6 TH FRAMEWORK PROGRAMME PRIORITY 8.1 B.1.1 SUSTAINABLE MANAGEMENT OF EUROPE S NATURAL RESOURCES
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1 6 TH FRAMEWORK PROGRAMME PRIORITY 8.1 B.1.1 SUSTAINABLE MANAGEMENT OF EUROPE S NATURAL RESOURCES Contract for: SPECIFIC TARGETED RESEARCH OR INNOVATION PROJECT PROJECT: FOODIMA Project full title: EU Food Industry Dynamics and Methodological Advances Proposal/ Contract to: Related to other contract no: Operative commencement date of contract: Indicative starting date: JANUARY 1 ST, 2007.
2 1. PROJECT SUMMARY OBJECTIVES: 1. Develop novel tools in food chain analysis by assimilating advanced methodologies into amendable empirical techniques 2. Provide in depth, systematic depiction of the market structure and the regulatory and institutional environment of the food industry within the enlarged EU emphasizing particularly on its interaction with the farm sector 3. generate an extensive assessment of the key factors shaping the current position, competitiveness and potential of the EU food industry 4. quantify the industry s contribution to the maintenance of the social and economic cohesion in rural areas. THE EXPECTED OUTPUTS INCLUDE: 1. An analytical characterization of the EU food chain, including a review of the influence of agricultural policies 2. a set of microeconomic models for the analysis of strategic interactions in the food chain 3. a set of theoretical models for the evaluation of the impact of technological innovations on the structure of food chain and the incentives created for R&D investements 4. a theoretical model for the analysis of policy instruments like food standards and labeling on firm performance and social welfare 5. a concrete framework for the evaluation of the economic performance of the entire food chain 6. a general equilibrium model for the quantitative analysis of the industry s impact on the socioeconomic development of rural areas 2. PROJECT OBJECTIVES 7 work packages The formulation of the project can be divided in 3 different phases in which the included WPs are allocated: Phase1: a theoretical descriptive analysis of the EU food industry (WP1) Phase 2: An empirical analysis of the EU food industry- Development of analytical tools (WPs 2-6) Phase 3: Inegration, synthesis and dissemination- Conclusions and recommendations (WPs 7-8) WP1 (Food Industry Analysis): Analyses the economics of the food chain, emphasizing on the interlinkages and the level of integration among all actors active in the different stages of the food chain, from the agricultural sector to retailing, providing also an analysis of the regulatory environment that effect its SCP. Specific emphasis will be placed on describing the structure of the food industry in the new member states usinf the Czech Republic as a case study.
3 WP2: Mergers and Acquisitions. The methodology is subsequently applied in the UK and Greece (P5) in the dairy and meat slaughtering sub-sectors (including retailing) WP3: Technology adoption and R&D incentives, the validating case study being Greece (P5) and Netherlands (dairy and meat slaughtering, including both the primary sector and retailing) WP4: Food labeling laws. It deals with the introduction of purity standards in food labeling laws, the model being applied in Denmark and Germany on the same subsectors. In addition, a quantitative survey will be conducted to get insights on the perceptions of the food supply chain actors in Denmark and Greece (P1) WP5: Economic Performance. It incorporates major findings from the previous tools and develops productivity models for measuring the economic performance, which are subsequently applied in the dairy and meat slaughtering sub-sectors (including the primary sector and retailing) in the Netherlands and Germany. WP6: Socioeconomic effects. It develops hybrid I-O models to measure the contribution of the food industry on the socio economic development of remote rural areas. The general equilibrium model that will be generated will be validated by its application on selected rural areas in Germany, Czech Republic and Greece (P1) P1: Aristotle University of Thessaloniki AUTH, GREECE P2: Royal Veterinary & Agricultural University of Copenhagen, KVL, Denmark P3: Wageningen University, WU, Netherlands P4: Warwick Business School, WBS, UK P5: Univrsity of Crete, UOC, Greece P6: Charles University of Prague, CU, Chezh Republic P7: Martin- Luther University, MLU, Germany Partner 1: Project s Coordinator WP4 Coordinator Contributing in WP1 (Tasks 1.1 and 1.2) assisting P2 and P4 respectively in literature reviews. Partner 2: WP1 Coordinator Contributes to WP4 by applying the generated model in Denmark (Task 4.4) and conducting the survey on the actors perceptions (Task 4.5) Partner 3: WP5 Coordinator Participates in WP1 (Task 1.1- Literature review) Participates in WP2 (Task 2.2- Data collection) Participates in WP3 Task 3.2 formulation of the model and Task 3.3 formulation of the model Task 3.4 application of the model in the Netherlands He has an active contribution in WP2 and WP3 in order to assist the formulation of the models in such a manner that the generated results would be useful as inputs for the model in WP5. Partner 4: WP2 leader Participate in WP1 (Task 1.1) literature review Participate in WP4 (Task 4.1) literature review
