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Consumer Demand for Low-Acrylamide-Forming Potato Products: Evidence from Lab Auctions

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Abstract

A probable human carcinogen—acrylamide—was discovered about a decade ago to form naturally in potato products cooked at high temperatures. Using incentive compatible lab auctions and adult consumers from three distant U.S. locations, we test food labeling and information effects on willingness-to-pay (WTP) for conventional and genetically engineered potatoes, fries, and chips to reduce acrylamide levels. These new potato products are the first biotech products to have enhanced food safety for a popular food in the American and European diets. Relative to an environmental group’s perspective, scientific and industry information significantly increase WTP for biotech relative to conventional potato products. In addition, we find significant location-specific fixed effects of information treatments. Scientific and industry information can be used to nudge consumers towards improved decision making and healthy diets.

Resumen

Un probable carcinógeno humano –acrilamida— se descubrió hace como una década; se forma naturalmente en productos de papa cocinados a alta temperatura. Mediante el uso de subastas de laboratorio compatibles con incentivos y consumidores adultos de tres localidades distantes en los EUA, probamos etiquetado de alimentos y efectos de información sobre la disponibilidad de pagar (WTP) papas convencionales y las obtenidas por ingeniería genética, a la francesa y en hojuelas, para reducir los niveles de acrilamida. Estos nuevos productos de papa son los primeros biotecnológicos que han aumentado la seguridad alimentaria para un alimento popular en las dietas americana y europea. En relación a la perspectiva de grupos ambientalistas, la información científica y de la industria aumenta significativamente la WTP para los productos de la papa biotecnológica en relación a los de la convencional. Además, encontramos efectos fijos por localidad significativos de tratamientos a la información. La información científica y de la industria puede usarse para empujar a los consumidores hacia un mejoramiento en la toma de decisiones y dietas sanas.

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Notes

  1. Raw, boiled, and steamed potatoes do not contain acrylamide.

  2. Acrylamide concentrations in potatoes vary widely as a function of reducing sugar content and cooking temperatures, though concentrations in chips and fries are 100 to 1000 μg kg−1 and 100 to 700 μg kg−1, respectively. U.S. per capita use of white potatoes in 2013 is approximately the same as in 1980, about 52.2 kg, but the share going to processed foods increased from 53% to 69% (Institute of Medicine 2015).

  3. Female subjects comprise 71% of the Des Moines sample, slightly larger than the percent of women in the U.S. grocery shopper population. In our full sample, 62% are women.

  4. The second-price auction somewhat outperforms the random nth-price auction when a single winner is needed but is less suitable for our analysis of the underlying distribution of WTP for potato products.

  5. It is unlikely that the potato products used in the experiments are strong substitutes or complements. Given that the commodities serve different purposes and differ according to preparation and convenience, understatements or overstatements of WTP arising from relatedness in consumption is implausible (Rousu et al. 2008).

  6. These biotech potatoes were deregulated on November 7, 2014. The Innate™ 1.0 biotech potato is resistant to black-spot bruising, will not brown when cut and exposed to air, and has low sugar content and acrylamide-forming potential (O’Connell 2014).

  7. Unless there are special circumstances, subjects arriving together are put in different sessions. There were only two instances of this. These subjects were asked to not sit next to each other.

  8. So that outside information does not confound our experiment’s information treatments, we do not answer questions related to information content. We also state that subjects will have either one or two pages of information to read.

  9. Given this sequence of steps, bids will not exhibit hypothetical bias. To our knowledge, there were no direct consequences of not selling the GE potato products.

  10. A consultation with the ISU Department of Statistics also provided assistance on sampling, question arrangement, and question wording in the questionnaires.

  11. We compared the demographics of subjects in each city to city demographics reported in 2014 by the Census Bureau’s American Community Survey. Our city-specific subsamples are generally representative of each city’s population regarding marital status, age, household size, schooling, and income. Further details are available upon request.

  12. We follow the food experiments literature in asking general questions in the pre- and post-auction questionnaires (Huffman et al. 2003; Colson et al. 2011). These studies ask how well-informed participants are about genetic modification, both before and after the experiment, which directly relates to the study objectives. Given the general nature of these questions, as well as the fact that we use an incentive-compatible method, we do not expect this to bias subjects’ bids.

  13. Nearly 4.7% of the potato bid differences have one zero bid (either before or after information), and 5.7% of the French fry and chip bid differences have one zero bid. The number of single-zero bids represents the maximum number of possible censored bid differences.

