Abstract: This article fills an important gap in the literature by, to our knowledge, examining for the first time the relationship between agricultural diversification and green total factor produc-tivity. Using balanced panel data from Burkina Faso's 13 regions for 2010-2020, this study offers an original empirical contribution to understanding the drivers of economically efficient and envi-ronmentally sustainable agriculture. The green productivity index used is the global Malmquist–Luenberger index. Agricultural diversification is measured using the Simpson index and the entro-py index. Estimates based on the robust Driscoll–Kraay method reveal that diversification has a positive and highly significant effect on green agricultural productivity. The analysis of the decom-position of total productivity indicates that the overall positive effect of diversification on green productivity is mainly driven by improvements in technical efficiency rather than by technological progress. This suggests that agricultural diversification, as observed in Burkina Faso, relies more on the optimization of existing practices than on the introduction of new green technologies. These findings highlight that promoting crop diversification should constitute a central strategic axis of public policies aimed at reconciling agricultural performance with environmental sustaina-bility, particularly through technical, infrastructural, and financial support for the adoption of di-versified practices by producers. Keywords: Burkina Faso; diversification; green agricultural productivity; Malmquist-Luenberger global; Driscoll-Kraay
Trends in the environment are leading to the emergence of more and more mechanisms that bring us closer to the circular economy. However, there are a number of risks that delay various industries from fulfilling their goals. A key factor in overcoming them is the introduction of circular design. In this paper, circular design is used as a key tool for reducing risk in the circular economy. Here, the reader can get acquainted with a model for using circular design in intelligent risk management in the circular economy, called CDIRMCE. The model unites four interconnected stages that form a continuous cycle of data, analysis, action and feedback. The first stage is aimed at intelligently providing data that is interpreted through NLP and machine learning. The second is related to risk management in circularity, and it relies on predictive models and adaptive algorithms. The third stage transforms priority risks into specific circular design tasks and generates solutions through generative models, simulations and digital twins. The fourth stage provides continuous monitoring of key circularity indicators, automated reporting and self-learning of the system. In its entirety, CDIRMCE demonstrates how the integration of AI and circular design can systematically reduce uncertainty, improve product sustainability and support organizations in achieving circular economy goals. The model offers an applicable framework for both scientific research and practical management of innovation processes, combining technological intelligence, regulatory compliance and a strategic orientation towards sustainability
The global food system faces a significant threat due to its substantial connections to greenhouse gas emissions, necessitating the exploration of sustainable alternatives. Amidst the prevalent realisation and responsiveness toward overcoming this adverse impact, mushroom farming (MF) has emerged as a promising solution for soil conservation, food security, and meeting sustainable environment goals. This study explores enablers to MF by reviewing the extant literature and conducting expert interviews. Further, the study employs Interpretive Structural Modelling (ISM) to capture the complex interdependencies among these enablers and understand potential strategies to leverage them as opportunities. Findings reveal that low technological requirements, flexibility in farming systems, nutritional security, and the versatile application of spent mushroom substrate are the most influential drivers of MF adoption. These insights provide a structured understanding of the multifaceted opportunities embedded in MF and highlight its potential to align with India’s sustainability and food security goals.
