to regulatory capital, strengthening of food safety systems can happen only with consumer awareness that would create a demand pull. How to foster greater demand pull such that all value chain participants get rewarded for delivering on food safety? Food safety in policy
  • 4. Inter-sectoral linkages • With industry • With services such as tourism • HRI sector an important element of the story
  • 5. Just to set the stage (things are getting complex) 11/5/2019 5
  • 6. Then there is taste, customs, preference and priority 11/5/2019 6
  • 7. • Bangladesh, India, and Nepal , Sri Lanka • Need to address knowledge, attitudes and practices with respect to production and consumption of food across the supply chain • Covers two ends of the food chain; Farm production and Household consumption • Example dairy::::::: • Coverage: 998 consumers and 512 producers in Anuradhapura, Kandy, Nuwara Eliya, Badulla and Kurunegala districts during October-December, 2016 • Slight modifications to the structured questionnaire used in Nepal to suit the Sri Lankan context IFPRI multi-country study on food safety 03/03/2017 7
  • 8. Dairy milk consumption pattern in Sri Lanka 03/03/2017 8 Expenditure on milk and milk products (LKR) Average household monthly Consumption of powdered milk (Kg) % expenditure on milk and milk products % Expenditure on powdered milk % Expenditure on powdered milk out of total milk and milk products Urban 1858 1.6 9.8 6.91 70.51 Rural 1293 1.2 8.6 6.50 75.56 Estate 1268 1.3 8.7 7.02 80.68 Sri Lanka 1389 1.3 8.9 6.64 74.59
  • 9. 1600 1500 1200 1100 1100 1000 900 1100 1100 0 200 400 600 800 1000 1200 1400 1600 1800 Western Central Southern Northern Eastern NorthWestern NorthCentral Uva Sabaragamuwa g/month Average Monthly Household Consumption of Powdered Milk by Districts 2012/13 in Sri Lanka 0 100 200 300 400 500 600 700 0 500 1000 1500 2000 2500 1 2 3 4 5 6 7 8 9 10 ml/month g/month Average Monthly Consumption of Milk Powder and Cow Milk by Expenditure Decile 2012/13 in Sri Lanka Milk Powder Cow Milk 03/03/2017 9
  • 10. Food Safety – Animal Hygiene (Percentage) No Food Safety Practices with respect to Animal Hygiene Extensive Semi Intensive Intensive 1 Milking is done in separate place from stall 41.63 30.28 18.63 2 Regularly wash the animals 84.69 87.32 99.38 3 Washing hands before milking 91.87 91.55 98.14 4 Washing hands before milking each buffalo/cow 58.85 46.48 41.61 5 Drying of hands before milking 79.43 63.38 75.78 6 Sanitizing hands before milking 51.67 51.41 71.43 7 Clean udder and teats before milking 92.34 88.73 96.27 8 Drying of udder and teats before milking 75.12 57.04 72.67 9 Sanitizing of udder and teats before milking 52.15 44.37 69.57 10 Lubricant aren’t used in udders and teats before milking 65.07 54.22 26.70 11 Use of utensils in milking are without any joint 74.44 73.24 74.53 12 Drying of utensils before milking 92.82 90.14 95.03 13 Cleaning of utensils before milking 93.30 91.55 98.76 14 Sanitizing of utensils before milking 63.64 67.61 83.23 15 Washing of utensils before milking 52.15 45.77 49.07 03/03/2017 10
  • 11. Food Safety- Milk Storage (Percentage) No Food Safety Practices with respect to Milk Storage Extensive Semi Intensive Intensive 1 Storing milk of diseased animal separately 56.94 65.49 72.67 2 Milk storage area is separate from place buffaloes/cows milked 68.90 77.46 76.40 3 Well drain floor of milk storage area 58.37 76.06 65.22 4 Well drained milk storage area 4.18 2.11 4.35 5 Well Swept milk storage area 79.90 88.03 93.79 6 Milk storage area is free from birds, vermin, cats and dogs 61.24 84.51 87.58 7 Milk bulking is not practiced 85.65 77.46 57.76 8 Washing of the containers before bulking milk 11.96 21.13 26.09 03/03/2017 11
  • 12. Food Safety- Hygienic Environment (Percentage) No Food Safety Practices with respect to Hygienic Environment Extensive Semi Intensive Intensive 1 Cleaning of floor for Stall Feeding Area 7.18 9.86 7.45 2 Well Swept stall feeding area 6.70 9.86 7.45 3 Well clean floor of stall feeding area 46.89 59.15 82.61 4 Dispose of dung immediately after extraction 60.68 54.23 60.87 5 Dispose of urine immediately after extraction 53.59 50.00 59.63 6 Chemicals are used in dairy area 2.39 3.52 13.04 7 Keep veterinary medicines within farm (drugs, de-wormer, antibiotic, etc.) 76.08 68.31 54.66 8 Use of chemicals as per instruction 72.25 70.42 72.55 9 All chemicals stored in a lockable area away from the dairy 48.80 55.63 57.14 10 Inspection for conformity with safety and quality standards in dairy farming 24.88 29.58 34.78 11 Workers wear suitable clean clothes 100.00 100.00 100.00 12 Workers hands and arms kept clean during milking 81.34 95.07 98.51 13 Nails are trimmed regularly by workers 66.03 85.92 86.65 14 Cuts/wounds covered with an appropriate, water-proof dressing 16.27 0.00 92.94 03/03/2017 12
