New Pathogen Testing Technologies and the Market for Food Safety Information

The impact of modern biotechnology on productivity in agricultural production is widely appreciated. Less attention has been paid to other ways in which modern biotechnology is changing the food system. Relatively recent advances in pathogen testing technology, based on the biotechnology tools underlying modern medical diagnostics, are changing the ability of food producers to measure food safety. Although real-time results for specific pathogens are still in the future, these new tests provide better information at lower cost and in a shorter time. New tests allow food buyers to more easily specify desired food safety levels and food sellers to more easily certify their products’ safety. This paper investigates how the availability of new testing methods influences private incentives to generate and use food safety information. We use an economic framework that describes the supply of information and the demand for information. The impact of shifts in supply and demand for information on food markets is discussed, based on published case studies and interviews with firms that make test kits, carry out food safety audits, or provide third-party certification. We conclude with the implications of these testing technologies for market performance in delivering improved food safety.