Matthews drivers of agricultural policy change calabria june 2016

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CHALLENGES TO AGRICULTURAL POLICIES IN DEVELOPED COUNTRIES Alan Matthews [email protected] Trinity College Dublin, Ireland Conference in honor of GIOVANNI ANANIA " Challenges to agricultural policies and implications for national and local agri-food sectors" 15 July 2016, Rende (CS), Italy 1

Transcript of Matthews drivers of agricultural policy change calabria june 2016

Page 1: Matthews drivers of agricultural policy change calabria june 2016

CHALLENGES TO AGRICULTURAL POLICIESIN DEVELOPED COUNTRIESAlan [email protected] College Dublin, Ireland

Conference in honor of GIOVANNI ANANIA" Challenges to agricultural policies and implications for national and local agri-food sectors"15 July 2016, Rende (CS), Italy

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The economic environment• Market trends• Trade policies• Food chain structure and bargaining issues

The resource environment• Land and water availability• Natural resource depletion (soil, biodiversity, ecosystem services)• Climate adaptation and mitigation• Labour

The regulatory environment• Biosecurity and spread of new pests and diseases• Preventing negative environmental effects• Meeting consumer demand for quality and risk protection

Implications for agricultural policy• Competitiveness and innovation• Addressing volatility• Promoting sustainable agriculture• Future of income support?

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• Prices to remain overall flat, but to change in relative terms

• Relative price changes reflect adjustments in the composition of demand and differences in supply conditions

• Is this a “new normal”?

Market fundamentals point to flat real prices

1995

1998

2001

2004

2007

2010

2013

2016

2019

2022

2025

0100200300400500600700800

-500

500

1500

2500

3500

4500

5500

Wheat Rice Soybean WMPBeef and Veal

USD/T (Crops)

USD/T (Meat & Dairy)

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Changing patterns of global agricultural trade

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Levels of support to producers in OECD and emerging economies are converging

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0

5

10

15

20

25

30

35

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1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

%

Grand Total OECD 9 emerging economies

Support to farms as percentage of gross farm receipts

Source: OECD (2016), "Producer and Consumer Support Estimates", OECD Agriculture statistics (database), http://dx.doi.org/10.1787/agr-pcse-data-en.

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Changing landscape of agricultural support

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1995-1997 2013-2015

Source: OECD PSE database Million euro

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The resource environment

Improving resource efficiency

• Soil health and fertility• Nutrient recovery and

recycling• Water use efficiency• Generational renewal and

farm labour

Climate adaptation and mitigation

• Greater exposure to extreme events

• Changes in growing conditions• Opportunities in bioenergy and

carbon sequestration• Mitigation challenges in the

face of COP21 targets

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The regulatory environment

Animal and plant health

• Spread of transboundary pests and disease

• Anti-microbial resistance

Managing biodiversity and ecosystem services

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• Preventing negative spillovers

• Protecting habitats• Promoting ecosystem

services

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The regulatory environmentConsumer protection, information,

diets and health

• Public health (food safety, air quality, pesticide regulation)

• GMOs/novel foods• Voluntary quality standards

(e.g. organic, supermarkets)• Dietary guidelines

Circular economy

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• Reducing food waste• Opportunities in

bioeconomy

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Implications for agricultural policy• Agricultural policies in an open, globalised

economy

• Targeted vs generalised policies

• Ensuring resilience to shocks

• Providing the right signals for sustainable agriculture and improved environmental performance

• Farm structure and transfer issues

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