|
on Agricultural Economics |
|
Issue of 2010‒05‒22
107 papers chosen by |
| By: | Somporn Isvilanonda; Isriya Bunyasiri (Department of Agricultural and Resource Economics, Kasetsart University) |
| Abstract: | Agricultural development policy in Thailand over the past few decades has been geared not only to the nation’s food security, but also to export earnings. Thailand is a food surplus country at the macro level but food accessibility at the household level remains a problem, particularly in remote rural areas. The recent increase in food price and production cost has impacted on the rural poor. With a declining purchasing power, the poor households face the risk of food insecurity as they may reduce their intake of more nutritious food. The impact of rising food prices on agricultural households depends on whether they are net buyers of food commodities whose prices have increased. In rice farming households, the share of net buyer households was higher among households with smaller land holding. Also, the poor rice farmers in Thailand were severely affected by the higher production cost and input prices since the reduction in their net profits was larger. While nearly two-thirds of their operating cost was cash expense, they received only one-tenth from the rice sold. In order for the rural poor to cope with future impacts of high food price and rising production cost, a provision of off-farm employment and micro-credit with technical assistance and proper farm management plans should be targeted to small farmers and rural poor. In the longer-run, it is suggested that small-scale farmer capacity building and empowerment based on the sufficiency economy concept is necessary. This should be complemented by enhancing farm productivity through agricultural research and improvement in village-pool water resources including on-farm water resource management and investment. |
| Keywords: | Thailand, food security, agricultural policy, rural poor vulnerability, policy options |
| JEL: | O53 Q18 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:kau:wpaper:200901&r=agr |
| By: | Laukkanen, Marita; Nauges, Céline |
| Abstract: | No-till has been promoted as a cultivation method that reduces both production costs and the environmental impacts of farming relative to conventional tillage. Using farmlevel data from Finland, we show that no-till has no statistically significant effect on total variable costs but that it increases the use of plant protection products and fertilizers, and decreases the use of labor. An environmental impact simulation combining the results on input use with a nutrient and herbicide runoff model predicts that no-till produces environmental benefits on highly erodible land, but may be even detrimental to the environment in average conditions. |
| Keywords: | Conservation agriculture, no-till, technology adoption, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61077&r=agr |
| By: | Tzouramani, Irene; Sintori, Alexandra; Liontakis, Aggelos; Alexopoulos, George |
| Abstract: | The adoption of organic agriculture or livestock involves risk and uncertainty, and to overcome this, well designed schemes are required. Are the current support measures attractive for farmers who wish to convert to organic? At first, this study tries to assess the optimal investment trigger for a new comer into organic dairy sheep farming system and secondly, to evaluate the investment profitability of an existing organic farmer in his attempt to improve his farm. Results indicate that the framework of real options analysis is an appropriate form of analysis if the question of investment profitability is examined under risk and uncertainty and the role of economic subsidies offered to organic farmers is assessed. |
| Keywords: | organic agriculture, dairy sheep farming, real options, agriculture policy, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61096&r=agr |
| By: | Kazukauskas, Andrius; Newman, Carol |
| Abstract: | The recent reforms of the Common Agricultural Policy (CAP) have exposed the European agricultural sector to a new set of constraints and challenges. The decoupling of direct payments from production is expected to make production decisions more market-oriented as farmers move from mainly subsidy revenue maximization objectives toward profit maximizing behaviour. However, ex-post analyses of the productivity of farms have yet to uncover any evidence of a positive effect of the decoupling policy on farm productivity. Using the Irish, Danish and Dutch farm level data, we identify the extent to which both system and product switching after the introduction of decoupling has occurred and to what extent these changes have contributed to productivity growth in the agriculture. We find some evidence that the decoupling policy had positive significant effects on farm productivity but the product switching behaviour associated with the changes in farm decoupling rates have not led to productivity improvements. |
| Keywords: | productivity, semiparametric estimation, farming, decoupling, Agricultural and Food Policy, Farm Management, Land Economics/Use, D24, Q12, Q18, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61103&r=agr |
| By: | Ricome, Aymeric; Képhaliacos, Charilaos; Carpy-Goulard, Françoise; Ridier, Aude; Chaib, Karim |
| Abstract: | With the increasing commodity prices volatility over the last years and the successive agricultural policy reforms, European grain producers face greater uncertainty. To better understand consequences of a price risk increase on production decisions, marketing decisions and farm revenue as well as linkage between production and marketing decisions, we develop a multiperiodic risk farm model. Production decisions concern selections of crop mix and farming practices (conventional or integrated farming) while marketing decisions focus on four types of pricing arrangements. The model is applied to a representative farmer of a region located in the Southwest of France. The results exposed in this paper shows that with a price risk increase, production adjustments of a risk averse farmer are oriented toward less risky (environmentally friendly) farming practices unless marketing contracts allow to mitigate price risk. |
| Keywords: | multiperiod farm model, marketing contracts, risk, Common Agricultural Policy, Agricultural and Food Policy, Farm Management, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:60914&r=agr |
| By: | Banse, Martin; Tabeau, A.; van Meijl, H.; Woltjer, G. |
| Keywords: | Bioenergy Production, CGE modeling, Land Demand, Feed Demand, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61082&r=agr |
| By: | Key, Nigel; Latruffe, Laure; Sauer, Johannes |
| Abstract: | The effect of subsidies on production and technical change of crop farms in France and the United Kingdom (UK) during 1980-2006 is investigated. Subsidies were not neutral on production decisions, in terms of production intensity and type. Crop farms in both countries have experienced technical progress during the period studied, higher in France. Technical progress has favoured labour and chemicals in both countries, land in France, capital in the UK, while it has disfavoured land in the UK and capital in France. Technical change has been slowed down by crop area subsidies but increased by agri-environmental subsidies in both countries. |
| Keywords: | technical change, subsidies, input bias, crop farms, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61109&r=agr |
| By: | Belhenniche, Geoffroy; Duvaleix-Treguer, Sabine; Cordier, Jean |
| Abstract: | European market deregulation is destabilizing the economic environment of French farmers leading to an increase in market risks. In the dairy sector, the 2003 CAP reform has lead to major changes (removal of export subsidies and increase in the European milk quota). The dairy supply chain is now coping with higher production and price risks. The dairy supply chain is thinking of new management tools in order to both maintain stability in dairy farm income and secure supply to industrial facilities. One solution may be to strengthen marketing contracts. In this perspective, the knowledge of dairy farmers' risk attitudes is necessary. The goal of this paper is to provide empirical insight into: dairy farmersâ perceptions of risk and risk management, and the influence of the relationship between farmers and their dairy processing firm on these risk perceptions. Data originate from a sample of eighty livestock farmers in Normandy, one of the three biggest French milk production areas. The survey was carried out during a face-to-face interview in summer 2008. The questionnaire survey focuses on risk perception and strategies used to manage the risk, by asking the farmers to score risks sources and strategies on Likert-scales as in Bard and Barry (2000), and Meuwissen et al. (2001) and on the elicitation of dairy farmersâ risk preferences using Pennings and Garciaâs methodology (2001). As in previous studies (Gunjal and Legault, 1995; Meuwissen et al., 2001; Flaten et al., 2005; Fausti and Gillespie, 2006) we show existence of a diversified spectrum of risk preferences and rank risk sources. Institutional risk and price volatility of inputs and outputs are perceived as the main threat on farm income. However, our main contribution is to examine the influence of dairy processors on farmersâ preferences and the study attempt to establish a link between the type of contractors (eg. private vs. cooperative) and farm managersâ risk aversion. |
| Keywords: | Market Risk, Farmers' risk perceptions, Expected utility framework, Risk preference elicitation, Dairy Sector, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:58711&r=agr |
| By: | Katchova, Ani L. |
| Abstract: | This study examines the financial performance and stress experienced by beginning and retired farms in the U.S. Using USDAâs ARMS data, probit models are estimated to study the personal and farm characteristics that affect whether or not the financial ratios fall into critical zones. The results show that older farmers and larger farms are less likely to experience financial stress while hobby farms and livestock farms are more likely to experience financial stress. The results for beginning and retired farmers indicate fewer significant effects. |
| Keywords: | beginning farmers, financial performance, financial stress, retired farmers, transitioning farmers, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:60965&r=agr |
| By: | Lagerkvist, Carl Johan; Johansson, Helena; Birol, Ekin; Roy, Devesh; Narrod, Clare |
| Abstract: | Irrigation with raw or diluted wastewater is a widespread phenomenon, occurring on 20 million hectares across the developing world, especially in Asian countries, but also in peri-urban areas around almost every city of sub-Saharan Africa and in many Latin American cities. Growing urban populations and consequent increases in demand for food and water has spurred the use of sewage to water crops as this is, in many cases, the only form of irrigation for farmers who either lack clean water or for whom clean water is too expensive. Wastewater has high nutrient value and constitutes a reliable source (Scott et al., 2004). It is mostly used to produce cash crops (e.g. vegetables and cereals). For example, it has been estimated that in most parts of Sub- Saharan Africa, urban and peri-urban farms irrigated with polluted water resources contribute 60-100 percent of the vegetables needed in most cities (IFPRI, 2008). Production of these cash crops is found to generate significant livelihood opportunities, not only for urban and peri-urban farmers but also for traders, input suppliers and other service providers (Scott et al., 2004; Water Policy Briefing, 2006). |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59115&r=agr |
| By: | Meyer, Seth; Binfield, Julian; Westhoff, Patrick |
| Abstract: | The beneficiaries of technology adoption in agriculture and biofuels markets in the United States are heavily influenced by domestic biofuel policies and market context. Biofuel mandates, one of the key pillars of domestic biofuel policies, may significantly alter the elasticity of demand for biofuels as well as the derived demand for maize used to produce a significant share of ethanol in the United States. Using a stochastic agriculture and biofuels model, we assess how the introduction of technology may affect the crops and biofuel markets under binding and non-binding biofuel mandates and discuss the implications for analysis of EU biofuel policies. |
| Keywords: | biofuels, policy, technology adoption, mandates, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61089&r=agr |
| By: | Heyder, Matthias; Hollmann-Hespos, Thorsten; Theuvsen, Ludwig |
| Abstract: | Markets for agricultural and food products are characterized by high information asymmetries since producers, processors and retailers are in most cases much better informed about the quality of their products than consumers (Henson/Traill 1993). Often consumers are only at (prohibitively) high costs or not at all able to control important quality criterions such as food safety, nutritional value or region of origin. Such credence attributes can result in market failure due to a lack of credible information in the market (Akerlof 1970). As a result, attempts to protect consumers against food hazards, product adulteration and deception have gained much relevance in food supply chains (Deimel et al. 2008). Besides the more or less voluntary private certification schemes that have been established, large parts of the agrifood sector are already mandatorily regulated, especially in Europe. Therefore, in recent years, food law has been undergoing major changes in the European Union (EU) (Theuvsen/Hollmann-Hespos 2007; Haertel: 2007). General Food Law Regulation (EC) 178/2002 and the so-called EU hygiene package (Regulations (EC) 852/2004, 853/2004 and 854/2004) have strongly contributed to a much more intensive regulation of food production. The farm to fork approach laid down in Regulation (EC) 178/2002 has resulted in the obligation to secure âtraceability of food [â¦] at all stages of production, processing and distributionâ (Art. 18). |
| Keywords: | Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59118&r=agr |
| By: | Revoredo-Giha, Cesar; Leat, Philip; Milne, Catherine |
| Abstract: | One of the aims of the reform of the Common Agricultural Policy (CAP) is to increase the competitiveness of farmers through increasing their exposure to markets. An aspect of competitiveness is the gains in economic efficiency. Thus, the purpose of this paper is to estimate indicators of farm efficiency for the period 1989 to 2008 by farm type and to analyse what the effect on efficiency of changes in the CAP has been. In terms of the methodology, the information used comes from the Scottish Farm Account Scheme (FAS) survey, which allows us to assemble panel dataset and to construct cost efficiency indicators. The results indicate while mixed farms and lowland farms have maintain their levels of efficiency. LFA farms have seen their efficiency reduced since approximately 2004 or 2005 (especially LFA sheep farm specialists). Also, the analysis shows that there seems to be an increase in the dispersion of farmers in terms of efficiency for some farm types in periods of change in agricultural policy. |
| Keywords: | Farm efficiency, stochastic cost frontier, Scottish agriculture, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61106&r=agr |
| By: | Zokaei, Keivan |
| Abstract: | This paper looks at the socio-environmental sustainability of agri-food systems and addresses the key issue of measuring âsustainabilityâ. The paper begins by providing an overview of the environmental impacts of the global agri-food systems especially focusing on the UK. The author generated a comprehensive analysis of the key hotspots within food systems in a previous paper presented at the 2nd International European Forum on Systems Dynamics and Innovation in Food Networks in 2008. This article takes the discussion further by looking at the key tools for supply chain environmental measurement and contributes establishing a new measure of sustainable production/consumption. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59203&r=agr |
| By: | Pascucci, Stefano; Gardebroek, Cornelis |
| Abstract: | In many European countries, farmers are a member of a processing or marketing co-operative, and most of these farmers also deliver their products to that co-operative. However, an extensive dataset of Italian farmers shows that not all members deliver to their co-op, and that there are also non-members that deliver. Using theoretical arguments from the New Institutional Economics literature, a bivariate probit model is estimated to explain co-op membership and delivery jointly. Results show that membership and delivering are indeed related, but also that different factors influence farmersâ decisions on membership and delivery. |
| Keywords: | Co-operatives, New Institutional Economics, bivariate probit, Italy, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61078&r=agr |
| By: | Declerck, Francis; Fourcadet, Olivier |
| Abstract: | Many consumers do not understand the significance of the Organic labels. The EFSA and the USDA makes no claim that organically produced food is safer or âhealthier.â or more nutritious than conventionally produced food. Consumers will still need to read nutrition labels and make wise selections to maintain an overall healthy diet. âOrganicâ food does not mean ânaturalâ. Only food labelled âorganicâ designate that the product meets the new EU or USDA organic standards. In Europe and elsewhere, food productsâ Quality Labels (QL) have appeared in the early 1960s and their number has been increasing since then. QL are publicly owned, like âOrganic Labelâ or privately owned, like âCarrefour Bioâ brands which signal a âqualityâ difference from other products |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59179&r=agr |