Trends in the environment are leading to the emergence of more and more mechanisms that bring us closer to the circular economy. However, there are a number of risks that delay various industries from fulfilling their goals. A key factor in overcoming them is the introduction of circular design. In this paper, circular design is used as a key tool for reducing risk in the circular economy. Here, the reader can get acquainted with a model for using circular design in intelligent risk management in the circular economy, called CDIRMCE. The model unites four interconnected stages that form a continuous cycle of data, analysis, action and feedback. The first stage is aimed at intelligently providing data that is interpreted through NLP and machine learning. The second is related to risk management in circularity, and it relies on predictive models and adaptive algorithms. The third stage transforms priority risks into specific circular design tasks and generates solutions through generative models, simulations and digital twins. The fourth stage provides continuous monitoring of key circularity indicators, automated reporting and self-learning of the system. In its entirety, CDIRMCE demonstrates how the integration of AI and circular design can systematically reduce uncertainty, improve product sustainability and support organizations in achieving circular economy goals. The model offers an applicable framework for both scientific research and practical management of innovation processes, combining technological intelligence, regulatory compliance and a strategic orientation towards sustainability
Agricultural nurseries are one of the most significant elements of the agricultural production systems in Palestine; however, they perform their activities in the conditions of severe resource shortage, rising costs of inputs, and limitations of environment. Despite the popularity of the integration of Green Economy (GE) and Circular Economy (CE) concepts as the sustainability strategy, there is a lack of empirical studies that specifically address the nursery industry. In order to fill this gap, the current research will use a quantitative and a survey-based approach, gathering the data about 120 agricultural nurseries located within the West Bank and Gaza Strip. Through the use of several linear regression, Pearson correlation, and descriptive statistical models, the research investigates the correlation between the implementation of green and circular practices and the main economic outcomes- that is, cost reduction, resource-use efficiency, and productivity. The findings show that there is a strong positive relationship between sustainable practices implementation and economic performance. Green policies like water-efficient irrigation and organic fertilizer have a slightly higher individual effect, but circular benefits, such as composting and water reuse, are large. Nurseries which adopt an integrated approach to adoption show significantly better economic performance compared to nurseries with less adoption intensity. This research contributes to the academic community on the topic of sustainable agriculture by providing empirical data on a sensitive but under-researched context and by providing practical policies that can assist policy makers and practitioners to establish nursery systems that are environmentally friendly and economically viable in Palestine and other similar areas.
This study examines the carbon footprint (CF) and eco-efficiency of rice farming in Northern Greece, aiming to identify sustainable production patterns that reduce greenhouse gas emissions while preserving product quality and agricultural income. Primary data were collected through structured questionnaires and used to apply Life Cycle Assessment (LCA) and Data Envelopment Analysis (DEA), enabling the quantification of the carbon footprint and the evaluation of the eco-efficiency of rice production systems. The CF of rice cultivation ranges from 6532–13 263 kg CO₂e/ha, depending on residue management practices, corresponding to 0.67–1.37 kg CO₂e/kg of rice. DEA results show that only a limited number of producers achieve high efficiency levels, indicating significant potential for resource optimization and improved environ-mental performance. The analysis also acknowledges certain limitations, as the study relies on generalized estimates and does not fully account for long-term climate-induced changes in soil properties or evolving agricultural practices. Overall, the findings highlight that adopting a sustain-able rice farming model constitutes a strategic choice with environmental, economic, and policy benefits, requiring technological innovation, institutional support, and active producer engage-ment to reduce emissions, conserve natural resources, and deliver a high value-added green product.
Knowledge regarding the socioeconomic and sociodemographic factors that influence vegetable consumption is considered a prerequisite for the promotion of healthy and sustainable diets. However, although the interest in the food consumption preferences in Europe is growing, the empirical evidence on the determinants of vegetable preference among consumers in Kosovo is limited. In the current study, the impact of various socio-economic and sociodemographic factors on the preferences towards certain vegetables in Kosovo is investigated through a quantitative approach based on the results obtained from a set of structured questionnaires. Primary data were used in the current research, and the structured questionnaires were given to 424 adult consumers who are responsible for purchasing vegetable products in Kosovo. The sample size was computed based on Yamane’s formula. Since pepper, onion, watermelon, and melon are among the most preferred and most consumed products by the consumers of Kosovo, the aim of this study was to investigate the impact of socio-economic and demographic factors on the preferences of some of the chosen vegetables. The study was conducted with consumers of vegetable products in Kosovo at points of purchase such as supermarkets, grocery stores, and green markets. Statistical analyses (ANOVA, regression, correlation, chi-square, and other tests) performed in SPSS showed significant differences between consumer groups, especially regarding income and education levels for vegetable consumer preferences (p<0.001). Higher income is closely related to the choice of vegetables based on quality, nutritional value, and other health factors. Findings from this study indicate that income and education are the most dominant factors that shape the preference of consumers regarding vegetables. The next are variables such as gender, age, household size and residence. Based on the regression analysis, it shows the ability to predict changes of over 71% in consumer preferences. The results show that pepper (32.3%) and onion (30.6%) are the most preferred, watermelon has a high level of preference, while melon is the least preferred. The discovered effect sizes indicate important socio-demographic impacts on diet in Kosovo. Implications are that the inclusion of socio-economic and demographic factors in public health policy, nutrition education, and market development programming aimed at promoting vegetable intake should occur.
