Food Competition in World Markets: Some Evidence from a Panel Data Analysis of Top Exporting Countries

This paper investigates the relevance of relative prices and world income as determinants of food exports for the top trading countries in the period 1992–2012 using a panel data framework. We find that price elasticities generally take lower values for processed goods, and the opposite holds for income elasticities. Processed goods are also characterised by an inverse relationship between price elasticities and average unit values. The analysis suggests that both emerging and advanced countries can be expected to increase their export specialisation in processed goods. Furthermore, developed economies can face fierce competition from emerging countries by enhancing the quality content of their processed good exports.     

Who Will Feed China in the 21st Century? Income Growth and Food Demand and Supply in China

This study uses resource‐based measures to explore the evolution of China's demand and supply for food. China's dietary shift from plant to animal‐based foods, induced by its income growth, is likely to impose considerable pressure on agricultural resources. China's demand for food on this measure appears consistent with global trends, while China is an out‐performer on the supply side, producing much more food than its income level and land endowment would predict. China's current per capita income is in a range where consumption growth is high and in excess of production growth, but the gap between supply and demand is likely to diminish as population and per capita consumption growth decelerate. Continuing agricultural productivity growth and sustainable resource management will be important influences on the growth of China's future net import demand for food.     

Analysis of food demand in Vietnam and short‐term impacts of market shocks on quantity and calorie consumption

A complete demand system for Vietnam was estimated using household survey data. Results showed that demand for rice with respect to prices and expenditure is relatively inelastic compared to other foods. Demand for food in general tends to be less elastic at higher levels of income and for urban households. In the short term, a market shock such as a 10% decrease in income or a 30% increase in rice prices forces households to spend a larger portion of their expenditure on rice at the expense of other foods. Low‐income households face a higher risk of undernourishment as their daily calorie intake is more negatively affected by the shocks than high‐income households. The results suggest the importance of policies that provide necessary safety net programs for the poor.     

An econometric analysis of demand for food quantity and quality in urban China

This article offers an analytical framework for studying consumer demand for food quality based on a theory‐consistent demand model, namely, the Exact Affine Stone Index specification. Importantly, it accounts for unobserved consumer and regional heterogeneity, and allows for arbitrary Engel curves. The empirical value of our framework is illustrated in an econometric analysis of demand for food quality in China. Evaluating possible structural changes in consumer food expenditures in China is of paramount importance, given the ever‐increasing global role of China and the implications of the structural food preference changes for the global food system. The major findings emerging from this study indicate that income is an important determinant of demand for food quality and quantity with the relatively more affluent provinces having a higher affinity for food quality.     

Nutrient effects in consumer demand systems: evidence from panel data

This papers aims to analyse the demand for main food groups in Spain. Apart from the traditional economic factors (prices and income), our theoretical framework incorporates the nutrient composition of food into a demand model in the form of food attributes, as a proxy to take into account the rising consumer concern about the relationship between diet and health. A CBS functional form is chosen for the empirical model, which is estimated using a complete panel data set. Ten broad categories, nine nutrients and the most relevant socio-economic variables have been considered. Finally, after employing an appropriate selection strategy, the chosen model is used to calculate expenditure, price and nutrient elasticities, as well as the main socio-demographic effects. Results indicate that the introduction of nutrient-based determinants generates elasticities that differ from those obtained when only economic factors are included, particularly in the case of price elasticities. As the nutrients effect is incorporated in the model through adjusted prices, unhealthier food groups (cereals, white meat and eggs, dairy and sugar) become more inelastic as they are associated with higher perceived prices.     

全面建成小康社会对农村居民肉类消费的影响——基于中国农村微观经济数据的实证研究

[目的]基于中国农村微观经济数据,分析全面建成小康社会对农村居民肉类消费的影响。[方法]文章运用恩格尔模型和考虑"零消费"问题的近乎理想需求系统模型(AIDS)的两阶段模型,对全国8个省份的农户数据进行实证分析。[结果]首先,肉类食品的需求收入弹性均为正值,农村居民肉类需求随着收入增长而增加。其次,肉类食品需求收入弹性存在差异,其中,禽肉收入弹性最大,牛羊肉收入弹性最小。再次,不考虑"零消费"问题时,牛羊肉的需求弹性被高估0.12～0.29,猪肉的需求弹性被高估0～0.02。最后,到达全面建成小康社会的标准时,目前低于收入标准的农村居民人均猪肉、禽肉和牛羊肉消费量将分别增加3.42kg、1.86kg和0.57kg,消费结构将进一步优化。[结论]全面建成小康社会将促进农村居民人均收入增长,进而扩大人均肉类消费量、优化肉类消费结构;农村家庭户主受教育程度与肉类消费具有正向相关关系。     

