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on Agricultural Economics |
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Issue of 2017‒05‒21
sixteen papers chosen by |
| By: | John K.M. Kuwornu |
| Abstract: | The operation period of the Millennium Development Goals (MDGs) ended in 2015, and the Sustainable Development Goals (SDGs) will be in operation in 2016-2030. The sustainable development agenda contained 17 goals and covered a broad range of quantitative and qualitative objectives across social, economic, and environmental dimensions of sustainable development. These include (i) ending poverty and hunger, (ii) sustainable consumption and production, (iii) improving health and education, (iv) making cities more sustainable, (v) combating climate change, and (vi) protecting oceans and forests. Sustainable food production, marketing, and other post-harvest management practices are important to achieving majority of the SDGs. This paper examines the required changing roles of private and public organisations, as well as international organisations, in 2016-2030 to enhance resilience of agricultural food value chains in Thailand. The Sufficiency Economy Philosophy (SEP) of Thailand is a growth and development model characterised by its universality and inclusiveness; people-centred approach; moderation, moral values, and reasonableness; and knowledge and integrity. The SEP encourages a holistic farm management system to promote sustainability, food security, water conservation and biodiversity, development of human resources, risk management, investment, and expansion of businesses, thereby creating self-sufficiency at the household, community, organisational, and national levels. These objectives of the SEP are somewhat consistent with Goals 1, 2, 8, 9, 12, 13, 14, and 15 of the SDGs. The required roles of organisations to enable Thailand to achieve the SDGs towards enhancing the resilience of agricultural food value chains are presented, and the policy implications are highlighted. |
| Keywords: | : Sustainable Development Goals, food value chains, risks, role of entities, resilience, Thailand |
| JEL: | Q5 Q12 Q13 O21 O22 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2017-03&r=agr |
| By: | Vangimalla R. Reddy; Venkatachalam Anbumozhi |
| Abstract: | Stranded assets are those that have suffered unanticipated or premature write-downs, lost value, or turned into liabilities due to external shocks. Environmental risk factors, such as natural disasters, climate change, and water scarcity, which can cause asset stranding of agriculture are poorly understood in the context of food value chains (FVCs). The value at risk (VaR) globally is significant in agriculture due to overexposure to stranded assets throughout financial and economic systems. Our objective is to discuss the issue of stranded assets and the environmental risks involved with FVCs. This paper provides an overview of the disasters and climate change as contributors to agricultural asset stranding along FVCs. We present the impacts of disasters triggered by natural hazards on the economic losses of the agricultural value chain and the loss of value added growth with further discussion on the principles of effective disaster risk reduction in FVCs. Disasters, when combined with climate change, pose challenges by creating fluctuations in yields, supply shortfalls, and subsequent global trading patterns, and have substantial effects on FVCs. Finally, we present strategies for building resilient FVCs in partnership with communities. |
| Keywords: | : Climate change, disasters, food value chain, stranded assets |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2017-01&r=agr |
| By: | Musharraf Cyan (Department of Economics, Andrew Young School of Policy Studies, Georgia State University); Michael Price (Department of Economics, Andrew Young School of Policy Studies, Georgia State University); Mark Rider (Department of Economics, Andrew Young School of Policy Studies, Georgia State University); Stephanie J. Roberts (Department of Economics, Andrew Young School of Policy Studies, Georgia State University) |