This paper assesses food security and the affordability of a healthy diet in Armenia, Georgia and Azerbaijan during 2010–2024. Using FAO food price indices, national CPI data and the Cost and Affordability of a Healthy Diet (CAHD) database, we construct food price and diet-cost indicators, complemented by Engel coefficients, a Food Affordability Ratio and a Food Vulnerability Index. Results show declining real food prices but rising healthy-diet costs, with the heaviest burden on low-income households in Armenia and especially Georgia. We propose an “economics of hunger” framework and discuss implications for price stabilization, social protection and climate-resilient, nutrition-sensitive food policies.
This study investigated the average willingness to pay (WTP) and its determinants for cochineal-insect resistant varieties of cactus (Opuntia ficus-indica) in Ethiopia. Data were collected from 400 households using the contingent valuation method with a dichotomous choice elicitation format and analysed using probit, interval, and bivariate probit models. Results indicate that the average WTP for cochineal-resistant cactus varieties was 69.30 Ethiopian Birr per seedling. Gender of the household head, access to extension services, and cooperative membership were significant positive determinants of farmers’ WTP. Conversely, the initial bid price negatively affected farmers’ WTP, consistent with the law of demand. Therefore, the government should integrate cochinealinsect resistant cactus varieties into national agricultural innovation and climate resilience strategies by providing subsidies, gender-inclusive training, and robust institutional support.
In a land governance context characterized by frequent expropriations for public utility and the dualism of customary and formal legal regimes, this study assesses the impact of tenure security on agricultural investment. Drawing on data from the Fourth Cameroon Household Survey (ECAM 4), the analysis utilizes a Two-Stage Conditional Maximum Likelihood (2SCML) approach to address endogeneity, supplemented by Modified Instrumental Variable (MIV) techniques for robustness. Tenure security is operationalized through a hierarchical classification of land rights. Our findings reveal that land tenure security exerts a positive and significant influence on agricultural investment. Enhanced security strengthens farmers’ control over their plots thereby mitigating potential conflicts and ensures eligibility for compensation in the event of state-led expropriation. This stabilized environment, in turn, fosters a virtuous cycle of investment; on average, tenure security increases land investment by over 8,000 FCFA. Furthermore, the magnitude of investment is positively correlated with the strength of the legal rights held. Compared to informal occupants (squatters), titled landholders invest an additional 32,000 FCFA, while customary owners and tenants invest 23,000 FCFA and 21,000 FCFA more, respectively. The analysis further demonstrates that perennial crops provide landholders with greater occupancy security compared to other crop types, creating a stronger incentive for long-term land improvement. However, the results also highlight systemic marginalization, with widows and immigrants possessing significantly weaker land rights relative to their counterparts. Additionally, access to credit emerges as a critical determinant in stimulating agricultural investment. Based on these empirical insights, we recommend that public authorities enhance land tenure security by streamlining access to formal land titles and establishing a specialized agricultural bank to improve credit access for farmers.
Moroccan fruit and vegetable exports are showing sustained growth momentum. Morocco is positioning itself as a main actor, demonstrating its significant competitive potential in international markets, despite foreign competition. This study finds empirical support for the proposition that compliance with international sanitary and phytosanitary standards is crucial for avoiding rejections, competitive repositioning, and continued integration into international trade. This article seeks to analyze the situation of Moroccan fruit and vegetable exports and identify the causes of rejections during the period based on data compiled by the United Nations Industrial Development Organization (UNIDO), the Foreign Exchange Office. The results of the analysis indicate continued growth, with the European Union remaining the main import market, absorbing around 64% of the volume of fruit and vegetable exports. The analysis also reveals a total of 349 rejections between 2010 and 2022, spread across five markets: the EU, the United States, China, Japan, and Australia, with the most common reasons for rejection being pesticide residues, bacterial contamination, mycotoxins and also labeling and adulteration-missing export document.
