Diversification economies and specialisation efficiencies in a mixed food and coffee smallholder farming system in Papua New Guinea

Smallholder farming systems in Papua New Guinea are characterised by an integrated set of cash cropping and subsistence food cropping activities. In the Highlands provinces, the subsistence food crop sub-system is dominated by sweet potato production. Coffee dominates the cash cropping sub-system, but a limited number of food crops are also grown for cash sale. The dynamics between sub-systems can influence the scope for complementarity between, and technical efficiency of, their operations, especially in light of the seasonality of demand for household labour and management inputs within the farming system. A crucial element of these dynamic processes is diversification into commercial agricultural production, which can influence factor productivity and the efficiency of crop production where smallholders maintain a strong production base in subsistence foods.
In this study we use survey data from households engaged in coffee and food crop production in the Benabena district of Eastern Highlands Province to derive technical efficiency indices for each household over two years. A stochastic input distance function approach is used to establish whether diversification economies exist and whether specialisation in coffee, subsistence food or cash food production significantly influences technical efficiency on the sampled smallholdings.
Diversification economies are weakly evident between subsistence food production and both coffee and cash food production, but diseconomies of diversification are discerned between coffee and cash food production. A number of factors are tested for their effects on technical efficiency. Significant technical efficiency gains are made from diversification among broad cropping enterprises.     

Understanding the resource curse (or blessing) across national and regional scales: Theory,empirical challenges and an application

The relationship between resource extraction activity and economic growth has been widely studied in the literature, and the resource curse hypotheses emerged as a theory to explain the effects of resource windfalls on national economies. However, within countries, resource booms and busts can have distinctive effects across local economies, as extractive regions face particular economic consequences unlikely to be observed in nonresource regions. Empirically, most studies analysing the resource curse have relied on cross‐country models to estimate effects and inform policy; however, the use of regional – within‐country – analysis has gained attention from scholars lately, promoted by two advantages: it avoids unobserved country heterogeneities confounding economic outcomes caused by resources and exploits the subnational quasi‐natural experimental conditions generated by endowments. This paper contributes to the resource curse literature by discussing its theoretical causes across scale (regional vs. national effects) and highlighting the empirical challenges involved in the analysis of mining economic impacts across regions. We complement the discussions by econometrically modelling economic growth across nonmetropolitan substate regions of Australia during a period of resource windfalls, finding that in most cases, resources have been a blessing for local economies, although negative effects have also been experienced in parts of the country.     

Estimating product‐specific and multiproduct economies of scale with data envelopment analysis

Nonparametric cost frontier estimation and subsequent analysis of the relative efficiency of firms has historically been conducted without critically examining the shape of the cost frontier. The shape of the cost frontier has been examined using additional parametric estimation methods to recover potential cost savings from multiproduct and product‐specific economies of scale. This paper presents and tests an approach to estimate multiproduct and product‐specific economies of scale using data envelopment analysis. Data for the study are simulated assuming an underlying production technology. Nonparametric estimates of efficiency, multiproduct scale, product specific scale, and scope economies are compared to those of the assumed production technology. Results show that the nonparametric approach accurately estimates multiproduct economies of scale and product‐specific economies of scale under alternative inefficiency distributional assumptions.     

Community Attributes Influencing Local Food Processing Growth in the U.S. Corn Belt

This paper examines local and regional attributes associated with growth in the food processing industry. The paper uses industrial location studies to develop a model of food processing plants'growth. Ordinary least squares (OLS) models are estimated to analyze which local, regional and state attributes are associated with county level growth, measured by a change in the number of establishments. The results suggest that food processing growth is associated with factors similar to those influencing the location of footloose manufacturing plants. However, growth in food processing sectors is associated with different local attributes depending on a firm's industry type (demand-oriented, supply-oriented, footloose).     

Sugar‐Cane and Oil Palm Expansion in Guatemala and its Consequences for the Regional Economy

Corporate‐owned sugar‐cane and oil palm plantations in Guatemala are expanding at the expense of smallholder agriculture. Land control grabs are not only having consequences for local communities and ecosystems, but also for regional economies. The present study compares the value chains of smallholder products with those of sugar and palm oil. Primary data were collected from agricultural producers and their backward and forward sectors in the agricultural regions where the plantations are most prominent. The results show that on a regional level, sugar and palm oil generate fewer jobs in comparison to the products of small‐scale agriculture, which have important forward linkages to small and medium trading and processing sectors. In addition, the wealth created by small‐scale farming remains within the regions, whereas profits from the sugar and palm oil industries are being transferred out of them. Therefore, to achieve inclusive regional development, smallholder agriculture should be strengthened rather than promoting monoculture expansion.     