  14. Annual incomes are entered as the midpoint of the income bracket chosen by the respondent.

  15. The sample is 76% white. This likely stems from the eligibility requirement that subjects be able to read and write English. Although our sample is quite diverse, our results generalize mainly to the population of English-speaking U.S. grocery shoppers.

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Acknowledgements

We acknowledge funding and assistance from the USDA through the University of Wisconsin, the J.R. Simplot Company, and the Iowa Agriculture and Home Economics Experiment Station. The experiments were conducted while McFadden was at Iowa State University and were approved by the ISU Institutional Review Board (IRB) in ISU IRB #14-115.

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Correspondence to Wallace Huffman.

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The views expressed are those of the authors and should not be attributed to the Economic Research Service or the USDA.

Appendix

Appendix

Fig. A1. Industry Perspective on Low Acrylamide Potatoes Using Biotechnology

Please take a few minutes to read the following.

An industry perspective on low acrylamide potatoes using biotechnology

General Statement:

  • In 2002, acrylamide was discovered in foods containing certain natural sugars when cooked at high temperatures (above roughly 250 ° F), such as French fries, hash browns and potato chips. They are also formed in the baking of bread (crust) and cookies and roasting of coffee beans.

  • Acrylamide, a chemical compound, is formed in foods from naturally occurring sugars and asparagine (a building block of a protein). It is a toxin and possible carcinogen in humans.

  • Conventional plant breeding efforts have resulted in only small reductions of acrylamide in processed potato products.

  • In contrast, biotech methods have significantly reduced the acrylamide level in processed potato products, thereby improving food safety.

  • Biotech plant breeding methods take genes from one organism and transfer them to another. In new biotech potatoes, all genes come from wild and domesticated potato varieties. Hence, this biotech method has much in common with conventional plant breeding.

Nutrition and Health:

  • Long-term, low-level intake of acrylamide by lab animals has been shown to create serious health problems. One study found that consuming conventional potato chips regularly for a month caused some health changes in humans.

  • Under Proposition 65, California requires certain restaurants, including Applebee’s, Chili’s, McDonald’s, Burger King, Wendy’s, and KFC, to post a warning stating that “cooked potatoes that have been browned, such as French fries, hash browns and baked potatoes, contain acrylamide, a chemical known to the State of California to cause cancer.”

  • A major biotech accomplishment has been the development of new potato varieties that have approximately a 70% reduction in acrylamide levels in processed potato products relative to conventional.

  • Biotech methods were also used to develop golden rice, which enhanced vitamin A content. Other opportunities exist for enhancing consumer attributes, such as, antioxidants and vitamins in food.

  • All Food and Drug Administration (FDA)-approved biotech-foods have been assessed to be substantially equivalent in nutrient content to conventional foods. As such, labeling in the U.S. is voluntary.

  • Biotech foods, relative to conventional foods, have similar low allergy potential.

Environmental Impacts and Food Security:

  • Acrylamide is used in industrial processes to make paper, dyes, and plastics, but food and cigarette smoke are the two main sources of human exposure to acrylamide.

  • Commercial potatoes are grown from pieces of whole potato and not seed. In addition, many commercial potatoes are either sterile or not sexually compatible with wild potatoes. Hence, there is very low risk of biotech potatoes crossing with other potato varieties or other plants.

  • There are no adverse impacts on the environment of the new biotech potatoes.

  • In general, biotech crops have reduced the use of toxic insecticides and increased the use of other environmentally friendly farming practices.

  • Food security can be greatly improved with continued advancement and adoption of genetically modified crops.

  • Approval is being sought for biotech potato exports to Canada, Mexico, South Korea, and Japan.

Fig. A2. Scientific Perspective on Acrylamide Exposure

Please take a few minutes to read the following.

A scientific perspective on acrylamide exposure

General Statement:

  • In 2002, acrylamide was discovered in foods containing certain natural sugars when cooked at high temperatures (above roughly 250 ° F), such as French fries, hash browns and potato chips. Acrylamide is also formed in the baking of bread (crust) and cookies and roasting of coffee beans.

  • Acrylamide, a chemical compound, is formed in these foods from naturally occurring sugars and asparagine (a building block of a protein).

  • Compared to other foods in the American diet, French fries and potato chips are a major source of acrylamide.

  • The amount of acrylamide increases with longer frying or baking times and higher cooking temperatures. However, boiling, steaming, and microwaving potatoes produces negligible acrylamide.