1. IntroductionThe last years, within the economic instability, the Greek economy faced severe problems that affected all macroeconomic indices. The country's Gross Domestic Product (GDP) during the period 2008-2013 was reduced by 23%, while the domestic demand reduction reached 31%. For the period 2010-2013 unemployment has been increased by 18,6%, while productivity has been reduced by 6,5% for the period 20082013 (INE, 2013; Eurostat, 2013). Generally, the Greek economy the last years runs into economic instability with all financial indices, apart from GDP and employment, presenting negative trends (Hellenic Statistical Authority, 2015; Rakopoulos, 2015; КЕПЕ, 2016; Mattas and Loizou, 2013). Within this environment of instability the Greek Small and Medium-sized Enterprises (SME's) were among the victims that affected significantly; issues such as liquidity constraints and reduction in their turnover made difficult and insecure their operation. Six out of ten enterprises recorded profit decrease in 2011 compared to 2010, whereas 150.000 jobs were lost (European Commission, 2012). The domestic entrepreneurship continuously deteriorates and the earlystage entrepreneurship index reached its lowest rate in a period of five years, i.e. 5.3% from 8.8% in 2009; while in the same period the potential entrepreneurs diminished up to 2% compared to 4.5% in 2009 (IOBE, 2012).The Greek rural areas host more than 43% of the total population of the country (European Commission, 2012); among those areas the mountainous and less favored areas also encounter the effects of the economic crisis, at least to the same extent as the urban areas (Kontogeorgos et al., 2014). The economic crisis and instability affect them significantly despite the fact that during the last 20 years, with the funds of the European policies mainly through agro tourism demonstrate a positive development. Today, the dramatic increase of unemployment and the significant reduction of the internal demand and consumption caused important consequences in the development of local entrepreneurship and in the domestic tourism, affecting the growth of the local economies (Hellstat, 2015; КЕПЕ, 2016).Among the actions that supported significantly by EU policies in rural areas were the women's cooperatives. Thus, since 1990 a flourish was observed in the creation of women's cooperatives in the Greek countryside (Gidarakou, 1999; Iakovidou, 2002; Koutsou et al, 2003; Lassithiotaki and Roubakou, 2014). Even today, women's cooperatives represent the main form of female entrepreneurship at local level. Through the cooperatives activities women business potentials were improved and their role and position in small rural communities' was recognized. However, the women's cooperatives, despite their contribution to the development of local economies, run into great difficulties and operational problems. These problems seems to be maximized the last years with the economic instability, as the internal demand for touristic services and leisure activities were reduced substantially (69%, between 2008-2013) along with final consumption expenditures (IOBE-SETE, 2012; SETE, 2015).Following this context the aim of the present paper is to depict the viability potentials of very small women's cooperatives that operate in mountainous and less favored Greek areas, under the current economic instability. It is examined weather factors related to the economic crisis affected their financial situation and viability. This aim is examined through mainly a presentation and analysis of financial data of the last years. In addition, the paper aims to investigate the recognition and appreciation of the role of these cooperatives by young people in the local communities and their support as an alternative source of income. The study presents next the evolution of the rural development policy and especially in the mountainous and less favored areas and the characteristics of the women's entrepreneurship and cooperatives in the rural areas. …
The purpose of this paper is to analyse the factors affecting operational efficiency for a meat processing supply chain. The paper focuses on the operations that take place in a slaughterhouse. The results obtained by testing a simulation model and the related factors mentioned are used to analyse the operational efficiency. The study takes place in the Middle East and North African (MENA) region, particularly the United Arab Emirates (UAE). The Arena Simulation software which is a discrete event simulation and automation tool developed by System Modelling has been used to develop a process simulation model of a real time slaughterhouse processes scenario along with factors such as waste disposal, and government regulation procedures that are also taken