| By: | Fritz, Melanie; Martino, Gaetano |
| Abstract: | Farmers Markets are receiving an increasing attention by both food chains actors and social scientists. Economic and sociological studies are contributing to the comprehension of these forms of exchange. Both consumers and producers are fostering their expectations about the renewal of a mode of exchange which sustained local production-consumptions linkages. The main economic function of these organizational structures seems to be the reduction of the price paid by the consumers and the enhancements of allocation of farm products. The basic interpretation of these forms of exchange focuses on market structure, nonetheless the exchange relationships seem to emphasize several dimensions, including economic and cultural aspects. The objective of the paper is of investigating the role of networks among producers and consumers in structuring and making viable the Farmer Markets as structures of short food supply chains. The basic idea is that the strength of Farmer Markets is the ability of satisfying the consumer expectations about a few characteristics of the products, entailing given cultural and economic aspects. The study argues that under this view the Farmer Markets may be thought of as a emerging form of production-consumption interaction. According to existing evidences it is suggested that the network is also the emerging forms of horizontal relationships among the producer participants to the markets. The paper aims at suggesting that basic types of trust act as key factor in structuring the networks and in promoting the stability of the market. |
| Keywords: | Farmers Markets, networks, trust, food chains sustainability, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Risk and Uncertainty, D4, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59192&r=agr |
| By: | Toma, Luiza; Barnes, Andrew; Renwick, Alan |
| Abstract: | This paper analyses factors influencing Scottish dairy farmersâ intentions to change size of business in response to milk quota abolition. The analysis uses structural equation modelling and is based on survey data collected in 2009 through telephone interviews with 533 farmers. Results suggest that farmers who (1) intend to leave their farm to children; (2) have not inherited their farm from previous generation; (3) perceive a lower impact of milk quota abolition on business; (4) have less negative attitudes towards policies/regulations; and (5) perceived a lower influence of policies/markets on business during the past decade are most likely to increase farm size. |
| Keywords: | dairy industry, Scotland, farmer behaviour, milk quota abolition, structural equation model, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61091&r=agr |
| By: | Bakucs, Lajos Z.; Bojnec, Stefan; Ferto, Imre; Latruffe, Laure |
| Abstract: | The article investigates the validity of Gibratâs Law for French, Hungarian and Slovenian farms with FADN data and Heckman selection models, quantiles regressions and panel unit root tests. The contribution to the literature is threefold. First, we compare farm growth in countries with rather different farm structures. Second, we apply two different testing techniques. Finally, we focus on specialised crop and dairy farms rather than all farms, avoiding biases due to heterogeneous structures across the agricultural sector. Results reject the Gibratâs Law for crop farms in France (except for one sub-period) and Hungary but confirm it for French and Slovenian dairy farms. |
| Keywords: | Agricultural and Food Policy, Farm Management, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:60911&r=agr |
| By: | Creese, Jonathan; Marks, Nicki |
| Abstract: | Purpose â The purpose of this paper is to alert food producers to emerging market demands associated with climate change. Design/methodology/approach â The study draws on literature review and applied market research. Findings â Many food retailers are applying pressure to their value chains to measure and manage carbon emissions. Although consumers play a role, consumers are not the main driver compelling retailers to respond to climate change. Research limitations/implications â This study only interviewed retailers in the United Kingdom and Japan as these are markets that are of particular interest for Australian food exporters. Originality/value â Consumers and retailers in export markets are responding to climate change. The research suggests that food producers may need to consider market signals in addition to regulatory pressure and/or environmental concern when assessing their response to climate change. |
| Keywords: | climate change, food, agriculture, value chain, retailer, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59186&r=agr |
| By: | Anderson, Kym |
| Abstract: | A decline in governmental distortions to agricultural and other trade since the 1980s has contributed to economic growth and poverty alleviation globally. But new modeling results suggest that has taken the world only three-fifths of the way towards freeing merchandise trade, and that farm policies are responsible for 70 percent of the global welfare cost of remaining distortions to goods markets as of 2004. Meanwhile, new drivers are affecting the mean and variance of world prices of farm products, including biofuel mandates and subsidies, climate change mitigation policies and adaptation, water institution and policy developments, difficulties in concluding a multilateral Doha Round agricultural agreement at the WTO, and policies relating to transgenic foods. This paper reviews trends and fluctuations in past distortions to agricultural incentives, speculates on how they might evolve in coming decades alongside other market developments, and draws out implications for Australia. |
| Keywords: | Distorted incentives, agricultural and trade policy reforms, Asia-Pacific region, Agricultural and Food Policy, International Relations/Trade, F13, F14, Q17, Q18, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59849&r=agr |
| By: | Tekguc, Hasan |
| Abstract: | Farmers and consumers suspect that processing firms abuse their power in the milk marketing chain. We employ threshold autoregressive and moment threshold autoregressive tests and contrary to expectations find evidence of a downward trend in UHT milk real price without a corresponding decline in farm-gate prices. The downward trend coincides with increased competition in the dairy industry and with the growing market share of the formal sector at the expense of the informal sector. Major dairy processing firms expand their market share and still enjoy healthy profits thanks to increasing returns to scale in processing and distribution in a growing market. |
| Keywords: | Dairy, Turkey, Oligopsony, TAR, M-TAR, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61087&r=agr |
| By: | Clancy, Daragh; Kazukauskas, Andrius; Newman, Carol; Thorne, Fiona |
| Abstract: | This paper conducts a detailed, micro-focused investigation on the implications of recent agricultural policy changes on the structure of production systems in Ireland, Denmark and the Netherlands in terms of farm numbers, system switching, specialisation, the role of economies of scale, on-farm investment, off-farm employment and economic viability. Given the close relationship between farm structure and agricultural production, the impact of the recent CAP reform on production decisions should give a good indication of the form agricultural structural change will take. Two competing hypotheses of post decoupling structural change are proposed; a âproduction inducing effectâ and an âexpectations effectâ. Using Irish, Danish and Dutch micro-data, which are comparable due to their participation in FADN, a descriptive analysis of the key characteristics of production in the agri-food sectors in each country will be performed using key indicators of structural change. The results indicate that the âexpectations effectâ, which claims that producers may adopt a âsafety firstâ strategy and make only minimal changes to production plans in case future payments are reassessed and re-linked to production or an agricultural activity, seems to be prevalent. |
| Keywords: | Agricultural and Food Policy, Farm Management, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:60913&r=agr |
| By: | Balmann, Alfons; Kellermann, Konrad; Larsen, Karin; Sandri, Serena; Schade, Christian |
| Abstract: | Economies of scale and scope are often not exploited in Western agriculture. A general reason is probably that various types of transaction costs limit coordination among farmers. A more specific explanation is that coordination on land markets or machinery cooperation is difficult to achieve when farmers are heterogeneous as some kind of price differentiation is necessary for a Pareto-superior solution. This paper investigates experimentally such a coordination game with heterogeneous agents using an example inspired by agricultural land markets. The experimental findings suggest that a Pareto-optimal solution may not be found when agents are heterogeneous. The findings provide evidence for market failures and cooperation deficits as reasons for unexploited economies of scale in agriculture. Our findings are consistent with coordination failures that appear to be driven by behavioural factors such as anchoring-and-adjustment, inequity aversion, and a reverse form of winnerâs curse. |
| Keywords: | Land Markets, Coordination and Allocation, Experimental Economics, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61093&r=agr |
| By: | Ivanic, Maros; Martin, Will |
| Abstract: | Constraints on resources, growth in demand, and a slowdown in agricultural productivity raise concerns that food prices may rise substantially over the next decades. The impacts of such higher prices on the poor and the required mitigating policy responses to this problem remain unclear. This paper uses a global general equilibrium model, projections of global growth and microeconomic household models, to project potential implications for incomes, food production and poverty. We find that higher agricultural productivity would generally lower poverty, with different impacts depending where the productivity growth occurs, while protection policies that reduce imports would generally raise poverty. |
| Keywords: | poverty, growth, projections, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61098&r=agr |
| By: | Bertazzoli, Aldo; Ghelfi, Rino; Rivaroli, Sergio; Samoggia, Antonella |
| Abstract: | Food chain concept was firstly used as a private sector concept applied in order to optimise chain organisation and to create value along the chain. It is now becoming an approach to understand relations within a socio-economic area, both for economic and production aims and to gain a territorial and rural development perspective. Currently food chain policy is often the result of a negotiating process involving different socio-economic policy areas and many stakeholders. The objective of the present paper is to analyse the food chain concept in rural and food policy context, to explore its interconnections with other socio-economic policy areas, and to identify the main policy perspectives in which the concept of food chain was used. A significant number of international bodies, European Union institutions and national rural programming documents containing specific reference to the food chain were studied with a content analysis methodology based on a common attributes grid. A Boolean matrix was created so to identify some cognitive relations between socio-economic policy areas and topics through the examination of the connected perceptual map built using multidimensional scaling method (MDS). Documents analysis shows that the food chain concept is mainly used in food policy strategy documents, but it is increasingly adopted as a theoretical instrument for territorial and rural policy documents. Food chain concept contains conceptual declinations which refer to both food and rural policies. Beyond the improvement of food safety and quality standards, it is widely used as instrument for agro-food competitiveness, improvement of management, territorial and rural development. Food chain initiatives impact on an increasing number of economic sectors, planning levels and interest groups and the stages of the food chain mostly targeted are the farmers/ primary producers and the consumer. Moreover, the analysis shows a lack of a European common interpretation and clear acknowledgement of the use of the food chain approach and the policy documents and regulations highlight food chain issues only partially if compared with private stakeholders and research bodies. At international level, there is an increasing attention on network and systemic relations in the agro-food sector and along the different actors of the chain, but the full strength of the food chain paradigm could be more widely exploited. |
| Keywords: | food chain, food policy, rural policy, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Risk and Uncertainty, Q18, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59037&r=agr |
| By: | Vandermeulen, Valerie; Mettepenningen, Evy; Calus, Mieke |
| Abstract: | European agriculture has been characterized by a shift in structure towards larger farms with less labour employed. Within the current article we investigate the case of Flanders, a region in Belgium, and try to define what the sectoral shifts of labour and land have been in the past. Thereby we try to analyze and quantify structural change in Flemish agriculture, and to make projections for the future. The research was based on a Markov analysis of secondary census data, complemented by primary data obtained through a survey. In general it seems that structural change in Flemish agriculture follows the general trend of farms getting bigger, more specialized and employing more people per farm. This h |
| Keywords: | Factor mobility, Agricultural sectors, Markov analysis, Structural change, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61076&r=agr |
| By: | Lehtonen, Heikki |
| Abstract: | The methodological challenge addressed here is modelling multi-regional development of agricultural production and structural change, including land competition, in a dynamic partial equilibrium setting. The model applied in this study is a dynamic recursive model simulating the development of the agricultural investments and markets annually from 1995 up to 2020. Results show that land prices play a role when animal production increases in most competitive regions and gradually decreases in less productive regions. The framework can be applied when analysing how various new techniques, practices and regulations for land use affect regional production structures. |
| Keywords: | agricultural sector modelling, technical change, land competition, manure nutrients, agri-environmental policies, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61074&r=agr |
| By: | Falkowski, Jan; Ciaian, Pavel; Kancs, dâArtis |
| Abstract: | This paper analyses how farm access to credit affects farm input allocation and farm efficiency in the CEE countries. Drawing on a unique farm level panel data with 37,409 observations and employing a matching estimator we are able to control for the key source of endogeneity â unoberserved heterogeneity. We find that farms are credit constrained both in the short-run as well as in the long-run, but that credit constraint is asymmetric between inputs. Our estimates suggest that farm access to credit increases TFP up to 1.9% per 1000 EUR of additional credit. The use of variable inputs and capital investment increases up to 2.3% and 29%, respectively, per 1000 EUR of additional credit. Due to credit-financed investment in labour-saving farm equipment, labour use reduces for low level of credit Farms are found not to be credit constrained with respect to land. |
| Keywords: | Access to credit, investment, factor allocation, productivity, transition countries, Agricultural and Food Policy, Farm Management, Land Economics/Use, Q12, P14, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61347&r=agr |
| By: | Del Giudice, Teresa; Nebbia, Stefano; Pascucci, Stefano |
| Abstract: | In this article we analysed the role of acceptance of a new food within innovation processes in the Italian food sector. Our analysis focused on preferences and the opinions expressed by three distinct groups of young consumers in relation to functional foods (FFs). Such products represent an innovation both in terms of technology and commerce for Italian food companies, and the segment of young consumers would appear especially interested in them. Our results showed that a different cultural education, hence the degree of knowledge cumulated by young consumers, is a key element in the preference for, and perception of FFs. This implies the need to identify highly differentiated marketing strategies for firms seeking to reach this segment of FF demand in Italy. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59112&r=agr |
| By: | Barling, David |
