A COMPARATIVE ANALYSIS OF FOOD QUALITY ASSURANCE SCHEMES: THE CASE OF NEULAND AND EUREPGAP

Food Quality Assurance Schemes (QAS) are widely applied in the European Union. Neuland and EurepGAP represent two different approaches. Neuland differentiates meat clearly by a strict emphasis on rules regarding animal welfare to provide consumers with meat produced at a high animal welfare standard. EurepGAP certifies the compliance to international accepted standards with regard to Good Agricultural Practise to ease the exchange of products throughout the supply chain. In terms of overall benefits and costs, the study showed that for both QAS the benefits clearly outweigh the costs. This paper compares the schemes and their implications for the agro-food chain.Quality Assurance Schemes, Food policy, Food chain, Agribusiness, Food Consumption/Nutrition/Food Safety,

Analysing the implication of the EU 20-10-20 targets for world vegetable oil production

The European Commission proposes a minimum of 10 % biofuels in the total transport fuel use by 2020. The new 10% minimum target in 2020 is combined with the existing regulation, which fixes the target at 5.75% in 2010. This paper will in particular investigates how a full implementation of the 20- 10-20 targets would affect production and trade of oil plants in the EU and its main trade partners on this commodity markets, particularly Malaysia and Indonesia. The global general equilibrium model GLOBE is used to carry out the policy scenarios and to assess the effects on oil palm plantation area in Malaysia and Indonesia. The results show that the increased EU bio-diesel target will not significantly influence the expansion of palm oil production in Indonesia and Malaysia.Crop Production/Industries, International Relations/Trade, Resource /Energy Economics and Policy,

Shocks in economic growth = shocking effects on agricultural markets?

Projections on the development of agricultural commodity markets underlie a given set of assumptions on economic growth. However, recent economic and financial crisis, as well as signs of quicker recovery in emerging economies, increase uncertainty in the forecasts of macroeconomic developments. This paper analyses the effects of different economic growth scenarios on agricultural commodity markets. In particular we assess the potential impacts of a faster economic growth in emerging economies on the one hand and of a replication of the recent economic downturn on the other hand. The empirical analysis uses the AGLINKCOSIMO model and builds upon the recently published European agricultural outlook of the EU Commission. The simulation results demonstrate that higher economic growth influences demand more than supply, resulting in higher world market prices. Emerging economies tend to import more and stock less in order to cover their demand needs, while the rest of the world increases its exports. In total the ending stocks decrease and combined with the increased consumption, the stock-to-use ratio decreases. Replication of an economic downturn affects the markets differently, depending on how elastic or inelastic the markets react to price signals. Livestock markets appear more stable and do not regain their baseline levels within a 5-year period. The magnitude of the effects is smaller the longer the simulated time path is and certainly depends on the introduced shock.economic growth, agricultural commodity markets, AGLINK-COSIMO, International Relations/Trade,

An integrated model platform for the economic assessment of agricultural policies in the European Union

A number of economic models have been applied to analyse the Common Agricultural Policy. The partial equilibrium models CAPRI, ESIM, AGLINK, AGMEMOD and CAPSIM and the general equilibrium models GLOBE and GTAP are currently integrated in a modelling platform for Agro-Economic Policy Analysis in the premises of the Joint Research Centre in Seville in close collaboration with Directorate- General for Agriculture and Rural Development. Each of the models included has a specific focus, enlarging the capacity for complex policy analysis within this platform. This can be done by comparing the results of different models or by linking them, where several methodological options are available. This paper gives some insights on current applications in the field of model integration for agricultural policy analysis.European Commission, Common Agricultural Policy, economic models, quantitative analysis, Agricultural and Food Policy, Research Methods/ Statistical Methods,

IN THE EYE OF THE BEHOLDER? OPPORTUNITIES AND CONSTRAINTS OF SCIENTIFIC POLICY ANALYSIS FOR AGRICULTURE

Agricultural and Food Policy,

Competitiveness in the Food Industry: a CGE Modelling Approach to assess Foreign Direct Investment in Transition Countries

For transition countries, the food industry sector is a key industry in terms of output and employment shares. As a competitive sector that receives substantial foreign direct investments (FDI), it plays an important role as an element in the process of integration in the European and world market. The GLOBE Computable General Equilibrium model is applied to analyse scenarios of alternative development pathways of the food industry sector, taking into account the impact of FDI in the European food industry. The scenario analyses of this study identify that with an enhanced attraction of FDI in the food processing industries in the New Member States (NMS) the integration of the agri-food sectors in the NMS into the Single European Market will become even stronger.Food industry, foreign direct investment, CGE, transition countries, Agribusiness, International Relations/Trade,

Food quality and safety situation in Turkey: governance and barriers to success

The institutional environment for food quality and safety in Turkey is rapidly changing in the last decade but there are still some inconsistencies compared with the EU. High costs of establishing quality assurance systems (QAS), inefficient capacity of the institutional frame, unknown consumer attitudes, low level of production techniques and lack of awareness of producers and consumers are important weaknesses, when evaluating the current food quality and safety situation in Turkey. Whereas, rapid development of QAS, increase in consumer demands, harmonisation of legislation with the EU, increase in the research and incentives for quality production, and production potentials were determined as strong points. When analysing the socio-economic situation of farms, producers’ knowledge, perception and interest in quality with Rapid Rural Appraisal (RRA), it is found that producers did not accumulate capital because of the low profits, a handicap for expanding and investing into production and product quality. Moreover, the producers' knowledge is limited and their quality perception mainly focuses on food safety. As a result, academic studies and research projects needs to be extended and the adaptation of the Turkish legislation with the EU should be completed accordingly.Food Quality Governance, SMEs Barrier for Food Quality, Food Quality Assurance, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety,

Shocks in economic growth = shocking effects for food security?

