Recent Patents on Food, Nutrition & Agriculture - Volume 8, Issue 1, 2016

Background: Incomplete information in food consumption is a relevant topic in agricultural economics. This paper proposes a theoretical model describing consumer behavior, market equilibrium and public intervention in an industry where consumers must rely on the information of interested parties such as producers or associations. Methods: We provide simple game theory model showing the link between price competition and the strategic use of information. If information are unverifiable (as in the case of credence attributes) firms may have no incentive to advertise true claims and consumer decisions may be biased. Our model incorporates the opportunistic behavior of self-interested information providers. Results: The result is a model of competition in prices and information finding a potential for market failure and public intervention. In the paper we discuss the efficiency of three possible regulations: banning false claims, subsidizing advertising campaigns, and public statement if favor of true claims. Conclusion: In that context, some recent patents related to both the regulatory compliance in communication and to the reduction of asymmetric information between producers and consumers have been considered. Finally, we found that the efficiency of these policy tools is affected by the reputation of trustworthiness of the firms.

Background: The phenomenon of asymmetric information is central in the agri-food sector, in which often there is not full information transparency about product quality. This condition is particularly complex considering the high-end products. In particular, there are specific attributes (credence attributes) that are not assessable by consumers. For these reasons, a clear information about certification can give to consumers the possibility to make a rational choice. A company can choose voluntarily to participate in certification programs that can be viewed also as a simplification of some organization issues. Often the incentives to participate in voluntary programs arise from the need to have a positive economic performance of the firm. On the one hand, the firm may have benefits from the technical assistance of the certification, which allows it to reduce costs of controlling particular sensible steps of the process. On the other hand, the firm may provide a new certification label, in order to ensure a greater transparency of its processes. Methods: The research aims to understand the characteristics of firms oriented to use voluntary certifications as a tool to reduce information asymmetries between producers and final consumers. In particular, we want to consider two contexts of analysis: a structural one, considering some specific internal aspects and investment choices of the firms (typology, size, extraction system, storage system, material investments, immaterial investments); a second one that takes into account some decisions related to market relationships (sale to consumers, sale to HoReCa, sale to wholesalers, sale to purchasing groups, sale to GDO, export activity). The study concerns small and medium olive oil company of Southern Italy. We apply two logit models in order to show the determinants in the choice to introduce a voluntary certification. Results: The results show significant values in both the two dimensions considered. Among the first one, there are significances in immaterial company investments but also in physical assets related to the olive oil process. There are several scientific developments relevant to the olive oil process and some of these patents have been reviewed in this paper. Regarding the physical assets, the storage system is a clear representation of the asset importance in the decision to participate in the certification program. Furthermore, the presence of considerable immaterial investments is important in the certification decision, which confirms the idea that voluntary certification can be viewed as a strategic tool. In the second part of analysis there are significances in some distribution channels (direct sale to final consumer, to wholesalers and to purchasing groups) as well as in the export activity. Conclusion: This work aims to contribute to the debate about the addressing of quality policy for a reduction of asymmetric information in the high-end products. Because of small dimensions of firms in Southern Italy, not always we can find conditions about the presence of specific assets. Indeed, the small dimensions of the companies make quality investments complicated. The incentive to invest, both in terms of control of product and in terms of immaterial investment, can help in a participation in voluntary certification programs. Further, it is important to investigate the three distribution channels resulting from the research because of their importance in terms of information asymmetry.