| Abstract: | The agri-food sector has undergone both rapid public regulation and private standards setting in the past two decades engendering new forms of governance of food supply chains. Food safety has been at the forefront of these reforms, but increasingly food standards reflect a range of ethical concerns about food production and supply. The communication of standards with ethical implications to consumers relies upon labelling and marketing but is underpinned by schemes of certification and audit, which in turn entail effective systems of traceability of food products. Traceability reaches from food production and movement through the supply chain to the form of the foodâs consumption. A feature of contemporary governing has been the development of the regulatory state, where the state seeks to widen and lengthen its governing reach through steering and utilising private forms of governance. The regulatory state directs the private sector to effectively self-regulate food supply chains within legally required standards; but this process of governance can be a contest of differing values. At the European level, the revision of European Union (EU) food law (EC 178/2002) has put traceability at the centre of its reform of the governance of supply chains. The promotion of ethical concerns around food standards has emerged from private governance sources â notably civil society based organisations who have sought to promote both particularistic and broader concerns around food production from animal welfare to fair trade. In the corporate sector both manufacturers and retailers, have taken up a wide range of standards and certification schemes which cover ethical as well as other concerns: from integrated farming processes to food assurance schemes to local food provenance schemes. The unfolding scope and nature of ethical concerns around food are explained below. The role of civil society organisations in promoting new standards for food incorporating ethical criteria points to the inter- relationships of the state (including the EU) with the corporate sector and civil society organisations in the unfolding regulation and governance of food supply chains. These regulatory and governance trajectories are examined in more detail to illustrate the different roles that food traceability is being asked to underpin. Amongst these roles, the EUâs sustainability goals for the agri-food sector inter-relate with ethically informed regulations. Yet such is the dynamic and unfolding nature of these trajectories that public regulation can lag behind the private governance initiatives. The different roles that traceability as a policy and governance instrument is being called upon to deliver are dynamic and unfolding. There is an increasing traceability burden and so challenges for both public regulators and private managers of food supply chains. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Political Economy, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:58709&r=agr |
| By: | Piet, Laurent; Desjeux, Yann; Latruffe, Laure; Le Mouel, Chantal |
| Abstract: | Over the last decades, the number of farms has decreased while average farm size has increased in industrialised countries. We investigate whether these two concomitant trends have resulted in higher farmland concentration or not in the case of France. Deriving Gini coefficients as a measure of concentration from the estimation of parametric Lorenz curves, we show that this is not systematically the case at the sub-national scale of âdépartementsâ. When studying the role of possible explanatory variables for farmland concentration, we find that milk quotas, CAP 2nd pillar subsidies and so-called structural measures (settlements and early retirement grants) have a significant impact. However, the availability and the price of agricultural land appear to be the most significant factors. |
| Keywords: | Farmland concentration, Farm structures, Agricultural policies, Gini coefficient, France, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61349&r=agr |
| By: | Swinnen, Johan F.M.; Van Herck, Kristine |
| Abstract: | The transition of a centrally planned to a more market economy provides a natural Experiment on the role of institutions and exchange in economic growth. This paper uses a unique dataset based on a survey of 305 dairy producing and supplying households in Bulgaria to analyze the impact of late payments for delivered products and farm assistance programs. The results of the dynamic panel analysis indicate that late payments have a negative influence on farm growth, while contracting with interlinked farm assistance programs, had a positive effect on farm growth. |
| Keywords: | Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61079&r=agr |
| By: | Ajani, Judith |
| Abstract: | The widespread shift of Australiaâs wood products industry away from native forests to an agricultural regimeâwood plantationsâhas enhanced forestry industry competitiveness. Wood now competes against food for agricultural land, water and other resources (including government support). New plantings have increased substantially since the mid 1990s via plantation managed investment schemes (MIS), arousing protest in the traditional agricultural sector and claims of unfair government policy treatment. This claim is investigated in an analysis that integrates the taxation treatment of plantation MIS with economics and forestry industry knowledge. Three methods are developed, and applied, to estimate the plantation MIS tax-based subsidy. Preliminary estimates indicate a tax-based subsidy to forestry through plantation MIS of between $0.9-1.2 billion over the five years ending 2008. The estimated subsidy is then incorporated in the Productivity Commissionâs calculations of the effective rate of assistance (ERA) to industry groups from tariff, budget outlay and tax-based government policy. The ERA to Forestry & logging in 2008 was estimated to be 41.8 per cent: government assistance is equivalent to 42 per cent of Forestry & loggingâs unassisted value added. The estimated plantation MIS tax based subsidy accounted for 77 per cent of the assistance. Assistance to Forestry & logging exceeds substantially the assistance (including drought related payments) to food growers: 7.2 per cent to Grain, sheep & beef and 17.3 per cent to Dairy cattle farming (a significant proportion was assistance that ceased in April 2008). A detailed examination of Australiaâs proposed climate change policy concerning the land use sector indicates that agricultural resource use distortions created through plantation MIS arrangements are lightly to intensify. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:58877&r=agr |
| By: | Huettel, Silke; Margarian, Anne; von Schlippenbach, Vanessa |
| Abstract: | This paper explores how the initial farm size structure affects the exit decision of farms inducing free land capacities, and the allocation of the newly available land resources to the remaining farms in a particular region. We model an agricultural market where large and small firms first decide whether to leave the market or not; in case of continuing in production the farms compete for getting access to additional land resources in a Vickrey auction. We find that larger farms allocate more additional quantity than small farms; the latter are more likely to leave the market. An empirical illustration gives further support and reveals the relation between farm size structure, farm exits and growth of the large. |
| Keywords: | asymmetries, land market, capacity allocation, Vickrey auction, Agricultural and Food Policy, Farm Management, Land Economics/Use, L11, L12, Q12, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:62046&r=agr |
| By: | Kramol, Prathanthip; Villano, Renato; Fleming, Euan; Kristiansen, Paul |
| Abstract: | "Clean and safe" agricultural products are an important issue among consumers, farmers and governments. Many developing countries develop their produce at various points along the âcleanâ continuum based on production practices related to use of synthetic chemicals. Organic farming is applied to technologies with no chemicals or synthetic fertilisers used during production or processing. It was initially developed by farmers and non-government organisations in Thailand, and subsequently implemented by the Thai government through a series of policies on clean produce to meet international standards. Safe-use and pesticide-free practices lie between organic and conventional practices, and are possible steps when converting conventional farms to organic farms. We compare the technical efficiencies and technology gaps of the four farming systems in northern Thailand of which three - organic, pesticide-free and safe-use - are designated âclean and safeâ. Farm-level data on vegetable production were collected from random samples of farms using these technologies. A metafrontier model was estimated, enabling the estimation of technical efficiencies and technology gap ratios (TGRs) for vegetable farms operating under the different production systems. Conventional farms were expected to have the highest mean TGR (smallest distance from the metafrontier) as they are least constrained in the way they farm, and results bear out this expectation. The mean TGR for conventional farms is 0.80, significantly higher than that for organic farms at 0.45. But all production systems have farms lying on the metafrontier. In contrast to the TGR results, conventional farms have the lowest mean technical efficiency relative to their group frontier (0.33) and pesticide-free vegetable farms the highest (0.47), most likely reflecting the different degrees of technical assistance provided to farmers in these groups. Organic farming is that farmers in this group did not perform markedly worse than farmers in other groups in terms of productivity. There are numerous organisations and projects providing assistance for âclean and safeâ vegetable farming in northern Thailand. Scope exists to improve the performance of farmers in all groups as technical efficiencies and TGRs of farms vary widely in all groups. Improvements are needed for agronomic technology, supply chains, farmer capacity in production and marketing, and effectiveness of technology transfer strategies. |
| Keywords: | organic, technical efficiency, stochastic frontier, metafrontier, northern Thailand, Agribusiness, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59092&r=agr |
| By: | Ward, Ronald W.; Boynton, Bruce |
| Abstract: | Among almost all natural food goods, honey is probably one of the most unique in terms of its production history and importance. It is often a by-product from the primary function of pollination by bees. Honey color and flavor is directly related to the types of plants being pollinated. For some agricultural products, honey has limited economic value beyond the food source for the bees, while for others, such as citrus, the value of the honey is much greater since the flavor, texture, and color yields highly desirable honey attributes. Bee pollination is essential to almost every sector of agriculture. For some agriculture goods, beekeepers recoup their returns through payment for the pollination services. When the pollination leads to desirable honey varieties, the value of the honey serves as the indirect payment for pollination services. Hence, the economic viability of the honey market is an essential element for supporting the bee colonies needed for pollination. A weak honey market should directly affect beekeepersâ abilities to provide essential pollination services to all agriculture sectors. Efforts to enhance the demand for honey clearly have implications far beyond just the value of the honey since the cost of pollination would be significantly higher if it were not for the sales of honey. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59184&r=agr |
| By: | Oktaviani, Rina; Rakjman Setyoko, Nur; Vanzetti, David |
| Abstract: | Following the global spike in food prices in 2008, there is renewed interest in Indonesia in self-sufficiency as a means of achieving food security. Restrictive trade policies, including specific tariffs on rice and sugar, and quantitative restrictions on imports and exports, have been used in an attempt to meet conflicting objectives of assisting both producers and consumers. Meanwhile, palm oil exports to the European Union are constrained by the importer's concerns about deforestation and its contribution to climate change. Similar constraints may be applied to other commodities as production moves into pristine areas in an attempt to maintain self-sufficiency. On the other hand, more open trade may offer better options to address any agricultural-related costs associated with climate change. A computable general equilibrium model is used to analyze the efficiency and distributional impacts of these agricultural trade policies. The results suggest that removing or reducing tariffs on rice and sugar would increase imports substantially in relative terms but have only a small impact on domestic prices and production. A ban on palm oil exports to the European Union would have a significant impact, although offset somewhat by increased exports elsewhere. In each case the major effects are distributional, involving transfers between producers and consumers. Multiple instruments are necessary to achieve conflicting objectives. For example, social safety nets rather than trade bans should be used to support poor consumers. Support for the agricultural sector should focus on the provision of rural infrastructure, research and development, and the encouragement of private sector investment. |
| Keywords: | agriculture, trade, Indonesia, International Relations/Trade, F13, Q17., |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59109&r=agr |
| By: | Mishra, Ashok K.; Raggi, Merri; Viaggi, Davide |
| Abstract: | In the last three decades, European Union (EU) agriculture has been characterized by major exit of farming households from agriculture. In some areas the share of exit has been as high as 40%. Similar pattern has also been observed in the United States (US), where the exit rates are about 9-10 percent per year. Understanding the exit behavior is a key to the future farm structure, management of abandoned land, depopulation of rural areas, and agricultural policy, including government program payments. The main objective of this paper is to review the theoretical background and empirically estimate the determinants of exit decisions through a comparative econometric analysis in the US and the EU. |
| Keywords: | farm exit, logit model, US, EU, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61075&r=agr |
| By: | Berruto, Remigio; Busato, Patrizia |
| Abstract: | The potential advantages of locally grown produce are mainly related to the coexistence of production and consumption in the same area. These advantages are: reduced transportation, freshness, better taste, easy traceability, transparency, food safety, environmental sustainability and community development. Despite these positive aspects, the money spent for locally grown produce represents only a small percentage of the total money spent for fresh produce purchases. On the other hand, interest is growing for furnishing produce to local produce schools, hospitals and public institutions. The supply chains of locally grown produce are classified into direct marketing distributions (farmersâ markets, CSAs, roadside stands, on-farm stores) and indirect marketing distributions (restaurants, foodservices, supermarkets). Each supply chain is characterized by different factors, including the expectations of customers which, coincidentally, drive logistics and postharvest handling activities. The supply chains and the logistics of locally grown produce are described, with the analysis of potential benefits and barriers to expansion, using the system approach technique. |
| Keywords: | System approach, locally grown, supplyâchain, fruits and vegetables, logistics, simulation, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:58713&r=agr |
| By: | Fritz, Melanie |
| Abstract: | The food sector is the largest economic sector in the European Union (CIAA, 2005). It consists of a complex, global and dynamically changing network of trade streams, food supply network relations and related product flows (Fritz, Schiefer, 2008a). Food supply networks are subject to dynamically changing circumstances, which include fluctuations at primary production due to changes in weather or climate, impacting supply and demand and prices, and also impacting the quality of raw material, variations in food consumption due to seasonality or the westernization of diets in Asia (see e.g. OECD-FAO, 2006, Pingali, 2006), the development of alternative uses of raw material such as bio-fuel, and, not the least, from changing attitudes of society towards the consequences of the food systemâs activities for environmental, social and economic issues, captured in the term of âsustainabilityâ (Aiking, de Boer, 2004). |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59178&r=agr |
| By: | Poppe, Krijn |
| Abstract: | This paper investigates the developments in the Dutch Agri-Food innovation system. Main components of the system are agriculture and agribusiness, the promotion of interests in the lobby system and the knowledge system. Each has its own dynamics but they are until now tied together by institutional arrangements. Based on a historical description we formulate a simple business dynamics model. The robustness of the system is investigated by a scenario analysis. Results have been checked by interviews with experts. |
| Keywords: | agri-food innovation system, business dynamics, scenarion analysis, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59038&r=agr |
| By: | Petrick, Martin; Zier, Patrick |
| Abstract: | Our aim is to investigate whether the direct payments and rural development measures of the EUâs Common Agricultural Policy (CAP) do make jobs in agriculture safer. We work with a dynamic labour demand equation that is augmented by the full set of policy instruments of the CAP. It is estimated on a unique regional panel dataset of three East German states for the period 1999-2006. We present results for three consistent estimators which differ in how they eliminate the fixed effects and how they instrument the lagged dependent variable, including estimators due to Arellano and Bond, Blundell and Bond, and a corrected least-squares dummy variable estimator due to Kiviet and Bruno. Our results suggest that there were few desirable effects on job maintenance or job creation in agriculture. While there is some indication that investment subsidies have halted labour shedding on farms, the introduction of the fully decoupled Single Farm Payment has likely contributed to significant job losses. |
