Economics of Food Safety

Basic
Chapter 0. Previously…
Part 2

Purposes of this Course

• This course is designed to provide undergraduate students with a

comprehensive overview of economics of food safety.
• In this course, we use economic theory and empirical examples to
examine many issues in food safety.
• The economic concepts and frameworks presented in this course help
to understand and suggest solutions to address challenges related to
food safety.
Part 2

Textbooks

Lecture notes (slides) will be uploaded in Blackboard:

https://kulms.korea.ac.kr/. There is no required textbook for this course,
but the following textbooks are useful for your better understanding.
• Roberts, T. (2018). Food Safety Economics: Incentives for a Safer
Food Supply. Springer.
• Caswell, J. A. (2012). Economics of food safety. Springer Science &
Business Media.
• Leonard, T. C. Richard H. Thaler, Cass R. Sunstein (2008). Nudge:
Improving decisions about health, wealth, and happiness.
• Han (2021). Food Economics, PakYoungSa.
Part 2

Grading Policy

• Attendance: 10%
• (In-Class) Assignments: 30%
• Midterm exam (Term Paper): 30%
• Final exam (Term Paper): 30%
★ According to this University rule, the number of your attendance days
must be greater than 2/3 of total number of class days. Your final grade
will be “F” automatically if you miss more than 1/3 of total class days.
★ The (in-class) assignments may include problem-solving, reading and
writing activities, class discussions, oral presentations, etc.
(In-Class) Assignments

You need to hand in

right after the class!

It will be most
important works for
you to get good grade!

Absolute grading
system.
Part 2

FYI

Course Materials
Course materials will be uploaded in Blackboard:
https://kulms.korea.ac.kr/

Rules and Policies

• All materials used in the classroom are intended for personal use only.
Students are not allowed to upload, share, or publish them in any other
places without my permission.
• Any audio or visual recording of classes is prohibited without my explicit
permission and notice to all students in the class.
Part 3

Contact

Anytime you can send an email to me: [email protected]

Use Feed back paper!

Phone call and KaKao Talk (prefer) are available.

010-5706-0214
Part 1

What is “Food Safety Economics”?

Food Safety Economics provides

insights into the economic
consequences of contaminated
food placed on the market, cost-
effective control and monitoring of
food safety hazards, the attitude
of producers and consumers
towards these measures, and
incentives of farmers and
producers to apply these
measures.
Focker, M., and H. J. van der Fels-Klerx. "Economics applied to food safety." Current Opinion in Food Science (2020).
 What is Food Safety Economics?

'If you are allergic to milk, use

cheese?'... Controversy over textbooks
for child obesity prevention project
https://www.yna.co.kr Addition of 'pine nut' to food allergen
2020. 12. 2 labeling - Asan Medical Center, Seoul

Korea Consumer Agency requests

improvement of food allergen labeling
http://slifenews.kr › newsview2 Mandatory labeling of allergen-inducing
2018. 3. 15. ingredients in unpackaged foods -
Daejeon Ilbo
http://m.daejonilbo.com › mnews
2020. 11. 24.
What is Food Safety Economics?

'If you are allergic to milk, use

cheese?'... Controversy over textbooks
for child obesity prevention project
https://www.yna.co.kr
2020. 12. 2
Misinformation and Misleading Policies

Why did this happen?

What we can do?

 What is Food Safety Economics?

'If you are allergic to milk, use

cheese?'... Controversy over textbooks
for child obesity prevention project
https://www.yna.co.kr
2020. 12. 2 Misinformation and Misleading Policies

Why did this happen?

What we can do?

Investment to strengthen scientific technology and expert capacity

vs. social damage caused by disease outbreaks
What is Food Safety Economics?

Essential and Ethical question:

Is it desirable to financially assess the

consequences of food safety incidents?

What is your opinion?

What is Food Safety Economics?

If it is a disease that can lead to death,

can you put a value on life?

If life cannot be valued economically, is it

desirable that we should do everything
we can?
What is Food Safety Economics?

But what if that leads to higher costs,

shuts down businesses, collapses
industries, and causes food prices to rise
dramatically?

