Small Farms in the EU: How Small is Small?

This paper discusses and explores different approaches to the definition of small in relation to farms in the EU. It focuses on distributions of farms using different size criteria, making comparisons of the extent to which one criterion maps onto another. Differences in farm structure that exist between and within both the established and new Member States make it particularly difficult to determine a unique definition of smallness, suggesting perhaps the use of a relative rather than absolute measure of size.small farms, European Union, farm size, subsistence, Consumer/Household Economics,

Structural Change and Distribution of Support in Hungarian Agriculture following EU Accession: A Preliminary FADN Analysis

This paper, whilst preliminary and descriptive, highlights some significant changes in the structure of the Hungarian national farm around the time of EU accession, based on an examination of farm-level data. Between 2002 and 2005 gross value of total production changes little, but direct agricultural subsidies nearly double. There is a marked shift in favour of arable farming, which affects both private farms and economic organisations. Arable farms increase their share of total subsidies by 20 percentage points over the three years, at the expense of most animal and mixed farms. Overall, the distribution of subsidies, whilst highly unequal, is slightly less unequal in 2005.Agricultural and Food Policy,

Distributional Impacts of Food Price Changes on Consumer Welfare in Hungary and Romania following EU Accession

This paper focuses on the estimation of changes in economic welfare (real income) on different groups (income deciles) of Hungarian and Romanian consumers following food price changes as a result of accession to the European Union (EU) in 2004 and 2007. It identifies in both countries those consumer groups most vulnerable to food price changes using the most recent, official, post accession data. Slutsky Compensating Variation, based on Laspeyres indexes is employed for a food basket of 16 products. The results show that real food prices have changed with some going up and others falling. However, overall both Hungary and Romania have experienced a rise in real food prices by 9 per cent and 20 per cent, respectively. The rise in food prices has resulted in a welfare loss for all income deciles, particularly for those in the lower income groups. Although, in absolute terms, Romanian food consumers seem to be more affected (the decrease in their real income varies between 4 per cent for decile 10 and 12 per cent for decile 1) than Hungarian consumers (0.4 per cent for decile 10 and 2.2 per cent for decile 1), the distribution of the impact is higher in Hungary, a five-fold difference between decile 1 and decile 10 as opposed to a three-fold difference in Romania. This paper focuses on the estimation of changes in economic welfare (real income) on different groups (income deciles) of Hungarian and Romanian consumers following food price changes as a result of accession to the European Union (EU) in 2004 and 2007. It identifies in both countries those consumer groups most vulnerable to food price changes using the most recent, official, post accession data. Slutsky Compensating Variation, based on Laspeyres indexes is employed for a food basket of 16 products. The results show that real food prices have changed with some going up and others falling. However, overall both Hungary and Romania have experienced a rise in real food prices by 9 per cent and 20 per cent, respectively. The rise in food prices has resulted in a welfare loss for all income deciles, particularly for those in the lower income groups. Although, in absolute terms, Romanian food consumers seem to be more affected (the decrease in their real income varies between 4 per cent for decile 10 and 12 per cent for decile 1) than Hungarian consumers (0.4 per cent for decile 10 and 2.2 per cent for decile 1), the distribution of the impact is higher in Hungary, a five-fold difference between decile 1 and decile 10 as opposed to a three-fold difference in Romania.prices, consumers, welfare, Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Labor and Human Capital,

THE IMPACTS OF DIRECT PAYMENTS ON ROMANIAN FARM INCOME: WHO BENEFITS FROM THE CAP?

