From research to farm : ex ante evaluation of strategic deworming in pig finishing

This paper upgrades generic and partial information from parasitological research for farm-specific decision support, using two methods from managerial sciences: partial budgeting and frontier analysis. The analysis focuses on strategic deworming in pig finishing and assesses both effects on economic performance and nutrient efficiency. The application of partial budgeting and frontier analysis is based on a production-theoretical system analysis which is necessary to integrate parasitological research results to assess aggregate economic and environmental impacts. Results show that both statistically significant and insignificant parasitological research results have to be taken into account. Partial budgeting and frontier analysis appear to be complementary methods: partial budgeting yields more discriminatory and communicative results, while frontier methods provide additional diagnostics through exploring optimization possibilities and economic-environmental trade-offs. Strategic deworming results in a win-win effect on economic and environmental performances. Gross margin increases with 3 to 12 € per average present finisher per year, depending on the cyclic pig price conditions. The impact on the nutrient balance ranges from +0.2 to –0.5 kg nitrogen per average present finisher per year. The observed efficiency improvements are mainly technical and further economic and environmental optimizations can be achieved through input re-allocation. A user-friendly spreadsheet is provided to translate the generic experimental information to farm-specific conditions

Linkage between World and Domestic Prices of Rice under the regime of Agricultural Trade Liberalization in Bangladesh

The paper examines the relationship between the world market and domestic market prices of rice for Bangladesh in the regime of agricultural trade liberalization. The long run price relationship information is an important piece of information for the policy makers in formulating domestic polices and negotiating trade policies at the international level. The monthly data used for this study are taken from different sources, the Food outlook, FAO and Global Information and Early Warning System, FAO and the Bangladesh Bank for the period June 1998 to July 2007. Both Engle-Granger bi-variate and Johansen multivariate cointegration tests were used for the results sensitivity. We sequentially proceed to estimate the standard error correction model. The results showed that there is a long run equilibrium relationship between the world and the domestic prices and the relationship is uni-directional, meaning that, the domestic prices adjust to the world prices but not vice-versa. So the policy to ensure food security (via food price stability and price risk management) should be carefully designed as the movement of the world market price is higher and distorted and many consumers depend on the markets for their food, especially in the case of Bangladesh.Market integration, Domestic price, World price, Error correction model, Marketing,

Testing Asymmetric Price Transmission in the Vertical Supply Chain in De-regulated Rice Markets in Bangladesh

Market liberalization at the domestic level and at the boarder level has been a dominant feature of market reforms in most developing countries including Bangladesh during the last two decades. A pre-requisite for producers and consumers to benefit from this new and changing market environment is the ability of market to function efficiently at their spatial or through the value chain dimensions which are very often constrained by different factors. The vertical integration of grain markets plays a crucial role in improving the welfare of the producers and the consumers. Therefore, the better the market integration, the lesser the intervention required by the government. There was a widely-held belief about the domestic markets in Bangladesh on possible manipulation in the agricultural markets as well as concerns about the sources of asymmetry. In the domestic markets, a price increase passes very quickly though the supply chain compared to a price decrease. As a result, perception by consumers and the government exists that at least the market is being manipulated, raising food prices unfairly, at the expenses of the poor households who are net buyers and for whom food is a major expenditure share (about 40-50 percent). Examining, the market functioning at the vertical level in developing countries is of importance to evaluate how the private traders delivering to the market. That is why it is important to identify what kind of policy can be introduced and at what level of the marketing chain to correct the market inefficiency, if needed. The vertical price leadership at the wholesale level to the retail in the marketing literature is inferred but not empirically verified. Therefore, this paper is an attempt to fill up this gap. It first examines the price transmission between the wholesale and retail level of the rice market in Bangladesh in the regime of the changing market environment. Secondly, it examines whether the wholesale market dominates the retail one. Thirdly, it analyzes whether the price relationship is symmetric with respect to price increases and price decreases. The paper uses the average wholesale and retail price of rice for Bangladesh. The monthly price data used for this study are taken from FAO and different published series of Statistical Yearbook and the Economic Trend. The data period cover from February 2002 to June, 2007. From our unit root test, we find that the level data contain one unit root but are stationary at their first differences. Both Engel-Granger (1987) bi-variate and Johansen (1990)multivariate cointegration tests were applied to determine a linear combination which is stationary. Then the existence of long run causality was tested within the framework of Johansen cointegration by standard Wald test. To test the asymmetric transmission in the prices we used the asymmetric ECM-EG approach. The results show that the wholesale and retail prices are integrated, and in the line of the industrial organization theory, the wholesale price plays a leadership role to determine the retail prices. Results also confirm that the consumer and public concern about the asymmetric price transmission holds true.agricultural economics, agricultural marketing, Agribusiness, Agricultural and Food Policy, Demand and Price Analysis, Marketing,