4 Partner 5: WP3 Responsible Participates in WP2 (Task 2.2) gathering necessary data (Task 2.5) applying the model in Greece Participates in WP4 (Task 4.1) literature review Participates in WP6 (Task 6.3) apply the generated model in Greece Partner 6: WP6 Coordinator Responsible for the application of the model in the Czech republic Contributing in WP1 (Task 1.1- literature review) (Task 1.2- generation of the Food industry analysis review in New member states) Responsible for establishing an East European communication network in order to acquire necessary information regarding the situation of the Food Industry in Eastern Europe. Partner 7: Contributes to all WPs assisting the respective leaders in the literature reviews (Task 1.1, 2.1, 3.1, 4.1) Contributes in WP1(Task 1.2 and 1.3 describing and analyzing the EU Food chain) and in WP4, 5, 6 by applying the respective models in the German market. All partners apart from the aforementioned responsibilities have an active involvement in the dissemination and management activities described next and will ultimately provide a SYNTHETIC REPORT on the situation of the Food Industry and the food chain in their respective countries. PE7 will then undertake the responsibility of producing a brief summarizing report based on the countries synthetic reports (D 7.7). The financial and technical responsibility for the applications (case-studies) that are to be produced during the course of the project in each country, lie upon the respective Partner. Dissemination activities: 1. construction of the project s website 2. publications in scientific journals and participation in international conferences 3. creation and distribution of a leaflet summarizing the project s main results (upon completion of the project). The leaflet will be translated and distributed in the participants countries, targeting primarily organizations, institutions, authorities as well as stakeholders in the food chain 4. creation of a CD ROM containing the modeling tools along with a leaflet summarizing the methodological framework. These will be distributed in academic and research institutions throughout the Europe. 5. Production of one synthetic report for each EU country represented in the consortium containing a description of the situation and the future prospective of the national food industry. 6. Organization of a workshop where key actors, experts and policy makers from various EU countries and EU officials will be invited to discuss the project s major findings 7. Organization of a two day intensive course directed to policy-makers both at the national and European level aiming at teaching the use of the modeling tools so that they can be applied to other areas.
5 List of Milestones Milestone No Milestone Description Target month M1.1 Presentation of existing data 6 M1.2 Presentation of critical analysis of 12 existing scientific literature M1.3 Presentation of existing 18 methodological approaches and tools M2.1 Literature review of theoretical 12 approaches in analyzing M&A Activity M2.2 A detailed database on M&A 12 activity M2.3 Conceptual microeconomic model 24 on the Dynamics of M&A activity M2.4 M3.3 Development and presentation of 24 the two consecutive, integrated methodogical frameworks of analysis: i)selection of trading forms, ii)innovative activities M3.4 Empirical Assessment of the 30 technological Diffusion Patterns M 3.5 Determination, Presentation and 30 Publication of the Market and Welfare effects of the each of the above analytical frameworks Μ 3.6 Determination, presentation, and 30 publication of the Market and welfare effects of the each of the above analytical frameworks M 4.1 Development and presentation of 18 the Integrated framework of Analysis M 4.2 Determination, Presentation and 24 Publication of the Market and welfare effects of labeling standards for conventional and organic food products M 5.1 Data base of the slaughtering, dairy processing and retail industry for estimating and explaining indicators of economic performance. This milestone clarifies the availability of data for estimating and explaining 24