Background: Contemporary food market offers plenty of different food products from all over the world. However, as people have more disposable income, they are more discerning with regards to quality, and certified food has a reputation as being more wholesome and more healthy. In other words, food quality issues become crucial in a consumer's choice. Nevertheless, the question arises – that what should be considered as a food quality, and which quality criteria consumers are ready to pay more? There are many certified products within the variety of agricultural food, and for understanding which products are more preferable for a consumer, it is necessary to know, what do labels mean and what do they guarantee. Absence or lack of this knowledge promotes the information asymmetry between consumers and food producers. Italian traditional food was chosen as an example, due to its crucial meaning for authentical development of the rural areas and particular culture heritage. Methods: To analyze phenomenon of an information asymmetry within the labeled food market were studied the next theoretical issues: dimensions of traditional food and its labeling; consumer’s behavior and attitudes towards traditional food; features and consequences of an information asymmetry. The empirical side highlights the contemporary tendencies of the Italian quality food market. Results: As the main reason of information asymmetry is the lack of information for consumers, the paper offers for food producers to use knowledge management as the main tool to smooth an information asymmetry. An implementation of knowledge management includes two directions: development of the appropriate communication strategy and application of the Internet of Things to provide on the food packing the sufficient information for consumers. In that direction, many recent patents have been developed. Conclusion: The findings of this paper confirm the importance of the literature review for understanding the reasons of an information asymmetry. The offered pathways for reducing of this phenomenon will increase the share of the traditional food products on the Italian food market, thereby sustaining the local producers.

Background: The aim of the study is to show how the Cruse affair known as the "Winegate" has changed the wine industry in Burgundy. Cruse, one of the major Bordeauxsellers, was caught by the Customs Office in 1973 and condemned for fraud involving 20'000 hl of Bordeaux wine. This affair has generated a loss of trust between consumers and producers and also between small wine-growers who were selling their wine to the Négociants. Methods: The objective of this study is to focus on the consequences that this affair has generated for Burgundy growers and Négociants. The method used is the analysis of historical documents (press articles and books on Bordeaux wines) to understand through a review the Cruise affair and its consequences. Results: Under consumer but also retailer pressure, more and more winegrowers in Burgundy decided to bottle the production of their estate and sell it under their own label. To a certain extent, this new development entailed a competition with Négociants. The structure of estates moved from farm style companies to small SME's in charge of vinification, ageing, selling and exporting. Finally, some recent patents related to the wine fraud and mechanisms to create the trust in the wine chain, with specific regard to intelligent label and distribution, have been considered.

Background: The wine-growing sector is probably one of the agricultural areas where the ties between product quality and territory are most evident. Geographical indication is a key element in this context, and previous literature has focused on demonstrating how certification of origin influences the wine purchaser’s behavior. However, less attention has been devoted to understanding how the value of a given name of origin may or may not be determined by the various elements that characterize the typicality of the wine product on that territory: vines, production techniques, etc. Methods: It thus seems interesting, in this framework, to evaluate the impacts of several characteristic attributes on the preferences of consumers. This paper will analyze, in particular, the role of the presence of autochthonous vines in consumers’ choices. The connection between name of origin and autochthonous vines appears to be particularly important in achieving product “recognisability”, while introducing “international” vines in considerable measure into blends might result in the loss of the peculiarity of certain characteristic and typical local productions. A standardization of taste could thus risk compromising the reputation of traditional production areas. The objective of this study is to estimate, through an experimental auction on the case study of Chianti, the differences in willingness to pay for wines produced with different shares of typical vines. Results: The results show that consumers have a willingness to pay for wine produced with typical blends 34% greater than for wines with international blends. Conclusion: However, this difference is not confirmed by blind tasting, raising the issue of the relationship between exante expectations about vine typicality and real wine sensorial characteristics. Finally, some recent patents related to wine testing and wine packaging are reviewed.

Background: Closed-loop agri-food supply chains have a high potential to reduce environmental and economic costs resulting from food waste disposal. This paper illustrates an alternative to the traditional supply chain of bread based on the principles of a circular economy. Methods: Six circular interactions among seven actors (grain farmers, bread producers, retailers, compostable packaging manufacturers, insect breeders, livestock farmers, consumers) of the circular filière are created in order to achieve the goal of “zero waste”. In the model, two radical technological innovations are considered: insects used as animal feed and polylactic acid compostable packaging. Results: The main challenges for the implementation of the new supply chain are identified. Finally, some recent patents related to bread sustainable production, investigated in the current paper, are considered. Conclusion: Recommendations are given to academics and practitioners interested in the bio-based circular economy model approach for transforming agri-food supply chains.

