CARPATHIAN JOURNAL OF FOOD SCIENCE AND TECHNOLOGY

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1 CARPATHIAN JOURNAL OF FOOD SCIENCE AND TECHNOLOGY jounal homepage: GAME ANALYSIS OF APPLICATION OF HAZARD ANALYSIS AND CRITICAL CONTROL POINT SYSTEM IN STRAWBERRY RAW MATERIAL PROCESSING INDUSTRY Huwei Song *, Weiming Yuan, Yuexue Liu 3 Jiangsu Collaboative Innovation Cente of Regional Moden Agicultue & Envionmental Potection, College of Life Science, Huaiyin Nomal Univesity, Huaian, Jiangsu, 3300; China Suzhou Polytechnic Institute of Agicultue, Jiangsu, Suzhou 5008; China 3 College of Hoticultue, Shenyang Agicultual Univesity, Shenyang, Liaoning, 0866; China; *songhuwei5669@63.com Aticle histoy: Received: 0 Januay 06 Accepted in evised fom: 8 Febuay 06 Keywods: Stawbey aw matenial pocessing industy; HACCP system; View of economics; Cost-benefit analysis; ABSTRACT Food safety has become an outstanding global poblem. Intenational food safety hygiene oganizations and govenments fom diffeent counties ae taking effots to establishing a new food safety system to cope with food safety hazads. Hazad analysis and citical contol point (HACCP) system is widely applied acoss the wold fo its chaacteistics of pevention, scientificity and systematicness. In tems of economics, this study analyzed the impact of HACCP system on cost-benefit of stawbey aw mateial pocessing industy as well as the benefits of implementing HACCP system in stawbey aw mateial pocessing industy, in ode to povide a theoetical basis fo futue study. As an effective measue, HACCP system is now the most authoitative safety pevention and monitoing system aiming at food poduction pocess. Howeve, its application in food pocessing entepises in China is in a slow pace; moeove, the application scope and depth emains to be impoved. Thus the application of HACCP in China euies effots fom govenment, poduce and consume.. Intoduction Hazad analysis and citical contol point (HACCP) system, the most authoitative safety pevention and monitoing system aiming at food poduction pocess, has become the impotant pecondition and secuity of food consumption and intenational food commece (Khati and Ray, 007). In ecent yeas, expot of Chinese food has not been able to satisfy the intenational food safety standad. In addition, cost-benefit of HACCP system has not been widely extensively in China. But we can see that, HACCP system developed in the past thity yeas has attacted much attention fom 00 Chinese scholas fo its economical efficiency (Jin et al., 008). Foeign eseaches suggested that, developed counties has eleased egulations and ules concening HACCP system one afte anothe; focing implementation of HACCP system aims at ensuing food safety and impoving hazad pevention level of food entepise (Lauian, 007; Unneveh et al., 00; Zaibet, 000). Meanwhile, most eseaches has also suggested that, effective implementation and application of HACCP system can bing diffeent levels of pofits fo food entepise, which is one of the easons that middle and lage scale food

