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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.
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Cantelaube, P., & Jayet, P. (2012). Geographical downscaling of outputs provided by an economic farm model calibrated at the regional level. Land Use Policy, 29, 35–44.
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.
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Mandryk, M., Reidsma, P., & van Ittersum, M. K. (2012). Scenarios of long-term farm structural change for application in climate change impact assessment. Landscape Ecol., 27(4), 509–527.
Abstract: Towards 2050, climate change is one of the possible drivers that will change the farming landscape, but market, policy and technological development may be at least equally important. In the last decade, many studies assessed impacts of climate change and specific adaptation strategies. However, adaptation to climate change must be considered in the context of other driving forces that will cause farms of the future to look differently from today’s farms. In this paper we use a historical analysis of the influence of different drivers on farm structure, complemented with literature and stakeholder consultations, to assess future structural change of farms in a region under different plausible futures. As climate change is one of the drivers considered, this study thus puts climate change impact and adaptation into the context of other drivers. The province of Flevoland in the north of The Netherlands was used as case study, with arable farming as the main activity. To account for the heterogeneity of farms and to indicate possible directions of farm structural change, a farm typology was developed. Trends in past developments in farm types were analyzed with data from the Dutch agricultural census. The historical analysis allowed to detect the relative importance of driving forces that contributed to farm structural changes. Simultaneously, scenario assumptions about changes in these driving forces elaborated at global and European levels, were downscaled for Flevoland, to regional and farm type level in order to project impacts of drivers on farm structural change towards 2050. Input from stakeholders was also used to detail the downscaled scenarios and to derive historical and future relationships between drivers and farm structural change. These downscaled scenarios and future driver-farm structural change relationships were used to derive quantitative estimations of farm structural change at regional and farm type level in Flevoland. In addition, stakeholder input was used to also derive images of future farms in Flevoland. The estimated farm structural changes differed substantially between the two scenarios. Our estimations of farm structural change provide a proper context for assessing impacts of and adaptation to climate change in 2050 at crop and farm level.
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