| Keywords: | Agricultural employment, Dynamic panel data models, Common Agricultural Policy, East Germany, Agricultural and Food Policy, Farm Management, Land Economics/Use, Q18, J43, C23, |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61355&r=agr |
| By: | Jackson, Elisabeth; Gorton, Matthew; White, John |
| Abstract: | Utilising primary survey data, this paper evaluates the relationships between a set of supplier development strategies and performance within the milk industry in Armenia and Ukraine. Improving supplier performance is a critical task for the dairy industry in the Former Soviet Union as, during the 1990s both the quantity and quality of agricultural output deteriorated sharply. Fragmented supply chains led to high transaction costs and, in some cases, market failure. Drawing on the work of Krause et al. (2000) and Doney and Cannon (1997), a theoretical framework is presented that proposes that, either directly or indirectly, supplier assessment strategies, supplier incentives, competitive pressure, direct involvement, and trust between buyers and sellers, lead to improvements in supplier performance. Data from 618 milk producers were analysed by structural equation modelling to test ten research hypotheses. All relationships are significant except those related to supplier assessment. In particular, the results indicate that both trust and competitive pressure have a direct and positive impact on performance improvement. Trust can be fostered by buyers providing feedback and performance data to suppliers. In contrast, direct involvement strategies are negatively related to performance improvement and weaken farmersâ trust. Implications for managers are discussed along with suggestions for further research. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59181&r=agr |
| By: | Briz, Julian; Fernandez, M. Cristina |
| Abstract: | The following paper shows the work in progress in the frame of the specific support action Program âE-Trustâ. A initial qualitative study was carried out in order to find out evidences and opinions about the performance of e-commerce in the agricultural and food sector. The paper shows a brief description of the barriers, advantages and e-business tools related with the adoption of e-commerce. In order to explore this topic, qualitative interviews were conducted. The results of this first stage related with gaps and barriers in the e-business agricultural sector. Some results are the concerns such as the reluctance to adopt e-commerce strategies, the challenge of making perceptible the sensory characteristics of perishable products, the vulnerability to âelectronic mistakesâ and the necessity of laws to allow persons to complain just in case. |
| Keywords: | Ecommerce, barriers-advantages, agrifood, Spain, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59205&r=agr |
| By: | Aksoy, M. Ataman; Ng, Francis |
| Abstract: | Earlier research showed that during the 1980s and 1990s most of the global agricultural trade expansion took place among the industrial countries and among countries within trade blocs. These were also periods of declining agricultural prices. These prices increased during the 2000s, there were continuous trade reforms, and many developing countries started to support their agricultural sectors. This paper analyzes trade flows during the past two decades, and tries to measure whether all these developments have changed the trade balances and the share of different groups within the global trade flows. In addition, it looks at the trade balances on food to see the impact of these changes on net food importing countries. In conclusion, unlike the case with manufacturing, developing countries have not been able to increase their export shares in agriculture as significantly. They have maintained their trade shares by primarily expanding exports to other developing countries. |
| Keywords: | Emerging Markets,Food&Beverage Industry,Economic Theory&Research,Trade Policy,Free Trade |
| Date: | 2010–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5308&r=agr |
| By: | Blazkova, Ivana |
| Abstract: | The paper is focused on formulation of demand relations in the commodity chain. Created model respects interdependence and interconnection of particular stages within the food commodity chain â it takes into account the fact that secondary demand function is formed not only by particular prices but also by level of demand on vertical previous market. The functions of primary consumer demand for final products and the functions of derived demands at the level of retail, processing and agricultural production are modeled. The wheat commodity chain in the Czech Republic is chosen for the application. Statistical verification of the model and derivation of standard characteristics of market subjectsâ behaviour (elasticities) are made. The model shows that demand of consequential vertical stage significantly takes a share in the size of particular secondary demand, consumer demand for basic bakery products is price and income inelastic and there are weak cross price elasticities among consumption of basic bakery products. |
| Keywords: | Commodity chain, vertical demand system, demand interconnection, primary demand, secondary demand, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59195&r=agr |
| By: | Vaclav Vojtech |
| Abstract: | This report focuses on the developments in the overall range of policies addressing environmental issues in agriculture in OECD countries in the past decade (since the mid 1990s). It is undertaken from the perspective of the environmental objectives pursued by the policies and from the perspective of the policy measures used. OECD countries use different mixes of policy instruments to achieve their various environmental objectives where markets for externalities and public goods are missing. The policy instruments applied are the reflection of the overall policy approach to the sector; the specific environmental issues and their perceived linkage to agriculture activities; the nature of property rights related to the use of natural resources (land, water); and societal concerns related to environmental issues. |
| Keywords: | agricultural policy, agri-environmental measures, agri-environmental payments, environmental regulations, environmental policies |
| Date: | 2010–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:24-en&r=agr |
| By: | Breustedt, Gunnar; Mees, Martin |
| Abstract: | We estimate determinants of growth among German dairy farms between 1997 und 2005 under the EU milk quota system. Higher milk yield per cow, more family labour, and higher milk prices increase the growth rate of growing farms, ceteris paribus. Older growing farmers tend to grow at lower rates. In line with Weissâ findings (1999) for Austrian farms, Gibratâs Law of relative firm growth being independent of initial firm size does not hold for our subsample of farms growing in milk production, either: the growth rate is quite high for small farms and has a minimum for farms around 325,000 kg of initial quota. For the 16% of growing farms that have more initial quota the growth rate increases up to some out-ofsample maximum. We corrected for selection bias by means of a multinomial logit model which explains the choice among different growth regimes in more detail than the wellknown Heckman procedure. In our case, e.g. age impacts the choice between growth and stagnation but not between growth and exiting from milk production; crop subsidies only influence the decision between growth and exiting from milk production but not the decision between growth and decline or stagnation. |
| Keywords: | Keywords: farm growth, Gibratâs Law, milk quota, multinomial logit, selection bias, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61080&r=agr |
| By: | Verbeke, Wim; van Wezemael, Lynn; Barcellos, Maria D.; Kugler, Jens O.; Chryssochoidis, George; Ueland, Oydis; Grunert, Klaus G. |
| Abstract: | Consumer demand in relation to food is increasingly shifting towards products that are safe, nutritious, and of good eating quality. Beef consumers are demanding for experience quality that matches their quality expectations formed prior to consumption, particularly with respect to beef tenderness. The development of a beef quality guarantee system, backed up by objective knowledge obtained through muscle profiling research, can allow the beef industry to meet these consumer demands. A qualitative consumer study has been carried out to assess European consumersâ opinions about beef quality and beef related technologies. This paper reports on consumer opinions and perceptions about muscle profiling and a beef quality guarantee system. Findings indicate that both concepts are well accepted by European beef consumers, although not unconditional. The insights obtained from this study indicate good opportunities for the development of a beef quality guarantee system in Europe. As an increase in consumersâ satisfaction with beef products could lead to higher consumption rates and industry profitability, the introduction of a quality guarantee system can contribute to further market development and improved competitiveness of the European beef industry. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59113&r=agr |
| By: | Warr, Peter; Anshory Yusuf, Arief |
| Abstract: | This paper argues that recent increases in international food prices worsened poverty incidence in Indonesia, even though many poor farmers benefited. This conclusion is based on the application of a multi-sectoral, multi-household general equilibrium model of the Indonesian economy. The positive effect on the welfare of poor farmers was exceeded by the negative effect on poor consumers. Indonesiaâs ban on rice imports since 2004 complicates this account. The import ban shielded Indonesiaâs internal rice market from the temporary world price increases from 2007 to 2008, but did so at the expense of permanently increasing both rice prices and poverty incidence. |
| Keywords: | Indonesia, Food Prices, Poverty Incidence, General Equilibrium Modeling, International Development, D58, I32, F14, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59259&r=agr |
| By: | Freier, Axel; Kuhl, Rainer |
| Abstract: | The current structure of the German agri-food-sector is deduced from an increasing (international) competition and its division into small and medium business units particularly on the producersâ side. The roots of this development lie in a more a hundred yearâs history of a productive branch that was intensively shaped by co-operatives. Nowadays this cooperative structure competes with networks and capital market-oriented firms that raise the question of the todayâs role of cooperatives (see Kühl/ Hanf, 2004) In the following sections different approaches evaluating possible strategic paths of the actors within the production chain in the agri-food-sector will be presented. As a consequence risk issues agricultural economists have to address will be differentiated. Just (2003, p. 135) claims that âfor the most part, longer-term risk issues have been examined only in the agricultural finance literatureâ. We support his statement when we estimate general valuation models â especially to judge the sustainability of cooperatives â as too much referring to the past and try to integrate more future oriented methods as in the case of due diligence. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59182&r=agr |
| By: | Peerlings, Jack; Polman, Nico; Krol, Noortje |
| Abstract: | The aim of this paper to determine how structure and governance in the dairy sector in four different regions in the European Union alter as a result of the change in EUâs dairy policy. For this purpose two models of structural change are developed and interviews are held. Results differ between the regions depending on whether or not they are export oriented, their growth in farm size and farm exit rates. |
| Keywords: | Structural change, dairy policy, governance, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61088&r=agr |
| By: | Serra, Teresa; Stefanou, Spiro; Oude Lansink, Alfons |
| Abstract: | In this paper we assess how production costs and capital accumulation patterns in agriculture have evolved over time, by paying special attention to the influence of risk. A dynamic state-contingent cost minimization approach is applied to assess production decisions in US agriculture over the last century. Results suggest the relevance of allowing for the stochastic nature of the production function which permits to capture both the differences in the costs of producing under different states of nature, the differences in the evolution of these costs over time, as well as the differential impacts of different states of nature on investment decisions. |
| Keywords: | risk, state-contingent, dynamic model, investment decisions, Agricultural and Food Policy, Farm Management, Land Economics/Use, D21, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61353&r=agr |
| By: | Dubois, Pierre; Ligon, Ethan |
| Abstract: | Using data on individual consumption from farm households in the Philippines, we construct a direct test of risk-sharing within the household. We contrast the efficient outcomes predicted by the unitary household model with the outcomes we might expect if food consumption delivers not only utils, but also nutrients affecting future productivity. The efficiency conditions which characterize the within household allocation of food under the unitary model are violated, as consumption responds to earnings shocks. If productivity depends on nutrition, this explains some but not all of the response, as earnings “surprises” have some effect on the cost and composition of diet. |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:21967&r=agr |
| By: | Briones, Roehlano M. |
| Abstract: | <p>Sustaining and accelerating agricultural growth remains a development imperative in view of persistent rural poverty and emerging threats to food security. While growth can be achieved by expansion of agricultural area and input intensification, growth through improvement in productivity is a promising option. However, productivity growth appears to be a relatively low priority for policy. Rather, the agricultural strategy is oriented toward domestic protection to achieve self-sufficiency and to support production by generous subsidies. In contrast, an alternative strategy may be one that is competition-oriented and productivity-based, i.e., one that favors integration with the international economy through trade, as well as making domestic investments targeted at productivity growth.</p> <p>Scenarios for Philippine agriculture under these policy options are evaluated using a new supply and demand model (Agricultural Multimarket Model for Policy Evaluation or AMPLE). Model simulations suggest that: rapid productivity growth, even when combined with trade liberalization, is generally favorable for farmers and consumers based on improved outlook on production, exports, and food consumption. In contrast, trade liberalization alone has a contractionary effect on agriculture; and production support is a costly instrument for promoting agricultural growth. The model experiments suggest that a back-to-basics strategy for agriculture, incorporating various productivity-based instruments such as investments in R&D, extension, rural infrastructure, protection of the resource base of agriculture, and even human capital formation and institutional reforms, are key to long-term agricultural growth.</p> |
| Keywords: | agriculture, productivity growth, scenario analysis, supply and demand, technological change |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2010-05&r=agr |
| By: | Bruce A. Babcock (Center for Agricultural and Rural Development (CARD); Midwest Agribusiness Trade Research and Information Center (MATRIC)) |
| Abstract: | Better integration of the different programs that comprise the farm safety net seems inevitable in the next farm bill given widespread public concern over the rapidly growing federal debt. With $5 billion in direct payments flowing annually to farmers who own or rent base acres without regard to farm income, $7 billion flowing to crop insurance companies over the last two years, and $2.6 billion flowing to cotton farmers in the last two years from programs that violate our trade commitments, there is substantial room for improvement. One path toward better integration would be to modify the ACRE (Average Crop Revenue Election) program so that it covers county revenue rather than state revenue. For approximately the same cost as the direct payment program, 100% of planted acres could be covered at a 95% coverage level. Accounting for county ACRE payments before crop insurance payments are made could easily reduce the cost of the crop insurance program by more than $4 billion per year. |
| Keywords: | ACRE, agricultural risk, Average Crop Revenue Election program, crop insurance, direct payment program, farm bill, farm payments, SURE, Supplemental Revenue Assistance Payments Program. |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:10-pb2&r=agr |
| By: | Stranieri, Stefanella; Banterle, Alessandro |
