Question

A new food safety regulation is imposed on the grain processors. Explain the effect of the new regulation will have throughout the food marketing channel. Assume the food marketing channel is comprised of a single producer, processor, and group of consumers.

Answer 1

The food producer need to keep in mind the new regulation while producing the product to get the market. The processor may demand food item which is able to fulfill the criteria of the new regulation. It may affect the production cost of the product.

When we come to the processor, he is whom the responsibility of the new regulation rests; should look after to obey and implement the new regulation. It may lead to raise his processing fee too.

Finally if we think of consumer, they may get superior quality food. But they in most case need to bear the financial burden of the new regulation.