Regional perspective on food and food production

Transcription

1 Regional perspective on food and food production BALTIC UNIVERSITY PROGRAMME STUDENTS CONFERENCE, 18 OF APRIL 2015, ROGOWO Zbigniew Floriańczyk Institute of Agricultural and Food Economics - NRI, Warszawa, Poland

2 Growth theories - why it is recommended to invest in education Free market and progress in organization of production (Smith) Competition Relationship between savings and current expenses (Harrod- Domar) Investments Technological (exogenous) progress in economic growth (Solow) Human capital accumulation as an endogenous factor (Romer- Mankiw) Knowledge progress Utilisation of knowledge

3 Diagram of global agriculture development (F. Tomczak) Regional differences between agriculture are accompanied by differences of economy development

4 Recent challenges Globalization (Coleman, Szymański) 1) The dynamic transformations in the processing sector are accompanied by relatively moderate shifts in global trade in agricultural raw materials. 2) Growth in the agricultural sector depends to an ever greater extent on the degree of adaptation to global processing, as represented by global brands. 3) The globalisation process also entails the diminishing role of the state in pursuing economic policy

5 Recent challenges Socially sustainable agriculture (Zegar) 1)Economic competitive agriculture, providing reasonable incomes and food. 2)Nature natural resources conservation with special attention to land natural productivity. 3)Social preserves family farming and it s role in society.

6 How different is agriculture global perspective (FAO-SOFA) (1)

7 How different is agriculture global perspective (FAO-SOFA) (2)

8 How different is agriculture global perspective (FAO-SOFA) (3)

9 How different is agriculture global perspective (FAO-SOFA) summary Total 570 millions of farms of: - 2% bigger than 20 ha - 71% of land - 72% smaller than 1 ha 12% of land - Over 60% of area belongs to farm of more than 50 ha. Different solutions to secure growth/sustainable development - large family farms business venture character - small and medium have a potential to became commercial

10 How different is agriculture EU perspective (1). Productivity of land (EUR/ha UAA) Baltic region new member states are of lower land productivity

11 How different is agriculture EU perspective (1). Old Member States are of significantly higher incomes

12 How different is agriculture EU perspective (2). Extracting subsidies made the countries better fit to the model of global agriculture development except Finland

13 How different is agriculture EU perspective Commercial vs. non-commercial What we consider threshold size of commercial farm in Netherlands is over 25 times bigger than in Romania

14 How different is agriculture EU perspective few pictures (1) Surroundings of Uppsala

15 How different is agriculture EU perspective few pictures (2) Surroundings of Nitra

16 How different is agriculture EU perspective few pictures (3) Surroundings of Munster

17 How different is agriculture EU perspective few pictures (4) Surroundings of Rogowo

18 How different is agriculture regional perspective case of Poland

19 Can the level of education explain differences: Poland-EU comparison Higher level of education in Polish then EU farm of similar size. THE IMPORTANCE AND DIFFUSION OF KNOWLEDGE IN THE AGRICULTURAL SECTOR, Geographia Polonica, Volume 85, Issue 1, pp

20 What about incomes differences: Poland-Germany comparison Similar level of incomes in farms of the same specialization and scale of production

21 Explanation of differences in farm performance on EU level 1) The difference of scale of operation this call for structural transformation in countries like Poland 2) Relatively less important differences in knowledge in case of small farms but needs for improvement in bigger

22 Possible solutions regarding EU agriculture policy need for different policy? (Kulawik, Gordon ) - capitalization of direct payments that negatively influence agriculture land concentration, - I pillar direct payments supporting intensification of production, - negative and strong influence on II pillar objectives aiming at rural economy development,

23 An idea to stimulate development in EU agriculture - Agriculture Knowledge and Innovation System Rivera and al. 2005

24 Public expenditure on R&D related to agriculture across EU (IMPRESA) Decreasing spending an average on public R&D regarding agriculture accompanied with some increase in private sector

25 OECD policies enabling agricultural innovations - Improving the governance of agricultural innovation various policies to incentives coherence/cooperation (to utilise summary effects) - Direct investment in missing by business areas (environmental as there is no direct market return for such innovations) - Facilitating knowledge flow (exchange of improvement of methods and solutions) - Facilitating adoptions ( methods of implementations and transfer of knowledge) - Facilitating R&D international cooperation (stimulate general solutions and exchange knowledge for common benefits)

26 It is always worth to invest in human capital!