Supervising a system of approved private control bodies for certification: The case of organic farming in Germany

Organic food certification by private control bodies (CBs) requires supervision to prevent adverse selection. We investigate whether the official data used for supervision are suitable to assess the control system. To demonstrate the need for supervision, a heuristic game theoretic model analysing different levels of control qualities is presented. Relevant determinants that might explain differences among CBs are discussed. Data analysis is based on data collected from annual supervision reports on the German organic control system from 2006 to 2008. Statistical analysis reveals significant differences among CBs. The data available in the supervision reports are not sufficient to explain the differences identified. Consequences for future data collection on and supervision of European organic control systems are discussed.