into account. The simulation model analysis shows that the current operational efficiency of the slaughterhouse processes is too low, as compared to the standard industrial operational efficiency. In the Arena based process simulation, the parameters were varied and new resource utilization was obtained. By testing the new values into the relationship it was found that the operational efficiency has improved to the initial results from 0.2193 to 0.2612. This study implies that there is room for improvement in the slaughterhouse facilities to achieve sustainability, and ecofriendliness by increasing the operational efficiency. Even though there is enough literature on operational efficiency of meat supply chain (Fattahi et al., 2013), very few researchers have focused on the slaughterhouse operations and the relevant supporting processes. Further refinement based on the factors that can affect the slaughterhouse operations needs to be studied. The data collected reflect the general aspects of the operations that are easily accessible; a study on the complete process carried out in the slaughterhouse supply chain would possibly support a better understanding of the factors and thus develop a better view of the operational efficiency of the slaughterhouse. The analysis of the operational efficiency of the slaughterhouse may improve the slaughterhouse management practices to increase the performance. The managers and strategic decision makers need to decide on the appropriate mix of factors that would contribute to the improvement of slaughterhouse’s operational performance. This study brings to light the improvement needs of the slaughterhouse facilities operate in this region in order to meet the food requirements of the consumers with utmost quality and by reducing the impact on environment which is a growing concern at present.Although few researches have studied the aspects of waste disposal, government regulation, and resource utilization of a slaughterhouse facility, this paper investigates the operational efficiency of a slaughterhouse by considering all the aforementioned aspects by creating a relationship among them which makes it a unique contribution to the meat 61 2017, Vol. 18, No. 2 AGRICULTURAL ECONOMICS REVIEW industry. This study provides an insight on the operation aspects of the slaughterhouse and the common practices carried out in this industry thereby considering the dimensions and factors that can improve the targeted operational efficiency.
Greece is self-sufficient in crop production but it relies heavily on meat and dairy imports. The Greek balance of trade for agricultural products has steadily declined due to the heavy imports of meat and dairy products. The estimation of elasticities of import and export demand functions has always been used in international economics to determine the causes of trade deficits and to explain the past as well as, to forecast the future. Despite the published research on the analysis of import meat demand for several counties, there is just one work concerning the analysis of Greek import meat demand. However, the results of this work are not differentiated by supply source. In order to alleviate this shortcoming, this paper analyzes the Greek meat import demand differentiated by source. The model explains more than 86% of data variation. The empirical results indicate that due to inelastic demand, German beef exporters could gain market share in the Greek market through competitive prices. The expenditure elasticities for beef imported from France and Germany reflects the strong longrunning preferences of Greek market from these countries in terms of beef. Also, expenditure elasticities reveal that pork imports from Germany have the most to gain from an increase in meat import expenditure followed by Italian and Dutch poultry meat and French pork meat. Hence, a Greek exit from the financial crisis which most probably will lead to an expansion in meat market is favorable for above mentioned meats and counties. Moreover, the results indicate that in the pork market, France has a competitive advantage compared with the rest of the pork suppliers (Germany, Netherlands and ROW). Finally, poultry from Italy has a competitive advantage compared with the poultry from the Netherlands. The estimates of cross-price elasticities indicate asymmetric substitutability relationships between beef from France and various countries (ROW) and as regarding the lamp sector complementarity relationships between Bulgaria and New Zealand. Also, the competition is strong between France and Germany in the pork sector and between France and Others Counties (ROW) in the poultry sector. Finally, seasonality is found to have a significant effect in determining Greek meat imports.
