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Posts Tagged ‘partial equilibrium model’

Simulation modeling for foresight analysis and ex-ante impact assessment in potato and sweetpotato

Is it possible to use large scale agricultural simulation models for the analysis of crops like potatoes and sweetpotatoes?

Yes! The Global Futures for Agriculture and Strategic Foresight (GFSF) project, which has the objective of developing and applying an integrated simulation modeling framework for the comprehensive analysis of trends and technology impacts in the CGIAR mandate crops and systems, is doing exactly this. At least the part of this research collaboration of all in all 12 centers of the CGIAR which is taking place at the International Potato Center (CIP), as was explained in a seminar held on 24 April 2014 at the CIP Headquarters in Lima.

The core component of the modeling framework developed in the project is the International Model for Policy Analysis of Agricultural Commodities and Trade (IMPACT), an economic partial equilibrium model of the world agricultural sector. IMPACT has the capability of generating forward looking global analyses of supply, demand, prices and trade of 56 agricultural commodities in 320 geographic regions, taking into account major drivers like

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Ex-ante Evaluation of Improved Potato Varieties for Sub-Saharan Africa

This morning we presented our paper titled “Ex-ante Evaluation of Improved Potato Varieties for Sub-Saharan Africa” at the 9th Triennial Conference of the Africa Potato Association.

The paper features a forward looking analysis of the economic and social impacts of improved potato varieties in the region. We analyze a virtual investment project which involves the improvement and dissemination of potatoes in nine target countries in Eastern and Southern Africa.

The analysis employs the International Model for Policy Analysis of Agricultural Commodities and Trade (IMPACT) which has been developed at the International Food Policy Research Institute (IFPRI).

Taking into account spill over effects across markets and countries, the analysis finds positive net welfare effects at the global level. Effects of the intervention on potato supply in the target countries range from 0.5% to 8.5%. Potato producers in these countries are found to benefit, but producers of other commodities and in other countries beyond the region are negatively affected. Lower market prices for potatoes and other commodities lead to welfare gains to consumers worldwide and in the region. At the level of the target countries, the improved potato varieties are found to generate returns on investment between 20% and over 70%, depending mainly on the level of adoption.

The analysis shows that investing in crop improvement and variety development for Sub-Saharan Africa can be a worthwhile undertaking with returns that easily justify intervention. However, it also highlights the importance of variety diffusion for the intra-regional distribution and the magnitude of the impacts and points to the importance of paying attention to quality attributes in breeding for high market acceptance and suggests putting emphasis in seed systems development and other interventions to promote quick dissemination and high adoption levels.

The full paper will be available in the conference proceedings.

New documentation of the IMPACT model available

The International Food Policy Institute (IFPRI) has just published the documentation for the latest version of the International Model for Policy Analysis of Agricultural Commodities and Trade (IMPACT). It is available either via the IMPACT model web page on the IFPRI website or from IFPRI’s publications repository.

Global impacts of targeted interventions in food security crops

Image Poster Targeted InterventionsAt the 28th International Conference of Agricultural Economists (ICAE) which took place in Foz do Iguaçu, Brazil from August 18-24, 2012, we presented a visual presentation of a paper titled Global impacts of targeted interventions in food security crops – the case of potatoes in developing countries.

The paper presents a simulation analysis of the global effects of interventions oriented at increasing productivity in potato production in 30 developing countries which are of priority for CIP‘s agricultural research for development. The simulation was carried out using the IMPACT global agricultural sector model. Simulation results show that the interventions lead to higher potato supply in target regions and globally but lower production in non-target regions and of non-target commodities. Demand for potatoes as food is projected to increase, but entails substitution away from other commodities. This substitution in food consumption would lead to weakly positive, but not significant, effects on food security. Market prices for potatoes and other commodities would decline slightly.

A principal aim of the simulations made for the paper was to explore and assess the depiction of potato production and consumption in the model. Accordingly, the paper identifies a number of aspects which can be improved to arrive at more robust results for the potatoes commodity in IMPACT simulations.  These aspects include an increase in the spatial disaggregation of the simulation units on the supply and demand side, a better depiction of subsistence production and a review of the tradability assumptions in the model.

Global Futures for Agriculture

16/10/2012 3 comments

My principal activity at CIP is the work in the Global Futures for Agriculture Project. Global Futures, an IFPRI-led project, is designed to assess alternative options for improving agricultural productivity in developing countries. The project is focused on the evaluation of promising technologies for agricultural production in order to identify investments with the highest potential benefits and thereby support the CGIAR in priority setting and strategic planning.

Further objectives of the project are to deepen our understanding of the complex linkages among socioeconomic and environmental change, the functioning of agricultural systems and human well-being and to provide an improved representation of agricultural systems and their potential role in enhancing human well-being. A comprehensive modeling environment integrating socioeconomic, biophysical, and technological responses to simulate global, regional and local consequences of technology investments in the context of changing policies and natural resource threats is developed and applied.

To achieve the goals of the project, economists, plant breeders and crop modelers cooperate in the project to obtain estimates of likely productivity changes brought about by technological innovations for the mandate crops of the nine CGIAR Centers which participate in the project and the subsequent assessment of economic and food security impacts of these changes.

The project employs and enhances IFPRI’s International Model for Policy Analysis of Agricultural Commodities and Trade (IMPACT), a state-of-the-art economic model that projects the future production, consumption, and trade of key agricultural commodities, and can assess effects of climate change, water availability and other major trends. This model is coupled with crop models of the DSSAT crop modeling system which provides inputs on productivity impacts of virtual agricultural technologies under different scenarios of climate change.