WP 3: Drivers and data - food supply chains

General Information

The purpose of WP3 is to improve understanding of determinants of private food standards, where do they come from, what drives their implementation and what is the interaction of private/public standards. It will look into supply chains not only in economic models, standards and analyze the role of market power and institutional constraints. It will analyze the role of the post-farm food chain for environmental sustainability metrics, and analyze firms’ strategies in food innovation and reformulation and their responses to nutritional policies.

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Deliverable 3.3: The role of the post-farm food chain for sustainability indices

The analysis of post-farmgate biomass streams is crucial for accurately quantifying the environmental impact associated with the food that we eat. It is also the pre-requisite for identifying opportunities to move into the direction of an agri-food system with low emissions and with closed nutrient circles. We identified a few areas where a full chain life-cycle assessment was not yet possible with the tools available: slaughterhouses, cereal processing, waste management systems and consumers. In this report we perform a literature review for each of these ‚pools‘ and compile data that can be used in ‚modules‘ that will be implemented for the SUSFANS toolbox. The assessment is based on – and further develops – the framework developed by the UN-ECE for the quantification of national nitrogen budgets.

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Deliverable 3.2: The role of different food chain actors on setting private food standards

Consumers, retailers and producers are giving increasing attention to ensure that production and processing activities are sustainable from an economic, social and environmental point of view. The goal of this task will be to analyze the role different actors in the food supply chain play in the establishment of food standards and their impact on the sustainability of the food supply chain. The analysis will consist of theoretical modelling and an empirical analysis.

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Operationalising the health aspects of sustainable diets: a review

Shifting towards a more sustainable food consumption pattern is an important strategy to mitigate climate change. In the past decade, various studies have optimised environmentally sustainable diets using different methodological approaches. The aim of the present review was to categorise and summarise the different approaches to operationalise the health aspects of environmentally sustainable diets.

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Quality standards versus nutritional taxes: Health welfare impacts with strategic firms

The goal of this paper is to better understand firms' strategic reactions to nutritional policies targeting food quality improvements and to derive optimal policies. We propose a model of product differentiation, taking into account the taste and health characteristics of products. We study how two firms react to alternative policies: an MQS policy, linear taxation of the two goods on the market, and taxation of the lowquality good. The MQS and the taxation of the low-quality product are the preferred options by a social planner. If taste is moderately important, the MQS policy is chosen by a populist and a paternalist social planner. If taste is a major component of choice, the populist planner chooses to tax the low-quality product whereas the paternalist planner prefers the MQS policy. Finally, for a paternalist social planner, an MQS-based policy always allows for higher levels of welfare than an information policy alone.

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