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: Livestock farming is the world’s largest land use sector and utilizes around 60% of the global biomass harvest. Over the coming decades, climate change will affect the natural resource base of livestock production, especially the productivity of rangeland and feed crops. Based on a comprehensive impact modeling chain, we assess implications of different climate projections for agricultural production costs and land use change and explore the effectiveness of livestock system transitions as an adaptation strategy. Simulated climate impacts on crop yields and rangeland productivity generate adaptation costs amounting to 3% of total agricultural production costs in 2045 (i.e. 145 billion US$). Shifts in livestock production towards mixed crop-livestock systems represent a resource-and cost-efficient adaptation option, reducing agricultural adaptation costs to 0.3% of total production costs and simultaneously abating deforestation by about 76 million ha globally. The relatively positive climate impacts on grass yields compared with crop yields favor grazing systems inter alia in South Asia and North America. Incomplete transitions in production systems already have a strong adaptive and cost reducing effect: a 50% shift to mixed systems lowers agricultural adaptation costs to 0.8%. General responses of production costs to system transitions are robust across different global climate and crop models as well as regarding assumptions on CO2 fertilization, but simulated values show a large variation. In the face of these uncertainties, public policy support for transforming livestock production systems provides an important lever to improve agricultural resource management and lower adaptation costs, possibly even contributing to emission reduction.

Abstract: Global agricultural production is heavily sustained by irrigation, but irrigation system efficiencies are often surprisingly low. However, our knowledge of irrigation efficiencies is mostly confined to rough indicative estimates for countries or regions that do not account for spatiotemporal heterogeneity due to climate and other biophysical dependencies. To allow for refined estimates of global agricultural water use, and of water saving and water productivity potentials constrained by biophysical processes and also nontrivial downstream effects, we incorporated a process-based representation of the three major irrigation systems (surface, sprinkler, and drip) into a bio- and agrosphere model, LPJmL. Based on this enhanced model we provide a gridded world map of irrigation efficiencies that are calculated in direct linkage to differences in system types, crop types, climatic and hydrologic conditions, and overall crop management. We find pronounced regional patterns in beneficial irrigation efficiency (a refined irrigation efficiency indicator accounting for crop-productive water consumption only), due to differences in these features, with the lowest values (< 30 %) in south Asia and sub-Saharan Africa and the highest values (> 60 %) in Europe and North America. We arrive at an estimate of global irrigation water withdrawal of 2469 km(3) (2004-2009 average); irrigation water consumption is calculated to be 1257 km(3), of which 608 km(3) are non-beneficially consumed, i.e., lost through evaporation, interception, and conveyance. Replacing surface systems by sprinkler or drip systems could, on average across the world’s river basins, reduce the non-beneficial consumption at river basin level by 54 and 76 %, respectively, while maintaining the current level of crop yields. Accordingly, crop water productivity would increase by 9 and 15 %, respectively, and by much more in specific regions such as in the Indus basin. This study significantly advances the global quantification of irrigation systems while providing a framework for assessing potential future transitions in these systems. In this paper, presented opportunities associated with irrigation improvements are significant and suggest that they should be considered an important means on the way to sustainable food security.