Sunday, November 4

Do Food Labels Make a Difference? . . . Sometimes

Excerpted from AmberWaves, publication by USDA, November 2007:

"The economics behind food labeling provides insight into the dynamics of voluntary and mandatory food labeling and the influence labeling has on consumers’ food choices.
  • Competition drives food manufacturers to voluntarily label their products’ desirable attributes and to use third-party certifiers to bolster credibility.
  • Mandatory food labeling is usually more successful at filling information gaps than at addressing externalities such as environmental or health spillovers associated with food production and consumption.
  • Mandatory labeling may initially have a larger impact on manufacturers’ production decisions than on consumers’ food choices."

Read more here: http://www.ers.usda.gov/AmberWaves/November07/Features/FoodLabels.htm

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