| Abstract: | Within the framework of European food safety measures, Reg. 1760/2000 and 1825/2000 have introduced mandatory traceability and relevant labelling into the beef sector. The paper analyses whether information on meat labels can be considered a useful instrument for consumers, facilitating the verification of quality. The purpose of the paper is, first, to evaluate whether meat information is used during food purchase, and secondly, by focussing on specific meat information, to assess consumer interest in some mandatory and voluntary information cues and to identify the determinants affecting the use of such cues. Data were collected by a telephone questionnaire in a survey conducted in the Lombardy region of northern Italy. The sample consisted of 1,025 consumers. We estimated 4 models based on the literature, and for all the equations we used a binary logit model. The analysis revealed that most consumers tend to use the meat label and also most of the mandatory and voluntary information reported. With regard to mandatory meat labelling, the most important information was considered to be the country of animal origin, in accordance with other empirical studies. With regard to voluntary information, some, like the system of cattle breeding and cattle feeding, seems to be of interest to the Italian consumer. The empirical analysis suggests two different consumer types. The consumers who declare they use meat labels tend to be young people, of female gender, with a low income, and who use the media as their principal source of information. These consumers could have a lot of time available for food purchasing and probably the possibility of reading most of the information reported on the food label, even if they do not have the capacity to process all the information. On the other hand, those consumers who read specific labelled information tend to have a good level of food knowledge or education and weight problems. This second type of consumer probably does not have much time for food purchasing and they select only that information in which they are mostly interested. Moreover, the analysis reveals that consumers tend to read only information that is quickly understood, and that can help them to evaluate the quality of meat products. |
| Keywords: | traceability, meat, consumer preferences, logit analysis, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Industrial Organization, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:58710&r=agr |
| By: | Meixner, Oliver; Leitner, Amina |
| Abstract: | The Austrian food market may be characterized by high competitiveness, market saturation and the fact, that listing on the shelves of trade organizationsâ outlets has become the imperative success factor for food producing companies. Never before has it been harder, there have never been more obstacles in reaching the point of sale - because the shelves in supermarket stores are full. The degree of concentration within the food trade sector has reached an all-time high: The three biggest supermarket chains in Austria account for more than 80% of all sales (business to consumer, B2C). Therefore, distribution of food to consumers lies in the hands of only a few organizations, which gives them huge negotiation power, which has provoked irritations in the past and currently. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59177&r=agr |
| By: | Sheng, Yu; Mullen, John Denis; Zhao, Shiji |
| Abstract: | Agricultural productivity growth has been strong relative to other sectors in the Australian economy, and relative to the agricultural sectors of other developed countries. However, as commonly observed among other developed economies, growth in productivity in the broadacre sector of Australian agriculture seems to have slowed in the past decade. This paper uses the adjusted cumulative sum square (CUSQ) index to examine the trend stability of total factor productivity in Australian broadacre agriculture over the period 1952-53 to 2006-07. The results show that a significant slowdown occurred around the mid-1990s. Further analysis shows that the slowdown in productivity growth is driven by a longterm decline in public R&D investment in addition to poor seasonal conditions in the past decade. |
| Keywords: | Total factor productivity, structural change analysis, CUSUM index, Crop Production/Industries, Farm Management, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59266&r=agr |
| By: | Agabriel, Jacques; Lherm, Michel; Mosnier, Claire; Reynaud, Arnaud; Thomas, Alban |
| Abstract: | This paper addresses the issue of agricultural production under both output level and output price risks, in a context of random climatic conditions affecting forage used in beef production. It contributes to the empirical literature by applying the framework proposed by Isik (2002) to derive estimating equations from a structural production model with two sources of risks. Flexible functional forms for risk preferences and production technology allow us to identify attitudes toward risk and compute marginal effects of inputs and climate on expected output and production risk. The model is applied on a panel of French cattle farms and estimation results suggest that cattle farmer exhibit strong risk aversion of the CRRA form, and that climate has a significant impact on the performance of animal feeding strategies. |
| Keywords: | Just and Pope, production and price uncertainty, beef cattle |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:22148&r=agr |
| By: | Sodano, Valeria; Hingley, Martin |
| Abstract: | The still ongoing processes of consolidation and globalization affect the organizational diversity of the food system in very complex and somehow contradictory ways. The few transnational companies (TNCs) in whose hands the most part of food processing and distribution activities is concentrated, continuously look for organizational innovations to enhance their profits. Inter-firms collaborative arrangements, global sourcing and sector diversification are some of the most widely followed strategies that require (and/or lead to) new organizational forms. The paper identifies some important patterns of organizational structures and innovation in the food (and specifically food retailing) system, in order to evaluate the role and the competitiveness of cooperatives with respect to other organizational forms. |
| Keywords: | cooperatives, local and global competitiveness, retailing, regional sourcing, socially responsible food networks, UK, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59199&r=agr |
| By: | Nuppenau, Ernst-August |
| Abstract: | Questions on farm structures (such as superiority of large farms) are typically linked to economies of scale. Economies of scale are normally a matter of investments in energy consuming technologies (large machinery). In contrast there is the issue of remaining prevalence of labour intensive, small farms (meant to be inferior); but which are less energy intensive. We see a revival in theoretical and policy debates on pathways of agricultural development concerning energy use. We analyse, how one can develop an approach that includes incentives to save energy and produce less GHG, and develop a framework of coexistence of farm types. |
| Keywords: | Agricultural and Food Policy, Farm Management, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:60912&r=agr |
| By: | de Carvalho, Bernardo M. Telles Reynold S. Pacheco; Monteiro, Dinah; Carvalho, Neiva |
| Abstract: | The perception of markets delivering a Pareto optimal solution with distribution of benefits and value creation along the supply chain has been evolving from a theoretical perspective and respective assumptions toward more pragmatic and sophisticated analysis. Food and agricultural production, at farm level, frequently faces great challenges and deviations from theory optimal solutions, mainly when markets do not have the necessary conditions for âperfect functioningâ. Institutional innovation and regulations from the supply side and from the demand side have been able to offer solutions, some of them science based. Those examples deserve attention and can offer sound base for improvements in our knowledge about market behaviour and development for improved dynamics and innovation in the food systems. The analysis will be centred in case studies in Europe, Africa and Latin America, providing examples where science has been playing an important role for good market performances. In the wine sector in Europe, regulations started very early, and were based on market needs and value creation strategies. Food aid for development purposes also evolved during the last decades, from tangible goods distribution toward other forms of cooperation for development, which has been very important for African countries. Last but not least, we would like to address the examples of private sector organizations with market regulatory interventions, such as the sugar cane sector with a scientific based support from research teamâs efforts (like CEPEA at the University of S. Paulo/Brazil, among others). |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59040&r=agr |
| By: | Rosa, Rui; Mili, Samir; Briz, Julian |
| Abstract: | This study explores consumer demand for organic milk products (OMP) and prospective developments in OMP supply chain in Portugal. Consumer demand is approached through a survey accomplished with a stratified sample of 625 consumers from the Porto Metropolitan area (north Portugal), whose population provides a broad representation of Portuguese. Likely future developments in the Portuguese OMP supply chain are established for 2015 time horizon through the Delphi technique, using a panel of 27 qualified experts from different professional backgrounds. Results show inter alia that there are among consumers significant lack of knowledge and conceptual distortion about the organic notion. Cluster analysis has led to the detection of three differentiated consumer groups. Besides, over the coming years Portugal presumably will not be capable to produce sufficient organic milk to satisfy its domestic demand which probably will reach 5% of total milk consumption by 2015 (face to 1.25% in 2008); therefore resorting to importation will continue. Moreover, average willingness to pay for OMP is expected to be by that horizon around 22% more than for conventional counterparts. For the Portuguese OMP industry, improving production efficiency and adopting best management practices appear to be prerequisite for achieving business sustainability and competitiveness. |
| Keywords: | Organic milk, consumer behaviour, supply chain, Portugal, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59208&r=agr |
| By: | Stricker, Susanne; Guettler, Stefan; Mueller, Rolf A.E.; Schulz, Carsten |
| Abstract: | In the summer of the year 2008 a worldwide online Delphi study on the future of R&D in aquaculture was conducted. The Delphi method is widely used to survey experts on the anticipated developments within a specific domain. We employ this method to ascertain the likely future directions of aquaculture research in developed, high-income countries. For the convenience of our respondents we conducted the survey on the web. Results of the survey show that aquaculture experts agree that aquaculture research in general has made substantial achievements and will continue to make even more achievements in the future and also aquaculture research achievements will have very large impact on the productivity of the aquaculture farm as well as on the quality of fish produced in aquaculture systems. This paper presents the first descriptive results of the Delphi study. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59187&r=agr |
| By: | Serra, Teresa; Stefanou, Spiro; Oude Lansink, Alfons |
| Abstract: | This research proposes a parametric estimation of the structural dynamic efficiency measures proposed by Silva and Oude Lansink (2009). Overall, technical and allocative efficiency measurements are derived based on a directional distance function and the duality between this function and the optimal value function. The applicability of the parametric proposal is illustrated by assessing dynamic efficiency ratings for a sample of Dutch dairy farms observed from 1995 to 2005. |
| Keywords: | structural dynamic efficiency, dairy farms, parametric approach, Agricultural and Food Policy, Farm Management, Land Economics/Use, D21, D24, D61, D92, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61107&r=agr |
| By: | Laukkanen, Marita; Nauges, Céline |
| Abstract: | No-till has been promoted as a cultivation method that reduces both production costs and the environmental impacts of farming relative to conventional tillage. Using farmlevel data from Finland, we show that no-till has no statistically significant effect on total variable costs but that it increases the use of plant protection products and fertilizers, and decreases the use of labor. An environmental impact simulation combining the results on input use with a nutrient and herbicide runoff model predicts that no-till produces environmental benefits on highly erodible land, but may be even detrimental to the environment in average conditions. |
| Date: | 2009–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:22248&r=agr |
| By: | Akhter, Sanzida; Menz, Ken |
| Abstract: | Abstract Soil nutrient loss due to soil erosion and removal in harvest with traditional farming methods where farmers do not use any fertilisers threatens the sustainability of vegetable productions in the Philippine uplands. Consequently, poor farmers are losing incomes due to declining yields. The situation is reaching crisis point. A bio-economic analysis is used in this research to investigate the economic returns in terms of gross and net annual income over time for upland farmers from adopting alternative soil management options. Cost benefit analysis is used to compare the net returns to farmers from potential management options. A bio-physical model, SCUAF, is used to simulate the long-run tomato yields and associated soil erosion, over a seven-year period, for different soil management options which are both income enhancing and soil nutrient preserving. Data obtained through experiments and surveys of upland farmers in Claveria in the Philippines island of Mindanao, are used to derive yearly production budget for tomato farming on one hectare of land. The analyses reveal that significantly higher economic returns are achievable a combination of organic and inorganic fertiliser additions. This combination seems to be most attractive since it leads to benefits in both yield increase and reduced soil erosion over time. Therefore, concentrating further research on the use of fertiliser combinations, especially at lower rates where marginal returns are highest seems to be an appropriate focus, and one which is most likely to be adopted by farmers. |
| Keywords: | Agribusiness, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:58874&r=agr |
| By: | Pannell, David J. |
| Abstract: | A number of Australian governments have established or planned programs to assist farmers in adapting to climate change. This paper considers a potential range of policy responses that may be appropriate for climate change adaptation in agriculture. It discusses the extent to which different policy responses may be justified on the basis of market-failure and the likelihood of positive net benefits. While research and extension have the potential to generate significant benefits, there is a need to carefully consider their rationales and emphases. Given the characteristics of climate change (slow, highly uncertain, small relative to climate variability, spatially heterogeneous), the value of information from research and extension to guide farmersâ decision making about adaptation is likely to be low for decisions about farming practices and land uses. Such information would be more valuable for decisions that are larger and indivisible, such as land purchase or the decision to exit from agriculture. Policy options that appear likely to generate relatively large benefits are technology development, quarantine/eradication/containment of pests and weeds, and water market reform. This assessment is not consistent with the emphasis of existing government programs. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59149&r=agr |
| By: | Montresor, Elisa; Pecci, Francesco; Pontarollo, Nicola |
| Abstract: | This paper provides an investigation of the effectiveness of the main measures applied in Rural Development Programs, in particular those for farm structure intervention, at regional/national level on the basis of cluster analysis with spatial econometric tools. The main results are: (i) the identification in the enlarged Union of the main rural systems, (ii) the suggestion of some indications for the rural policies after 2013, in particular for the farm structures intervention. |
| Keywords: | Spatial Cluster Analysis, Territorial Systems, Rural Development Programs, Farm Structures, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61343&r=agr |
| By: | Lehmann, Richard J.; Reiche, Robert; Fritz, Melanie; Schiefer, Gerhard |
| Abstract: | The food sector is confronted with a growing number of public and private requirements, which call for provision of information about the quality and sustainability of food, such as, e.g., its origin, safety and production conditions. This forces enterprises to innovate towards demand driven and knowledge-based production of food. As a consequence, intra- and inter-enterprise production and information processes have to be integrated and suitable information systems need to be developed to provide information for related decision processes. The present paper introduces a generalized modelling framework for model-based decision support systems (DSS) involving production and information processes across whole supply networks. The different phases of a decision process are supported by the integration of functional, behavioural and informational network models using the Unified Modeling Language (UML) and discrete-event simulation. |
| Keywords: | Supply chain management, Model-based decision support systems (DSS), Process integration, Unified Modeling Language (UML), Discrete-event simulation, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59197&r=agr |
| By: | Cembalo, Luigi; Cicia, Gianni; Verneau, Fabio |