6 economic performance M 5.2 Completing a conceptual model 28 for dynamic indicators of economic performance and the factors that explain the relative contribution of prices, R&D expenditure and investments in new technologies M 5.3 Obtaining quantitative estimates 32 of dynamic measures of economic performance M 5.4 Obtaining results from the quantitative model that explains the contribution of various factors to efficiency change and technical change M 6.1 Construction of the hybrid 24 regional input-output model M 6.2 Evaluation of the regional inputoutput 28 models M 6.3 Evaluation of the effects of the 32 food chain in rural economies M 7.1 Preparation of a first draft of the 35 leaflet M 7.2 Workshop of presentation of the 36 research results M 7.3 CD-ROM completed 36 M 8.1 Organisational meetings Semi-annual M 8.2 Construction of the web site 2 M 8.3 Mid-term reviews (end of 1 st and 12, 24 2 nd year) M 8.4 Issuing of the Final reports 36 The overall management responsibility lies with Partner 1. Timetable of FOODIMA Project Meetings Meeting Location Partner Month 1 st Kick-off Thessaloniki Greece P1 1 meeting 2 nd Project Copenhagen Denmark P2 6 meeting 3 rd project meeting Warwick UK P th project Wageningen Netherlands P3 18 meeting
7 5 th project meeting 6 th project meeting 7 th closing meeting Prague Czech Republic P6 24 Halle Germany P7 30 Rethymno Greece P5 36 Working Package list for FOODIMA proposal WP WP Title Leader Person months Start month WP1 State of the art in Food Denmark Industry Analysis-Main characteristics of Food Supply Chain and the Regulatory Environment WP2 Strategic Interactions and Sectoral Competitiveness: Analysis of Merger & Acquisition activity in the EU Food supply chain UK 32,5 0 End month Deliverable No D1.1 A protocole of literature reviews and a coded elaborated and critical list of the applied methods in the food Industry D 1.2 An In depth picture and evaluation of the market structure, concentration and competition of the Food supply chain in the EU (accompanied with a report of the case studies) 12 D 2.1 A report and a detailed database on the M&A activity during the last decades in the food supply chain 12 D 2.2 An empirical evaluation of the M&A waves observed throughtout EU 24 D2.3 A consistent microeconomic model for the analysis of the Dynamics of M&A activity 24 D 2.4 An integrated gametheoretic model for the analysis of strategic Ineractions of M&A Activity
8 30 D2.5 An empirical assessment of the Driving Forces of M&A activity in the Food Supply chain (accompanied with a report of the case-studies) WP3 WP4 Market performance and welfare evaluation: technology adoption and R&D incentives in the EU Food supply chain Market and welfare effect of Purity standards in Food labelling Laws Rethymno 28 0 Thessaloniki D 3.1 A report and a database on the technological Innovations and R&D activity in the EU Food supply chain 24 D 3.2 A game theoretic model for the analysis of vertical trading forms in Food supply chain 24 D 3.3 An Integrated theoretical framework for the analysis of Firms Innovative Incentives and their impacts on market efficiency and welfare 30 D 3.4 An empirical analysis on the adoption and diffusion of technological Innovations in the Food supply chain (accompanied with a report of the casestudies 30 D 3.5 a Portfolio of policy recommendations for the improvement of the food supply chain and a set of new merger guidelines 12 D 4.1 A report on the European and US Food labeling laws and purity standards 18 D 4.2 An Integrated, theoryconsistent framework of analyzing the behavior of Heterogeneous consumers, heterogeneous producers and Imperfectly competitive Input Supplying, Processing and retailing sectors
9 24 D 4.3 An analysis of the Market and welfare effects of purity standards in European Food labeling Laws 30 D4.4 A quantitative/simulation analysis of the Market and welfare effects of European Food Labelling Standards 30 D 4.5 A synthetic report on the perceptions of the Food chain s actors WP5 WP6 Assessment of the economic performance of the Food chain Analysis of the socioeconomic effects of the food supply chain in remote rural areas Netherlands Prague D 5.1 Development of Food Industry Models FOR Dyamic Productivity Measurement for the EU Food Supply Chain D 5.2 Generate measures of the decomposition of the contributions to Productivity growth in Selective Sectors of the Food supply chain D 5.3 Analysis of the relative contributions of how the Food Industry is extracting its potential from existing technologies (accompanied with a report of the case studies) D 6.1 A theoretical framework for the construction of a complete regional I-O Model D 6.2 A report of the constructed regional I-O Tables along with the linkage coefficients & the eliminating process