What if the poor will have a relatively

harder situation, and food security could
be at risk?

Then, what we should do?

Chapter 1. What is Food Safety?
1. Food Safety is…
1. Food Safety is…
1. Food Safety is…

Quest 1.

Why do accidents continue to occur even though

the history of food safety is long overdue?

Write down your opinion. (3min)

1. Food Safety is…
Food Safety Related Words
• Consumers have been shown to
make a lot of references to "food
safety＂ such as "related foods",
"food takers", "raw materials and
ingredients", "places of purchase",
and "origin".

• In "Related Foods", it was

mentioned in order of "health food",
"processed food" and in "food
takers“, “infants” overwhelmingly
state.
1. Food Safety is…
Concerns about food safety
• Among the concerns about food
safety are hazardous substances
(40.9%), such as "pigments"
(10.4%), and preservatives (7.4%),
which are commonly detected in
processed foods.

• In the case of health foods, there

were also concerns about 'chemical
excipient (5.8%), and gelatin (4.5%).
1. Food Safety is…
Number of adverse events
in health functional foods

• According to data from the Food

and Drug Administration, there have
been 3,754 adverse incidents of
health functional foods in the last
five years, with 502 cases in 2015,
696 in 2016, 874 in 2017, 964 in
2018, and 718 in August 2019.
1. Food Safety is…
 1. Food Safety is…

당 가공육〮적색육 방사능 프탈레이트계 장출혈성대장균

(Sugar) (Meat) (Radiation) (Phthalates) (E. coli)

조류인플레인자 유전자조작 비스페놀 A 벤조피렌 광우병

(Bird Influenza) (GMO) (Bisphenol A) (Benzopyrene) (Mad Cow Disease)
1. Food Safety is…

당
(Sugar)

Tax,
Cost,
Price…
1. Food Safety is…
1. Food Safety is…

가공육〮적색육
(Meat)

Income,
Preference,
Tax…
1. Food Safety is…
 1. Food Safety is…

방사능
(Radiation)

Cost,
Trade,
Border Policy…
1. Food Safety is…
1. Food Safety is…

프탈레이트계
(Phthalates)

Cost,
Medical expense…
 1. Food Safety is…

장출혈성대장균
(E. coli)

Education,
Control Costs,
Medical expense…
1. Food Safety is…
 1. Food Safety is…

조류인플레인자
(Bird Influenza)
1. Food Safety is…
1. Food Safety is…

유전자조작
(GMO)
1. Food Safety is…
1. Food Safety is…

비스페놀 A
(Bisphenol A)
 1. Food Safety is…

벤조피렌
(Benzopyrene)
 1. Food Safety is…

광우병
(Mad Cow Disease)
1. Food Safety is…
1. Food Safety is…

Quest 2.

What we've seen so far is primarily examples that

can happen with the fault of the producer or
supplier. What food safety incidents can happen to
food service provider and consumers' faults?

Write down your opinion. (3min)

1. Food Safety is…

Food Safety refers to handling, preparing and storing food in a way to best
reduce the risk of individuals becoming sick from foodborne illnesses.

Food safety is a global concern that covers a variety of different areas of

everyday life.

The principles of food safety aim to prevent food from becoming contaminated
and causing food poisoning.
1. Food Safety is…
1. Food Safety is…

This is achieved through a variety of different avenues, some of which are:

• Properly cleaning and sanitising all surfaces, equipment and utensils

• Maintaining a high level of personal hygiene, especially hand-washing
• Storing, chilling and heating food correctly with regards to temperature,
environment and equipment
• Implementing effective pest control
• Comprehending food allergies, food poisoning and food intolerance

Regardless of why you are handling food, whether as part of your job or cooking
at home, it is essential to always apply the proper food safety principles. Any
number of potential food hazards exist in a food handling environment, many of
which carry with them serious consequences.
1. Food Safety is…

Quest 3.

But is that naturally achievable?

What we can do?

This is why economics is necessary for food safety.

Part 1

The actions of agents for food safety

Government

Regulation Regulation

Education Incentive

Consumer Creation of Producer

new demand

New
product
launch