| Abstract: | Food consumers often query or ignore the risk assessments of scientists, the food industry and public bodies. This is widely acknowledged. It has been suggested that this âexpert-lay discrepancyâ is a relatively straightforward upshot of the fact that lay people lack the knowledge and technical understanding of experts. However, much published research on risk in psychology and sociology runs counter to this âknowledge deficitâ model (Hansen et al., 2003). In many cases, at least, lay risk assessments are not well explained as the product of ignorance, because they are in fact complex, situational sensitive expressions of a person's value system. There is obviously a pressing need today to understand expert-lay discrepancies in the assessment of food risks. We need to know how consumers perceive and assess risks; why they respond to communication and advice relating to those risks in the way they do; what factors affect their willingness to trust public institutions responsible for regulating the food industry and issuing guidance on food matters; and what determines their handling of specific food hazards. Psychometric and psychological studies of risk perception offer an invaluable corrective to excessive and simplistic reliance on the deficit model (Fife et al., 2000; Hansen et al., 2003). By emphasising the multi-dimensionality of lay risk perception, they have improved the understanding of expert-lay discrepancy. More generally, the demonstration that risks and benefits are not perceived independently of each other is a crucial finding of psychological research, and we now know that risk-benefit analyses that treat risk and benefits as independent factors should be handled with caution by those aiming to interpret or influence popular opinion. Our paper is an attempt to analyse consumersâ behaviour when facing a potential risky action such as consuming GM food. The hypothesis tested states that consumers take into account both costs (accident) and benefits (rewards) of uncertain outcomes and then minimize risk instead of trying to totally avoid it. A sample of 338 students, interviewed in year 2000 (188) and in year 2008 (150), enrolled in different Italian colleges was directly interviewed on an hypothetical genetically modified tomato market. A mixture distributions was used first for inferring on what variables influence the decision to take part on the "new market" proposed and, second, to estimate the Willingness To Pay (WTP) distribution for those willing to buy the GM product proposed. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59193&r=agr |
| By: | Deppermann, Andre; Grethe, Harald; Offermann, Frank |
| Abstract: | The impact of sectoral or economy wide policy scenarios is often of strong political and public interest, yet it is a scientific challenge. When analyzing different levels of aggregation, the use of single models may not be sufficient. In this paper we establish an interface between the European Simulation Model (ESIM) and the Farm Modelling Information System (FARMIS). The linkage of the two models allows us to quantify adjustment processes both at the sectoral level and at the farm group level for the German agricultural sector. Different liberalization scenarios are presented and compared to a reference scenario. The abolishment of market price support leads to a reduction of farm incomes, especially if direct payments are also reduced. The low absolute level of return to labor, particularly in grazing livestock farms, suggests strong changes in farm structure as well as the farm input industry in Germany under the full liberalization scenario. |
| Keywords: | Model Linkage, Policy Impact Assessment, Income Distribution, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61083&r=agr |
| By: | Lagura, Erwin; Ronan, Glenn |
| Abstract: | Time series data on farm profitability for Australia and South Australia from ABAREâs farm surveys, shows a minority of businesses consistently profitable and a majority not. The paper finds evidence of prevalent and persistent negative farm profit in both available long-run data (1990-2007) and more recent data (2006-09). Trends in several structural change elements, productivity, farm size and age of operators, are also examined to aid the interpretation of farm economic performance in agri-food. The paper concludes with several contemporary examples of public policy distorting the structure and performance of the farm sector and spoiling the usefulness of profitability as an indicator of sectoral performance. Policies on hobby farming tax benefits, drought, and agribusiness managed investment schemes policy are discussed in this context |
| Keywords: | Agribusiness, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59095&r=agr |
| By: | Alan Renwick; Cesar Revoredo-Giha; Steven Thomson; Philip Leat; Sian Ringrose |
| Abstract: | If one observe aggregated cattle figures for Scotland for more than a century it is possible to perceive that that cattle numbers seem to react strongly to agricultural policy (e.g., livestock subsidies before 1973, UK becoming part to the European Community). The purpose the paper is to provide a regional view of this result, namely whether the same trend can be observed if the analysis is done by Scottish regions. For this purpose, we assembled a panel dataset for 11 Scottish regions for the period 1959 until 2008. We specialised the analysis on beef cattle. We use simple regression techniques to verify whether there have been changes in the regional shares of beef cattle and whether beef cattle numbers in the different regions tend to converge to a steady state value. The results indicate that the data can be broken down into two major periods: before and after the accession to the European Community (EC). Furthermore, in most of the regions, accession implied changes in the regional shares (although shares are very stable over time). In terms of the convergence analysis, it is clear that accession to the EC affected the regional beef cattle steady state values. |
| Keywords: | Agricultural policy, beef cattle economics, Scottish agriculture, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61101&r=agr |
| By: | Nolte, Stephan; Buysse, Jeroen; Van der Straeten, Bart; Claeys, Dakerlia; Lauwers, Ludwig; Van Huylenbroeck, Guido |
| Abstract: | We apply a spatial price equilibrium model of the world sugar market to simulate an abolishment of the EU quota system in 2015/16. To overcome the normative nature of the approach, we calibrate the model by attaching a non-linear cost term to each trade flow. This is in some regards similar to positive mathematical programming. We suggest an economic interpretation and an econometric specification of the cost term. Production in the EU increases to almost 16 million tons. Twelve member states increase production, seven reduce it. Preferential imports are significantly reduced. Simulated effects are found to be more pronounced the higher the world market price. |
| Keywords: | CAP, structural change, sugar, TRQ, spatial modelling, trade preferences, PMP, Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61346&r=agr |
| By: | Alam, Mohammad J.; Buysse, J.; McKenzie, Andrew M.; Wailes, Eric J.; Van Huylenbroeck, Guido |
| Abstract: | The paper examines the relationship between the world market and domestic market prices of rice for Bangladesh in the regime of agricultural trade liberalization. The long run price relationship information is an important piece of information for the policy makers in formulating domestic polices and negotiating trade policies at the international level. The monthly data used for this study are taken from different sources, the Food outlook, FAO and Global Information and Early Warning System, FAO and the Bangladesh Bank for the period June 1998 to July 2007. Both Engle-Granger bi-variate and Johansen multivariate cointegration tests were used for the results sensitivity. We sequentially proceed to estimate the standard error correction model. The results showed that there is a long run equilibrium relationship between the world and the domestic prices and the relationship is uni-directional, meaning that, the domestic prices adjust to the world prices but not vice-versa. So the policy to ensure food security (via food price stability and price risk management) should be carefully designed as the movement of the world market price is higher and distorted and many consumers depend on the markets for their food, especially in the case of Bangladesh. |
| Keywords: | Market integration, Domestic price, World price, Error correction model, Marketing, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:58878&r=agr |
| By: | Mariano, Marc Jim; Villano, Renato; Fleming, Euan; Acda, Rachelle |
| Abstract: | Rice producers in the Philippines operate in different physical environments that are largely beyond their control, especially in terms of the agroclimatic conditions they face. Each rice area requires a unique set of location-specific technologies to match its location-specific needs. The rice production frontier is expected to vary, depending on the degree of yield-enhancing interventions implemented by the government and adopted by farmers. Understanding differences in specific production frontiers in different production systems should provide better assessments of yield performance across different locations and enable rice scientists to develop location-specific technologies as well as disseminate appropriate technologies to farmers in different climatic zones. A precise analysis of productive efficiencies, technology gaps and technical change among these zones may contribute to a more accurate targeting and effective design of the governmentâs rice program. We measure technical efficiencies and technological gaps in rice production for farmers in four agroclimatic zones in the Philippines who may employ different production technologies according to environmental conditions. Climatic zone 3 is considered most favourable for rice production based on the intensity and distribution patterns of rainfall. A stochastic metafrontier function is used to compare mean technical efficiency and the environmental and technological gap ratio (ETGR) across climatic zones. We estimated four regional stochastic frontiers using the standard stochastic frontier model based on a translog functional form. A deterministic metafrontier production function was then fitted to the regional frontiers. Farm-level panel data were used from a three-round survey covering six cropping periods â the wet seasons of 1996, 2001 and 2006 and the dry seasons of 1997, 2002 and 2007. Results show surprisingly little interzonal variation in productivity. First, the production frontiers are quite stable across the different agroclimatic zones. The mean ETGR is quite high in all zones and varies in a narrow range from 0.83 to 0.87. Farmers operating in agroclimatic zone 3 are the most productive group followed by those operating in agroclimatic zone 2. Mean technical efficiencies of farmers in respect of their group frontiers are also closely grouped, ranging from 0.74 to 0.76. It appears that Philippine rice producers have been able to adapt their crop management strategies well to suit their particular agroclimatic conditions. |
| Keywords: | Technical efficiency, Technology gap, Metafrontier, Stochastic production frontier, Philippine rice farming productivity, International Development, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59099&r=agr |
| By: | Zimmermann, Andrea; Heckelei, Thomas |
| Abstract: | Previous analyses of dairy farm structural change focused on the variation over time in one or a small number of regions. Here we present an EU-15-wide analysis of the change of the number of farms in different size classes. The purpose is (1) to identify the differences in regional development patterns and (2) to measure the explanatory relevance and effect of key factors suggested in the literature. Apart from the unprecedented scope, the underlying Markov chain analysis also contributes by combining observed transitions in micro data with macro data on farm numbers. Results show widely significant impacts of most explanatory variables, but also reveal the complexity of the underlying processes. |
| Keywords: | Agricultural and Food Policy, Farm Management, Land Economics/Use, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa114:61090&r=agr |
| By: | Fleming, Euan; Hadley, David; Holloway, Garth |
| Abstract: | Interest has been growing in the nature of synergies in agroecosystems, prompted in part by growing concerns about the effects of environmental degradation on agricultural productivity and interrelations between agricultural outputs and ecosystem outputs. Most productivity analyses focus on technology, technical inefficiency and scale effects on productivity; yet scope economies derived from synergies can also have substantial effects that are likely to increase in the future. Scope economies take on special importance when farms diversify to halt declining biodiversity and other forms of environmental degradation. We present results of an empirical case study based on panel data on farms in England and Wales. A stochastic input distance function is estimated using Bayesian methods that enable economies of scope to be calculated between pairs of outputs based on the derivatives of the input distance function. Results confirm the presence of scope economies from diversity, providing prima facie evidence that diversity is beneficial in farming systems in England and Wales. But a number of challenges lie ahead to improve the data set and method of measuring scope economies for further substantiation of this evidence. Chief among them is the need to obtain a better measure of ecosystem outputs. The complexity of agroecosystems, with their diverse elements and numerous interactions between elements, presents a major challenge for data collection. |
| Keywords: | Biodiversity, ecosystem outputs, scope economies, synergy, Environmental Economics and Policy, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59076&r=agr |
| By: | House, Lisa; Patel, Payal; Thomas, Spreen |
| Abstract: | Protected Geographic Indicators (PGI) and Product Differentiation of Origination (PDO) are products that are linked to certain regions or countries that define them based on where they are produced, prepared and/or packaged before they are sold. However, the exact interpretation of PGI/PDOs is not synonymous around the world, leading to disputes over trade barriers between nations. The goal of this paper is to discuss the quality and safety control issues that go into the production of PGI/PDOs as well as trade regulations that are currently being discussed at the World Trade Organizationâs Doha multilateral trade agreements meetings. A comparison of how countries mark PGI/PDO products is made by comparing two cheese industries: Wisconsin Cheddar from the United States and Parmigiano Reggiano from Italy. In theory, the World Trade Organization has a product labeling agreement that was created in 1979 under the Uruguay Round of the General Agreement on Tariffs and Trade. However, as is most common, problems arise when countries begin to use their own forms of labeling, therefore resulting in barriers of trade between countries (WTO). Due to diverse thought among producers in different countries, there are often incentives that lead to different product labeling. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59176&r=agr |
| By: | Barcellos, Maria D.; Kugler, Jens O.; Grunert, Klaus G.; van Wezemael, Lynn; Pothoulaki, M.; Ueland, Oydis; Verbeke, Wim |
| Abstract: | As part of ProSafeBeef, an integrated research project funded by the European Commission, the present qualitative study was carried out with European consumers to obtain insights into their acceptance or rejection of eight selected novel beef production and processing technologies, identified here as concepts: 1) marinating by injection for increased healthiness; 2) marinating by injection for increased safety; 3) marinating by injection for increased eating quality; 4) marinating by submerging for increased eating quality; 5) nutritional enhancement; 6) shock wave treatment; 7) muscle profiling and 8) thermal processing. In total, 65 adults between 19- 60 years of age participated in eight focus groups that were performed in Spain, France, Germany and the United Kingdom. In each country, two group discussions were performed; one composed of women and another one of men who lived in the respective capital cities: Madrid, Paris, Berlin and London. A common and translated topic guide was developed prior to the field work. A ranking exercise was applied, where the participants classified the technologies into accepted, neutral or rejected concepts, after discussing the perceived benefits and risks of each one of them. The obtained data was consecutively transcribed, coded and analysed by using the software package NVivo 7. The results reveal a dependency between the acceptance of novel beef products and how consumers perceive the characteristics of the innovation itself. Excess manipulation and a growing distance from a ânaturalâ way of processing beef products were considered to be very negative outcomes of technological innovations in beef processing. Apparently, novel technologies applied in beef production are predominantly seen as a valuable option for convenience shoppers and those who are less demanding in terms of beef quality and have less culinary skills. However, consumers support the development of technologies that can provide more healthiness and better eating quality, and if such technologies are ânot invasiveâ, the chances to be accepted increase. Current trends and development in society, global warming crisis, disease outbreaks and degradation of the environment are shaping consumersâ opinion in regard to foodproduction. There was a severe criticism about too much intervention in food and a strong desire to keep food and beef processing as simple and natural as possible. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59041&r=agr |
