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: There is a strong need for accurate and spatially referenced information regarding policy making and model linkage. This need has been expressed by land users, and policy and decision makers in order to estimate both spatially and locally the impacts of European policy (like the Common Agricultural Policy) and/or global changes on farm-groups. These entities are defined according to variables such as altitude, economic size and type of farming (referring to land uses). European farm-groups are provided through the Farm Accountancy Data Network (FADN) as statistical information delivered at regional level. The aim of the study is to map locally farm-group probabilities within each region. The mapping of the farm-groups is done in two steps: (1) by mapping locally the co-variables associated to the farm-groups, i.e. altitude and land uses; (2) by using regional FADN data as a priori knowledge for transforming land uses and altitude information into farm-groups location probabilities within each region. The downscaling process focuses on the land use mapping since land use data are originally point information located every 18 km. Interpolation of land use data is done at 100 m by using co-variables like land cover, altitude, climate and soil data which are continuous layers usually provided at fine resolution. Once the farm-groups are mapped, European Policy and global changes scenarios are run through an agro-economic model for assessing environmental impacts locally.

Abstract: The European Union Effort Sharing Regulation (ESR) will require a 30% reduction in greenhouse gas (GHG) emissions by 2030 compared with 2005 from the sectors not included in the European Emissions Trading Scheme, including agriculture. This will require the estimation of current and future emissions from agriculture, including dairy cattle production systems. Using a farm-scale model as part of a Tier 3 method for farm to national scales provides a more holistic and informative approach than IPCC (2006) Tier 2 but requires independent quality control. Comparing the results of using models to simulate a range of scenarios that explore an appropriate range of biophysical and management situations can support this process by providing a framework for placing model results in context. To assess the variation between models and the process of understanding differences, estimates of GHG emissions from four farm-scale models (DailyWise, FarmAC, HolosNor and SFARMMOD) were calculated for eight dairy farming scenarios within a factorial design consisting of two climates (cool/dry and warm/wet) x two soil types (sandy and clayey) x two feeding systems (grass only and grass/maize). The milk yield per cow, follower cow ratio, manure management system, nitrogen (N) fertilisation and land area were standardised for all scenarios in order to associate the differences in the results with the model structure and function. Potential yield and application of available N in fertiliser and manure were specified separately for grass and maize. Significant differences between models were found in GHG emissions at the farm-scale and for most contributory sources, although there was no difference in the ranking of source magnitudes. The farm-scale GHG emissions, averaged over the four models, was 10.6 t carbon dioxide equivalents (CO(2)e)/ha per year, with a range of 1.9 t CO(2)e/ha per year. Even though key production characteristics were specified in the scenarios, there were still significant differences between models in the annual milk production per ha and the amounts of N fertiliser and concentrate feed imported. This was because the models differed in their description of biophysical responses and feedback mechanisms, and in the extent to which management functions were internalised. We conclude that comparing the results of different farm-scale models when applied to a range of scenarios would build confidence in their use in achieving ESR targets, justifying further investment in the development of a wider range of scenarios and software tools.