  • Under Proposition 65, California requires certain restaurants, including Applebee’s, Chili’s, McDonald’s, Burger King, Wendy’s, and KFC, to post a warning stating that “cooked potatoes that have been browned, such as French fries, hash browns and baked potatoes, contain acrylamide, a chemical known to the State of California to cause cancer.”

  • However, the FDA has not advised people to stop eating these potato products.

Nutrition and Health:

  • The International Agency for Research on Cancer (IARC) designates acrylamide as a “probable human carcinogen,” and the US National Toxicology Program classifies acrylamide as “reasonably anticipated” to be capable of causing cancer in humans.

  • The first health studies of acrylamide occurred in the 1960s and explored health hazards with on-the-job contact. Chronic exposure produces toxicity that weakens muscles and reflexes and leads to sensory loss.

  • Evidence from studies in the 1970s and 1980s advanced the linkages between cancer and acrylamide.

  • In a recent study, lab animals that consumed low doses of acrylamide placed in drinking water over a long period of time (roughly equal to annual acrylamide consumption of an adult) experienced gene damage.

  • Another study found that humans who consumed conventional potato chips daily for four weeks had higher incidence of early development of cardio-vascular diseases.

  • Additional studies suggest linkages between high acrylamide diets and development of breast cancer. High levels of acrylamide consumption by pregnant women have been associated with increased frequency of low birth weight babies.

Environmental Impacts and Food Security:

  • Acrylamide is used in industrial processes to make paper, dyes, and plastics, but food and cigarette smoke are the two main sources of human exposure to acrylamide.

  • If the occupational and health risks associated with acrylamide were to be substantially reduced or eliminated, food security would improve, especially in the United States and some other developed countries where a majority of the population regularly consumes foods that contain acrylamide.

Fig. A3. Environmental Group Perspective on Biotechnology

Please take a few minutes to read the following.

An environmental group perspective on biotechnology

General Statement:

  • Biotech plant breeding takes genes from one organism and places them into another. This process manipulates genes and alters genetic makeup and properties. The cutting of genetic material from one organism and inserting it into another is quite imprecise and can cause mutations. There has been inadequate testing of these products.

  • Biotech methods frequently use antibiotic-resistant gene segments in soil bacteria or viruses and transfer them into plants. This process is risky, leading to unanticipated outcomes.

  • Biotech plants are regulated by the federal government, but federal regulation relies heavily on data collected from field trials and other testing by the biotech industry.

  • Biotech seeds were first marketed to U.S. farmers in the mid-1990s, and rapid farmer adoption occurred in field crops (corn, soybean, cotton and canola). Later developments have been in papaya and vegetables (sugar beet, squash and potato).

  • In the United States, the sales of biotech foods have grown very rapidly. This growth is driven by self-interested producers and marketers seeking to maximize crop yields and minimize production costs.

Nutrition and Health:

  • Of the laboratory plants that are successfully modified to express the “right” traits, genetic engineers select among those that look strong, healthy, and capable of further breeding. There is poor screening to eliminate varieties that produce harmful substances or low nutrient quality.

  • New allergens are likely to be introduced into the food supply.

  • Early research reported some health problems in laboratory animals consuming first-generation insect- resistant potatoes.

  • Several scientific studies show that laboratory animals that have been fed biotech food developed one or more toxic effects on vital and/or reproductive organ functioning, relative to a control group.

  • A recent Canadian study found a common protein from insect-resistant corn in the bloodstream of pregnant women and their fetuses. Another recent study found that high concentrations of this protein resulted in severe damage to human embryonic kidney cells.

  • The nutritional content of biotech foods, relative to conventional foods, is variable.

Environmental Impacts and Food Security:

  • Private companies are not capable of screening new biotech materials for every possible pathogen or environmental stress. Unnoticed and unsafe mutations could strike after the occurrence of extreme stress, such as plant disease outbreaks, droughts, floods, and heat waves.

  • New biotech crops may cross-pollinate with other plants and are likely to cause super weeds.

  • Some herbicides used on biotech crops diffuse into the air and leach into streams and waterways in some areas. These herbicides are toxic to amphibians (e.g., frogs, salamanders) and earthworms, which impacts bird populations.

  • Biotech crops are doing little to help international food security or relieve hunger in poor countries. The major biotech crops, corn and soybeans, are mainly used for animal feed, biofuels, and processed human food in developed countries.

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McFadden, J., Huffman, W. Consumer Demand for Low-Acrylamide-Forming Potato Products: Evidence from Lab Auctions. Am. J. Potato Res. 94, 465–480 (2017). https://doi.org/10.1007/s12230-017-9577-1

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