Markets for non-Genetically Modified, Identity-Preserved soybean in the EU

This report is based on a study whose main objective was to collect information about the functioning of the EU markets for non-Genetically Modified (non-GM), Identity Preserved (IP) soybean and derived products. Data on volume of imports of non-GM soybean and soybean meal, on the use of those by EU Member States and by the different feed sub-sectors, as well as on prices, were collected from different sources. In addition, a survey to 360 operators in the soybean supply chain was conducted. Based on this study, we estimate that about 8.3% and 11.3% of the soybean and soybean meal imported by a group of 14 EU countries is segregated as non-GM. This represents about 2.7 million tonnes of soybean meal equivalent, mainly imported through the Netherlands, followed by Germany and France. However, the use of soybean meal for the production for non-GM IP compound feed is led by a different group of country that includes Germany, Hungary, France, the United-Kingdom, Sweden, Italy and Austria, by order of importance in absolute value. The demand for non-GM IP compound feed is driven by the poultry sector, followed by the cattle (for beef and dairy) and the pork sectors.JRC.J.4 - Agriculture and Life Sciences in the Econom

Proceedings of a workshop on "Markets for non-Genetically Modified Identity Preserved crops and derived products" organised by the JRC

The Institute for Prospective Technological Studies (IPTS) of the European Commission’s Joint Research Centre (JRC) is currently undertaking research activities in order to describe the current situation and functioning of the markets for non Genetically Modified Identity Preserved crops and derived products. For this purpose, JRC-IPTS organized an International Workshop on "Markets for non-GM Identity Preserved crops and derived products" in Seville on 21&22 June 2012. This workshop brought together key stakeholders in the supply chain, as well as leading scientists and experts active in the field of non-GM IP markets. This JRC Scientific and Policy Report provides the proceedings of the June 2012 workshop, that covered the following topics: Session 1: Situation and availability of non-GM Identity Preserved crops on world markets Session 2: Non-GM IP crops for the EU feed and livestock sector Session 3: EU demand for food products from non-GM IP crops and derived ingredients Session 4: Case studies of the use of non-GM IP crops or derived product for animal or biofuel productionJRC.J.4-Agriculture and Life Sciences in the Econom

Contribution to the economic impact assessment of policy options to regulate animal cloning for food production with an economic simulation model

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Contribution to the economic impact assessment of policy options to regulate animal cloning for food production with an economic simulation model

The EU is currently evaluating different policy options towards the use of cloning or products derived from cloned animals in the food chain. This study presents a first attempt to quantify the likely effects of different policy scenarios on international trade and EU domestic production. In the context of the Impact Asessment process the JRC was requested to simulate via a modelling study the economic impact of selected policy options. Based on a literature review and the specific constraints for this study, the choice was made to perform the analysis through the use of a computable general equilibrium model and focus on the dairy and beef sector . The different model scenarios are constructed based on combinations of the discussed policy options such as a ban or traceability and labelling requirements with the productivity increase associated with cloning. The results show that only the situation where trade with countries using the technique of cloning is suspended has an effect on competitiveness. This suspension could be due to express prohibitions or a de facto decision by exporters when traceability and labeling costs increase. Unde this scenario imports drop significantly which is followed by a slight increase in domestic production and prices, especially for beef and cattle.JRC.J.4-Agriculture and Life Sciences in the Econom

"International workshop on socio-economic impacts of genetically modified crops co-organised by JRC-IPTS and FAO"

This JRC Scientific and Technical report provides proceedings of the "International workshop on socio-economic impacts of genetically modified (GM) crops" which was co-organised by JRC-IPTS and FAO in Seville on 23-24 November 2011. JRC-IPTS has been requested to review for policy makers the main findings of scientists active in this field world-wide in co-operation with FAO. The objective of this workshop, which was directed at socio-economic experts from the Competent Authorities of the EU Member States and staff from the EC, was to start the technical discussions between the Member States and the Commission to define factors and indicators allowing a proper capture of the impacts of GMOs in the EU. The workshop covered the following topics: Session 1: Adoption of GM crop varieties and socio-economic impacts on farmers Session 2: Aggregated and global impacts of GM technology in agriculture Session 3: Economics of segregation/coexistence of supply chains Session 4: Socio economic impacts of GM crops: examples of use in decision-making Session 5: Economic compensation, liability issues and institutional framework influencing adoption of GM crops Session 6: Research on consumer attitudes, direct/indirect impacts of GM crops on consumers including health issues Session 7: Looking forward: New GM crops in the pipeline and their possible economic and social impactsJRC.J.4-Agriculture and Life Sciences in the Econom

An Analysis of Cocoa Market Fundamentals and Price Transmission in the Cocoa Value Chain

After two decades of substantial stagnation, with consequent complaints from producer countries, the international price of cocoa beans has suddenly started to dramatically rise, attracting interest on this commodity, that is a fundamental source of income for millions of smallholders around the world. The present paper offers a broad analysis of the cocoa sector, divided into two main components: an investigation of the cocoa market fundamentals and an assessment of the price transmission inside the cocoa value chain. Both analyses rely on a Vector Error Correction Model, with yearly data (1961-2022) for the evaluation of market fundamentals and monthly data (January 1996- July 2024) for the price transmission investigation. An analysis of structural breaks is conducted in both cases. While the yearly market analysis, that combines prices and quantities, does not present structural breaks except for the price of cocoa beans, all residuals and predicted cointegrated equations of the price transmission analysis show a structural break