  • 13. Food safety – Animal Health (Percentage) No Food Safety Practices with respect to Animal Health Extensive Semi Intensive Intensive 1 Regularly cleaning of cow 83.73 87.32 95.31 2 Keep diseased animal separately 34.11 57.04 62.17 3 Follow milk withdrawal, after use of prescribed medicine 26.32 42.96 38.51 4 Practicing of DRY COW THERAPY for prevention of mastitis 25.36 42.25 80.00 03/03/2017 13
  • 14. Knowledge level of consumers regarding safety of milk 03/03/2017 14 Aspect Low income Medium income High income Awareness on pasteurization 11.85% 15.34% 37.50% Awareness about melamine episode 47.98% 60.38% 77.42% Awareness about the point of contamination 27.66% 34.23% 30.75% Awareness on fortification of milk 25.71% 33.09% 29.47% Awareness on safety certification 41.50% 55.80% 68.40% No statistical difference between groups
  • 15. Attitude of consumers 03/03/2017 15 Attribute Urban Rural Estate Low income Middle Income High Income Trust on the safety of consumed milk 67.72 65.23 73.45 67.62 64.74 74.73 Keeping quality is the main issue associated with fresh milk 51.81 46.70 48.02 47.46 48.88 56.84 Consuming fresh milk is it is not hygienic 31.08 39.09 31.64 26.84 36.25 48.42 Fresh milk is contaminated with bacteria 20.48 13.45 23.16 10.45 19.89 29.47 Fresh milk provide better nutrients 65.06 69.04 72.32 64.12 69.33 73.68 Main benefit of fresh milk is its freshness 50.12 46.45 107.91 47.74 51.12 40.00 Fresh milk has better quality 28.92 37.56 35.03 36.72 30.67 34.74
  • 16. Opinion of consumers on food safety practices 03/03/2017 16 Attribute Urban Rural Estate Low Income Middle Income High Income Boiling is an effective way of reducing the food risk of milk 33.01 31.73 37.29 34.46 33.64 25.26 Refrigeration is also considered as an effective way of reducing the food risk 18.31 14.47 16.38 16.10 18.40 6.32 Straining is an effective way of reducing the food risk of milk 2.65 7.61 11.86 7.34 5.58 6.32 Milk needed to be discarded after a certain period of time 3.13 2.54 4.52 6.50 1.30 2.11 Use of clean containers to store milk reduces the food risk 11.33 11.93 12.43 11.86 10.97 15.79 Consumption of powdered milk is another strategy they can adopt to reduce the food risk 17.35 13.45 6.21 14.12 11.34 25.26
  • 17. • Recall: Melamine Incidence • 55.77% aware about the melamine episode • Among them 55.1% did not change their behavior • Large majority switched their brand. Brand switching is low among low income group • Low income families change the consumption pattern of powdered milk of only children • Higher proportion of estate sector consumers switched to fresh milk from powdered milk compared to other two sectors Food safety measures adopted by consumers 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Didnothing switchbrand Movetofreshmilk Changeconsumption Other Response to Melamine incidence 03/03/2017 17
  • 18. • In general the level of consumer knowledge on dairy food safety is low • Large majority are unaware about the source of contamination and do not poses a good knowledge on risk minimization strategies • Consumer knowledge on safety of milk depends on the sector where they reside • Powdered milk consumers have a faith on the milk they consume than fresh milk consumers • However, compared to other two groups, higher percentage of consumers with high income believes that fresh milk is not hygienic and it is contaminated with bacteria. • Consumers with high income consider consumption of powdered milk is a way of avoiding food risk Summary findings 03/03/2017 18
  • 19. Primer on dairy sector in Nepal (Thapa et al 2016) • Livestock contributes one-third of total ag GDP of Nepal. • Among livestock, dairy is biggest and growing component contributing about two-third of livestock GDP. • 12 million cows/ buffaloes reared by 0.5 million farmers. • No. of milking cows & buffaloes increased by 20 and 43 percent, respectively, between 2002 and 2013. • Milk production increased by about 45 percent, with 40 percent for cow milk and 47 percent for buffalo milk. • Price of pasteurized milk increased from Rs 22 to Rs 50, a percentage increase of 127% 19
  • 20. Food safety in dairy in Nepal • In comparison to the international standard, the mean total bacterial count (TBC) was 9 times higher on farm and 104 times higher in plant (Dahal et al. 2010). • Cooperatives and processors frequently complain about the poor quality of milk brought by farmers. • Consumers also have same concerns about the quality of milk- A study conducted by the NDDB in 2014 • Looking at producers and consumers • The intensity of adopting food safety practices- wide inter- and intra-district variations. • Positive relationship to herd size. • The additional cost of compliance with food milk safety measures reveals an inverse relationship with herd size. • factors associated with the adoption of food safety measures are caste, number of children and elderly people in a family, household labor size, herd size, access to information, inspection for conformity with the safety and quality standards in dairy farming, perception of households about food safety assistance provided by milk buyers, and market outlet types. • Also provide evidence of the impact of food safety measures on farm-gate prices and farmers’ profitability. • On consumer side estimates of greater expenditure for the food safety conscious 20
