David L. Ortega

Meat demand in China

Purpose - The purpose of this paper is to provide a thorough analysis of meat demand in China and predict future trends in meat consumption. Design/methodology/approach - Expenditure as well as Marshallian and Hicksian demand elasticities of various meats in China are evaluated using the linear almost ideal demand system. Findings - Results from this paper show that pork, the primary meat in Chinese diets, has become a necessity and that poultry, beef, mutton, and fish are considered luxuries within the meat budget allocation of Chinese households. Furthermore, the results predict that for any increase in future meat expenditure, the largest share of that increase will be allocated to pork consumption. Originality/value - This paper fills a gap currently present in the empirical literature regarding time series meat demand analysis in China. This paper makes use of newly available time series data on Chinese meat consumption and prices to estimate expenditure as well as own-price and cross-price elasticities. Implications for both domestic meat producers and grain exporters are discussed.

Emerging markets for imported beef in China: Results from a consumer choice experiment in Beijing

The purpose of this study is to explore emerging markets for imported beef in China by assessing Beijing consumer demand for quality attributes. This study utilizes data from an in-store choice experiment to evaluate consumer willingness-to-pay for select food quality attributes (food safety, animal welfare, Green Food and Organic certification) taking into account country-of-origin information. Our results show that Beijing consumers value food safety information the most, and are willing to pay more for Australian beef products than for US or domestic (Chinese) beef. We explore the various relationships between the quality attributes, find evidence of preference heterogeneity and discuss agribusiness and marketing implications of our findings.

Agricultural marketing and food safety in China: a utility perspective

Purpose - – The purpose of this paper is to explore Chinese food safety issues by analysing select incidents within he Chinese agricultural marketing system. Design/methodology/approach - – A marketing utility framework is utilized to discuss some of the major food safety incidents in China and potential solutions are explored. Findings - – The paper finds that food safety issues arise from problems of asymmetric information which leads to the profit seeking behaviour of agents distorting rather than enhancing the creation of one of the four types or marketing utility (time, form, place and possession). Additionally, structural causes found within the Chinese food marketing system have contributed to the food safety problems. Research limitations/implications - – This is not an empirical research with numerical data. Originality/value - – This study is one of the first to address Chinese food safety problems from an agricultural marketing utility perspective. Key anecdotes are used to support the claims made in this study.

Demand for Complementary Financial and Technological Tools for Managing Drought Risk

Financial and technological innovations that mitigate weather-related production risks have the potential to greatly benefit farmers in many risk-prone areas. In this study we examine farmers’ preferences for two distinct tools that allow them to manage drought risk: weather index insurance and a recently released drought-tolerant rice variety. We illustrate how these tools can independently address drought risk and demonstrate the additional benefits gained by combining them into a complementary risk management product. Findings indicate that farmers are generally unwilling to adopt the drought-tolerant variety independent of insurance, largely due to a yield penalty under non-drought conditions. When bundled with insurance, however, farmers’ valuation of the variety increases. Farmers value insurance on its own, but even more so when bundled with the drought-tolerant variety. The results provide evidence that farmers value the complementarities inherent in a well-calibrated bundle of risk management tools.

Farmer Preferences for Drought Tolerance in Hybrid versus Inbred Rice: Evidence from Bihar, India

This paper addresses the previously unanswered question of whether the private sector might play a future role in developing similar strains through applications of advanced biotechnology, and whether their research and development efforts would benefit poor and vulnerable farmers in hazard-prone ecosystems. We employ discrete choice experiments to examine farmers’ preferences for DT traits and explore heterogeneity in these preferences using primary data collected in rural Bihar, India. Using different modeling approaches to capture preference heterogeneity, our results show that farmers value the reduction in yield variability offered by DT cultivars but are willing to pay even more for rice seed that offers yield advantages even under normal conditions.