2 Song et al. /Capathian Jounal of Food Science and Technology 06, 8(), entepise positively implementing this system. Futhemoe, moe and moe scholas begin to discuss ove and assess the value of HACCP system to entepise and the whole society with wide eseach methods (Zhigang et al., 007; Hooke et al., 00). Food is the basis fo people s suvival and development. Food safety diectly concens the health and safety of thousands of households as well as the development and stability of the society. Foodbone disease, a sevee theat fo human s health, develops in a seious condition, especially in developing counties and about million people die of foodbone (watebone) diahea (Tim and Sabine, 006; Thomas and Juan, 00). This study exploed the benefits of HACCP system in tems of economics, in ode to analyze the significance of HACCP system moe deeply and povide a theoetical suppot fo effective application of HACCP system fo stawbey aw mateial pocessing industy unde the cuent food poduction condition.. Mateials and methods.. Game theoy Game theoy, a banch of applied mathematics, has become one of standad analysis tools in economics (Juan and Yadong, 003). It means two people change thei stategies accodingly in an eual game to win. At fist, game theoy is mainly used to study and analyze success o failue issue in chess, bidge and gamble. At that time, scholas have only focused on expeiential level and have not involved theoetical eseach. Veification of basic pinciple of game theoy by Von Neumann in yea 98 signified the official bith of game theoy. Aftewads, scholas made extension eseaches on game theoy. Based on the infomation which two paticipants know about the ival, game theoy can be divided into complete infomation game and incomplete infomation game. Complete infomation game means that, two paticipants exactly know chaacteistics, stategic space and evenue function of the opposite side, 0 while incomplete infomation game means two paticipants do not exactly know chaacteistics stategic space and evenue function of the opposite side o they do not know accuate infomation about all chaacteistics, stategic space and evenue function of the opposite side... Related theoy about HACCP system HACCP, a food safety secuity system based on peventing food safety issues and food safety-elated disease, aims at peventing food safety issues and emoving o educing hazads to an acceptable level (Caol et al., 03). HACCP system is not an independent system; plans about opeation specifications and sanitation standad opeation pocedue ae the basis of fomulating and implementing HACCP system. HACCP system chaacteized by ationalization, stong systematicness, stong binding foce and high applicability has become the intenationally ecognized monitoing and contolling system fo effectively ensuing food safety and has poduced lage impact on govenment monitoing depatment, consumes and food pocessing entepises. This study focuses on its application in stawbey aw mateial pocessing industy in economic pespective. HACCP system is consideed as the most effective and economic food safety contolling and monitoing system by the wold. HACCP system can educe and lowe biological, chemical and physical pollution in the pocess fom aw mateials to consumption (William, 04). Implementation of HACCP system futhe pefects food uality monitoing system in China. To be specific, it supplements the taditional food uality monitoing system, which makes food safety monitoing pocess moe scientific and easonable. Pactical opeation in entepises suggested that, it is too late to emedy if we test the poduct at the last step of poduction, as the unualified poducts have been fomed. Such kind of esponsive monitoing mode has not been able to satisfy the constantly impoved poduction needs and cannot ensue food safety as well.

3 Song et al. /Capathian Jounal of Food Science and Technology 06, 8(), Theoy of cost-benefit analysis Cost is a categoy of value in commodity economics and also a component of commodity value. Poduction is bound to consume some esouces and the monetay expession and objectification of the consumed esouces is temed as cost (Els and Luca, 04). Benefit, a concept coesponding to cost, efes to the contibutions on system, including diect benefits and diect benefits. Benefit diffes in meaning if we ecognize benefits in diffeent views. Cost-benefit analysis is one of the commonly used economical analysis methods. Manages fom entepises tend to use cost benefit to analyze and confim opeating taget and scheme, i.e., calculating and assessing the cost and benefit of evey possible scheme as well as the limitation conditions and pobability of scheme implementation and then choosing the most beneficial one. Geneally speaking, cost and benefit is opposite and unified. In the case of unchanged index, educing cost would incease benefits; howeve, when all economical indexes change, the atio of benefit and cost must be inceased, in ode to impove benefits. Indeed, absolute volume of some necessay cost is possible to incease accodingly. But such inceasing is aiming at obtaining geate benefit incease and cannot ignoed compaed to benefit incease. 3. Results and Discussions 3.. Game analysis of food pocessing entepise and local govenment Stawbey aw mateial pocessing industy, one paty of game, would compae the cost and benefit in the condition of implementing o not implementing HACCP system, while govenment, the othe paty, would also conside whethe it should monito safety poduction of stawbey aw mateial pocessing industy as well as how much monitoing stength can maximum the benefit. Govenment would also balance the cost and benefits if the monitoing is caied out in stawbey aw mateial pocessing industy and then choose the optimal decision based on that. Table. Impact on cost and benefits if HACCP system is applied in stawbey aw mateial pocessing industy Index Peception of entepise (%) Tot(%) Sample size Poduction cost Sales evenue Tading pofit Ratio of pofits to cost Retun on total assets Retun on net assets Secuity suplus cash multiples Gowth ate of sales evenue in thee yeas Gowth ate of assets in thee yeas Technical input atio Evey index anges fom to 5. The value stands fo the incease of cost o benefit peceived by stawbey aw mateial pocessing industy afte HACCP system implementation. efes to no impact and 5 0 efes to maximum impact. = no incease, = little incease, 3= a little incease, 4= much incease, 5=numeous incease. Entepises peception on cost and benefits afte HACCP implementation has been shown