The recent economic and financial turmoil raises the question on how global economic growth affects agricultural commodity markets and, hence, food security. To address this question, this paper assesses the potential impacts of faster economic growth in developed and emerging economies on the one hand and a replication of the recent economic downturn on the other hand. The empirical analysis uses AGLINK-COSIMO, a recursive-dynamic, partial equilibrium, supply-demand model. Simulation results demonstrate that higher economic growth influences demand more than supply, resulting in higher world market prices for agricultural commodities. Emerging economies tend to import more and to stock less in order to cover their demand needs, while the rest of the world increases its exports. The modelled faster economic growth also helps developing countries to improve their trade balance, but does not necessarily give them the incentive to address domestic food security concerns by boosting domestic consumption. A replication of an economic downturn leads to lower world prices, and while the magnitude of the effects decreases over time, markets do not regain their baseline levels within a 5-year period. Due to the lower world market prices, developing countries import more and increase their per capita food calorie intake. However, as developing countries become more import dependent, this also implies that they become more vulnerable to disruptions in agricultural world markets.JRC.J.4-Agriculture and Life Sciences in the Econom

Agricultural bilateral trade agreements between South Africa and the European Union : implications for the South African fresh orange industry.

Thesis (Ph.D.)-University of Natal, Pietermaritzburg, 2000.During October 1999 South Africa and the European Union (EU) signed the "Agreement on Trade, Development and Co-operation". This agreement includes a Free Trade Agreement (FTA) which will lead to a free trade area between both partners. The framework for a FTA is set by the World Trade Organization (WTO). This study focuses on the effects of the FTA on the South African fresh orange industry. Fresh oranges account for approximately ten percent of South African agricultural exports. On the other hand, South Africa is the second largest external supplier to the EU and dominates the EU off-season. Fresh oranges are only included in the FTA from June until September and tariffs are reduced by approximately three percent in this time which is the peak South African export season. A trade simulation model was developed using the programme STELLA to analyse the effects of the FTA on the South African fresh orange industry. The trade simulation model consists of seven sub-models for production according to region and cultivar; a local market model, an export market model and an exchange rate model. The production models run on an annual basis whereas the other sub-models run on a monthly basis to capture the seasonality in fresh orange trade. The simulation period lasts from 1997 until 2011, hence fifteen years. The production models use gross margins according to the age of the orchard. The annual production is divided into monthly production on the basis of industry information. The South African demand function in the local market model uses the consumption per person, the export price and trend as independent variables. A trend variable is included to cater for the change in consumer preferences, especially, the move from oranges towards easy-peelers. On the EU market, prices are seen as external variables, except for the months July until October when the South African market share exceeds 50 percent. During these months an import demand flexibility is derived on the basis of the South African market share. The exchange rate model derives from the purchasing power parity between the South African Rand and the Euro. Simulation model results indicate that the FTA is beneficial for South African producers while South African consumers may also benefit. Further producers are expected to benefit from a slight increase in real free-on-board prices and a slight increase in total production. South African consumers are expected to benefit from a simulated decrease in real local prices due to the predicted increase in production. The effects on the EU market are simulated to be even smaller. A slight increase in EU prices is simulated during South Africa's peak export season which is the EU off-season. Results for regional production areas in South Africa show that during the simulation period the area under Valencias increases strongly whereas the area under Navels decreases. A comparison with a scenario without any EU tariffs was carried out to estimate the total distortion effect of EU protection on the South African market. Both South African consumers and producers benefit in the scenario without EU tariffs. The results of the simulation indicate that the total effect of EU tariffs is relatively small. Predicted total South African orange production increases by 14.8 percent over the simulation period compared to 9.1 percent in the scenario without any preferential treatment. The difference in other results is even smaller. The FTA reverts only parts of the distortion effect of EU protection. There are still some further possibilities to reduce the effects of EU protection on the South African fresh orange industry

Food Quality Assurance Schemes in Turkey

In 2008 and 2009, JRC-IPTS cooperated with Akdeniz University (UNIAKD) to analyse food quality assurance schemes in Turkey. The governance structure of food quality assurance in Turkey is explained, which includes public, semi-public and private institutes, laws and legislations, policies and research. Lack of consumer and producer quality awareness is determined as the main problem by SWOT and Logical Framework Matrix (LFM) studies. A Rapid Rural Appraisal (RRA) study was conducted by interviewing local stakeholders. Turkish producers' knowledge is limited and their quality perception focuses mainly on food safety. There are barriers in exports due to quality that reduce the Turkish share in world food markets. The study concludes with several recommendations on how problems in Turkish food quality assurance schemes could be effectively overcome.JRC.DDG.J.5-Agriculture and Life Sciences in the Econom