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Myrna van Leeuwen, LEI Wageningen UR
AGMEMOD Partnership
Zagreb, February 25th 2015
Features of AGMEMOD
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AGMEMOD partnership
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RU
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WHAT is AGMEMOD?
(AGricultural MEmber State MODel)
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Characteristics (1)
• Multi-product, multi-country model for agrofood commodities (partial equilibrium)
• World price formation via inter-action of AGMEMOD regions with the Rest of the World (net-trade approach)
• Expandable with new countries (e.g. Bosnia and Herzegovina, Kazachstan) and new commodities (fishery)
• Common ownership of the models developed and the analytical results (signing of MoU) - AGMEMOD Partnership
• Selling point: AGMEMOD’s (bottom up) approach is based on development of country level data and models
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Characteristics (2)
• Integrated agricultural commodity models for EU countries, EU accession states and other countries – EU28
– Macedonia, Bosnia
– Russia, Ukraine
– Turkey
• Bottom-up approach – common commodity and country templates provide a base, but with
possibility to
– reflect the heterogeneous situation of a country’s agricultural system
– built by institutions in each of the modelled countries (instead by one organisation, like AGLINK, FAPRI)
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Main objectives
• Helpful for country (or a group of countries) based policy makers:
– by providing an appreciation for the likely impact of a particular policy in order to identify – at an early stage – any issue that would prevent a policy proposal’s acceptance
– by supporting policy makers with using evidence based decision making in their policy negotiations
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• To generate projections and simulations, to a 10-year horizon, for main agriculture commodities; under normal weather conditions. Useful for public and private stakeholders
• To reflect detail of agriculture at country level, so capturing the inherent heterogeneity of agricultural systems across countries
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WHY using AGMEMOD?
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Monitoring and evaluation
• Policy makers seek for evidence based decision making. Useful to support them in making proper policy choices
• AGMEMODs country models are based on a historical data base, but the future may be adjusted for expected (structural) changes
• AGMEMOD encounters country based experience on data and agricultural markets: benchmarking across regions
• Hereby, AGMEMOD is useful to support stakeholders (public, boards, companies) for making proper market strategy decisions
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Context of decision making
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Prices
Production
Supply and
Use
Market price
support
Budgetary
limitations
Trade
agreements
Macroeconomic
iteractions
Up- and down-
Stream sectors
Agricultural
households
Environmental
aspects
Regional and farm-
specific aspectsFactor use and
mobility
Dynamic
adjustments
Technology
changes
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Use for market analyses
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WHAT is in AGMEMOD?
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Agricultural market experience
• Expert information, e.g.
– on crop and animal yields trends (floods; land degradation, seed improvements, irrigation,...): relate to current & potential yield/ha, yield/animal
– on commodity market developments: related to policy, returns/costs ratios, available land & animals
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country market experts used to notice future developments that deviate from what happened in the
past
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Commodities: at country level
Grains and oilseeds..
..livestock and dairy
sugar beet.. ..potatoes
oranges.. ..olive oil
tomato paste.. ..tobacco
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Annual data: at country level
• Market balances: production, consumption, imports,
exports, feed/food/seed use, bioethanol/ biodiesel use
• Prices:
• national commodity prices
• world commodity prices (drivers)
• Policy instruments: national and EU; greening (drivers)
• Macroeconomic: population, GDP, inflation, exchange rate
(drivers)
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Observed data (historical database): start year mostly from 1980; end year varies per country
Eurostat and national sources
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Basic framework for crops
Price linkage equations
Area harvested
Yield
Feed Use
Non-Feed Use
Production
Beginning Stock
Domestic Use
Ending Stock
Imports
Exports
Sum country’s Net
Export Supply
net export supply
World Net Export demand
World Prices
WTO
Country Models
>, =, < AG-MEMOD key price
Population, Inflation rates, GDP, Exchange rates
Minimum prices, Intervention prices, Supporting measures
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Relations across countries (prices)
Key price countries:
• France: wheat, barley, maize
• World market: rapeseed, sunflower seed, soybeans
• Italy: durum wheat, olive oil
• Germany: other cereals
• Germany: beef, pig meat, poultry
• Ireland: lamb meat
• France: cheese
• The Netherlands: SMP
• Germany: butter
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Key prices drive the national prices
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Relations across commodity markets
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HOW to use AGMEMOD?
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User interface
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Output (analysis) interface
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Read more
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F. Chantreuil, K. Hanharan and M. van Leeuwen (eds) (2012)
The future of EU agricultural markets by AGMEMOD. Published by Springer.
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Thanks for your attention
www.agmemod.eu
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