Supermarket Expansion in Turkey: Shifting Relations of Food Provisioning

This paper examines the shifting relations of food provisioning in Turkey as small producers are increasingly integrated into commercialized agri‐food supply chains led by supermarkets. Turkey's entry into a customs union with the European Union and a World Bank–imposed policy measure adopted during the 2001 economic crisis have greatly facilitated the process of market intensification in Turkish agriculture. There are two sides to this process: one concerns the historical centrality of small‐scale production directed towards local–regional consumers; the other relates to the dominant role played by supermarkets in changing the conditions of subsistence. The restructuring of wholesale markets and the privatization of formerly state‐led agricultural co‐operatives and producers' unions have been crucial for the expansion of supermarkets into agri‐food relationships. The competitive growth of Islamically oriented small and medium‐sized capital groups alongside large retailers is further deepening the commodification process in food relationships.     

Sectoral gender wage gap in Vietnam

Abstract

Price forecasting systems are of considerable importance to food security management by governments’ and non‐governmental organizations. Sparse data availability in low‐income economies, however, generally necessitates reliance on reduced form forecasting methods. Relatively recent innovations in heteroscedasticity‐consistent time series techniques offer price forecasting tools that are feasible given available data and analysis technologies in low‐income economies. Moreover, extended GARCH models exhibit superior out‐of‐sample forecast accuracy using monthly food price data from Madagascar. These techniques also permit cost reduction in food security operations by more precise estimation of the risk of hitting a critical price level.     

Governing by models: Exploring the technopolitics of the (in)visilibities of land

Achieving food security at a global scale while protecting the environment, as envisioned in the Sustainable Development Goals, will require a complex process of collaboration and the integration of analyses at multiple scales. Agricultural and land use models are increasingly being used to bridge the global/local divide, particularly as a means to envision future land access, use and management in different agricultural production systems. This special issue contributes to our understanding of global modeling, governance and land use change. Specifically, it provides insights into the question of: how do the ways of knowing and governing affect the politics of environmental protection and agriculture? The papers in this special issue bring reflexive questions of knowledge production, public policy and civic engagement into the epistemic spaces of scientific and technological development, both as a means to improve the way we model and to understand the implications of governing by models.     

Estimating multiproduct and product‐specific scale economies for agricultural cooperatives

This article estimates multiproduct and product‐specific scale economies, scope economies, and cost efficiency with single and annual cost frontiers using a nonparametric approach. Multiproduct scale and scope economies are found that suggests increasing scale and product diversification can reduce cost for agricultural cooperatives. Many agricultural cooperatives experience economies of scale indicating that variable returns to scale as opposed to constant returns to scale is the appropriate technology for modeling agricultural cooperatives. Product‐specific scale economies for all outputs are close to one indicating that individual outputs are operating close to constant returns to scale. Annual frontier estimates show that cooperatives have become less cost efficient over time, but scale and scope economies remain relatively consistent across years. Further, results show that economic measures obtained from the single frontier are statistically different from those measures calculated from annual frontiers, suggesting that the cost frontier has shifted over time. The trade‐off between cost efficiency and multiproduct scale economies indicates that smaller cooperatives can reduce a higher percentage of cost by increasing the scale of operations rather than just becoming cost efficient. Because larger incentives exist for small cooperatives to increase scale, mergers will likely continue until economies of scale are exhausted in the industry.     

亚热带西部山地平原交错带全域旅游发展研究——以四川省洪雅县为例

全域旅游是旅游资源富集、不适宜大规模工业化地区的一种发展新方式。全域旅游需要区域内部有高密度的多样景观,协调统一的区域主题以及适中的区域尺度。四川盆地西南边缘的洪雅县利用优越的区域内在条件,将生态农业、田园风光与乡村旅游相融,将森工、水能开发、食品加工与旅游联动,将道教文化与养生旅游、本土文化与民俗旅游相结合,将环境保护和生态养生旅游相统一,形成一系列以旅游为核心的产业关联雏形。依托域外大景区整体提升县域旅游形象,实行点、轴、面串联推进景观的全域统筹,突出绿色主题的差异化发展,促进旅游全域协同发展,并探索出全域旅游的产业关联与地域统筹协作模式。实践表明:这类区域全域旅游可以采用因地制宜的政府主导、资源综合利用的产业关联、差异化发展的地域协同、地域文化挖掘与人文景观营造的特色提升等策略。针对该县全域旅游发展存在的问题,今后应采取更新观念与强化政府主导,以产业链间的横向关联推动产业聚变,以分层次/类别统筹开发促进全域协同,坚持生态优先和强化环境保护等对策。     

Closures of coal‐fired power stations in Australia: local unemployment effects

Around one‐third of Australia's coal‐fired power stations closed between 2012 and 2017, with most of the remainder expected to close over coming decades. Current investment in generation capacity is primarily in the form of alternative power, especially wind and solar. In this paper, we conduct an event study to assess the local unemployment effects of Australia's coal‐fired power station closures, an issue of considerable interest given the prominence of coal‐fired power stations in local economies. Our analysis uses monthly regional labour force survey data from the Australian Bureau of Statistics. We find that on average there has been an increase in local unemployment of around 0.7 percentage points after closures of coal‐fired power stations, an effect that tends to persist beyond the months immediately after closures. The findings raise questions about appropriate policy responses for dealing with local structural adjustment issues facing coal‐reliant communities.     

