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The value of market uncertainty in a livestock epidemic AgEcon
Niemi, Jarkko K.; Lehtonen, Heikki.
Introduction of foot and mouth disease (FMD) into country typically initiates eradication procedures which remove animals from the market, and halts the export of livestock products from the infected country. The magnitude of these effects can be highly uncertain. This paper presents a stochastic dynamic programming model which simulates possible market implications of alternative FMD and export scenarios in the Finnish pig sector. It takes into account dynamics and adjustment of the animal stock, price movements and uncertainty related to the duration of the trade ban. Results suggest that losses to pig producers can increase considerably when the risk of prolonged export ban increases. Production adjustments also strengthen. Consumers can gain from a...
Tipo: Conference Paper or Presentation Palavras-chave: Livestock epidemics; Dynamic programming; Demand; Supply; Export; International Relations/Trade; Livestock Production/Industries.
Ano: 2008 URL: http://purl.umn.edu/6158
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MODELLING THE DYNAMICS OF PRODUCTION ADJUSTMENT TO SHORT-TERM MARKET SHOCKS AgEcon
Niemi, Jarkko K.; Lehtonen, Heikki.
Models of agricultural economics typically operate at an annual basis or in a static equilibrium framework where inputs, outputs and their prices may change considerably. Production dynamics, however, imply that models relying on spatial and temporal aggregation do not capture the effects of biological constraints in the short run. This paper examines short and long-term impacts of demand and production cost shocks in the pig sector. The analysis is carried out with a dynamic programming model which takes into account changes in export and domestic demand and market clearing price. It optimizes the supply of piglets on a monthly basis. Econometric techniques are used to estimate demand functions. Short-term negative market shocks can already have...
Tipo: Conference Paper or Presentation Palavras-chave: Pig; Demand; Dynamic programming; Export; Livestock epidemics; Price; Supply; Demand and Price Analysis; Livestock Production/Industries; Production Economics; Risk and Uncertainty.
Ano: 2008 URL: http://purl.umn.edu/6401
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Market implications of FMD epidemics in the Finnish pig sector: Does market structure matter? AgEcon
Niemi, Jarkko K.; Lehtonen, Heikki; Lyytikainen, Tapani; Kallio, E..
This paper examines the role of market coordination and market distortions caused by a hypothetical FMD outbreak in the Finnish pig sector. By using stochastic dynamic programming, it simulates the consequences of two outbreak scenarios (large vs. small) under two distinct market regimes (competitive market vs. monopoly in the domestic supply). Simulated losses depend on the magnitude of outbreak and expected duration of possible turndown of meat exports, whereas market regime has a limited impact.
Tipo: Conference Paper or Presentation Palavras-chave: Foreign trade; Livestock epidemics; Dynamic programming; Livestock Production/Industries.
Ano: 2008 URL: http://purl.umn.edu/43837
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Food supply chain consequences of new responses to livestock epidemics AgEcon
Meuwissen, Miranda P.M.; Mourits, Monique; Hoste, Robert; Bergevoet, Ron H.M.; Huirne, Ruud B.M..
This article studies supply chain consequences from applying the new-more socially acceptable -strategy of emergency vaccination instead of the large-scale killing of healthy animals for controlling livestock epidemics. We consider an outbreak of foot and mouth disease in a densely populated livestock area of the Netherlands. From an epidemiological perspective, simulation results show that emergency vaccination significantly reduces the size of an epidemic, both in terms of the length of an outbreak and in the number of animals killed. However, in a worst-case situation, not destroying the vaccinated animals after the end of the epidemic leads to additional consequential losses for food supply chains involved of about Euro 200 million. A business case...
Tipo: Conference Paper or Presentation Palavras-chave: Livestock epidemics; Financial impact; Consumer acceptance; Food Consumption/Nutrition/Food Safety.
Ano: 2006 URL: http://purl.umn.edu/21337
Registros recuperados: 4
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