| Abstract: | Vegetables are rich source of vitamins, carbohydrates, and proteins. Increased health awareness, high population growth rates, changing dietary patterns of an increasingly affluent middle class has generated a year-round demand for vegetables in Pakistan in general and in major city centres in particular. Due to the scarcity of off-season vegetables (OSV), they command a high price in the market. In the absence of storage infrastructure and vegetable processing industry in the country, OSV farming is a major opportunity for increasing farm income. However, farmers in the Federally Administered Tribal Area (FATA) of Pakistan are still using traditional farming methods and have not benefited from the opportunity to grow offseason vegetables. The PCNA-ISU FATA and Agriculture Extension Department (AED) of the Khyber Agency offered registered and non-registered farmers in FATA the opportunity to receive a free OSV package, including a tunnel, seeds, fertilizer, and training for OSV cultivation. To promote awareness of this program, PCNA-ISU FATA and AED held four one-day sessions on awareness/mobilization of farmers for OSV cultivation. These sessions were held at the University of Peshawar on November 6, November 7, and November 12, and November 13, 2014. The speakers highlighted the importance of OSV and discussed the types of vegetable grown in tunnel farming, e.g., chillies, cucumbers squash, and tomatoes. The speakers highlighted that the climate of FATA is suitable for OSV cultivation and that farmers can fetch high prices from these vegetables. PCNA-ISU FATA and AED targeted two tehsils in particular, namely Jarnrud and Landi Kotal in Khyber Agency. Of the 217 farmers who attended these sessions, 115 were from Jarnrud and 102 were from Landi Kotal. Approximately, 15 percent of the farmers accepted the OSV package. It is noteworthy that there was a windstorm and hailstorm before the harvest of OSV which caused substantial damage to the crop. The purpose of this report is to evaluate the OSV program. The evaluation consists of three surveys: an historical survey of OSV adopters, an environmental study of historical OSV adopters, and a post-harvest survey of the 33 farmers that adopted the OSV package. There are a several interesting findings that come from the analysis of the data from these three surveys. First, the take-up rate by farmers of the OSV program is very low. Second, the rate of return to OSV farming appears to be very high. Third, analysis of the historical data shows that a significant proportion of the sample of farmers in Khyber Agency have not engaged in OSV cultivation for a number of years. Given the high rate of return to OSV cultivation reported by farmers, the low take-up rate and the large fraction that for all practical purposes have stopped OSV cultivation is puzzling and merits further investigation. Finally, as explained in greater detail below, there is some evidence that pesticide use in OSV cultivation is having adverse effects on the taste of water and on livestock. Although the number of farmers reporting such adverse effects from pesticide use are relatively small, the harm from pesticides is so great to both humans and livestock, the Agricultural Extension Office may wish to consider offering training to farmers in the proper use of pesticides. The remainder of this report is organized as follows. We begin by analysing the results of the post-harvest survey. Then, we analyse the survey responses of OSA adopters from a program designed to eradicate poppy cultivation by offering a substitute crop. Finally, we analyse the results of an environmental survey |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1708&r=agr |
| By: | Sekhar, C.S.C.; Roy, Devesh; Bhatt, Yogesh |
| Abstract: | The study analyzes food inflation trends in India over the last decade. Annual trends show that different commodities have contributed to food inflation in different years and that no single commodity shows uniformly high inflation. A decomposition exercise shows that eggs, meat, fish, milk, cereals, and vegetables were generally the main contributors to recent food inflation. The contribution of pulses, except pigeon peas (arhar), and of edible oils remained low. Fruits and vegetables displayed a much higher degree of intrayear volatility, and high-weight commodities in the national consumption basket also showed very high inflation rates, which is a cause for concern. Results of the econometric analysis show that both supply and demand factors are important. Cereal and edible oil prices appear to be mainly driven by supply-side factors such as production, wage rates, and minimum support prices. For pulses, the effects of supply- and demand-side factors appear almost equal. The prices of eggs, meat, fish, milk, and fruits and vegetables appear to be driven mainly by demand-side factors. |
| Keywords: | food prices; agricultural policies; food policies; inflation, Q10 Agriculture: General; Q11 Agriculture: Aggregate Supply and Demand Analysis, Prices; Q18 Agricultural Policy, Food Policy, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1640&r=agr |
| By: | Gauly, Sarah; Müller, Andreas; Spiller, Achim |
