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: Projections of climate change impacts on crop yields are inherently uncertain(1). Uncertainty is often quantified when projecting future greenhouse gas emissions and their influence on climate(2). However, multi-model uncertainty analysis of crop responses to climate change is rare because systematic and objective comparisons among process-based crop simulation models(1,3) are difficult(4). Here we present the largest standardized model intercomparison for climate change impacts so far. We found that individual crop models are able to simulate measured wheat grain yields accurately under a range of environments, particularly if the input information is sufficient. However, simulated climate change impacts vary across models owing to differences in model structures and parameter values. A greater proportion of the uncertainty in climate change impact projections was due to variations among crop models than to variations among downscaled general circulation models. Uncertainties in simulated impacts increased with CO2 concentrations and associated warming. These impact uncertainties can be reduced by improving temperature and CO2 relationships in models and better quantified through use of multi-model ensembles. Less uncertainty in describing how climate change may affect agricultural productivity will aid adaptation strategy development and policymaking.

Abstract: The objective of the present study was to compare the performance of seven different, widely applied crop models in predicting heat and drought stress effects. The study was part of a recent suite of model inter-comparisons initiated at European level and constitutes a component that has been lacking in the analysis of sources of uncertainties in crop models used to study the impacts of climate change. There was a specific focus on the sensitivity of models for winter wheat and maize to extreme weather conditions (heat and drought) during the short but critical period of 2 weeks after the start of flowering. Two locations in Austria, representing different agro-climatic zones and soil conditions, were included in the simulations over 2 years, 2003 and 2004, exhibiting contrasting weather conditions. In addition, soil management was modified at both sites by following either ploughing or minimum tillage. Since no comprehensive field experimental data sets were available, a relative comparison of simulated grain yields and soil moisture contents under defined weather scenarios with modified temperatures and precipitation was performed for a 2-week period after flowering. The results may help to reduce the uncertainty of simulated crop yields to extreme weather conditions through better understanding of the models’ behaviour. Although the crop models considered (DSSAT, EPIC, WOFOST, AQUACROP, FASSET, HERMES and CROPSYST) mostly showed similar trends in simulated grain yields for the different weather scenarios, it was obvious that heat and drought stress caused by changes in temperature and/or precipitation for a short period of 2 weeks resulted in different grain yields simulated by different models. The present study also revealed that the models responded differently to changes in soil tillage practices, which affected soil water storage capacity.