SOCIO-ECONOMIC CONSEQUENCES OF REGULATIONS AND EXTERNAL REPORTING INITIATIVES
J.L.P. Piet
TranspaRAbility, 1112 KL Diemen, The Netherlands

In order to control and reduce the existence of cadmium in the food chain, the companies in this chain should be informed about the materials used and the processes performed in production. These companies include the suppliers of raw materials, the producers of fertilizers, agriculturalists, food suppliers, and consumers. Governments, NGOs, and some of other stakeholder groups, with an interest in food safety, also need reliable information regarding the amounts of cadmium in the materials and products, and the way in which food security systems are implemented. This requires a system for measuring, accounting, and reporting. The way and extent to which external reporting can be used as an instrument in controlling and preventing the cadmium contamination of food is an issue of particular interest.

Product and process management is seen to be important in safeguarding food quality, in addition to the sampling and analysis of food products. A proper way of communicating product requirements and characteristics to support the parties involved and provide them with the information that they need for their own product management, is required.

The consequences of regulation are substantial, particularly the economic implications for developing countries. When developed countries make guidelines or regulations, there is a risk that these rules can be misused for trade protection.

External reporting can take the form of a product label, a product specification, a certificate of conformity to standards for processes or systems, or an annual performance report. Guidance for external reporting is provided by several organizations, e.g., the International Organization for Standardization (ISO).

Regulation should not be mandatory and restrictive and any laws introduced should facilitate industry with covenants supported by external reporting. Voluntary external reporting may lead to an improved relationship with relevant stakeholder groups and an improvement in market position. Provided the information is verified by an independent auditor, reporting can make a material contribution to a decrease in the cadmium content of food. To this extent, voluntary reporting can replace legislation.