规模化养猪业的环境风险研究

目的 随着农业现代化步伐的不断加快,农业规模化生产模式已成为一种重要的经营模式被普及和推广。农业规模化经营模式具有高效率、规模效益等特点,但也可能产生一些难以预见的社会问题,如环境污染。从权力—资本的逻辑来看,规模化养殖模式具有更高的经济效益并更利于政府开展环境管理与监督,且在政策扶持与财政资助方面更有针对性,有助于政府从整体上来管控规模化养殖企业。方法 文章通过现场查看、深度访谈等实地调查及比色法水质检测方法来开展研究。结果 研究发现大规模养猪场的畜禽排泄物所造成的环境污染在不断加重,环境风险发生的可能性也在增加。相反各种中小型养殖户、散养户的养殖模式却与地方社会结合得更好,养殖点分布广泛且周边环境的净化能力强,不仅具有较高的经济价值,也较好地保护了周边环境,更具有可行性和操作性。结论 依据不同逻辑形成的养猪模式产生了截然不同的环境效应。养殖规模应基于不同地域、不同的经营方式来设定,形成适度规模的养殖模式。     

Gendered impacts of fertilizer subsidy removal programs in Malawi and Cameroon

Gladwin's^** main contention is that women provide most of the agricultural labor in sub-Saharan Africa and because much of this labor is oriented to food production for home consumption, the effects of structural adjustment programs on them and the children they work to feed are likely to be different than on men who produce crops for commercial and export production. Her specific hypothesis for Malawi is that the removal of the fertilizer subsidy affects women farmers more than men farmers because it reduces fertilizer use on local maize. As part of the structural adjustment program, a major purpose of removing the fertilizer subsidy is to reallocate resources from food production for domestic consumption to cash crop production for export. In Gladwin's analysis, men farmers produce hybrid maize and tobacco for export and women produce the subsistence food crop, local maize. Gladwin's main contention is probably correct. For the Malawi case, the presentation does not support the hypothesis because two of the major underlying assumptions are inappropriate and the evidence provided is inconclusive. This comment proceeds by discussing the two assumptions and corresponding evidence. The purpose of this comment is not to contradict the hypothesis, but to clarify the Malawi situation and to suggest that a different analytical approach is needed in that context.     

Land use consolidation in Rwanda: The experiences of small-scale farmers in Musanze District,Northern Province

The modernization and intensification of agricultural production in Africa has long been a policy goal, for increased productivity and food security. In 2008, the Rwandan government implemented various land and agricultural reforms to transform Rwandan agriculture from subsistence farming to market-oriented production. Central to this agricultural transformation was the Crop Intensification Programme, intended to increase the agricultural productivity of high-potential food crops and encourage land use consolidation, i.e., the joint cultivation of large areas, which was expected to deliver important economies of scale. This programme has been criticized, for example, for authoritarian implementation, negative effects on food security from sole-cropping a few selected crops, and increasing rural socioeconomic differentiation.This paper analyses the effects of the land use consolidation programme at the household level, as experienced by small-scale farmers in Musanze District in the Northern Province of Rwanda. The paper draws on 45 individual and 22 collective qualitative semi-structured interviews with small-scale farmers and local key informants in five sectors, conducted in 2013 and 2014.The findings show that there is satisfaction, dissatisfaction, and resistance to the programme, especially regarding the selected crops to be cultivated. The programme, including supporting mechanisms, seems to work well for the relatively better-off farmers, who have bigger and scattered land areas, whereas it does not work well for poor farmers with very small plots, which is common in rural Rwanda.     

Market power and rents in global supply chains

Market power and competition policy in food supply chains has emerged as an important economic issue in economics, and a highly sensitive item on the policy agenda. Consolidation is taking place in the food industry, both in high‐income countries and in emerging economies, but the impact of concentration in global food chains on efficiency and rent distribution is more nuanced and complex than often claimed. We review the literature and extend it by developing a model which explicitly takes into account market imperfections and contract enforcement problems in supply chains. Increased competition benefits farms by improving contract conditions, but contract enforcement becomes more complicated.     

