Does a Traceability System Help to Regulate Pig Farm Households’ Veterinary Drug Use Behavior? Evidence from Pig Farms in China

In China, there is a renewed interest in traceability systems as an efficient tool to guarantee pork safety. One of the pathways through which a traceability system can benefit consumers is by easing information asymmetry. However, past literature on the traceability system in China pays more attention to theoretical analysis and less to empirical analysis. Using a large-scale survey of pig farms in China, we investigate the effects influencing farmers’ participation in the traceability system. Findings show that a traceability system can influence the safety of pork indirectly through its impacts on farmers’ production behaviors. Another important finding is that unsafe pork is a result of non-standard use of veterinary drugs, and the traceability system works well for farmers by pushing them to take stricter safety measurements.