Aligning enforcement and governance mechanisms to protect and govern food products with a protected designation of origin

The quest for appropriate governance and enforcement mechanisms in niche food products with a protected designation of origin is increasingly receiving attention as more and more food products are differentiated based on their regional identity and reputation. The general consensus is that if public certification bodies adequately instil consumer confidence in these products, then market like mechanisms will be the most effective governance mode. However, if public certification bodies are insufficient, market like mechanisms seize to be effective, and alternative modes are required to protect the interests of consumers adequately. This paper therefore aims to make an empirical contribution by investigating the enforcement and governance mechanisms required to protect and govern a regional food product when public certification fails. As one of the recent additions to South Africa s repertoire of products with a designated origin, Karoo Lamb made for an interesting case study. This investigation is based on survey data and a conjoint experiment among 73 farmers, five abattoirs, two processors/packers and five retail outlets. The results indicate that, due to its failed public certification body, Karoo Lamb is better off being governed by a hierarchical arrangement which allows for a stronger focus on continuous monitoring, and private enforcement mechanisms. Acknowledgement : The Red Meat Research and Development SA and the Bill and Melinda Gates Foundation for their financial support.

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Conference Paper/ Presentation
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JEL Codes:
L22; Q12

 Record created 2018-10-02, last modified 2020-10-28

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