Using the most recent available data, this paper assesses who is likely to benefit, in the short-term, from the implementation of the CAP in Romania. Particularly, it focuses on the distributional impacts of the new form of agricultural subsidies under the CAP, i.e. SAPS and CNDP, identifying the main gainers and losers. Preliminary results reveal a highly uneven distribution of subsidies across farms, with the very large-scale ones, particularly those specialised in so-called “energy” crops, benefiting most from the flat rate direct aid. As a result, the existing gap between Romanian low-income and high-income farms will become larger, with those most vulnerable hardly benefiting from the introduction of (national and EU) direct payments.CAP, Single Area Payment Scheme, farm structure, Romania, Agricultural and Food Policy, Q18,

The folly of EU policy transfer: why the CAP does not fit Central and Eastern Europe (new revised title)

This paper assesses the appropriateness of the EU’s CAP for meeting rural development challenges in the New Member States (NMS). It argues that while the mitigation of structural problems confronting rural areas in these countries is critical to meeting the challenge of effectively integrating Central and Eastern Europe (CEE) into the EU, the CAP is poorly suited for four key reasons: (i) lack of convergence between the socio-economic conditions of rural areas in the NMS and EU15; (ii) differences in farm structures in terms of both size and organisational type; (iii) an inappropriate balance of resources between Pillars I and II; and (iv) inadequate capacity to implement rural development measures in NMS. Overall, the CAP was insufficiently reformed and represents a failure to adequately adjust from an exclusively western European institution into an appropriate pan-European organisation

A Structural Equation Model of the Factors Influencing British Consumers’ Behaviour towards Animal Welfare

Results of national and pan-European consumer surveys and the growth in the demand for so-called “animal friendly” food products suggest that consumers within the European Union show a high level of concern for the welfare of farm animals. This paper analyses the determinants of British consumers’ behaviour towards animal welfare using structural equation models (SEM) with observed and latent variables. SEM is a statistical technique for testing and estimating relationships amongst variables, using a combination of statistical data and qualitative causal assumptions. We used a data set collected in 2005 through face-to-face interviews of 654 consumers in England. We analysed the range of statements in existing literature on consumers’ behaviour towards animal welfare and then used SEM to test and estimate these a priori determinants of behaviour. The models include observed and latent variables representing behaviour (stated purchases of free-range and organic chicken meat) and its underlying determinants (attitudes towards animal welfare and socio-economic factors). The models have an adequate overall fit to the data. The significance tests for the structural equation model on free-range chicken meat purchasing behaviour show socioeconomic group, education, attitudes towards animal welfare, reasons for buying chicken meat, access to information on animal welfare issues, number of children and price as significant determinants. All of these (with the exception of reasons for buying chicken meat) were found significant also in the model on organic chicken meat purchasing behaviour.animal welfare, consumers’ behaviour, structural equation models., Agricultural and Food Policy,

Romanian farm support: has European Union membership made a difference?

This paper provides an insight into the major policy measures that influenced Romanian agriculture before and after the country’s accession to the European Union (EU) in January 2007. It analyses the volume and composition of national and EU agricultural financial support between 2002 and 2012, and assesses how much has been transferred between agricultural farm support (Pillar 1) and rural development (Pillar 2). The findings show that, as membership drew near, Romania increased its efforts to provide farm support. The level of support has continued to rise (in nominal terms) year on year, from EUR 242 million in 2002 to almost EUR 600 million in 2005. By 2007, over EUR 1 billion (10 per cent of the Gross Value Added of the sector) was allocated to agriculture. Moreover, preparation for accession meant also significant changes in the structure of subsidies. This was redesigned so to emulate the Common Agricultural Policy, shifting the emphasis of support on to direct farm income. Overall, Romanian agriculture benefited from EUR 16.4 billion in subsidies between 2002 and 2012, of which almost half (EUR 7.8 billion) came from the EU. With accession, the share of EU financial support has increased, particularly in the form of direct payments, whilst the national contribution has decreased. However, the latter remains much higher than prior to accession. Of EUR 13.6 billion allocated for agriculture following EU accession (2007-2012), 46 per cent was funded from the national budget. Overall, there is a rather limited volume of investment subsidies, as compared to production and income support, which may partially explain the low economic performance of the sector. EU membership has not necessarily led to farm consolidation and a gradual disappearance of small-scale (semi-subsistence) farms, which remain a dominant characteristic of Romanian agriculture

