Modeling differentiated quality standards in the agri-food sector: the case of meat trade in the enlarged EU

Quality standards play an increasingly important role in international agri-food trade, and their functioning as nontariff barriers to trade is widely discussed. We argue that food quality standards imposed by importing countries are more than just border measures and can have profound effects on the market structure of the exporting industry, thereby significantly influencing the supply response. We develop a stylized oligopoly model that accounts for compliance costs (fixed and variable) and investigate alternative policy options to explore different mechanisms an importing county may use to enhance the quality of its imports. The model explicitly recognizes the coexistence of complying and noncomplying firms, which is a situation often found in low-income countries where a small modern export-oriented segment invests in meeting foreign quality standards. We use the adjustment of the Polish meat sector to the tight EU food quality standards as an empirical example. The simulations show that a subsidy scheme can promote compliance with standards and can contribute to an upgrade of the industry in the exporting country, but its marginal effectiveness is diminishing.     

The role of extension in the development of the farmer as entrepreneur

Different viewpoints were expressed at the 1990 annual national conference of the South African Society for Agricultural Extension regarding the role of extension in the development of the farmer as entrepreneur. It is expected that public funding will increasingly be limited to functions of general public interest. To achieve independence farmers should be willing to expose themselves to entrepreneur development stimuli. it is in the public interest to develop scarce human, economic and natural resources. Research findings indicate distinct behavioral differences between entrepreneurs of differing perceptions. A comprehensive interdisciplinary education is recommended for agriculturalists. Because needs change, education programmes must be re‐evaluated from time to time. It serves little purpose to educate people in extension who do not have a technical message to communicate. The state extension service seeks closer cooperation and liaison with agricultural co‐operative and private sector know‐how. Departmental policy will probably be less rigid in future.

A clear distinction should be made between information and extension services. The adoption of an ethical code for extensionists may be opportune. Relevancy is an important contributing factor to extensionist credibility.     

Het Liernurstelsel in Nederland

«Ik heb altijd geleerd dat de bezwaren er «zijn om ze te overwinnen.»L. Ketjen.Handelsblad, 12 Maart '99.Zie Economist van 1902, blz. 273, 355, 462, 683, 773.     

ENTRY AND EXIT, CYCLES, AND PRODUCTIVITY GROWTH

This paper examines the impact of cycles on long-term growthin the presence of entry and exit of firms It is argued thatwhereas mild fluctuations may be beneficial for growth, moresevere fluctuations will be detrimental for growth The essentialpoint is whether recessions go beyond the point that triggers(large-scale) exit of firms Mild fluctuations may have a positiveeffect through the intertemporal substitution between productionand productivity improving activities Severe fluctuations, however,which lead to exit of firms, cause losses of knowledge and skillsduring recessions, and are therefore bad for long-term growth