Are Local and Organic Claims Complements or Substitutes? A Consumer Preferences Study for Eggs

This paper provides an analysis of consumer preferences for product claims, specifically about origin and production methods. In particular, it addresses two important questions: i) whether consumers are willing to pay a premium for food products carrying these claims; and ii) whether local and organic claims are complements or substitutes. A choice experiment designed to estimate two‐way interactions was undertaken in Spain for eggs. The findings show first, that consumers are willing to pay a positive premium price for an enhanced method of production (that of barn, free‐range and/or organic instead of cage produced eggs) as well as for the proximity of production (local, regional and national over imported). Second, the findings show that consumer preferences for the claims are heterogeneous with two consumer segments being identified: “origin preference”, the larger segment, and the “production method preference”. Results show that organic and local claims were complements for the larger first segment but that free‐range and local/regional claims were substitutes for the second smaller segment. These results provide the marketing chains with insights applicable for pricing strategies.     

Gains and structural effects of exploiting scale-economies in Norwegian dairy production

In this paper, we present calculations of the economic gains in terms of reduced costs by exploiting scale‐economies in dairy production in Norway, and the effect this would have had on the number of farms. We also explore whether or not optimal scale and unexploited scale‐economies change over time due to scale‐augmenting technical change. The analysis is based on homothetic cost functions estimated by means of data for individual dairy farms for the period 1972–1996. For 1972, we find that, by full exploitation of scale‐economies, the costs could have been reduced by almost 40%, while the number of farms would have been reduced by more than 85%. The number of small farms has been substantially reduced in the period considered. This fact, combined with small scale‐augmenting technical change, implies that the gains and structural effects of exploiting scale‐economies have decreased over time. In 1996, costs could have been reduced by close to 30% by full exploitation of scale‐economies, while the number of farms would have been reduced by slightly more than 70%. Thus, both gains and structural effects are substantially less than in 1972. Nevertheless, the calculated gains for 1996 make almost 5 billion NOK. This corresponds almost exactly to the total public support to the dairy farms in 1996. The unexploited scale‐economies are largely due to the agricultural policy. Thus, a substantial share of the same can be considered as part of the‘price’ the Norwegian society has to pay for this policy. In addition, there are likely to be large hidden costs of this policy due in particular to the quota system and other direct production regulations. They imply that technical innovations and other efficiency‐improving investments requiring increased production to be profitable are not carried out. This is the more likely explanation for the extremely poor efficiency development in Norwegian dairy production in the period studied.     

Food Standards and Welfare: General Equilibrium Effects

We analyse the general equilibrium effects of the growth of high standard food chains on household welfare. To measure structural production changes and welfare effects on rural and urban households, our model has two types of agents, five kinds of products and four types of factors. We calibrate the model using a Chinese dataset. The simulation results show that the effects on poor rural households depend on a variety of factors, including the nature of the shocks leading to the expansion of high standard sector, production technologies, trade effects, spillover effects on low standard markets, factor market constraints and labour market effects.     

Economies of Scale and the Demand for Food in Switzerland: Parametric and Non‐Parametric Analysis

This paper examines the role of household public goods arising from co‐residence and economies of scale in the allocation of household expenditure. Using both parametric and non‐parametric methods, the paper tests the theoretical prediction that in the presence of shared public goods, larger households should have higher per capita consumption of private goods like food, provided that they do not substitute too much towards the effectively cheaper public good. The results indicate that, at constant per capita total expenditure, the per capita demand for food declines with household size. No evidence is found in favour of the hypothesis that the endogeneity of male and female hours of work in the labour force could be responsible for this anomaly. However, an examination of the role of direct economies of scale in explaining this negative relationship yielded a negative relationship between household size and quality adjusted unit values, suggesting that the effects of direct economies of scale dominate those generated by public goods.     

耕地生产、生态功能视角下巨型城市区耕地补偿分区与补偿金配置研究

研究目的：探讨巨型城市区耕地生产、生态多功能需求下耕地补偿分区及补偿金配置模式。研究方法：文献资料法和模型分析法。研究结果：耕地补偿分区以耕地功能供需关系为直接依据,以区域公平为出发点;食物生产功能应是各级补偿分区的第一准则,生态服务功能应作为该功能需求强烈的巨型城市区的第二准则;复杂的层级式行政管理体制下,粮食安全视角的补偿金配置应以省级补偿关系为起点,兼顾土地利用效率理论及区域主体功能定位,采用自上而下的路径配置到末级实施单元;生态安全视角的耕地补偿面向巨型城市区内部,补偿分区及补偿金测算可直接到末级实施单元,不需要复杂的资金配置体系。研究结论：提出“粮食安全与生态安全二元制的巨型城市区耕地补偿分区模式及补偿金配置模型”,珠三角的案例分析验证了模式及模型的良好可行性。