Implications of higher global food prices for poverty in low‐income countries1

In many poor countries, the recent increases in prices of staple foods have raised the real incomes of those selling food, many of whom are relatively poor, while hurting net food consumers, many of whom are also relatively poor. The impacts on poverty will certainly be very diverse, but the average impact on poverty depends upon the balance between these two effects, and can only be determined by looking at real‐world data. Results using household data for 10 observations on nine low‐income countries show that the short‐run impacts of higher staple food prices on poverty differ considerably by commodity and by country, but that poverty increases are much more frequent, and larger, than poverty reductions. The recent large increases in food prices appear likely to raise overall poverty in low‐income countries substantially.     

粮食价格波动对农民增收的影响探析——以河南省为例

粮食价格对农民收入至关重要,是农民维持基本生活的重要保证。文章在分析我国粮食价格波动的历史轨迹的基础上,阐述了农民收入的构成,并对粮食价格波动对农民增收造成的影响进行研究。结果表明:粮食价格波动会影响农民收入水平,进而影响农民的农业生产积极性;粮食价格下降,会促进非农就业的工资收入,进而提升农民收入水平,粮食价格波动对相关工业品价格上涨的影响较小。并从加强政府引导、加快农业产业化进程、建立健全粮食价格稳定长效机制、加强粮食流通体系建设等方面提出稳定粮食价格的关键策略,以期为我国粮食安全及农民增收提供一定的理论参考。     

Demand for rural tourism: the effects of quality and information

The development of rural tourism is regarded as a promising diversification strategy especially for lagging and mountainous areas of the European Union. Research concerning the demand and/or supply of rural tourism services has been limited within the agricultural economics domain despite the significance attached to rural tourism by various rural development policy measures and initiatives. The article examines the expenditure behavior of rural tourists within a framework of demand for composite (heterogeneous) goods. The proposed framework captures the quality of the tourism experience as the commodity's unit value, a quantifiable economic variable, examines its effects on expenditures and allows for the estimation of elasticity in prices regarding expenditure and quantity. Empirical analysis is facilitated by a survey recording the expenditure behavior of 465 tourists in two rural and lagging areas of Greece. The quality of the tourism experience is significantly and positively affected by the income, the source from which information about the trip is retrieved (Internet, newspapers as well as general press and special travel press) and by the amount of information sought by the consumer prior to the trip. In turn, the quality of the tourism experience is the major endogenous factor that positively influences expenditures for rural tourism. Further research is needed before evidence provided in this work can be used to draw policy conclusions and recommendations.     

Time-varying Armington elasticity and country-of-origin bias: from the dynamic perspective of the Japanese demand for beef imports

Elasticities of substitution, often called Armington elasticities, reflect incomplete substitutability because of perceived product characteristics. This study divides the determinants of the Japanese demand for beef imports into two factors: (i) substitution elasticity and (ii) country-of-origin bias, and demonstrate how these measurements are associated with trade policy and food scare events. The Japanese beef industry serves as a case study to evaluate the multifold impact of import liberalisation and a series of bovine spongiform encephalopathy (BSE) outbreaks. A time-varying parameter model is used to shed light on the dynamic effects of the import liberalisation and BSE outbreaks on the measurements. The estimation results reveal that the estimated substitutability and country-of-origin bias are very sensitive to the BSE cases, but not to the process of trade liberalisation. The results also confirm that as a result of the BSE outbreaks, the major factor of the Japanese demand for beef imports has changed from relative prices to the country-of-origin effect, thereby emphasising the importance of a traceability system and promotional activities, which would help in the formation of the country-of-origin effect.     

Tracing the Effects of Agricultural Commodity Prices and Food Costs

We estimate a system of product and input-demand equations for food-processing industries to trace the links among farm commodity prices, food-processing costs, and food prices. Disembodied technical change, which likely reflects increasing consumer demand for convenience and product variety, has sharply reduced agricultural materials demand relative to most other food-processing inputs. This implies weakening impacts of farm price shocks on food prices. But improving quality and falling relative prices for agricultural inputs, in combination with increasing factor substitution, has counteracted these forces to encourage greater usage of agricultural inputs in food processing, and limit these trends.     