| Abstract: | Public interest in livestock farming is increasing, as is general criticism regarding the welfare of farm animals. In this context, husbandry systems for pigs especially are perceived very negatively. Despite rising concern for animal farming, most people lack detailed knowledge of modern agricultural production processes, as well as direct contact with agriculture. With regards to public demand for transparency of production quality and animal welfare standards, farmers and farmer associations in several countries have begun installing webcams in dairy, pig and poultry farming operations. Along with informational texts, pictures from webcams are publicly available on the internet and are used as a new type of communication tool aimed at increasing the acceptance of livestock farming by providing farming-specific information. However, there are currently no existing studies quantitatively investigating the effect of webcam pictures from stables and accompanying informational texts on the broader public. In a randomized between-subject experimental design, we presented two webcam pictures from conventional pig barns (pig fattening barn and sow farrowing pen) to the broader public, along with two different informational texts (one written directly by farmers and one neutrally written by the authors). Therefore, the objective of this study is to examine 1) if the attitude towards pig farming changes after having seen the webcam pictures, 2) if different informational texts alter the evaluation of webcam pictures, 3) if there are differences in the perception of webcam pictures of a pig fattening barn and a sow farrowing pen, and 4) how people evaluate the use of webcams as a public relations tool that can be used to provide transparency. It was determined that the majority of respondents display a more negative attitude after viewing the webcam pictures and informational texts, and this is especially true for participants reading the neutrally written texts. Further, the farrowing pen is evaluated substantially more negatively than the pig fattening pen. Regarding the overall evaluation of webcams, people seem to appreciate that farmers show real pictures from their stables, although a rather low interest in the usage of webcams in agriculture can be observed. Thus, although transparency may be enhanced through the use of webcams, our findings suggest that webcams generally do not show the desired effects on the public and are likely to be unable to improve the image of pig farming by simply providing information via pictures and texts. Finally, the application of webcams as a communication tool cannot be recommended, at least not for the husbandry systems investigated within this study. |
| Keywords: | pig farming,webcam,transparency,attitude change,image,communication tool |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:daredp:1705&r=agr |
| By: | Budi Indra Setiawan; Falatehan Faroby |
| Abstract: | Palm oil and its derivative products are strategic commodities that play an important role in the economic development of Indonesia which, along with Malaysia, is a major exporter to the global markets. Global as well as national demands on crude palm oil are increasing, not only as food but also as raw material for biodiesel. To increase production, the extensification of oil palm plantations in Indonesia is still the preferred option. Since there are limited fertile mineral soils, marginal land such as peatlands have become targeted areas to open new plantations. Due to recurring fire and haze problems, while attempting to restore degraded peatlands, the government issued By Law No. 57 in 2016 to protect and manage the peat ecosystem (Peat Policy). This peat policy, which mainly aims to prevent environmental degradation, would to some extent reduce planting areas and impact on production, stretching to the supply and value chain of palm oil and its derivative products. This study assessed how the peat policy affected the planting areas; production; economic value; growers, especially the farmers; and export quantity and value. We applied numerical approaches followed by simulations of certain scenarios. Compared to 2015 figures, the peat policy would reduce the palm oil plantation area by 10%-18% and production by 12%-15%, with the potential to reduce: 1) economic values by 12%-15%; 2) the number of farmers by 12%-15%; 3) exported palm oil by 21%-24% and export value by 22%-24%; and 4) the cost of fresh fruit bunch by 6%-8%. These reductions will severely affect the economic development of the country and threaten the welfare of the farmers. The government and practitioners should therefore make policy choices that are conducive to the sustainable development of oil palm plantation in the peatlands, i.e. how to promote intensification programs to increase productivity and to manage sustainable production. |
| Keywords: | : Peatland, peat policy, palm oil, value chain |
| JEL: | F10 F18 N55 O13 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2017-02&r=agr |
| By: | Bernard, Tanguy; Hidrobo, Melissa; Le Port, Agnès; Rawat, Rahul |