1. IntroductionAfter potato, tomato is the second most important herbaceous crop in the world. Though grown worldwide regardless of end use, its chief areas of cultivation are in Asia, the Americas and the Mediterranean basin (Dorais et al., 2008). In the two-year period 2010-2011 world production of tomato for direct consumption and for processing amounted to almost 156 million tons, showing a growth of about 5.3% against the previous two-year period, perfectly in line with the average growth recorded over the whole decade. Since the early 1990s world production has doubled (FAOSTAT, 2011). Tomato products constitute one of the main made-in-Italy agrifood businesses and have an undeniable symbolic value. The tomato processing sector and its products have historically played a strategic role in the context of Italy's fruit and vegetable industry due both to the demand for raw materials from the agricultural sector and to the employment generated by the tomato processing industry (Bazzani and Canavari, 2013). Moreover, the high propensity to export the various end products has long reduced the structural deficit of Italy's agri-food balance of trade (Lombardi and Verneau, 2010). In recent years, the whole tomato processing supply chain in Italy has experienced profound re- structuring triggered by the reform of the Common Market Organisation (CMO), accompanied by increasingly fierce price competition resulting from several emerging countries competing with Italy on foreign markets (Lombardi et al., 2013). Thanks to an aggressive trade policy focussing on low production costs and appreciable acceleration in production, China and India have become established as the world's chief tomato producers (respectively 30.5% and 9.5%), overtaking the USA. The trend shown by the two Asian countries signals a strong export flow towards Western Europe in the field of semi-finished products (Sodano, 2005). Yet, as will be shown below, the current emerging market share does not give cause for concern except as regards the dynamism of international trade and the ability of countries that are traditional producers and exporters to anticipate market dynamics.This paper describes and analyses the main changes under way in the international trade in the tomato and its derivatives and the dynamics of the competitiveness of Italian exports. It focuses chiefly on market dynamics in the European Union, insofar as it is the chosen area of trade for Italian production, and investigates whether Italy has been able to react to the radical changes affecting the sector and the market for tomato and its derivatives. Specifically, it assesses Italy's performance in terms of maintaining its traditionally dominant position within international trade dynamics. Further, Italian export flows are studied in order to ascertain whether they are consistent with changes operating in the international demand structure.Comparison of Italian trade dynamics with those of other European countries affords insights into the current scenario in the market for fresh and processed tomatoes. For this purpose the changes in Italian trading performance are highlighted by using detailed indexes of market shares for the main categories of processed tomato with a view to evaluating the dynamics of the main retail markets for Italian products and their degree of penetration on the chief European markets.The sources used in this study were the FAO and Comext-Eurostat databases. Analysis of trade flows was carried out by considering five aggregated product categories, starting with those that are least processed (fresh and refrigerated tomatoes) and ending up with those of higher added value (Ketchup and other sauces), thereby exhausting the whole range of red derivatives.Our results appear to show that in Italy there has been both geographical and product diversification. However, Italy's trade performance shows shortcomings in anticipating, or keeping pace with, the general market situation, failing to intercept the demand from specific markets. …
(ProQuest: ... denotes formulae omitted.)1. IntroductionGreek with trade name avgotaracho is produced fish caught in the Messolonghi-Etoliko lagoons, is famous for its quality and flavour and has a great commercial value (about 140€/kg at 2005) at local markets (KATSELIS et al., 2005). Documented history on the quality and commercial value of avgotaracho has been described since 16th century (TSELEBI, 1990), while a detailed description of the production has been reported since early of 20th century (PANAGIOTOPOULOS, 1916; STASINOPOULOS, 1926). Nowadays two types of avgotaracho were processed. The traditional one that was produced by using traditional equipment based on producers' experience and the modern type that follows a standardized technique on salting, drying and waxing by using modern processing equipment.The traditional product of avgotaracho has been identified by the EU (07/02/1996), because of its long history and well-known reputation, as product with protected designation of origin (PDO) with the code EL/PDO/0017/0446 (EC 1263/96 with the name PDO). It is the oldest PDO of the category of Fresh fish, molluscs, crustaceans and products derived there from and along with the roes extracted Coregonus albula, which is the most commercially important fresh water species in Finland (MUJE et al., 2002), are the only EU PDO's derived fish products. The main issues for the production of Avgotaracho to be certified as a PDO were described in details in the above-mentioned Law that: (a) the origin of the fish must be the Mesolonghi-Etolikon lagoons, (b) fish are caught using barrier traps during their spawning migration and (c) the whole process should be carried out in the lagoon facilities.Almost 20 years after the certification of PDO the first certified laboratory for the production of this product, which could