Food security and Canada's agricultural system challenged by COVID-19

The effect of COVID-19 on Canadian food security is examined from two different perspectives. COVID-19 creates a unique “income shock” that is expected to increase the prevalence of household food insecurity. This food insecurity can be measured by utilizing the Canadian Community Health Survey (CCHS). More fundamentally, COVID-19 heightens household concern about the capacity of the Canadian food system to ensure food availability. Despite surges in demand and supply chain disruptions, we currently do not observe broad, rapid appreciation in food prices. This suggests that there is an adequate supply of food for the near term. There is less certainty over intermediate and longer time periods because so many factors are in flux, particularly the rate of increases in sicknesses and deaths across the country and globally. Data on these health factors and elements of the food supply chain are needed to predict beyond a short time frame. In this regard, we discuss three ongoing considerations—ease of capital flows, international exchange, and maintaining transportation—that will help ensure food availability in the longer run.     

Household Food Demand in Burkina Faso: Implications for Food Policy

Chronic food production deficits since the early 1970s have prompted policymakers of Burkina Faso to emphasize technological research with the goal of increasing the production of the most-consumed locally-grown cereals: sorghum, millet and maize. Meanwhile, urban consumers have been developing preferences for rice and wheat, cereals that are primarily imported. This study estimates demand relationships among food items in Ouagadougou, Burkina. The results of the estimation suggest that prices, income, household composition, education, marital status and urbanization were jointly important in explaining household expenditure allocations. Both local and imported cereal consumption responded positively to an income increase. However, incremental income changes would lead to relatively greater consumption of locally produced cereals by low-income households whereas high-income households would consume relatively more wheat and rice. The household model is then used to demonstrate its relevance in addressing food policy issues, by forecasting the levels of urban grain demand under alternative income and demographic scenarios. With increased production due to advances in technology, the urban demand levels do not exhaust the rural surplus of local cereals, but deficits persist in the rice-wheat sector. The results underscore the importance of technological research since Burkina could become self-sufficient in at least the production of sorghum, millet and maize.     

Home Bias in Primary Agricultural and Processed Food Trade: Assessing the Effects of National Degree of Uncertainty Aversion

This study investigates the effects of national degrees of uncertainty aversion (unfamiliarity avoidance) on the magnitude of bias towards domestic products rather than imports. The empirical analysis is implemented for primary agricultural and processed food products, using a panel dataset covering trade between and within OECD countries. Primary agricultural products are often blended and associated with reference prices. Conversely, processed food products exhibit higher levels of product differentiation. The empirical results confirm expectations by emphasizing the magnifying effects of uncertainty aversion on home bias in the case of processed food products but not in the case of primary agricultural products. These magnifying effects are primarily associated with processed food products destined for final household consumption. Other results reveal significant variations between different countries (based on geo‐economic and national income categories). Our results also indicate that home bias and uncertainty aversion effects on home bias have not decreased over time. The empirical results remain robust under different estimation methods.     

Rising Food Prices and Household Welfare: Evidence from Brazil in 2008

Food price inflation in Brazil in the 12 months to June 2008 was 18%, whereas overall inflation was 7%. Using spatially disaggregated monthly data on consumer prices and two different household surveys, we estimate the welfare consequences of these food price increases, and their distribution across households. Because Brazil is a large food producer, with a predominantly wage‐earning agricultural labour force, our estimates include general equilibrium effects on market and transfer incomes, as well as the standard estimates of changes in consumer surplus. Although the expenditure (or consumer surplus) effects were large, negative and markedly regressive everywhere, estimates of the market‐income effect were positive and progressive, particularly in rural areas. Because of this effect on the rural poor, and of the partial protection afforded by increases in two large social assistance benefits, the overall impact of higher food prices in Brazil was U‐shaped, with middle‐income groups suffering larger proportional losses than the very poor. Nevertheless, as Brazil is 80% urban, higher food prices still led to a greater incidence and depth of poverty at the national level.     