Consumer acceptance of and willingness to pay for food nanotechnology: a systematic review

Consumer’s attitudes to, and acceptance of, emerging technologies and their applications, are important determinants of their successful implementation and commercialisation. Understanding the range of socio-psychological, cultural and affective factors which may influence consumer responses to applications of nanotechnology will help “fine-tune” the development of consumer products in line with their expectations and preferences. This is particularly true of applications in the food area, where consumer concerns about technologies applied to food production may be elevated. This research applied systematic review methodology to synthesise current knowledge regarding societal acceptance or rejection of nanotechnology applied to agri-food production. The objective was to aggregate knowledge derived from different research areas to gain an overall picture of consumer responses to nanotechnology applied to food production. Relevant electronic databases of peer-reviewed literature were searched from the earliest date available, for peer-reviewed papers which reported primary empirical data on consumer and expert acceptance of agri-food nanotechnology, using a formal systematic review protocol. Inclusion criteria for papers to be included in the review were: empirical peer-reviewed papers written in English; a population sample of adults aged 18 years and over used in the research; a research focus on consumer and expert acceptance of agri-food nanotechnology; and research on attitudes towards, and willingness to pay for, different applications of agri-food nanotechnology. Two researchers independently appraised the papers using NVivo 10 QSR software. Studies examining consumer and expert acceptance were thematically analysed, and key information was collated. The results were synthesised in order to identify trends in information relevant to consumer acceptance of nanotechnology applied to food production. Eight key themes were identified from the 32 papers which were extracted from the literature. These themes were applied to understand the determinants of consumer acceptance of agri-food nanotechnology. Nanotechnology is more likely to be accepted by consumers when applied to development of novel packaging with distinct benefits rather than when integrated directly into agri-food products. Trust and confidence in agri-food nanotechnology and its governance need to be fostered through transparent regulation and development of societally beneficial impacts to increase consumer acceptance. ELECTRONIC SUPPLEMENTARY MATERIAL: The online version of this article (doi:10.1007/s11051-015-3270-4) contains supplementary material, which is available to authorised users

The COVID-19 Pandemic and Its Implications for Rural Economies

This paper presents a rapid assessment of current and likely future impacts of the COVID-19 outbreak on rural economies given their socio-economic characteristics. Drawing principally on current evidence for the UK, as well as lessons from the 2001 Foot and Mouth Disease outbreak and the 2007/8 financial crises, it outlines the likely key demand and supply effects, paying attention to the situation for agriculture as well as discussing the implications for rural communities. A distinction is made between the effects on businesses offering goods and services for out-of-home as opposed to in-home consumption. Gendered dimensions are also noted as likely business and household strategies for coping and adaptation. The paper concludes with a brief mapping of a research agenda for studying the longer-term effects of COVID-19 on rural economies

Report on findings on transportation and logistics of selected food value chains:Salmon to fillet case study

