International Trade of Agricultural Commodities + Food Flashcards
how is the food supply managed in developed countries?
through retail outlets.
- many processed foods
- local growing season became irrelevant (since we can get food from anywhere in the world)
which type of staples are dominating our calory intake?
grain- and rice-based foods
what is the primary resource of animal feed?
grain (soybean, maize)
what are important energy sources in processed foods?
vegetable oils - soybean, palm, rapeseed, sunflower
define the trends of per-capita availability of foods depending on the level of development (high-income, middle-income, and low-income)
high income: near saturation levels (almost same levels of all types of food)
middle income: growing income per capita is increasing the animal products consumption
low income: mostly just staples (grain, rice)
what are the uses of agricultural commodities? (4 main groups with subgroups)
(everything depends on demographics, income, prices, and preferences, which in turn affect total utility)
1. food
- crop
- livestock
- fish
2. feed
(depending on animal product demand)
(depending on livestock production systems, which depend on policy and other factors like tech)
3. biofuels
(depending on transport fuel demand, economic activity, and policies)
4. other (fibres and biobased products)
what are the 1st generation of biofuels and what is their trend currently?
coarse grains, oilseeds.
they are currently in decline and are being replaced with 2nd generation biofuels (agricultural residues, enzyme treatment)
which countries drive the biofuel demand? why?
Asian middle-income countries.
they implemented policies with 3 objectives:
1. support commitments to reduce CO2 emmissions
2. reduce dependency on imported fossil fuels
3. create additional demand for feedstock crops to support domestic production
what are the EU levels of expense on food and non-alchoholic beverages? (1st, 2nd, 3rd, …)
2nd highest expense, staying stable overall (but shifts in product characteristics)
which key commodity group demand has risen the most in the past 9 years? (due to per capita demand, not population growth)
vegetable oil
which part of the world (/country) has had the highest demand of fresh dairy in the past 9 years?
india
which part of the world (/country) has had the highest demand of cereals in the past 9 years?
sub-saharan africa
what is the current challenge of agricultural output growth?
how to meet the demand for a growing population, along with a rise in food consumption (higher calorie intake)
what is the current trend of undernourished population, obese population, and food waste?
undernourished popoulation remains the same, while obesity and food waste levels are increasing
what is the actual ‘food problem’
it is not about output (supply meeting demand), but about distribution of the current output
what has been the recent trend (past 2 years) for livestock and where has it been seen the most?
it’s been exponentially increasing, mostly in China and Asia Pacific (mostly other countries, but also India)
what have been 3 recent developments regarding land use?
- area of cereals + oilseeds still increasing (deforestation to get ‘virgin land’)
- area of soybean increased the most (mainly Brazil and Argentina)
- area of maize increased (use for animal feed and ethanol)
how is (or could be) demand met with the same area (land) used?
with increasing yields = productivity growth, increasing unit output per hectare of land/animal unit.
done with improving technologies, fertilization, irrigation, GMOs
what is the problem of increasing yields as means of meeting the demand?
they are highly dependent on the climate, i.e. natural environment (fluctuating rainfall seems to be the biggest problem)
has the world agriculture sector reached the limits of growth in either land area or productivity (yields)?
not everywhere - there are still parts of the world where agriculture 4.0 could be implemented.
additionally, sustainable intensificaiton is the way forward (vertical farming, lab-grown meat, algae, new tech)
def primary agricultural commodities. what has been their trend?
= the first link in the food chain
their alternative uses have been rising in importance (for energy, fibres)
which agricultural commodities are most traded internationally? (6)
skim milk powder, whole milk powder, soybean, vegetable oil, sugar, cotton
what are the predicted levels of international trade of agricultural commodities? why are they like that?
it will still expand for most types (except e.g. pork and biofuels), but much MUCH slower than in the last 9 years.
that’s because of slower demand growth in China + lower global demand in biofuels
what are the average concentration rates in agr. comm. export markets? what do they mean?
these concentration rates tell us how many exporters there are in the market - how many participants there are.
generally, almost all markets have a concentration rate over 70%, except the fish market. the highest are soybean, pork, and maize.