Changing food consumption patterns in rural and urban Vietnam: Implications for a future food supply system

Rapid income growth and urbanisation could significantly change the composition of the food basket in many emerging economies. This study estimates a demand system, including 15 major food items in Vietnam, with multiyear household survey data. We find a large variation in the estimated price elasticities (–0.05 to –0.88) and expenditure elasticities (–0.16 to 2.56). Food types, urban status and income groups can explain this variation. We also find that the staple food, rice, is already an inferior good for rich urban households in Vietnam. Moreover, food preferences are evolving away from rice but towards animal proteins (fish, pork, chicken, eggs and milk), fruits and vegetables, irrespective of urban status and income groups. As the Vietnam economy continues to grow with a doubling of gross domestic product (GDP) in the next decade, per capita rice consumption in both urban and rural areas and across different income groups will continue to decline, whereas demand for other high‐value products will rise. Thus, government policy should focus on encouraging demand‐oriented food production. In addition, crop diversification at the farm level needs to improve substantially to meet the rising demand for these food products due to income growth and urbanisation.     

World food prices and poverty in Indonesia

Spikes in international food prices in 2007–2008 worsened poverty incidence in Indonesia, both rural and urban, but only by small amounts. The paper reaches this conclusion using a multisectoral and multihousehold general equilibrium model of the Indonesian economy. The negative effect on poor consumers, operating through their living costs, outweighed the positive effect on poor farmers, operating through their incomes. Indonesia's post‐2004 rice import restrictions shielded its internal rice market from the temporary world price increases, muting the increase in poverty. But it did this only by imposing large and permanent increases in both domestic rice prices and poverty incidence. Poverty incidence increased more among rural than urban people, even though higher agricultural prices mean higher incomes for many of the rural poor. Gains to poor farmers were outweighed by the losses incurred by the large number of rural poor who are net buyers of food, and the fact that food represents a large share of their total budgets, even larger on average than for the urban poor. The main beneficiaries of higher food prices are not the rural poor, but the owners of agricultural land and capital, many of whom are urban based.     

粮食金融化视角下粮食安全问题思考

粮食金融化是目前威胁粮食安全的重要因素,文章利用文献分析的方法,对粮食安全与粮食金融化的含义进行界定,阐述基于粮食金融化视角下,中国面临的粮食安全问题。并从粮食生产收益降低、经济运行使宏微观风险增加、粮食生产分散、粮食企业过度集中及粮食的价格受到流动性与供需因素的双重影响等方面分析了粮食金融化背景下威胁粮食安全的重要原因。据此,提出了推进土地流转制度改革,实现粮食集约化生产;加强国际粮食贸易合作;加强市场信息化建设,培养专业化人才;大力培育粮食龙头企业,进一步完善粮食主产区补贴制度;完善金融支持体系,确保粮食价格稳定;不断开发粮食期货品种,增加套期保值功能等6项对策意见,以应对粮食金融化带来的风险,确保国家粮食安全稳定。     

Implications of high food prices for poverty in Pakistan

The study estimates the impacts of rising world food prices on poverty in rural and urban areas of Pakistan. Household income and expenditure data for 2004/2005 is used to estimate compensated and uncompensated price and expenditure elasticities using the linear approximation of the almost ideal demand system. Taking the unexpected component of higher domestic food prices in 2007/2008, own and cross price compensated elasticities are used to derive the changes in the quantity consumed, food expenditure and impacts on poverty assuming the food crisis happened in 2004/2005. The results indicate that poverty increased by 34.8%, severely affecting the urban areas where poverty increased by 44.6% as compared to 32.5% in rural areas. The estimates show that 2.3 million people are unable to reach even one‐half of poverty line expenditures while another 13.7 million are just below and 23.9 million are just above the poverty line. In the short run, it is important to ensure food availability to these people. In the long run, the policy environment of subsidizing urban food consumers by keeping wheat prices lower than the international price, needs to be reconsidered to provide the right incentives to increase food availability.     

The demand for meat and fish in Spain: Urban and rural areas

The aim of the paper is to explain to what extent meat consumption patterns in Spain are different in rural and urban areas and which are the factors explaining differences and similarities. A demand system using cross-section data from the latest Spanish National Survey has been estimated. Unit values have been used instead of market prices and price and quality effects have been obtained. The main conclusion is that meat consumption patterns in urban and rural areas are not really different as regards economic factors. Some small income and price effect differences have been found, specially for fresh pork and fish, Responses to changes in income and price are higher for fresh pork consumption in rural areas and for fish in urban areas.