Abstract: The dairy sector represents the cornerstone of Finnish agriculture but faces new challenges linked to the decoupling of farm subsidies and abolition of milk production quotas. Because of its increasing exposure to market forces, the sector must anticipate future changes in demand and deliver precisely what Finnish consumers want. This paper contributes to that goal by analyzing retroactively the drivers of demand for dairy products over the period 1975–2010 using National Accounts Data. After presenting the evolution of consumption for dairy products, we estimate a complete system of demand for food and dairy products and use it to decompose demand growth into a substitution effect, income effect, and trend effect. The analysis points to the severity of the challenges that the sector is facing. Stagnant consumption is at least partially the result of continuous but adverse taste changes, and as Finnish consumers grow more prosperous, they allocate an increasingly smaller share of their food budget to the dairy group. The low own-price elasticity of demand for dairy products also limits the benefits to the sector of growth in milk production. Hence, business-as-usual will result in the dwindling importance of the dairy sector in the Finnish food chain. Innovation and product differentiation, perhaps emphasizing the attributes of livestock production processes, are clearly required to counter this evolution.

Abstract: Sunflower is one of the major oilseeds produced in Tanzania, but due to insufficient domestic production more than half of the country’s demand is imported. The improvement of the sunflower food value chain (FVC) understanding is important to ensure an increase in the production, availability, and quality of edible oil. In order to analyse causes and propose solutions to increase the production of sunflower oil, a conceptual framework that proposes the combined use of different models to provide insights about the sunflower FVC was developed. This research focus on the identification of agricultural models that can provide a better understanding of the sunflower FVC in Tanzania, especially within the context of food security improvement. A FVC scheme was designed considering the main steps of sunflower production. Thereafter, relevant models were selected and placed along each step of the FVC. As result, the sunflower FVC model in Tanzania is organized in five steps, namely (1) natural resources; (2) crop production; (3) oil processing; (4) trade; and (5) consumption. Step 1 uses environmental indicators to analyse soil parameters on soil-water models (SWAT, LPJmL, APSIM or CroSyst), with outputs providing data for step 2 of the FVC. In the production step, data from step 1, together with other inputs, is used to run crop models (DSSAT, HERMES, MONICA, STICS, EPIC or AquaCrop) that analyse the impact on sunflower yields. Thereafter, outputs from crop models serve as input for bio-economic farm models (FSSIM or MODAM) to estimate production costs and farm income by optimizing resource allocation planning for step 2. In addition, outputs from crop models are used as inputs for macro-economic models (GTAP, MAGNET or MagPie) by adjusting supply functions and environmental impacts within steps 3, 4, and 5. These models simulate supply and demand, including the processing of products to determine prices and trade volumes at market equilibrium. In turn, these data is used by bio-economic farm models to assess sunflower returns for different farm types and agro-environmental conditions. Due to the large variety of models, it is possible to assess significant parts of the FVC, reducing the need to make assumptions, while improving the understanding of the FVC.

Abstract: Rather than on crop modelling only, climate change impact assessments in agriculture need to be based on integrated assessment and farming systems analysis, and account for adaptation at different levels. With a case study for Flevoland, the Netherlands, we illustrate that (1) crop models cannot account for all relevant climate change impacts and adaptation options, and (2) changes in technology, policy and prices have had and are likely to have larger impacts on farms than climate change. While crop modelling indicates positive impacts of climate change on yields of major crops in 2050, a semiquantitative and participatory method assessing impacts of extreme events shows that there are nevertheless several climate risks. A range of adaptation measures are, however, available to reduce possible negative effects at crop level. In addition, at farm level farmers can change cropping patterns, and adjust inputs and outputs. Also farm structural change will influence impacts and adaptation. While the 5th IPCC report is more negative regarding impacts of climate change on agriculture compared to the previous report, also for temperate regions, our results show that when putting climate change in context of other drivers, and when explicitly accounting for adaptation at crop and farm level, impacts may be less negative in some regions and opportunities are revealed. These results refer to a temperate region, but an integrated assessment may also change perspectives on climate change for other parts of the world.