Asian Journal of Economics, Business and Accounting, ..,Vol.: 2, Issue.: 1
Do Integrated Traceability Methods Cause Conflict of Interest in the Farm-raised Atlantic salmon Industry?
1School of Science and the Environment, Memorial University - Grenfell Campus, 20 University Drive, Corner Brook, Newfoundland and Labrador, A2H 5G4, Canada.
Farm-raised Atlantic salmon is the most important finfish species produced by the Canadian aquaculture industry, which has been facing drastic reduction in its demand since the food incidence of polychlorinated biphenyls occurred. Different policies at various stages of production, processing, distribution and marketing channels have been proposed to assure consumers that farm-raised Atlantic salmon is safe. Amongst the suggested policies, the integrated traceability methods and quality control system may be the right policy that benefits both consumers and producers. It consists of different methods applied to the food chain, such as the Global GAP and Quality Management Program, the Hazard Analysis and Critical Control Points, and the radio frequency identification and quick response code-systems. The implementation of traceability system, however, imposes additional cost to the industry that may neither be absorbed by producers nor be paid by consumers. As a result, conflicting interests between producers and consumers may arise. In addition, consumers’ decisions may be affected by their lack of knowledge about different stages of aquaculture production processes. A traceability system can help consumers make informed decisions in purchasing certified farm-raised Atlantic salmon. Reviewing the existing literature, this article examines the impact on producers and consumers of implementing the integrated traceability methods on the farm-raised Atlantic salmon industry in the province of Newfoundland and Labrador, Canada. The article concludes by suggesting the use of intermediary firms to facilitate the implementation of integrated traceability systems in the industry.
Traceability; conflict of interest; intermediary firms; farm-raised Atlantic salmon.
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