Welfare and Market Impacts of Food Safety Measures in China: Results from Urban Consumers' Valuation of Product Attributes

This study provides an economics assessment of various food safety measures in China. A choice experiment approach is used to elicit Chinese consumer preferences for various food safety attributes using data from a 2008 urban consumer survey. An alternative welfare calculation is used to model aggregate market impacts of select food safety measures. Our results show that the largest welfare gains are found in the current government-run certification program. The implementation of a third-party certification system, a traceability network and a product label would generate significant value and would help reduce current system inefficiencies in China. This study builds on previous research and provides an alternative approach for calculating consumer valuation of safety and quality attributes that can be used to estimate aggregate economic and welfare impacts.

Preferences for legume attributes in maize-legume cropping systems in Malawi

Adoption rates of leguminous crops remain low in sub-Saharan Africa despite their potential role in improving nutrition, soil health, and food security. In this study we explored Malawian farmers’ perceptions of various legume attributes and assessed how these perceptions affected allocation of land to legume crops using a logit link model. We found high regional variation in both consumption- and production-related preferences, but relatively consistent preferences across samples. While scientific understanding and farmer perceptions were aligned on some topics and for some legumes, there were discrepancies elsewhere, particularly in terms of soil fertility and nutrition. Understanding why these discrepancies exist and where there were potential biases are critical in explaining the extent of adoption. In many cases perceptions of legume attributes may be influenced by the cultural role of the crop in the household, particularly in terms of food security or market-orientation. The findings also suggest that researchers need to look beyond both the agronomic properties and farmers’ preferences to fully understand the extent of adoption. Socioeconomic factors, biases, and marketing concerns may also influence integration of legumes into maize-based cropping systems.

Demand for food safety in emerging and developing countries: A research agenda for Asia and Sub-Saharan Africa

Purpose - Food safety in emerging and developing regions is receiving increased attention from economists, researchers and policymakers. The purpose of this paper is to provide a review of the literature on the economics of food safety in Asia and Sub-Saharan Africa (SSA). Of interest are studies exploring consumer demand and producer behavior regarding food safety. Particular attention is given to areas in need of additional research. The studies’ common implications for future research are discussed. Design/methodology/approach - Two English language searches were conducted in the summer of 2013 to identify relevant studies on the economics of food safety, one each in Google Scholar and Web of Science. The authors carefully reviewed the abstracts of these studies for content, and select papers were identified that capture overarching themes found in the literature. Findings are presented by region. Findings - Consumers in developing countries will become increasingly aware of food safety issues as urbanization proceeds and incomes continue to rise at robust rates. However, assuring food safety in modernizing food systems involves significant costs, and current incomes in developing SSA are far lower than in Asia. The authors find that overall consumer awareness of food safety problems in SSA is low relative to Asia. Moreover, knowledge of producer behavior and consumer demand for food safety in developing countries is very limited. Research limitations/implications - Limitations include a lack of information available on domestic food safety issues and overall knowledge of how food safety affects developing agrifood systems. Originality/value - The findings from this review contribute to a better understanding of the economics of food safety in emerging and developing regions.

Prioritization of farm success factors by commercial farm managers

This study elicits U.S. agricultural producer preferences for five key management success factors: managing output prices; managing production; controlling costs; managing land/equipment/facilities...

Determinants of adoption of sustainable production practices among smallholder coffee producers in Nicaragua

Efforts to slow down and eventually reverse the trend of climate change will take time, and in some cases, the negative impacts of climate change will be felt long before long-term solutions to this problem can bear fruit. Adaptation and mitigation strategies constitute the front line of attack for rural households in developing countries that rely on agricultural production and natural resource use as their main source of income and growth, and whose livelihoods are threatened by climate change. This study models the determinants of adoption of sustainable production practices by coffee producers in the department of Matagalpa, in northern Nicaragua. Using primary survey data, we analyze the extent to which cooperative membership impacts adoption of ten different practices. We find that coffee farmers who belong to cooperatives have adopted sustainable practices at higher rates than non-members, and that the odds of adoption are higher for members than for non-members. A factor analysis was conducted to determine the underlying structural differences between the ten practices, and from this analysis three factors emerged and were modeled. We find that cooperative membership is a significant determinant of practices that promote water conservation, yet not significant for practices that promote soil and plant health, nor for practices related to field management. These findings are valuable for policy makers, donors, and development and extension practitioners in the coffee sector, as they can better inform and guide policies toward more efficient and effective paths of long-term climate change adaptation.