Information, Labelling, and Vertical Coordination : An Analysis of the Italian Meat Supply Networks

After the Bovine Spongiform Encephalopathy (BSE) crisis, the European Union (EU) introduced mandatory and voluntary labelling for meat products to reduce the food safety concerns of consumers and to ensure a better distribution of liability among agents of the meat supply chain. The purpose of this article is to evaluate whether voluntary traceability labelling, introduced by Regulation 1760/2000, can be considered a useful instrument for both the producers and consumers of meat products. Attention is focused on the vertical coordination effects of introducing voluntary labelling along the beef chain and on the interest the Italian consumer shows in labelled information on meat products. Two surveys were conducted: one addressing Italian meat organizations that signed voluntary labelling agreements and the other a sample of 1,025 Italian consumers. With regard to supply, the survey revealed that improved traceability led to a better redistribution of liability among the agents of the meat supply chain and to a strengthening of vertical agreements. Regarding the consumers, the results showed a notable consumer interest in the labelled information such as the meat origin and the information related to the system of cattle breeding, cattle feeding, and the date of slaughtering.