| Abstract: | Health-related incentives to reward effort or commitment are commonplace in many professional contracts throughout the world. Typically absent from small-scale agriculture in poor countries, such incentives may help overcome both health issues for remote rural families and supply issues for firms. Using a randomized control design, we investigate the impact of adding a micronutrient-fortified product in contracts between a Senegalese dairy processing factory and its seminomadic milk suppliers. Findings show significant increases in frequency of delivery but only limited impacts on total milk delivered. These impacts are time sensitive and limited mostly to households where women are more in control of milk contracts. |
| Keywords: | nutrition; incentives; contract farming; supply chain; production economics; dairy industry; dairies; dairying; health; households; women; gender; dairy farms; milk production; rural areas; rural communities, dairy value chain, D13 Household Production and Intrahousehold Allocation; Q12 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets; O12 Microeconomic Analyses of Economic Development, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1629&r=agr |
| By: | Tiwari, Rajnish |
| Abstract: | The food processing industry in India is a sunrise industry, which has been growing above-average and is expected to grow further. Even though India has a large agricultural sector, the food processing industry has traditionally played a small role and it is only recently that it has been promoted as a measure to increase food security and generate employment. Germany’s food processing industry is a well-developed industry that is globally competitive. Nevertheless, it is faced with saturation in the domestic market, as far as conventional foods are concerned. Emerging, significant trends in Germany are health and wellness-enhancing and disease-preventing food products that are often organically produced, procured through fair trade and are increasingly plant-based (vegetarian/vegan), which coincides with the increasing popularity of Ayurveda and Yoga. These trends can be seen as areas where India has been traditionally strong. The two countries, thus, have enormous opportunities to collaborate. While German firms can participate in the growing market of India, Indian firms can benefit from the emerging trends in Germany, which play to India’s deep-rooted advantages. Indian companies can also benefit from the vocational trainings and other skill development programmes well-entrenched in the German food processing industry. In addition, India and Germany can engage in collaborative technology development efforts to develop frugal innovations in the food processing industry and in related sectors such as food processing and packaging equipment. Indo-German collaboration in the food processing industry has benefits that go well beyond the geographic limits of the two nations. The joining of forces can enhance the sustainability of the global food security and contribute to the fight against global food wastage & loss, hunger and poverty. |
| Keywords: | India,Food Processing,Germany,Organic Food,Fairtrade,Affordable Excellence |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esrepo:157662&r=agr |
| By: | Johanna Choumert (EDI - Economic Development Initiatives - Economic Development Initiatives); Pascale Combes Motel (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique); Charlain Guegang Djimeli (, DPPP/DGEPIP/MINEPAT - Direction générale de l'économie et de la programmation des investissements publics - Ministry of the Economy) |
| Abstract: | While the production of biofuels has expanded in recent years, findings in the literature on its impact on growth and development remain contradictory. This paper presents a meta-analysis of computable general equilibrium studies published between 2006 and 2014. Using 26 studies, we shed light on why their results differ. We investigate factors such as biofuel type, geographic area and the characteristics of models employed. Our results indicate that the outcomes of CGE simulations are sensitive to model parameters and also suggest heterogenous effects of biofuel expansion between developed / emerging countries and Sub-Saharan African countries. Our quantitative meta-analysis complements existing narrative surveys and confirms that results are sensitive to key hypotheses on essential parameters. Simulations on longer time periods and in multi-country studies lead to results that indicate higher impacts of biofuel expansion on growth and household income. Moreover, simulations with a shock in agricultural productivity indicate positive welfare gains, unlike simulations with a shock on land expansion. Lastly, we find that biodiesels lead to higher welfare gains than biofuels. |
| Keywords: | Development,Biofuel,Bioethanol,Biodiesel,Energy,Meta-regression,Computable General Equilibrium Model. |