Background: Market orientation plays a crucial role in reinforcing firm’s competitive advantage; nevertheless, marketing myopia can negatively affect a clear perception of the market. Methods: An organization that defines itself by product rather than by market terms is probably affected by marketing myopia, a narrowness of mind towards any newness – newness respect to firms’ convincement and routines - coming from the external environment. In that context some scientific relevant developments that comes from recent patents have been considered. This paper explores the determinants of marketing myopia in the Apulia wine business (South Italy). Results: The aim of this paper is to describe how experiential research based on Consumer Science research tools, can facilitate a better market knowledge. Experimental sessions carried out in 2013 in Apulia with a group of professionals from the oil and wine sectors clearly demonstrate how country of origin effect can improve marketing myopia. Conclusion: Through a protocol based on an “academicians - practitioners” model, professionals can be facilitated in their strategy formulation.

Background: Given the epidemic proportions and economic costs associated with nutrition related diseases in Western countries, an empirical study was carried-out between September and December 2014 in Campania, the Italian region with the highest prevalence of obese children. Methods: The survey was conducted in a secondary school and involved 145 children, aged 11 to 14, and their parents, with the ultimate aim of studying the relationship between the behaviour of parents regarding the use of nutrition labels, the attention to product quality and the body weight of their children. Results: The results from our study showed that unhealthy diet concerned stems from the misguided food choices of their parents, who are responsible for their children’s dietary habits, lifestyle and body weight. Conclusion: In order to incentivise adults and young people to change their food choices and eating behaviour in favour of healthy and sustainable lifestyles, some useful measures could involve the improvement of political marketing and advertising, labelling clarity and better information and awareness campaigns to do sport and eat healthily. Finally some recent patents related to healthy reformulated food products and communication strategies, with specific regard to healthy eating, have been reviewed.

Background: The work is a review of studies carried out in recent years on the epidemic of obesity. The issue of obesity includes several disciplines: medical-health, socio-economic impacts and policy actions. Methods: This review focuses on the three main areas of study: the first area is about patent epidemiological researches, the second one analyzes the companies that focus on research and development towards less obesogenic foods and the third one investigates on the policies actions adopted by European governments to address the problem of obesity. Results: This study underlined a more strong scientific production relative to US and UK countries compared with the southern countries of the world where the attention of scientists and politicians to the obesity is lower due to the problems of food security rather than to those of inappropriate lifestyle. Conclusion: The study of the cause and effects of this phenomenon through epidemiological researches is a good tool to counteract obesity. However, the development of policies controlling and contrasting obesogenic food production is fundamental like greater communication to consumers on the risks of obesity and foods processing.

Background: Different types of environmental stress may induce several physiological, biochemical and molecular responses in several crop plants. According to a patent study, several types of low antioxidant defense compounds and the activity of various antioxidant defense enzymes are induced in plants grown under various biotic and abiotic stress factors. Methods: In this work, the responses of potatoes plant treated with algae extract to drought stress were examined by evaluating the crop yield of tuber, cellular biological compounds (total carbohydrates and proteins), mineral composition and enzyme and non-enzyme antioxidant systems and total oxidative compounds. Results: The yield of tuber, concentration of low antioxidant defense compounds (glutathione, ascorbate, carotenoids, total phenol, flavonoids and tocopherols) and the activity of various antioxidant defense enzymes (catalase CAT; peroxidase POD; ascorbate peroxidase APX and superoxide dismutase SOD) in tuber of treated potato plants with algae extract were significantly increased compared with that in non-treated plants. In addition, essential elements: Fe, K, Ca, Mg and P were accumulated at high concentration in treated plant than that in untreated plants. The screening of antioxidant activity of the ethanolic extract of tubers potatoes treated with algae extracts using the di-(phenyl)-(2,4,6- trinitrophenyl) iminoazanium radical (DPPH) assay radical-scavenging showed an appreciable reduction of the stable radical DPPH with an IC50 of 75 μg/ml. Conclusion: The results suggest that the algae foliar extracts application can improve non-enzymatic and enzymatic antioxidant defense systems in potatoes plant cultivated under drought stress conditions, and it may be recommended for application in arid and semiarid regions.