Agricultural Challenges and University Teaching

Full text

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TALOUSTIETEEN LAITOS

Jukka Kola

Professor, Vice-Rector

University of Helsinki

NOVA BOVA seminar

Tartu 4.5.2012

Agricultural Challenges

and University Teaching

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Agricultural Challenges

Slowing productivity, low investments

Growing demand for food and feed

Population growth, more hungry people

Economic growth and higher incomes

Preference for animal products

Bioenergy vs. food

Water scarcity: farming uses 70% of water

Land ownership: institutions and legislation

Climate change & extreme weather

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3

Principal causes of the food crisis

(Source: Heady and Fan 2008)

Cross-cutting factors for which evidence of

causality is weak

Decline in stocks

Low interest rates

Financial speculation Demand for biofuels Oilseed prices Asian demand Rice prices Export restrictions Wheat prices Weather shocks Corn prices Oil price USD

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World cropland area, cereal production

and fertilizer use by continents

Asia has

47%

of the world’s cropland,

produces

44%

of the world’s cereals with

53%

of the fertilizers

Europe: 18 - 19 - 17 %

North America: 11 - 22 - 16 %

South and Central America: 7 - 8 - 9 %

Africa: 15 - 7 - 3 %

Oceania: 3 - 2 - 2 %

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Farm and food sector indicators

in EU-NOVA/BOVA countries in 2010

Source: European Commission 2011 Share of agriculture in the GDP, % Share of agriculture in labour force, % Share of food & agricultural products in total exports % Share of food

(beverages & tobacco)

in total consumer expenditure, % Danmark 1,4 2,4 18,4 14,8 Eesti 1,2 4,2 8,1 28,7 Latvija 1,0 8,8 16,3 25,3 Lietuva 1,5 9,0 16,5 32,5 Suomi 1,0 4,4 3,5 18,2 Sverige 0,5 2,1 3,3 16,4 EU-27 1,2 4,0 6,6 16,5

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Agricultural indicators

in EU-NOVA/BOVA countries

Source: European Commission 2011 Farm land mill. ha Farms

x 1000 Farm size, ha Farms >50 ha, % Dairy farm size, # cows Cows % on >100 cows farms Milk yield per cow, kg Country 2010 Year 2007 2010 Danmark 2,7 44,6 59,7 34,2 101 75 8569 Eesti 0,9 23,3 38,9 11,1 18 71 6963 Latvija 1,8 107,8 16,5 4,7 4 19 5066 Lietuva 2,6 230,3 11,5 3,0 3 14 4813 Suomi 2,3 68,2 33,6 20,7 21 3 8226 Sverige 3,1 72,6 42,9 24,7 52 32 8201 EU-27 183,9 13700 12,6 5,1 10 25 6100

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Agricultural indicators

in EU-NOVA/BOVA countries

Source: European

Commission 2011 Farm land

mill. ha Farms x 1000 Farm size, ha Share of EU-27 agr. output

Which products have the biggest shares in the EU and own output?

Country 2010 Year 2007 Year 2010

Danmark 2,7 44,6 59,7 2,6 Eesti 0,9 23,3 38,9 0,2 Latvija 1,8 107,8 16,5 0,3 Lietuva 2,6 230,3 11,5 0,6 Suomi 2,3 68,2 33,6 1,1 Sverige 3,1 72,6 42,9 1,2 EU-27 183,9 13700 12,6

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Lähde: Eurostat & MTT Taloustutkimus, Julkaisuja 111

Diversified farms in Europa in 2007

N/A 21,5–27,6 9,1–21,5 5,1–9,1 3,9–5,1 0,7–3,9

Including farms, in which same resources are used for agriculture and other gainful activities

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Lähde: Tike & MTT Taloustutkimus, Julkaisuja 111

Farms in Finland in 1990–2010

Number x 1000 Size, hectares

2010

63000 farms, avg. size 37 ha

1990

129000 farms, avg. size 17 ha

0

20

40

60

80

100

120

140

0

6

12

18

24

30

36

42

Farms

Size

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University teaching and research

We have to understand the ”

Big Picture

Global markets

New strong players, especially BRIC-countries

Supply chain management, risk management

International trade:

high prices good or bad, for whom?

New factors in demand: biofuels, speculation, ethics…

Short run vs. long run impacts and implications

Agricultural, food, rural and environmental

policy

CAP towards 2020: Do we need all that CAP?

International institutions: IMF, WB, FAO, OECD,…

International finance markets (e.g. microcredit), safety

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University teaching and research

More investments on education and research

needed in

agricultural and food sciences globally, and especially in and for

developing countries

responsibility of the North!

How to make agricultural education attractive enough in the Nordic

and Baltic countries? In developing countries?

Better targeting and design of study programmes

Broader BSc-programmes

, specialization at MSc-level

general track and/or research track MSc studies

doctoral studies

more teaching in

English

, for both national and international students

More

international co-operation

also in teaching

• NOVA, Erasmus Mundus, etc.

More

multidisciplinarity

also in teaching

better multidisciplinary

research

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Agricultural Challenges

Slowing productivity, low investments

Growing demand for food and feed

Population growth, more hungry people

Economic growth and higher incomes

Preference for animal products

Bioenergy

Input prices also high (oil dependency)

Water scarcity

Land ownership: institutions and legislation

Climate change

Agri-food

research and education

higher

food

prices!

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University teaching and research

These are not agricultural challenges only, but

key questions of ”

life and death

Food security and safety; natural resources

Sustainability and competiveness

economics, ecology, ethics

How to feed 9 billion people in 2050?

More farm land and higher yields via new

technologies (eg. GMO), and/or…

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Some recent review-type references:

• European Commission. 2010. The CAP towards 2020: Meeting the food, natural

resources and territorial challenges of the future. Communication from the

Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Brussels, 18.11.2010,

COM(2010) 672 final.

• European Review of Agricultural Economics. 2011. Special Issue: Challenges for

Agriculture, Food and Natural Resources. Plenary papers of the XIII EAAE Congress (Zürich 2011). ERAE 38, 3 (2011).

• GDAE 2012. The global food crisis and the future of agriculture. Presentations at

the GDAE Leontief Prizes Ceremony, April 3rd, 2012.

• IFAD & WFP & FAO. 2011. The state of food insecurity in the world: How does

international price volatility affect domestic economies and food security. 50 p.

• Kola, J. 2010. Ruokahuollon haasteet muuttuvassa maailmassa. Futura 4/2010:

Ilmastonmuutos ruokapöydässä.

• Swinnen, J. 2010. The right price of food. LICOS Discussion Paper 259/2010 (KU

Leuven). 35 p.

• Wise, T.A. & Murphy, S. 2012. Resolving the Food Crisis. Assessing global policy

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