A Qualitative Assessment of the Benefits and Costs of On-Farm Food Safety and Environmental Farm Plans in the Dairy Sector

This series of six reports entitled: "On-Farm Food Safety and Environmental Farm Plans: Identifying and Classifying Benefits and Costs" was initiated soon after the launch of the Agricultural Policy Framework (APF) in 2002. The APF recognized the importance of food safety and environmental concerns for the future growth of the agriculture and Agri-food sector. For this reason, Agriculture and Agri-Food Canada (AAFC) commissioned this series of reports to develop a conceptual framework to strengthen our understanding of the potential benefit and cost implications of On-farm Food Safety (OFFS) and Environmental Farm Plans (EFP) that were key components of the APF. The reports were prepared by a group of academics with extensive knowledge of the agriculture and Agri-food sector and issues related to food safety, traceability and the environment. The first report presents a summary of the findings in the five main reports in the series. The second report presents the conceptual framework that was developed to help identify qualitatively the potential benefits and costs that the various players in the agriculture and agri-food supply chain would face in implementing OFFS and EFP programs. The third report applies this framework to pork, the fourth, to beef, the fifth, to grains and the sixth, to dairy. In general, benefits and costs are divided into both demand and supply side effects. In addition, both public and private costs and benefits are considered, especially since they help indicate where a role for government might be required and where markets are not working as well as they might. Based on these preliminary qualitative assessments, the beef and pork sector have more to gain from HACCP-based OFFS and EFP initiatives, due to their ability to gain market share from marketing their products internationally, while the grains sector already benefits internationally from its high quality reputation and the dairy sector is restricted to produce only for the domestic market. However, more work is required in these areas to validate and quantify costs and benefits