  • 21. Bangladesh- same situation in Nepal – lack of demand pull Dimensions Food Safety Adoption Index D All Contract Non-contract Milk hygiene 55.7 (17.9) 55.6 (18.1) 55.8 (17.6) Milk storage hygiene 63.2 (23.2) 64.6 (21.9) 62.0 (24.4) General hygiene practice* 72.2 (27.9) 74.7 (26.8) 69.9 (28.8) Animal health*** 42.6 (38.5) 50.5 (41.0) 35.1 (34.5) Overall food safety adoption index 54.9 (17.7) 56.3 (17.9) 53.5 (17.4)
  • 22. Food safety: dairy India MORE THAN TWO THIRDS OF MILK TESTED IN INDIA DID NOT MEET THE STANDARDS SET BY GOVERNMENT Lower safety Lower nutritional value • Are concerns of the consumers adequately captured in the existing studies • What are the concerns • What should be the concerns • What are the determinants of the concerns? 9:19 AM Research Question
  • 23. Can something work? The reason the high value chains are like this. Possible reasons People are poor People do not know and cannot know With diversity in incomes and information Pluralistic sector “Food safety is one part of life where diversity is not something to celebrate” THINK OF A DEMAND PULL SYSTEM 9:19 AM BTC
  • 24. Demand pull: Income necessary but not sufficient Create a baseline of information Null hypothesis 1- There are significant information gaps related to food safety and nutrition that are systematic Null hypothesis 2- With subjective beliefs about food safety market is segmented based on size or reputation based on historical record of safety Null hypothesis 3- Information shocks move fringe consumers to different state but there are many who remain phlegmatic 9:19 AM Research Question
  • 26. Yet-Who should undertake the certification for food safety /nutrition attributes? 46.22 38.15 1.39 6.77 3.78 3.09 0.6 Government of India State Government Indian Retailer's Association Farmer's Association International Agency NGOs Other Specify
  • 27. Determinants of awareness about food safety- India case 270 10 20 30 40 50 60 70 80 Below Primary Below High School 10th Pass 12th Pass Graduate Post graduate Percent of respondents who aware about Pasteurization according to their Education Level Percent
  • 28. Awareness about methods for measuring fat content 28 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Organized Un-organized 15.4 22.2 26.7 29.9 Awareness about the system used for checking fat content in formal and informal sector formal sector informal sector
  • 29. Research questions • Does information affect awareness • What kind of information matters • What is the effect of information on consumer awareness as well as choices • What kind of information matters- positive or negative? • Several other research questions • Our essential research questions relate to awareness and practices 29
  • 30. Milk consumption • Food safety and nutrition • What do households anchor on? • What steps they take to conserve nutrition or improve food safety? • Sri Lanka- is there a tradeoff between food safety and nutrition? 30
  • 31. What about milk consumption with information shock from FSSAI
  • 32. Research Question • Low Demand for safer food in developing countries • Is it because of ability to pay or lack of credible information
  • 33. Research Question • Low Demand for safer food in developing countries • Is it because of ability to pay or lack of credible information
  • 34. Results • when informed about food safety and presented with a credible third party certification, consumers are more likely to choose a subjectively assessed safer product. • the impact of the intensive information on those consumers with high FSCI is greater than the impact of the same on consumers with low FSCI
  • 35. Food safety in developing countries: Research • Evidence on developing country demand for safer food is scant • Few recent studies found demand for safer food • Stated preference methods: Krishna and Qaim (2008), Ehmke et al. (2008), Roy et al. (2010) • Field experiment: Masters and Sanogo (2002) but on special/atypical food (baby) • Overall assumption: Consumers’ WTP for safer food is low due to their low ability to pay (ATP) (Delgado, 2005) • How about consumers in countries such as China and India, where incomes are rising?