Sustainable practices in cocoa production. The role of certification schemes and farmer cooperatives

Many small-scale cocoa producers in Côte d’Ivoire and Ghana grow cocoa on unshaded or low-shaded cocoa plots. This has dire consequences for farm biodiversity, resulting in lower species richness and depleted soils. To measure the extent of sustainable agricultural practices’ use in the cocoa sector, we develop a scale that incorporates dimensions of agroforestry, soil conservation, pest and disease management and farm sanitation. We use a representative data set of more than 1700 cocoa producers in Côte d’Ivoire and Ghana to assess farmer participation in different organizational structures and market channels and their roles in promoting sustainable practices. We apply a multinomial endogenous switching regression model to control for potential selection bias and derive the average treatment effect of the treated (ATT) and the untreated (ATU) for three participation options: 1) certification scheme only, 2) farmer cooperative only and 3) both. In Côte d’Ivoire, econometric results show that joint participation in both a certification scheme and a farmer cooperative leads to a significantly higher sustainability score than alternative options. In comparison, certification scheme membership shows the highest effect in Ghana. Different findings may be explained by differences in the organization of the cocoa value chain across the two countries. Governmental extension services in Ghana provide support to cocoa farmers, which otherwise farmer cooperatives would potentially offer.JRC.D.4 - Economics of the Food Syste

Impacts of the Cocoa Living Income Differential Policy in Ghana and Côte d’Ivoire

Poverty continues to be a widespread issue among cocoa farmers while chocolate consumers become increasingly sensitive for the sustainability issues associated with the supply chain. The poverty issue is often attributed to the low prices of cocoa and the unequal distribution of profit margins across the chocolate value chain, at least partially. Poverty, in turn, is considered to be the root of further sustainability issues. To raise the value share and price accruing to their farmers by leveraging their collective market power, the two biggest cocoa producing countries Côte d’Ivoire and Ghana jointly announced in 2019 the cocoa Living Income Differential (LID) policy. The question is to what extent and under which circumstances could the policy reach this goal in the long run, considering the numerous unknowns around the details of the policy and market actors’ reactions, and how sustainable it is. To analyse this question, we implement a global multi-regional partial equilibrium model of the world cocoa market to simulate scenarios accounting for alternative assumptions about these unknowns. The study shows that the LID’s effects on prices and welfare of cocoa farmers in the two countries range from none to substantially positive, varying in magnitude with the scenarios. But it also highlights that the farmgate price target, which is reached in Ghana under most scenarios, is reached in Côte d’Ivoire only with additional supply management measures. The two countries’ government budgets and cocoa farmers in other countries lose out substantially in many cases, what is identified, among other issues, as potential threats to the sustainability of the policy that require attention. Evaluated in light of past attempts by governments and other actors to raise farmer welfare in the cocoa but also other agricultural sectors, one policy alternative stands out, although coming with its own challenges.JRC.D.4 - Economics of Agricultur

The EU-Wide Individual Farm Model for Common Agricultural Policy Analysis (IFM-CAP v.2)

This report presents the second version of the EU-wide individual farm level model (IFM-CAP) which aims to assess the impacts of the CAP post-2020 reform on farm economics and environmental effects. The rationale for such a farm-level model is based on the increasing demand for a micro simulation tool capable to model farm-specific policies and to capture farm heterogeneity across the EU in terms of policy representation and impacts. Based on Positive Mathematical Programming, IFM-CAP seeks to improve the quality of policy assessment upon existing aggregate and aggregated farm-group models and to provide assessment of distributional effects over the EU farm population. To guarantee the highest representativeness of the EU agricultural sector, the model is applied to every EU-FADN (Farm Accountancy Data Network) individual farm (83292 farms). The report provides a detailed description the IFM-CAP model (IFM-CAP V.2) in terms of design, mathematical structure, data preparation, modelling livestock activities, allocation of input costs, modelling of the current CAP setting (2013-2020) and calibration process. The theoretical background, the technical specification and the outputs that can be generated from this model are also briefly presented and discussed.JRC.D.4 - Economics of Agricultur

Modelling farm-household livelihoods in developing economies

This report presents the FSSIM-Dev (Farming System Simulator for Developing Countries) model, which is one of the decision-making tools developed by the JRC to provide independent evidence-based policy analysis in the areas of food and nutrition security and sustainable agriculture, specifically in sub-Saharan Africa. It aims to stimulate dialogue between scientists and policymakers, and to challenge them in better addressing the question of the ‘last mile’ between research results and concrete decision-making. FSSIM-Dev is a farm household model used to ex ante assess the impacts of agri-food policies and technological innovations on food security and rural poverty alleviation, in the specific context of low-income/developing countries. It aims to inform policymakers on how changes in prices, technology, food and agricultural policies might affect the viability, poverty and food security of heterogeneous sets of farm households that characterize the agricultural sector, which types of farm households will be most affected, where these most-affected farms are located, etc. The report provides a detailed description of the FSSIM-Dev model in terms of design, mathematical structure, data preparation, calibration process, and modelling of household (market) decisions. The rationale, theoretical background, technical specification and main indicators that can be generated from this model are also presented and discussed. The report also presents a comprehensive summary of results from the application of FSSIM-Dev to three countries: Ethiopia, Niger and Tanzania. Data from the World Bank Living Standards Measurement Study – Integrated Surveys on Agriculture (LSMS–ISA) ( ), which provide a national representative survey of the rural population with a focus on the farming sector, were used in these three country case studies.JRC.D.4-Economics of Agricultur