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Irz, X., & Kuosmanen, N. (2013). Explaining growth in demand for dairy products in Finland: an econometric analysis. Food Economics, 9(sup5), 47–56.
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.
Keywords: Consumption; food; almost ideal demand system; decomposition; elasticities; milk; demand analysis; farm
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Höglind, M., Thorsen, S. M., & Semenov, M. A. (2013). Assessing uncertainties in impact of climate change on grass production in Northern Europe using ensembles of global climate models. Agricultural and Forest Meteorology, 170, 103–113.
Abstract: Forage-based dairy and livestock production is the backbone of agriculture in Northern Europe in economic terms. Changes in growing conditions that affect forage grass yield may have great economic consequences. This study assessed the impact of climate change on two grass species, timothy and ryegrass, at 14 locations in Northern Europe (Iceland, Scandinavia, Baltic countries) in a near-future scenario (2040-2065) compared with the baseline period 1960-1990. Local-scale climate scenarios were based on the CMIP3 multi-model ensembles of 15 global climate models in order to quantify the uncertainty in the impacts relating to highly uncertain projections of future climate. Potential yield of timothy, the most important perennial forage grass in Northern Europe, was simulated under the assumption of optimal overwintering conditions and current CO2 level, in order to obtain an estimate of the effect of changes in summer climate per se. The risk of frost and ice damage during winter was also assessed. The simulation results demonstrated that potential grass yield will increase throughout the study area, mainly as a result of increased growing temperatures. The yield response to climate change was slightly larger in irrigated than non-irrigated conditions (14% and 11%, respectively), due to larger water deficit for the 2050 scenario. However, a geo-climatic gradient was evident, with the largest predicted yield response at western locations. A geo-climatic gradient was also revealed with respect to potential frost damage, which was predicted to increase during winter in some areas east of the Baltic Sea for timothy, and for a larger number of locations both east and west of the Baltic Sea for perennial ryegrass. The risk of frost damage in spring was predicted to increase mainly in western parts of the study area. If frost damage to perennial ryegrass increases during winter, the expected increase in winter temperature due to global warming may not necessarily improve overwintering conditions, so the growing zone may not necessarily expand to the north and east of the study area by 2050. The uncertainty in impacts was frequently, but not consistently, greater in western than eastern locations. (C) 2012 Elsevier B.V. All rights reserved.
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Heinke, J., Ostberg, S., Schaphoff, S., Frieler, K., Müller, C., Gerten, D., et al. (2013). A new climate dataset for systematic assessments of climate change impacts as a function of global warming. Geosci. Model Dev., 6(5), 1689–1703.
Abstract: In the ongoing political debate on climate change, global mean temperature change (Delta T-glob) has become the yardstick by which mitigation costs, impacts from unavoided climate change, and adaptation requirements are discussed. For a scientifically informed discourse along these lines, systematic assessments of climate change impacts as a function of Delta T-glob are required. The current availability of climate change scenarios constrains this type of assessment to a narrow range of temperature change and/or a reduced ensemble of climate models. Here, a newly composed dataset of climate change scenarios is presented that addresses the specific requirements for global assessments of climate change impacts as a function of Delta T-glob. A pattern-scaling approach is applied to extract generalised patterns of spatially explicit change in temperature, precipitation and cloudiness from 19 Atmosphere-Ocean General Circulation Models (AOGCMs). The patterns are combined with scenarios of global mean temperature increase obtained from the reduced-complexity climate model MAGICC6 to create climate scenarios covering warming levels from 1.5 to 5 degrees above pre-industrial levels around the year 2100. The patterns are shown to sufficiently maintain the original AOGCMs’ climate change properties, even though they, necessarily, utilise a simplified relationships between Delta T-glob and changes in local climate properties. The dataset (made available online upon final publication of this paper) facilitates systematic analyses of climate change impacts as it covers a wider and finer-spaced range of climate change scenarios than the original AOGCM simulations.
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Dietrich, J. P., Popp, A., & Lotze-Campen, H. (2013). Reducing the loss of information and gaining accuracy with clustering methods in a global land-use model. Ecol. Model., 263, 233–243.
Abstract: Global land-use models have to deal with processes on several spatial scales, ranging from the global scale down to the farm level. The increasing complexity of modern land-use models combined with the problem of limited computational resources represents a challenge to modelers. One solution of this problem is to perform spatial aggregation based on a regular grid or administrative units such as countries. Unfortunately this type of aggregation flattens many regional differences and produces a homogenized map of the world. In this paper we present an alternative aggregation approach using clustering methods. Clustering reduces the loss of information due to aggregation by choosing an appropriate aggregation pattern. We investigate different clustering methods, examining their quality in terms of information conservation. Our results indicate that clustering is always a good choice and preferable compared to grid-based aggregation. Although all the clustering methods we tested delivered a higher degree of information conservation than grid-based aggregation, the choice of clustering method is not arbitrary. Comparing outputs of a model fed with original data and a model fed with aggregated data, bottom-up clustering delivered the best results for the whole range of numbers of clusters tested. (C) 2013 Elsevier B.V. All rights reserved.
Keywords: aggregation; downscaling; clustering; information conservation; land use model; scale; scales; agriculture; simulation; dynamics; pattern
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Dono, G., Cortignani, R., Doro, L., Giraldo, L., Ledda, L., Pasqui, M., et al. (2013). Adapting to uncertainty associated with short-term climate variability changes in irrigated Mediterranean farming systems. Agricultural Systems, 117, 1–12.
Abstract: Short-term perspectives appear to be relevant in formulating adaptation measures to changed climate variability (CCV) as a part of the European Rural Development Policy (RDP). Indeed, short-run CCV is the variation that farmers would perceive to such an extent that a political demand would be generated for adapting support measures. This study evaluates some relevant agronomic and economic impacts of CCV as modelled in a near future time period at the catchment scale in a rural district in Sardinia (Italy). The effects of CCV are assessed in relation to the availability of irrigation water and the irrigation needs of maize. The Environmental Policy Integrated Climate (EPIC) model was used to simulate the impact of key climatic variables on the irrigation water requirements and yields of maize. A three-stage discrete stochastic programming model was then applied to simulate management and economic responses to those changes. The overall economic impact of a simulated CCV was found to be primarily caused by reduced stability in the future supply of irrigation water. Adaptations to this instability will most likely lead to a higher level of groundwater extraction and a reduction in the demand for labour. Changed climate variability will most likely reduce the income potential of small-scale farming. The most CCV-vulnerable farm typologies were identified, and the implications were discussed in relation to the development of adaptation measures within the context of the Common Agricultural Policy of European Union. (C) 2013 Elsevier Ltd. All rights reserved.
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