4 Song et al. /Capathian Jounal of Food Science and Technology 06, 8(), in Table. Willing stength of HACCP system implementation of stawbey aw mateial pocessing industy is not only coelated to the punishment stength on stawbey aw mateial pocessing industy due to iegula poduction, but also coelates to the monitoing stength of local govenment to stawbey aw mateial pocessing industy. Moeove, monitoing stength is coelated to the implementation degee of HACCP system in stawbey aw mateial pocessing industy as well as the loss. As to the game elationship between local govenment and stawbey aw mateial pocessing industy, stawbey aw mateial pocessing industy balances in the view of the impact of HACCP implementation on net benefits of entepise and the impact of monitoing of local govenment on cost. Stawbey aw mateial pocessing industy would balance the exta benefits obtained fom poducing unsafe food and benefits bought by implementing food safety systems such as HACCP system. In the eye of most entepise, the fome is lage than the latte. They believe that, implementing HACCP system means continuous cost input which may incease the buden of entepise and decease pofits and benefits. Theefoe, stawbey aw mateial pocessing industy tends to acuie maximum benefits without implementing HACCP system and even poducing foods illegally. 3.. Game analysis of stawbey aw mateial pocessing industy and consume This study attempts to analyze the game elationship between poduct uality and pice based on the pevious studies. Poduct uality is defined as uality of safety. 3.. Analysis of maket demand of food in diffeent uality Hee, we assume the demand of customes on a food in maket as: C { 0 () Whee efes to uality chaacteistics paamete of food, θ (θ>0) efes to the effectiveness obtained when = (θ is the uality pefeence coefficient of customes), stands fo custome suplus. Assume θ as a andom vaiable. The effectiveness obtained by customes is geate when θ is lage. Meanwhile F(θ) is used to expess distibution function of θ and f () is used fo expess its density function. Thee ae two foods in same categoy but in diffeent uality and (> ). is the uality of poduct A poduced by stawbey aw mateial pocessing entepise which has applied HACCP system, while is the uality of poduct B poduced by stawbey aw mateial pocessing entepise B which has not applied HACCP system. We assume 0 and. When, customes pefe to puchase poduct A. That is because ( )( ) p( ( ) ( ) p( ( )( ) ) 0 ) () It can be seen that C > C. Customes pefe to puchase poduct A poduced by entepise A which has implemented HACCP system. Then we come to conside the condition when. We assume demand on two poducts has no diffeence, i.e., C = C, when the uality selection of customes is. Thus we get:, 口 口, 口, ( 口 ) (3) (4) Necessay and sufficient condition fo custome puchasing poduct A is C C and o and. When, then we 03

5 Song et al. /Capathian Jounal of Food Science and Technology 06, 8(), 口 口 get 口. This is because 口 eual to 口 口 and meanwhile,. Thus demand of custome on poduct A is: 口, F 口 D,,, 口 (5) Similaly, customes would puchase poduct B only when U U, 口 口 is o, and, thus demand on poduct B is: 口 口 F F 口 D,, 3 4 口 口, (6) Then we can get demand functions of two poducts: 口 D(,,, ) F( ) 口 { 口 口 D (,,, ) F F( ) 口 口 When even distibutes on [0, ], we have D(,,, ) { (,,, ) D (7) (8) is the competitiveness stength of entepise A. Fom fomula (8), we know that, demand of customes deceases when pice of poduct ises; moeove, demand of custome ises when the pice of poduct of the othe entepise becomes highe. If pice of two poducts is the same, then demand of poduct A would ise with the impovement of poduct uality and declines with the uality 04 impovement of poduct B Quality and pice competition Quality-pice competition game model is thee-stage and dynamic (Langfeng and Hanhui, 008). In stage, entepise A chooses uality ; entepise B chooses uality in stage ; and in stage 3, both entepises choose pice. Game stuctue is shown in Figue. Figue. Thee-stage dynamic game stuctue 4. Conclusions Thee ae two game elationships involving in the application of HACCP system in stawbey aw mateial pocessing entepise. Fist is the game elationship between local govenment and food entepise and the second is the game elationship between food entepise and customes. In the second game elationship, uality and pice ae the key points. Customes pefe high uality and low pice food. They would give pioity to high uality food, i.e., safe food. Application of HACCP system is bound to poduce impact on cost and benefit of entepises. Moeove, we find though game analysis that, application of HACCP system is beneficial to govenment, entepise and customes, especially maket development of entepise. 5. Refeences Caol, A., (03). Wallace, Lynda Holyoak, Susan C. Powell, Fiona C. Dykes. HACCP The difficulty with Hazad Analysis. Food Contol, 35(), Els, B., Luca, B., (04). Maco Te Bömmelstoet. Using cost benefit analysis as a leaning pocess: identifying inteventions fo impoving communication and tust. Tanspot Policy, 3, 6-7. Hooke, N.H, Nayga, R.M., Siebet, J.W. (00). The Impact of HACCP on Costs and Poduct Exit. Jounal of

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