| Date: | 2017–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01512678&r=agr |
| By: | Laurent Gobillon (PSE - Paris-Jourdan Sciences Economiques - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics); Wolff Francois Charles (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes, INED - Institut national d'études démographiques) |
| Abstract: | In this paper, we investigate the effect on quality, quantity and prices of an innovative fishing gear introduced for a subsample of vessels on a single wholesale fish market in France. Estimations are conducted using transaction data over the 2009-2011 period during which the innovation was introduced. Using a difference-in-differences approach around the discontinuity, we find that for the treated the innovation has a large effect on quality (29.2 percentage points) and prices (23.2 percentage points). A shift in caught fish species is observed and new targeted species are fished very intensively. We also quantify the treatment effect on the treated market from aggregate market data using factor models and a synthetic control approach. We find a sizable effect of the innovation on market quality which is consistent with non-treated vessels adapting their fishing practices to remain competitive. The innovation has no effect on market quantities and prices. |
| Keywords: | fish,innovation,product quality,product prices,discontinuity,difference in differences,synthetic controls,factor models |
| Date: | 2017–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-01431160&r=agr |
| By: | Bichler, Shimshon; Nitzan, Jonathan |
| Abstract: | In his 2014 article, 'Food Price Inflation as Redistribution', Joseph Baines shows the intimate correspondence between differential profit and world hunger. But the capitalization of food is a dialectical process. As Michael Harrington noted more than half a century ago in his seminal book 'The Other America', the other side of affluence is poverty; and among the American poor, the other side of hunger is overweight and obesity. Over the next fifty years, the global proportion of undernourished people has diminished while that of the obese has risen; and since the early 2000s, for the first time in history, the obese have outnumbered the undernourished. How has this remarkable hunger-to-obesity transformation evolved? What forms of capital drive the obesity epidemic, including its counter-movements of anti-obesity drugs, non-communicable disease treatments, diets, surgical fixes and psychological interventions? What are the material/ideal technologies that shift the world toward ever more destructive yet profitable forms of mass overfeeding? What policies and legislation have supported this shift, and how have they been imposed on the world’s population? And most importantly, what are the qualitative and quantitative links, if any, between these various strategies of sabotage on the one hand and differential profit and capitalization on the other? |
| Keywords: | Power,Business Enterprise,Capital & Accumulation,Civilization & Social Systems,Demographics,Institutions |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:157858&r=agr |
| By: | Van der Merwe; J.D.; Cloete; P.C.; Van Schalkwyk; H.D.; Kleynhans; E.P.J. |
| Abstract: | This article investigates the competitiveness of the South African wheat industry and compares it to its major trade partners. Since 1997, the wheat-to-bread value chain has been characterised by concentration of ownership and regulation. This led to concerns that the local wheat market is losing international competitiveness. The competitive status of the wheat industry, and its sub-sectors, is determined through the estimation of the relative trade advantage (RTA). The results revealed declining competitiveness of local wheat producers. Compared to the major global wheat producers, such as Argentina, Australia, Brazil, Canada, Germany and the USA, South Africa’s unprocessed wheat industry is uncompetitive. At the same time, South Africa has a competitive advantage in semi-processed wheat, especially wheat flour. The institutional environment enables the importation of raw wheat at lower prices and exports processed wheat flour competitively to the rest of Africa. |
| Keywords: | Wheat industry, Competitiveness, competitive advantage, revealed competitive advantage (RCA), relative trade advantage (RTA) index, relative export advantage (RXA), relative import advantage (RMA), market concentration, Agriculture, South Africa |
| JEL: | D40 F10 L11 L13 Q17 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:676&r=agr |
| By: | S.R.Dominick; Natalie Donovan; Nicole Widmar (Department of Agricultural Economics, College of Agriculture, Purdue University, W. Lafayette, IN t of Agricultural, Food, and Resource Economics, Michigan State University, East Lansing, MI) |