10 D 6.3 A report analyzing the socioeconomic importance of the Food supply chain in the selected remote rural areas WP7 WP8 Demonstration and dissemination of the results Project management and Assessment Thessaloniki D 7.1 A leaflet describing project s broader goals, objectives and expected benefits Germany D 7.2 a leaflet (in English and all Partner s language) Summarizing the results of the empirical research Rethymno D 7.3 A workshop on the analysis of Food Industry dynamics Thessaloniki D 7.4 Publication of the research results in scientific outlets Thessaloniki D 7.5 a CD-ROM containing all the modeling tools Rethymno D 7.6 a short course on modeling tools Germany D7.7 Synthetic reports on the situation and the future pospective of the national food industry (one of each participating country, including a brief summarizing section) Thessaloniki D 8.1 a HANDBOOK/ GUIDELINES for the Executive Committee D 8.2 FOODIMA Website D 8.3 Work package specific evaluation (2 midterm reviews) D 8.4 A final report on the research activities
11 WORKING PACKAGE No 1 Title: State of the art in Food Industry Analysis: Main Characteristics of Food Supply Chain and the regulatory environment Task1.1 a literature review of applied approaches in analyzing food supply chain Task 1.2 Description and evaluation of the market structure of the Food Supply chain in the EU Task 1.3 An Analysis of the existing policies and regulatory framework 1. A Protocol of Literature reviews and a coded elaborated and critical list of the applied methods in the Food Industry (D 1.1) 2. An In-Depth picture and evaluation of the market structure, concentration and competition of the Food supply chain in the EU (accompanied with a report of the case studies (D 1.2) 3. Documentation and analysis of the existing policies and regulatory framework (D 1.3) Working Package No 2 Title: Strategic Interactions and sectoral competitiveness: An analysis of Mergers and acquisition activity in the EU Food Supply Chain Task 2.1: Literature Review and backround information of M&A Activity in the Food Supply chain Task 2.2: Data collection on M&A Activity in the Food supply chain Task 2.3: Development of a conceptual microeconomic model analyzing the Dynamics of M&A Activity Task 2.4: Development of a game-theoretic model for the analysis of strategic interactions of M&A in the Food supply chain Task 2.5: Empirical evaluation of the Dynamics of M&A Activity in the Food supply chain 1. a report and a detailed database on the M&A Activity during the last decades in the Food Supply Chain (D 2.1) 2. An empirical evaluation of M&A Waves observed throughout EU (D 2.2) 3. a consistent microeconomic model for the analysis of the dynamics of M&A Activity (D 2.3) 4. An integrated game-theoretic model for the analysis of strategic interactions of M&A Activity (D 2.4)
12 5. An empirical assessment of the driving forces of M&A activity in the Food supply chain (accompanied with a report of the case studies) (D 2.5) Working Package No 3: Title: Market performance and welfare evaluation: Technology adoption and R&D incentives in the EU Food Supply Chain Task 3.1: Literature review on the approaches analyzing technology diffusion and R&D activities in the Food Supply chain and data gathering Task 3.2: Development of Game theoretic models for the analysis and the implications of trading forms between food manufacturers and retailers Task 3.3: Development of Integrated models for the analysis of incentives for innovative activities and their market and welfare implications Task 3.4: Empirical analysis of technological diffusion patterns in the Food supply chain Task 3.5: Suggestion of Policy measures for the improvement of the Performance of the Food supply chain 1. a report and a database on the technological Innovations and R&D activity in the EU Food supply chain (D 3.1) 2. A game-theoretic model for the analysis of vertical trading forms in Food supply chain (D 3.2) 3. An integrated, theoretical framework for the analysis of Firms innovative incentives and their impacts in market efficiency and welfare (D 3.3) 4. An empirical analysis on the adoption and diffusion of technological innovations in the Food supply chain (accompanied with a report of the case studies) (D 3.4) 5. a Portfolio of policy recommendations for the improvement of the food supply chain and a set of new merger guidelines (D 3.5) Working Package No 4: Title: Market and welfare effects of purity standards in Food labeling laws Task 4.1: Literature review on the European and US Food labeling laws and purity standards Task 4.2: Development of methodogical framework Task 4.3: Analysis of the market and welfare effects of purity standards for conventional and organic labeling food Task 4.4: a quantitative simulation analysis of the market and welfare effects of European food labeling standards