• Transportation has significant impact on food costs and the environment. It is a major contributor to carbon emissions, accounting for almost a quarter of the CO2 emissions in the EU, of which 30% is attributed to the food sector. • This deliverable addresses the modelling of food chains’ transportation and logistics. It develops a robust model for policy support, which is applied to a specific case as a worked example. The approach can be used to model the transport and logistics of other food supply chains, given data availability. • The mathematical modelling aims to optimise the cost and effectiveness of logistics operations. It also allows for the integration and consideration of environmental aspects within transportation, processing and distribution operations. • Specifically, the deliverable focuses on the development of a logistics mathematical model using Atlantic salmon as an exemplary example of a globally integrated food supply chain. A Norwegian salmon exporter was engaged to supply data for validating the mathematical model. • The model follows a multi-objective optimization approach that captures the trade-off between total logistics cost and the environment. It has two objectives. Firstly, to minimize total costs associated with transportation, fuel consumption, inventory holding, processing and residuals/waste. Secondly, to reduce CO2 emissions incurred by production at plants, transportation from suppliers to plants, and transportation from plants to customers. • Constraints related to supply, processing capacity, storage capacity, demand, carbon emissions, inventory balancing, transportation capacity, and different modes of transportation between different types of plants and facilities are also consider within the model. • Model development, validation and policy recommendation occurred in four stages: (i) mapping supply chain linkages and product flows, (ii) designing the mathematical model, (iii) data collection for parameters of the model and (iv) model validation and deriving policy recommendation. • Before modeling, consultation with salmon supply chain actors occurred as a first step to map the supply chain linkages. This involved expert interviews with VALUMICS partners. • Based on the mapping of the supply chain, a mathematical model was developed. However, given the complexity of the supply chain and the limited information that can be drawn from a single company which completely covers both the supply and the demand ends of the value chains, the model was divided into two stages (Model N1 and N2) • First it optimises the supply chain network from salmon farms, abattoirs, primary processing plants, secondary processing plants and wholesalers so to meet the demand of the Secondary Processing Plants and Wholesalers for Fresh HOG (Head-on-Gutted) product (Model N1) (farm to wholesaler). • Second, it addresses the supply chain from the secondary processing plants and wholesalers to retailers. The secondary processing plants process HOG into whole fillet, salmon by-products and some residual amount so to meet the demand of retailers (Model N2) (wholesaler to retailer). • An additional model (Model M) allows for the optimisation of the overall supply chain network where, for example, a Company X tries to meet the demand of retailers in different time periods (farm to retailer). • A transportation scenario analysis was also conducted by considering options for various maritime transportation routes from primary processing plant to secondary processing and primary processing plant to various wholesalers. • The results from the three models highlight that it is essential for any company to optimise the overall supply chain network system (from salmon farms to retailers), as the total cost for model M is relatively much lower than the combined total cost of N1 and N2. • Each model also shows that the supply chain network is sensitive to fuel cost and consequently, fuel consumption and distances between actors across the supply chain. • Environmental impact is generally measured by fuel consumption during operations and in the case of food chain, transportation and distribution are important contributors via the use of fuel-based vehicles, sea vessels and/or airplanes. • The scenarios analysis highlights the importance of adopting maritime transportation routes in terms of significantly reducing the total cost, fuel cost and overall carbon emission. Hence shifting certain logistics operations from road to maritime transportation from the perspective of economic and environmental benefits are advocated. • For short to medium distances (vans, trucks, rails and sea vessels) that covers transportation trips to reach airport hubs and big cities, lowering CO2 emissions depends on the emissions ratio (the relative emissions impact of delivery vehicle when compared to personal vehicle – mostly applied in urban logistics) and customer density. • For long distance transport (air), environmental improvement can be mainly achieved through technological development and this has been well supported by research dedicated specifically to address EU aviation industry challenges. • The models are developed for a planning horizon consisting of discrete time periods, aiding the possibility of studying demand and supply uncertainty and its consequences in supply chain decision making. Hence, they help decision makers to identify the changes in a supply chain network when different transportation routes are adopted (for example whether maritime routes can be adopted or not in place of road/rail transportation, to address environmental concerns related to fuel consumption and carbon emissions). • The models are valuable for policy makers in terms of understanding the costs and emissions associated with different food supply chains, as well as the effects of particular policy interventions and market developments (e.g. variation in demand, fuel costs, emission and waste constraints). • They can aid supply chain managers to make decisions regarding the amountof inventory to be kept in different time periods.Aditjandra, P., De, A., M., Gorton, M., Hubbard, C., Pang, G., Mehta, S., Thakur, M., Richardson, M., Bogasson, S., Olafsdottir, G. (2019) Report on findings on transportation and logistics of selected food value chains. VALUMICS "Understanding Food Value Chains and Network Dynamics", funded by European Union's Horizon 2020 research and innovation programme GA No 727243. Deliverable: D7.1, Newcastle University, UK, 94 page