be used by all fisherman associations that are leasing different sites of the system, was established by the fishermen association Messolonghiou Renaissance. The PDO process was approved by the National organisation for the certification of qualifications and vocational guidance. This effort oriented to safeguard the traditional character of the product due to pressures received by roes produced by other Greek laboratories that are operating throughout the year by importing fresh (from the early of 20th century) (PANAGIOTOPOULOS, 1916) or frozen liver and gonads of other species and/or of M. cephalus by other countries (member states of EU and/or third countries). The establishment of a certified laboratory might also compensate the decrease of the traditional values in local markets due to finance crisis occurred in Greece (MAKRI and KOUTSOURIS, 2015).So far studies referred to were focused on: (a) authentication of the mullet roe through biochemical methods (KLOSSA-KILIA et al., 2008), (b) chemical composition and nutritional value (KALOGEROPOULOS et al., 2008), (c) production estimation based to the landings of M. cephalus (KATSELIS et al., 2005, and (d) spawning migration of M. cephalus (VIDALIS et al., 1997; KATSELIS et al., 2007; 2015). Data on the product parameters during its manufacturing process are limited on rough estimations at each stage of the process (ROGDAKIS, 1994) and no information existed for the product traceability.The aims of the present study were to assess the main technical characteristics of the manufacturing process of the PDO followed by different producers in order to improve the traceability of the PDO product. The effect of climatic conditions on the processing stages was also examined, because air humidity is a critical factor on the food drying process (CHEN, 2009). It worthy to note that no data given for the obtained product's chemical composition (e. …
(ProQuest: ... denotes formulae omitted.)1.IntroductionWorldwide ethanol production has more than quadrupled since 2000 with the U.S. and Brazil leading in production (RFA n.d.a). Brazil, who has been a long time global leader in ethanol production, attributes its main reason to the high oil prices in the 1970s (Dias de Moraes 2007). Other countries who boosted their production in the mid-2000 justified their decision based on ethanol's positive impact on rural development, reducing reliance on unfriendly nations for energy, and environmental stewardship (Rosill°Calle & Johnson 2010), the last of which is often criticized because of the perceived negative energy balance of ethanol. The United States, with the help of government support (e.g., capital investment, blenders' subsidies, and tariffs), surpassed Brazil to become the leading producer of ethanol in 2006. Besides the negative energy balance of ethanol production, one of the major criticisms against ethanol is the impact on food prices. Since 2000, world food prices have more than doubled (World Bank n.d.).The high food prices, especially in poor countries, led to calls to curtail ethanol production (Grunwald 2008; Sharma 2008), and subsequently triggered many studies to examine the relationship between the ethanol market and the food market. Monteiro, et al. (2012) studied the impact of ethanol production in the U.S. and Brazil on food prices by focusing on the 1980-2007 time period. They found the share of Brazilian ethanol in the world market, the value of the U.S. dollar, and the price of oil have significantly affected food prices. Literature reviewed by Armah, et al. (2009) attributes the rise in food prices to increased energy cost, the devaluation of the U.S. dollar, and the increased energy demand by developing countries such as India and China. Other studies have found the price of ethanol to be influenced by food and energy prices (Serra, et al. 2011a; Serra, et al. 2011b; Kristoufek, et al. 2012), confirming a connection between the food and ethanol markets.In response to the outcry against ethanol production, policies such as import tariffs and blenders' subsidies have been discontinued in the U.S., and ethanol use mandates have been reduced in the U.S.1 and Europe (Taylor 2013 & Kenny 2014). Although ethanol production in the U.S. and Brazil has slowed as a result of these policy changes, it increased more than 9% from 2012 to 2014, while food prices dropped by nearly 14% over the same time period. Moreover, from 2012 to 2014, energy prices fell by more than 7%, which begs the question, is ethanol production responsible for high food prices? The purpose of our study is to investigate the impact of U.S. and Brazilian ethanol production on global food prices by estimating food demand and food supply equations simultaneously. We include data from 1980 to 2014 and control for the increased demand for food by developing countries due to improving economies and increasing populations, the depreciation of the U.S. dollar, energy prices, and technological advancement in agricultural production.2.Ethanol Production in the U.S. and BrazilThe U.S. and Brazil are the leading producers of ethanol in the world, accounting for over 80% of production (RFA). In response to the higher oil prices in the early 1970s, Brazil embarked on a massive ethanol production program. Policies implemented in Brazil include mandatory blending, capital subsidies, flex-fuel vehicle subsidies, and a 20% import tariff (Monteiro et al. 2012). Production has grown from about 0.16 billion gallons in the mid-1970s to 6.2 billion gallons in 2014 (RFA). In addition to the government programs, the success of Brazilian ethanol production is owed to the abundant supply of sugarcane, a very cost- and environmentally-efficient feedstock. Brazil is now a leader in sugarcane-based ethanol production. Currently, pure gasoline (i.e. zero ethanol blend) is no longer available in Brazil (Rico 2008). …