| Abstract: | Cooking habits and product quality can impact consumer’s in-grocery and at-home food decisions. On February 12, 2016, a survey was launched; data collection concluded two weeks later for a total sample of 1,265 respondents. Household demographic information was collected, as well as information about cooking habits, where respondents learned healthy eating, and acceptance of damaged food items. Males made up 48% of the sample, with those aged 45 to 64 years old representing the largest age group (38%) in the sample. In terms of method of learning healthy eating, learning from family was selected by 56% of the sample. A majority of the sample was willing to accept or buy food past the sale by date (61%), accept or buy damaged produce (53%), and accept or buy dented canned or boxed items (77%). |
| Keywords: | consumer perceptions; food and cooking; food acceptance |
| JEL: | Q18 D19 P46 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:pae:wpaper:16-2&r=agr |
| By: | Seyni Boureima (University of Marad, Maradi Niger); Moussa Bokar (INRAN Maradi, Niger); Jess Lowenber-DeBoer (Purdue University, Department of Agricultural Economics) |
| Abstract: | Roselle is a multipurpose crop produced for its grain, as well as flowers used in making teas and therapeutic preparations. The study is based on interviews with 164 randomly selected Roselle producers in Dosso, Maradi and Zinder Regions of Niger. Farmers store roselle grain in various containers, such as woven bags, plastic jugs, plastic bags, granaries, etc. which are mostly non-hermetic. Some store with the addition of wood ash, neem leaves (Azadirachta indica), sand or insecticide. Plastic jugs, granaries and plastic bags are used mainly for storing small amounts of roselle while metal drums and woven polypropylene bags are reserved for larger quantities. Overall the portion of roselle grain stored in 2012 in potentially hermetic containers was: Dosso, 22%; Maradi, 29% and Zinder, 26%. In 2012, the percentage reported stored in PICS triple bags was Dosso, 4%; Maradi, 2% and Zinder, 2%. The percentage of the grain quantity stored with insecticide in 2012 was Dosso, 26%; Maradi, 13%, and Zinder zero. The analysis of price fluctuations shows that about 7 months of storage is required for the producers to take advantage of price seasonality. Rozelle prices also vary widely from market to market. Consequently, marketing flexibility is key to profitable commercialization. In most cases storing into the next rainy season (i.e. 7 months) is the most profitable strategy. It is clear from this analysis that the PICS bags are a potential source of profitability for roselle producers in the study areas especially when the storage period is relatively long. For example, the simple rate of return is over 100% even when the PICS bag is only used one year compared to selling at harvest. PICS technology is much more cost effective than the traditional method of storage. After 7 months of storage without either insecticide or hermetic storage method, the return on investment is largely negative because of very high storage losses |
| Keywords: | Niger, Roselle, Hibiscus, storage, hermetic, profitability |
| JEL: | Q01 Q16 Q12 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:pae:wpaper:15-2&r=agr |
| By: | Fu, Shihe; Viard, Brian; Zhang, Peng |
| Abstract: | We provide comprehensive estimates of air pollution’s effect on short-run labor productivity for manufacturing firms in China from 1998 to 2007. An emerging literature estimates air pollution’s effects on labor productivity but only for small groups of workers of particular occupations or sets of firms to ensure causality. To provide more comprehensive estimates necessary for policy analysis, we estimate effects for all but some small firms (90% of manufacturing output in China) and capture all channels by which pollution influences productivity. We instrument for reverse causality between pollution and output using thermal inversions. Our causal estimates imply that a one |
| Keywords: | air pollution; productivity; environmental costs and benefits; firm competitiveness |
| JEL: | D62 Q51 Q53 R11 |
| Date: | 2017–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:78914&r=agr |
| By: | Taishi Sugiyama; John A. “Skip” Laitner |
| Abstract: | The dynamics of recent innovations of Information and Communication Technologies (ICT) and others is better captured by the complex systems theory than traditional innovation systems theory. The analysis based upon complex systems theory leads us to distinct and more positive future prospects and cost-effective policy implications for mitigating global warming. Massive emission cut of greenhouse gas will be possible through the policies that promote innovation and economic development. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:cnn:wpaper:17-005e&r=agr |