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: Eleven widely used crop simulation models (APSIM, CERES, CROPSYST, COUP, DAISY, EPIC, FASSET, HERMES, MONICA, STICS and WOFOST) were tested using spring barley (Hordeum vulgare L.) data set under varying nitrogen (N) fertilizer rates from three experimental years in the boreal climate of Jokioinen, Finland. This is the largest standardized crop model inter-comparison under different levels of N supply to date. The models were calibrated using data from 2002 and 2008, of which 2008 included six N rates ranging from 0 to 150 kg N/ha. Calibration data consisted of weather, soil, phenology, leaf area index (LAI) and yield observations. The models were then tested against new data for 2009 and their performance was assessed and compared with both the two calibration years and the test year. For the calibration period, root mean square error between measurements and simulated grain dry matter yields ranged from 170 to 870 kg/ha. During the test year 2009, most models failed to accurately reproduce the observed low yield without N fertilizer as well as the steep yield response to N applications. The multi-model predictions were closer to observations than most single-model predictions, but multi-model mean could not correct systematic errors in model simulations. Variation in soil N mineralization and LAI development due to differences in weather not captured by the models most likely was the main reason for their unsatisfactory performance. This suggests the need for model improvement in soil N mineralization as a function of soil temperature and moisture. Furthermore, specific weather event impacts such as low temperatures after emergence in 2009, tending to enhance tillering, and a high precipitation event just before harvest in 2008, causing possible yield penalties, were not captured by any of the models compared in the current study.

Abstract: This paper describes the environmental consequences of agricultural adaptation on eutrophication of the nearby ecological network for a study area in the Netherlands. More specifically, we explored (i) likely responses of farmers to changes in climate, technology, policy, and markets; (ii) subsequent changes in nitrogen (N) emissions in responses to farmer adaptations; and (iii) to what extent the emitted N was deposited in nearby nature reserves, in view of the potential impacts on plant species diversity and desired nature targets. For this purpose, a spatially-explicit study at landscape level was performed by integrating the environmental model INITIATOR, the farm model FSSIM, and the land-use model RULEX. We evaluated two alternative scenarios of change in climate, technology, policy, and markets for 2050: one in line with a ‘global economy’ (GE) storyline and the other in line with a ‘regional communities’ (RC) storyline. Results show that the GE storyline resulted in a relatively strong increase in agricultural production compared to the RC storyline. Despite the projected conversions of agricultural land to nature (as part of the implementation of the National Ecological Network), we project an increase in N losses and N deposition due to N emissions in the study area of about 20 %. Even in the RC storyline, with a relatively modest increase in agricultural production and a larger expansion of the nature reserve, the N losses and deposition remain at the current level, whereas a reduction is required. We conclude that more ambitious green policies are needed in view of nature protection.