  • 36. Theoretical Model: Credibility & WTP • The uniform information treatment is postulated to affect health premium only through changes in probability of certified delivering high health where consumers get to know that the product is certified from an international agency. It works through the credibility gap. • Intensive versus extensive information Credibility Gap Health gap −∆ i ciH ππ ))(( lh nc i c ii HHH −−=∆ ππ
  • 37. Policy implications • credible information and certification are the missing ingredients for capturing consumer demand • Positive potential for systems creating mechanisms such as certifications, labeling, institutions
  • 38. Evolution of Sri Lanka dairy sector: continued • Free flow of imported milk powders soon changed the composition of the domestic milk market. Before the trade liberalization, the domestic milk production was nearly 63% of local milk market with imports filling the balance. • imported milk powder has become the dominant share of milk market at present while the share of domestic milk production reduced to 24 per cent. • Providing a glass of milk for children and using milk powder for tea whitening thus became a way-of-life for the average Sri Lankan family.
  • 39. Food safety policy and regulation • Somewhat tilted in terms of focus on imports and exports ( the case of cinnamon and other spices, tea possibly) • Any scandals in Sri Lanka – like horsemeat in Europe or melamine in China? • In 2008 in Sri Lanka, fears were raised about melamine contaminated imported baby food, milk, and fish feed from China • June 2011, concerns about E-coli contaminated canned fruits and vegetables imported from Europe. • Fears also raised - importation of bird flu-infected poultry. • More recently, a shipment of stainless steel- and aluminum-based cookware with exposure to cobalt 60 (a radioactive material) was detected at the port by the Atomic Energy Authority in September 2012. • Adulterated brown sugar mixed with sand imported from Brazil was confiscated by the Consumer Affairs Authority in January 2013
  • 40. Food safety policy and regulation • Somewhat tilted in terms of focus on imports and exports ( the case of cinnamon and other spices, tea possibly) • Any scandals in Sri Lanka – like horsemeat in Europe or melamine in China? • In 2008 in Sri Lanka, fears were raised about melamine contaminated imported baby food, milk, and fish feed from China • June 2011, concerns about E-coli contaminated canned fruits and vegetables imported from Europe. • Fears also raised - importation of bird flu-infected poultry. • More recently, a shipment of stainless steel- and aluminum-based cookware with exposure to cobalt 60 (a radioactive material) was detected at the port by the Atomic Energy Authority in September 2012. • Adulterated brown sugar mixed with sand imported from Brazil was confiscated by the Consumer Affairs Authority in January 2013
  • 41. Brief on private sector dairy in Sri Lanka • Nestle is the largest private sector collector of milk in Sri Lanka • Some evidence on adoption of HACCP standards (Mudalige et al 2015) • Nearly 31.3% of tea processing firms already possess a system of HACCP in the firm compared to just 20.6% of dairy processing firms. • only 9.4% of tea processing firms have no plan to implement HACCP as compared to 64.7% of dairy processing firms in the sample. • Among the nine incentives, reputation (REP), anticipated government regulation (AGR), commercial pressure (CPR) and cost and financial implications (CST) were the most important determinants and motivators of firms’ behaviour in relation to food safety and adoption of HACCP. • Leads to our demand pull system