| By: | Ameseder, Christoph; Haas, Rainer; Fritz, Melanie; Schiefer, Gerhard |
| Abstract: | The purpose of this study is to assess and evaluate the most important risks in selected European and international food chains from the perspective of the buying company. The primary objective is to identify the ânon-acceptableâ risks in terms of damage potential and likelihood of occurrence of value chains in the sectors grain, meat, fruit and vegetable, and olive oil. Data was collected by each partner of the European research project âe-trustâ (FP6-CT-2006-043056) by conducting 81 qualitative expert interviews with business leaders in Europe (Austria, Germany, Greece, Italy, Slovenia, Spain) as well as in Brazil, Turkey, and the USA. The study focuses on a wider supply chain or network perspective for the risk assessment. Methodically the assessed risks were classified and then evaluated using a risk map matrix. Results point out nonacceptable risks and show the differences concerning the risk evaluation in the different value chains. Results provide interesting supply chain management approaches in these sectors. |
| Keywords: | risk, risk analysis, supply chain, food, risk map, risk classification, Agribusiness, Agricultural and Food Policy, Farm Management, Food Security and Poverty, Industrial Organization, Institutional and Behavioral Economics, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:58708&r=agr |
| By: | Arnaud Reynaud; Stephane Couture |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ler:wpaper:10.10.316&r=agr |
| By: | Brown, Mark G.; Spreen, Thomas H. |
| Abstract: | This study considers the allocation of Florida citrus-grower money between advertising and research programs to maximize grower revenue net of program costs. The allocation depends on the impact of advertising on demand and the impacts of research on the cost of production and supply. A number of studies have estimated the impact of advertising on OJ demand, but little is known about the impact of research. Research on citrus greening, a disease that has no known cure, is examined in the present study. There are no past studies to reliably gauge the impact of this research. The approach taken here is to ask if a given amount of research dollars is needed to reduce average production costs by certain amount, then what should be spent on advertising based on past estimates of the elasticity of demand with respect to advertising. The optimal ratio of advertising to research dollars increases with the advertising elasticity and declines with the amount of research money needed to reduce average costs. The results of this study provide a range for this ratio based on different advertising elasticities and amounts of research dollars needed to reduce production costs. The approach provides an indication of the importance of advertising given expectations on the research needed to successfully fight this disease. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59191&r=agr |
| By: | Cicia, Gianni; Corduas, Marcella; Del Giudice, Teresa; Piccolo, Domenico |
| Abstract: | In recent years, in the field of consumer behaviour, a large number of new models and instruments for preference analysis have been proposed. This strand of the literature has developed along two different lines. The first has produced approaches that have a more solid economic basis, but which at the same time require increasingly complex econometric analysis. Moreover, in this research field, based on stochastic utility theory and choice experiments, less weight is given to the socio-economic and psychometric characteristics of the individual in determining preferences. By contrast, the second strand has given rise to many methods to analyse consumer behaviour based on quality approaches such as laddering or focus groups where behavioural characteristics and lifestyles have regained primary importance in explaining the choices and âtastesâ of individuals. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59209&r=agr |
| By: | Chi Chung, Kit; Fleming, Euan; Fleming, Pauline |
| Abstract: | The global food marketing network is being constantly reshaped, providing opportunities and challenges to the use of information and communication technology (ICT) to develop international trade in food products. ICT is likely to be especially important for food products such as fresh fruit and vegetables that are differentiated and sensitive to timeliness in supply, possess varied quality dimensions, and involve considerable supply accumulation and assortment. Digital ICT (Internet and mobile phones), in particular, is expected to facilitate international trade and encourage efficiency in the fruit and vegetables marketing system in two main ways. First, it reduces communication and search costs through cheaper and more effective media. Second, it improves market information and corrects information externalities along the supply chain, by promoting greater price transparency and enabling consumer preferences and tastes to be more precisely met. We employed a gravity model of international trade to test the hypothesis that ICT positively affects bilateral international trade in fruit and vegetables between member Asia-Pacific Economic Cooperation (APEC) economies in the period from 1997 to 2006. Explanatory variables include the usage of the Internet, mobile telephones and fixed telephone lines, and a broad range of factors that might determine the value of bilateral trade such as income per capita, population, distance between trading partners and common language. A Poisson pseudo-maximum likelihood model was estimated in order to handle zero trade observations and reduce biases caused by heteroskedasticity. Empirical results were not quite as expected, with relatively minor impact of digital ICT. They suggest that using digital ICT has significant positive effects on trade in fruit and vegetables between APEC countries only for the Internet in exporting countries. A stronger positive impact was discerned for the traditional form of ICT, fixed telephone lines in exporting importing countries. Nevertheless, fostering the development of digital ICT infrastructure and its diffusion should make exporters in APEC countries more competitive in the fruit and vegetables supply chain through the Internet effect, and boost their trade values in these products. |
| Keywords: | International Relations/Trade, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59077&r=agr |
| By: | Salam, Abdul |
| Abstract: | Domestic production of wheat, rice, cotton and sugarcane has experienced severe implicit taxation, averaging $1.72 billion per year during 2006-08. These distortions to producer incentives, which have resulted in huge resource transfers, must be removed if Pakistan is to address the recurring crises afflicting the crop sector, alleviate poverty, and achieve sustainable development. The institutional capacity to conduct in-depth policy analysis must also be strengthened. |
| Keywords: | Crop Production/Industries, |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatrpb:60989&r=agr |
| By: | Spence, Laura; Bourlakis, Michael |
| Abstract: | The paper investigates the evolution from corporate social responsibility to supply chain responsibility via the examination of a leading UK food retailer. These two concepts differ substantially and illustrate contrasting approaches in terms of social responsibility development and application. A qualitative case study methodology is used where managers from that leading retailer and its suppliers, industry experts and representatives from professional bodies are interviewed. An observation of an ethical audit with a retailerâs supplier was also conducted. Findings show an example of good practice in the area of corporate social responsibility in the supply chain and illustrate the substantive progress that can be made in achieving supply chain responsibility. At the same time, the paper provides the specific challenges in developing from a corporate social watchdog approach to one in which the power in the chain is more balanced and where a holistic approach requires to be taken to social responsibility. Considering the scarcity of work examining empirically the issue of corporate social responsibility in food supply chains, this study demonstrates an evolutionary process and its stages based on an examination of the food retailerâs supply chain and the corporate social responsibility approach it has taken with its suppliers. We also illustrate a range of key implications that need to be considered by both managers and policy makers and we provide a range of areas where further research is required. |
| Keywords: | Corporate social responsibility, Supply chain responsibility, Food supply chain, UK, Waitrose, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59204&r=agr |
| By: | Foster, Max |
| Abstract: | World markets for a number of grains (soybeans, corn, canola and cottonseed) have become differentiated into GM, certified non-GM and organic segments, which has created opportunities and challenges for grain market participants. This paper summarises the evidence to date on the extent of price premiums for non-GM products throughout the world. A broad economic framework is employed to explain the observed pattern of price premiums. The key conclusion of the analysis is that world grains markets for which there are GM variants are dominated by GM grains, but there are niches for certified non-GM and organically produced grains, for which price premiums are paid. With some certified non-GM grains for a specific purpose, price premiums appear to be increasing. Apart from consumer attitudes, the key drivers of price premiums are mandatory labelling of GM products in some key grain consuming countries (particularly high income countries), higher production costs for non-GM crops and the cost of identity preservation. |
| Keywords: | Demand and Price Analysis, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59079&r=agr |
| By: | Fogarty, James Joseph |
| Abstract: | As food is an experience good, the market for restaurant meals is a market where the cost of acquiring information regarding quality is relatively high. In such markets consumers often turn to reputation measures to guide purchase decisions. As Australia does not have a longstanding cuisine style of its own, and given Australia has been open to substantial immigration inflows since federation, it represents an especially appropriate market to study regarding the impact of individual restaurant reputation and collective cuisine reputation on meal prices. The following study uses the hedonic price approach to investigate the implicit price of individual reputation indicators, cuisine type reputation indicators, and other objective indicators in the market for restaurant meals. The empirical findings presented suggest that both individual restaurant reputation and cuisine type reputation are important. Other important factors are shown to include the quality of the restaurant wine list, the availability of private dining rooms, and whether or not there is an outdoor dining option. |
| Keywords: | Expert Opinion, Food, Hedonic Pricing, Research Methods/ Statistical Methods, D12, Q18, Z10, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59078&r=agr |
| By: | Monroy, Carlos Rodriguez; Fuentes-Pila, Joaquin; Martinez Soto, Moises E.; Velasco, Julia; Morris, Anne |
| Abstract: | The object of the present article is to discuss Knowledge Management (KM) in the Agrifood Supply Chain (ASC). In the 21st century, the ASC is under strong tensions. This is evident in the drastic changes in the global scene. For example, in the year 2008, food prices were high and unstable. In the last years, the importance of knowledge as a source of competitive advantage for organizations has increased considerably, so it is necessary its management in the ASC in order to surpass the challenges of the 21st century. KM is a direction tool that focuses in determining, organizing, directing, providing and supervising the practices and activities related with the knowledge (intangible active) required to achieve the strategies and objectives of the business or industry, generating a value for the organization at the moment to reach capabilities and competences. In inter-organizational environments, KM is centered on horizontal alliances between two or more partners. However, there are few authors who have analyzed the vertical alliances between suppliers and customers (the supply chain). The existing KM models are applicable for the ASC, as long as a series of conditions are present in the same one. Among these conditions there is one which prevails: The different enterprises that integrate the ASC must coordinate themselves in order to constitute a dynamic network, in which learning barriers are eliminated, so knowledge can flow freely through them. In conclusion, the development of KM models in the ASC, in the framework of untimely, temporary and structural changes in the globalised world, represents a necessary tool to offer safety and quality food to the world-wide population in the 21st century. In this way, food markets will tend to become stabilized in the long term and adequate answers can be provided to the more vulnerable communities and regions. |
| Keywords: | management, knowledge, agrifood supply chain, price stability, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59188&r=agr |
| By: | Pant, Hom M. |
| Abstract: | Forestry poses a challenge to computable general equilibrium (CGE) modellers working with recursively dynamic models. This is because of the lag between its inputs and output, which do not correspond to the same time period as other sectors. Inputs are applied for a number of years before a forest is ready for harvest. As a result, attempts in the past to incorporate a well-specified forestry sector in a recursive CGE model have been only partly successful. The purpose of this paper is to fill this gap by presenting a consistent analytical framework which can be used to incorporate forestry into a recursively dynamic global CGE model. A key feature of the framework is that it splits the forestry activity into three partsâplanting, holding and harvesting. Planting and harvesting are done by standard production sectors and holding is done by investors, whose behaviour is already modelled in these CGE models. In addition, global forests are classified into three groupsâcommercial plantation forests, environmental plantation forests and native forests. All harvested forest land is made available for competition for alternative agricultural uses and will be allocated to the activity it is best suited for, given productivity differences for different activities. This framework can be used in a CGE modelling framework to support implementation of the proposed reduced emissions from deforestation and forest degradation (REDD) schemes as well as being applied to study land allocations, nationally and globally, across activities under alternative scenario assumptions. For example, the model can be used to project the effects on food production and prices of an increase in bio-fuel subsidies. |
| Keywords: | Agribusiness, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59150&r=agr |
| By: | Gowen, Rebecca; Rolfe, John; Donaghy, Peter |
| Abstract: | This paper reports research seeking to understand the economic implications for central Queensland graziers of participating in a carbon trading scheme and to measure the likely participation of graziers in an emissions trading scheme under various market design scenarios. An initial desktop study was undertaken to compare an enterprise which produced only cattle to one which produced cattle and sequestered carbon. The findings from this analysis were used to inform the design of an experimental auction to test alternative carbon trading scenarios. An experimental workshop was conducted at seven locations across central Queensland with a range of beef producers, extension officers and consultants. Participants were presented with a scenario in which they had the choice of maintaining current management practices against altering management practices to reduce beef production and enter into a carbon sequestration contract (CSC). They were asked at what price they would enter into a CSC and how that price and likelihood of participating would change under a range of alternative contract conditions. The results of the experimental auctions found significantly higher than breakeven prices for carbon would be required before landholders would offer land as a carbon offset. Participation rates were influenced by price and also the carbon contract rules. Five rule changes were trialled and all were found to have a significant impact on reducing participation and increasing required payment levels. |
| Keywords: | Farm Management, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59082&r=agr |
| By: | Schilizzi, Steven; Breustedt, Gunnar; Latacz-Lohmann, Uwe |
| Abstract: | Policy makers aiming to get private landholders to provide non-marketed environmental services need to provide efficient economic incentives. Two ideas have been explored to achieve this: linking contract payments to environmental outcomes and putting the contracts up for tender. This paper investigates whether there are any gains to be had by combining the benefits of both approaches. Landholder risk aversion may offset incentive effects if the fall in participation outweighs any increases in individual effort. Using controlled lab experiments in two countries and across four subject groups, and systematically varying the rate at which payments are linked to uncertain outcomes, this paper clarifies the conditions under which incentives overcome risk-aversion â a parameter which was also measured. Results show that for risk averse landholders the most efficient approach is in general to tender contracts only moderately linked to environmental outcomes â that is, using a balanced combination of fixed input payments and of payments linked to uncertain outcomes. This paper also highlights how experiments can complement the inherent limitations of a purely theoretical analysis. |
