PARTNERSHIP: A Comprehensive Study of Non-GMO and Bioengineered Disclosures: Consumer Preference, Producer Impact, and Certifier Choice

Grants and Contracts Details

Description

A Comprehensive Study of Non-GMO and Bioengineered Disclosures: Consumer Preference, Producer Impact, and Certifier Choice A. Introduction This research project connects consumer, producer, government, and third-party elements of the supply chain as they relate to the rapidly evolving labeling and certification landscape for bioengineered (B.E.) and non-genetically modified (GM) foods. These markets involve both private (e.g., the Non-GMO Project and self-claimed non-GMO status) and government certification and disclosure (organic certification and B.E. disclosure). Understanding consumer preferences for information signals, the respective impacts of non-GMO (verified and non- verified) and B.E. disclosures on product sales, the producer benefit-cost of choosing a specific method of production (B.E., organic, Non-GMO certified or none), and consumer/producer price sensitivity to compliance with government regulations and third-party certification costs are critical pieces of information necessary to find the market equilibria that maximize consumer utility and producer profitability. We utilize primary and secondary data to meet the objectives elaborated on in Section C.1 below. The consumer objective combines primary data collection and national-level supermarket scanner data analysis to provide insights into consumer preferences toward non-GMO and B.E. products. The producer objective uses retail scanner data to show the impacts of non-GMO and B.E. disclosures on product sales. Lastly, the certifier objective studies producers’ choice of certifiers focusing on price, distance, and processing time and relation-specific learning between producers and certifiers. From an upstream perspective, all three objectives are interconnected as the preferences for and the impacts of labels as well as their price elasticities all relate to producer’s certification decision. The National Bioengineered Food Disclosure Standard implemented on January 1, 2020 required that food manufacturers, importers, and retailers disclose B.E. foods by January 1, 2022. They could voluntarily comply at an earlier date, utilizing options consisting of text, symbol, digital link (Q.R. code), and/or text message. We propose to combine and utilize three large datasets. These include 1) unique product- level certification data provided by the Non-GMO Project, which identify producer-certifier pairs and the dates of non-GMO certification for a certified product (letter of support included), 2) IRI scanner data, which identify organic and non-verified non-GMO products, and 3) Mintel Global New Products Database, which allows us to identity products with B.E. disclosure and disclosure formats. Treating National Bioengineered Food Disclosure Standard implementation as a natural experiment, we aim to identify critical interactions between the stakeholders of the non-GMO and bioengineered disclosures, namely consumers and certification, producers/retailers and certification, and producers and certifiers (Figure 2). Given its inter-connected scope, this project will provide important insights to a large group of stakeholders, including but not limited to: policymakers of the regulatory agency USDA, non-profit organizations supporting sustainable agriculture, marketers and developers of food products, and farmers and supply chain partners of the GMO/BE ingredients.
StatusActive
Effective start/end date9/1/248/31/27

Funding

  • US Department of Agriculture: $799,481.00

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