Impact of trade liberalization and world prize changes in Bangladesh : a computable general equilibrium analysis

The paper analyzes the impact of trade liberalization and changes in world prices of agricultural commodities in Bangladesh using single country CGE model. Since the agricultural sector is sensitive to overall employment, household welfare and food security, the analysis focuses on the changes in agricultural production, consumption, household income and welfare. The results show that trade liberalization increases the welfare of all household groups while world market price increases decrease welfare. It means that although trade liberalization generates a welfare increase for households but this is dependent on the relative level of world commodity prices. Our results are based on the analysis of aggregate household groups, so it may be of future research interest to extend the model with more detailed household groups using a CGE-micro simulation approach

La Politique Agricole Commune

La Politique Agricole Commune (PAC) est l’objet de ce numéro spécial de Regards économiques. Deux articles y sont consacrés. Le premier propose une analyse des effets économiques probables de la réforme récente de la PAC sur l’agriculture belge. Quant au second, il se demande comment rendre la PAC plus juste et plus efficace. La PAC : Une analyse de la réforme récente Les autorités régionales belges doivent se prononcer sur les différentes options de réforme de la PAC proposées par l'accord européen de juin dernier. Cet article examine les effets économiques probables de ces options sur l'agriculture belge à l'aide de deux modèles économiques complémentaires. Ce numéro donne aussi des pistes de réflexion sur quelques questions préoccupantes liées à cet accord et à l'évolution de la PAC. La PAC : Pour la rendre plus juste et plus efficace La PAC est examinée par le biais de trois questions. D’abord, quelles justifications normatives peut-on apporter à un subside de l’activité agricole pour elle même ? Ensuite, qui sont les bénéficiaires ultimes de la PAC dans ses versions passées et présente ? Enfin, peut-on reformuler une PAC dont les effets objectifs répondraient aux critères normatifs énoncés plus haut ?

Creating spatial synergies around food in cities

This paper focusses on the phenomenon of multifunctional urban food initiatives (MUFIs) and how, using food as a vehicle, they provide integrative solutions for a number of social, environmental and economic problems in European cities. Through an in-depth investigation of three MUFIs in the UK, Latvia and Belgium, the paper aims to increase understanding on how different activities are combined within MUFIs, leading to the creation and strengthening of synergies: both internal, between the different activities performed within MUFIs, and external synergies between the MUFI and the (peri-) urban environment in which it operates. The three cases illustrate that the dense and complex urban environment in which they are situated provides possibilities to create a wide, diverse network around food, leading to a high potential for synergies to occur. In this way, MUFIs can respond to specific urban needs, which are not addressed by the state, and therefore have an important signalling function. For the MUFIs themselves, although being multifunctional increases opportunities, it is also a challenge to find the right balance between the different functions and not to lose sight of the economic side of the business. Local governments can support MUFIs by providing space for them, room to experiment, adapting regulations to get MUFIs out of the “grey zones” of legislation, and by starting to strategically think about food in their city region