13 Task 4.5: qualitative survey on the perceptions of the Food chain s actors 1. A report on the European and US labelling laws and purity standards (D 4.1) 2. An integrated, theory- consistent framework of analyzing the behavior of heterogeneous consumers, heterogeneous producers and imperfectly competitive input supplying, processing and retailing sectors (D4.2) 3. An analysis of the market and welfare effects of purity standards in European Food labeling laws (D 4.3) 4. A quantitative/simulation analysis of the Market and welfare effects of European food labeling standards (D 4.4) 5. a synthetic report on the perceptions of the Food chain s actors (D 4.5) Work Package No 5: Title: Assessment of the Economic Performance of the Food Supply Chain Task 5.1: Collection of data of selected sectors within the EU Food Industry Task 5.2: Development of measures of and Tools for assessing economic performance Task 5.3: Analysis of the impact of R&D and new technologies on economic performance of the Food Industry 1. Development of Food Industry Models for Dynamic Productivity measurement for the EU Food supply chain (D 5.1) 2. Generate measures of the decomposition of the contributions to productivity growth in selective sectors of the Food supply chain (D 5.2) 3. Analysis of the relative contributions of how the Food industry is extracting its potential form existing technologies (accompanied with a report of the case studies) (D 5.3) Working Package No 6: Title: Analysis of the Socioeconomic effects of the food supply chain in remote rural areas Task 6.1: Definition of a hybrid comparable regional input-output scheme Task 6.2: Construction of regional I-O Models, Description of the structure of the selected rural areas and analysis of the framework of the impact indicators Task 6.3: Application of the theoretical framework to the selected regions for the examination of the socioeconomic importance of the food sector 1. A theoretical framework for the construction of a complete regional I-O Model (D 6.1) 2. A report presenting the constructed regional I-O Tables along with the linkage coefficients and the eliminating process (D 6.2) 3. A synthetic report analyzing the socioeconomic importance of the Food supply chain in the selected remote rural areas (D 6.3)
14 Working package No 7: Title: Demonstration and dissemination of the results Task 7.1: a leaflet containing information on the results of the empirical research Task 7.2: a workshop on the analysis of Food Industry Dynamics Task 7.3: Publication of the research results in scientific outlets Task 7.4: Creation of a CD-ROM containing the modeling tools Task 7.5: Organisation of an intensive course on Modelling tools Task 7.6: Synthetic reports 1. A leaflet describing project s broader goals, objectives and expected benefits (D 7.1) 2. A leaflet (in English and all partner s language) summarizing the results of the empirical research (D 7.2) 3. A workshop on the analysis of Food Industry Dynamics (D 7.3) 4. All published papers in scientific journals (D 7.4) 5. A CD-ROM (in English and all Partner s language) containing all the modeling tools (D 7.5) 6. A short-course on modeling tools (D 7.6) 7. Six synthetic reports including an overall summarizing section (D 7.7) Working Package No:8 Title: Project management and assessment Task 8.1: Organisational meetings Task 8.2: FOODIMA Website Task 8.3: Scientific and Financial Administration of the Project and Project assessment Task 8.4: Termination of the Project and Final reports 1. A handbook/guidelines for the Executive Committee (D 8.1) 2. FOODIMA Website (D 8.2) 3. Work package specific evaluation (2 Mid-term reviews) (D 8.3) 4. A final report on the research activities (D 8.4)
15 Participant Prime Task Assigned Specific Expertise AUTH KVL Supervise, Labelling model, I-O model development Description of food supply chain Inter-industry analysis, Rural Development, Food Policy & Marketing Industrial & Institutional Economics, Economics of the Agri-food Industry WU WBS UOC CU MLU Economic performance model M&A model Innovation model I-O model application Literature reviews on all WPs Efficiency & Productivity Analysis Industrial economics (innovations, M&A) Industrial economics (technology adoption, R&D expenditures) Industrial organisation theory, agricultural development Institutional aspects, environmental ethics External Advisory and Reviewing Committee Review all deliverables; provide recommendations Leading researchers in agricultural economics; Leading marketers in top EU food industries
FOODIMA PUBLISHABLE FINAL ACTIVITY REPORT
Page 1 of 13 SOKOLOWSKI Norbert (RTD) From: LUTZEYER Hans-Joerg (RTD) Sent: mercredi 17 novembre 2010 18:56 To: SOKOLOWSKI Norbert (RTD) Subject: FOODIMA - Publishable Final activity report - please upload
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