| Keywords: | Conservation tenders, auctions, incentive contracts, agricultural policy, environmental policy, market-based instruments, experimental economics, Agricultural and Food Policy, Environmental Economics and Policy, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59159&r=agr |
| By: | Lewis, C.; Malcolm, B.; Farquharson, B.; Leury, B.; Behrendt, R.; Clark, S. |
| Abstract: | The decision to invest in pasture improvement raises various questions for the livestock grazier, with the most pertinent being about the potential returns and risks. In the high rainfall zone of south-west Victoria, researchers have trialled novel perennial pasture systems with the aim of substantially increasing on-farm profits whilst simultaneously improving environmental outcomes. Results from the Hamilton EverGraze® proof site have shown potential to greatly improve livestock production. Promotion of the pasture technology is the next step. Key to this process is developing information about profitability and risk regarding the decision to invest in the new pasture. To help meet this need a model of a representative mixed livestock farm system for the region has been developed to generate information about profit, cash wealth and risk to aid extension and help inform decisions. The farm is comprised of a wool and meat producing sheep system and a beef enterprise. Using the model, the performance of two of the novel pasture systems can be evaluated against current practice, and compared to determine which of the two is the most beneficial EverGraze® option for the future. The risk associated with the pasture decision is assessed by considering different price structures and seasonal outcomes, and evaluating these effects on net benefits. Discounted cash flows, net present values and internal rates of return are estimated for the alternative systems, which include the effects of this price and seasonal variability. Preliminary results have been calculated, however further work is needed to confirm these. The method and results of the analysis provide information that is valuable for farm decisions about investing in a new pasture system and provide a basis for future economic analyses at the case study site and elsewhere. |
| Keywords: | Farm Management, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59097&r=agr |
| By: | Weaver, Robert D. |
| Abstract: | The architecture of the firm involves determination of a boundary that encompasses the functions managed by the firm. The past decade has seen substantial reorganization of firms where vertical or horizontal integration has been unbundled into weaker forms of collaborations including value chains and networks. This observation has forced a re-conceptualization of the boundaries of the firm to incorporate such collaborations. These collaborations are virtual and highly dynamic. They emerge and persist when two conditions are met. First, they must enable generation of greater value than might be attained through independent operation and anonymous transactions through markets. Second, the resulting growth must be shared with members in a way that retains their participation. Each of these conditions can be verified only if performance of the collaboration can be established. This paper recognizes the need for such âmetrics of performanceâ. While conceptual approaches have been studied in the management literature, this paper considers from theoretic perspectives these issues and derives measures of the performance of the overall collaboration as well as of the participating enterprises. The paper presents a framework that can be applied to both vertical and horizontal collaborations as found in supply chains and networks. The paper offers suggestions on empirical methods for estimation of measures derived. |
| Keywords: | Networks, Collaboration, metrics, productivity, efficiency, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi09:59183&r=agr |
| By: | Omot, Norah; Spriggs, John; Chang, Christie |
| Abstract: | Sweet potato is by far the most important staple food in Papua New Guinea. While much is consumed as a subsistence crop, it is also an important income earner for many small holder farmers in the Highlands of PNG. Of the Highlands sweet potato sold, about 90 percent is traded informally on open markets, locally or in coastal urban markets. Data from a consumer survey, from an informant interview of highlands suppliers and from consumer and supplier observations at the Lae market (the largest coastal urban market for sweet potato) was used to explore the extent to which Highland sweet potato in the coastal urban market of Lae, may be considered a differentiated product. As a staple food being sold on informal markets one may think it is best represented as an undifferentiated commodity. On the other hand, there are many different varieties as well as different offerings (e.g. heap sizes, washed/unwashed and Highland/Lowland) which suggest some product differentiation characteristics. Results suggest that consumer preferences in the Lae market are sophisticated and preferences are highly differentiated. It was also found that Highland suppliers do have some appreciation of the consumer preferences in the Lae market. However, it is also apparent that suppliers do not know how to differentiate their product to effectively meet demand and hence they are not very customer-responsive. The implications are that there is considerable potential to improve marketing strategy and management to take advantage of sophisticated consumer preferences. |
| Keywords: | Consumer preferences, differentiated product, Highland suppliers, supplier awareness, supplier responsiveness, marketing strategies, Lae, International Relations/Trade, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59110&r=agr |
| By: | Aye, Goodness C.; Mungatanga, E.D. |
| Abstract: | The study evaluates the technical, allocative and cost efficiencies of maize farmers and analyses the impact of technological innovations on these efficiency measures. The investigation of farm efficiency is of vital importance from both microeconomic and macroeconomic points of view. It indicates the potentials there is to improve productivity, household welfare, overall economic growth and poverty reduction by improving efficiency. It also assists policy makers in better targeting and priority setting. Policy conclusions may vary with the approach used for analysis. A number of efficiency studies in Nigeria employed the stochastic production or cost function approach. While the former may suffer from simultaneous equation bias, the later may not be practical when there is limited input price variation among farms as is evidenced in the study area or when there is a systematic deviation from cost minimizing behaviour. This study contributes methodologically by employing a parametric stochastic input distance function approach that avoids all of these problems. Results show that there is considerable inefficiency among the maize farmers and that technological innovations have significant positive impact on efficiency. Thus there is need for further public investment in maize technology development and other policy factors expected to bring about efficiency improvement of the farmers. |
| Keywords: | Community/Rural/Urban Development, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:58882&r=agr |
| By: | Flavel, Noel; Bari, Maksudul; Singh, Inderpal |
| Abstract: | A water sharing plan is a legal document prepared under the Water Management Act 2000 (WMA) in New South Wales (NSW). It establishes the rules for sharing water between the environment and entitlement holders, with the goal of simultaneously protecting water dependant ecosystems and providing certainty for water users. In NSW 49 water sharing plans have commenced to date and another 40 plans are due to be commenced within next two years covering all surface and groundwater systems. The WMA requires that due consideration be given to the socio-economic impacts of the water sharing rules during preparation and mid-term reviews of the plans. This paper presents the framework used to undertake socio-economic assessment of the impacts of water sharing rules and a case study of impact assessment. The NSW Office of Water (the Office) has used a staged methodological framework that is consistent with the socio-economic assessment guidelines for river, groundwater and water management committees developed by the Independent Advisory Committee on Socio-economic Analysis (IACSEA 1998). This framework is simple, relevant and cost effective. The case study presents socio-economic impact assessment of water sharing rules of the Coopers Creek Water Sharing Plan that commenced in 2004. The results of the case study indicate that the proposed rules could have significant negative or positive impacts on regional irrigated production and employment. This shows that proposals for environmental gains may result in substantial economic losses to the irrigators. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59075&r=agr |
| By: | Bergès, Fabian; Bouamra-Mechemache, Zohra |
| Abstract: | Branded food manufacturers vindicate the use of excess production capacities (idle otherwise) to justify their production of retailers' brands. We study the distributor and food manufacturer's private label strategy for production within a framework featuring endogenous store brand quality, bargaining power, possible differences in production technology and potential capacity constraint for the branded manufacturer. According to the structure of capacity constraint (applying to both products or private label only), the retailer may prefer to choose an independent firm whereas he selected the branded manufacturer when unconstrained. The conclusions of our article thus partially confirm branded manufacturers' thinking: they may produce store brands when they are not capacity constrained |
| JEL: | L11 L13 Q13 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:22262&r=agr |
| By: | Cranfeild, John; Haq, Zahoor |
| Abstract: | The impact of rising global food prices on consumer welfare is investigated. A quadratic AIDS model is estimated using data spanning countries at various levels of economic development. Statistical comparison suggests the QUAIDS model is preferred over the non-linear AIDS model. Estimated parameters are used to calibrate a QUAIDS indirect utility function and base utility for welfare analysis. Compensated variation associated with recently observed food price inflation for different foods in different income cohorts of countries is calculated. Per capita compensated variation increases with per capita expenditure. However, per capita compensated variation expressed as a percent of per capita expenditure falls as one moves from less developed to more developed countries. Aggregate compensating variation associated with annualized food price inflation between 2005 and 2008 is estimated at US$515 billion globally |
| Keywords: | Consumer/Household Economics, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:58894&r=agr |
| By: | Buhr, Brian L. |
| Keywords: | Livestock Production/Industries, |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umaesp:61604&r=agr |
| By: | Helen Ding (University of Venice and FEEM); Silvia Silvestri (University of Venice); Aline Chiabai (FEEM); Paulo A.L.D. Nunes (University of Venice and FEEM) |
| Abstract: | In this paper we present a systematic attempt to assess economic value of climate change impact on forest ecosystems and human welfare. In the present study, climate change impacts are downscaled to the different European countries, which in turn constitute the elements of our analysis. First, we anchor the valuation exercise in the Millennium Ecosystem Assessment (MEA) Approach and therefore the link between the different forest ecosystem goods and services, including provisioning, regulating and cultural services, human well-being and climate change. Second, climate change is operationalized by exploring the different storylines developed by the International Panel on Climate Change (IPCC) and applied, downscaled, for each of the European countries under consideration. Third, and bearing in mind the different nature of the benefits provided by the different types of forest ecosystems under examination, we shall explore different economic valuation methodologies so as to shed light on the magnitude of the involved welfare changes. According to the estimation results the four different IPCC scenarios, i.e. A1F1, A2, B1 and B2, are associated to different welfare impacts. First, these reveal to depend on both the nature of the forest ecosystem service. For example, cultural values reveal to be more sensitive to the four IPCC scenarios than the other ones, with the wood forest products being more resilient to climate change. Second, the distributional impacts of climate change on the provision of these goods and services do also depend on the geo-climatic regions under consideration. For the Scandinavian group of countries, B1 is ranked with the highest level of provision of carbon sequestration services, amounting to 46.3 billion dollars. In addition, we can see that cultural services provided by forest ecosystems have their highest levels in the Mediterranean countries, ranging from 8.4 to 9.0 million dollars, respectively in the B2 and B1 scenarios. Finally, we can see that the total value of wood forest products ranges between 41.2 and 47.5 million dollars for Central Europe to 5.4 and 7.2 million dollars in Northern Europe, respectively A1 and A2 scenarios. For this service, Mediterranean Europe provides a relatively weak role in the provision with values ranging from 6.4 million dollars in A1 scenario to 8.7 million dollars in the B2. In short, and to conclude, the valuation results (1) may contribute to a better understanding of the potential welfare loss in the context of climate change and the economic trade-offs between potential mitigation or adaptation strategies; and (2) confirm that climate change will be responsible for a re-distribution of welfare among the European countries, signalling the potential for a(n) agreement(s) among these same countries focus on the re-allocation of potential trade-offs among the countries. |
| Keywords: | Wood Products, Biodiversity, Climate Change, Market and Non-market Valuation Methods, Ecosystem Goods and Services, Millennium Ecosystem Assessment |
| JEL: | Q57 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2010.50&r=agr |
| By: | Corsi, Armando Maria; Marinelli, Nicola; Sottini, Veronica Alampi |
| Abstract: | The world wine market is facing a particularly difficult situation. Both the EU and New World (NW) Countries are trying to manage this critical moment by filling reciprocal gaps in order to increase their competitiveness at a global level and to strengthen their position in key strategic markets. On the EU side, one of the fundamental aspects of this changing framework is the evolution of the Common Market Organisation (CMO) for the wine sector. The first pivotal change is the fact that a parcel of land cannot host more than one designation of origin (either Geographical Indication â GI â Denominazione di Origine Controllata â DOC â or Denominazione di Origine Controllata e Garantita â DOCG), thus completely changing the approach to vintage choices, which characterised the Italian production in the last 50 years. A second important variation is the introduction of the possibility to show grape varieties and the vintage year on table wines (a strategy often used by NW producers). Conversely, on the NW side, the changes are mainly relative to the increase in the use of European grape varieties and the emphasis on the region-grape combination as an element of excellence. |
| Keywords: | International Relations/Trade, Marketing, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:58893&r=agr |
| By: | McGarry Wolf, Marianne; Romberger, Carissa Leigh |
| Abstract: | This study examines consumersâ awareness of fair trade coffee and their purchase interest concerning fair trade coffee. The research uses a survey instrument that was administered through the use of a personal interview. The random sample of 200 coffee purchasers was collected in San Luis Obispo County, California. San Luis Obispo County was designated the best test market in the United States by Demographics Daily (Jackoway 2001). San Luis Obispo was found to be the best of 3,141 counties to represent a microcosm of the United States based on 33 statistical indicators. This research uses simulated test marketing research to examine consumer interest in purchasing a branded fair trade coffee and finds that the branded fair trade coffee is appealing to only a small percentage of coffee consumers. Consumers indicate that the very desirable characteristics of coffee when making a purchase decision are: is flavorful, has a rich taste, high in quality, reasonably priced, and is a good value for the money. The fair trade coffee examined in this research rates lower in consumersâ perceptions than the conventionally produced coffee of the same brand on four of the most desirable characteristics: is flavorful, has a rich taste, reasonably priced, and is a good value for the money. Thus, consumers perceive the fair trade product to be inferior. |
| Keywords: | International Relations/Trade, |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare10:59264&r=agr |