Develop local markets, understand global trade

Dossier

Hunger and malnutrition are still a sad reality, mainly in poor regions of the world. A focal point is the often a poor and unstable food supply in many developing countries. Healthy food is often not available or simply unaffordable. The role of markets needs to be understood in order to solve the most serious problems and to improve the sustainable supply of food. On the one hand, the purchase of food products should serve the dietary needs of people, but available food should also match the taste and habits of those who buy and ultimately consume the food. In most cases the local food supply is based not only on domestic production but also on imports. What is the optimal balance between regional or local food production and imports of food to satisfy nutrition needs and to guarantee the food security of poor regions in the best possible way?

Local agricultural production has immediate benefits: The food produced is locally available and targeted towards the local eating habits of consumers. However, locally or regionally produced food does not always guarantee the sufficient amount of protein, vitamins and minerals needed for sustainable food security. International agricultural trade facilitates the production of foods best suited to specific climatic and economic conditions. As a consequence, more food is produced at the global level as compared to world production based only on national production.

Disasters such as droughts or floods can cause serious supply shortages. These events show the significant advantage of the international food trade: food imports from surplus regions to compensate for food deficits in the other regions. In turn, export of food or other agricultural products contributes to increase income in poor regions. However, a stronger connection to regional and international markets also entails the risk that small farmers and fishermen are directly affected by international price movements caused by turbulences in other regions of globalized markets. The impact of local production systems and trade on supply and demand, on local income generation and on the status of nutrition security of the local population are far from being fully understood. This makes this topic an exciting and challenging area of research.

Projects

(©  BLE Bonn / Thomas Stephan)
How prices are determined?

How national and international prices for agricultural goods and processed products are determined? What influence do producers, processors, traders and consumers have?
(©  Josef Efken)
Long-term analysis of international meat markets

Developments on the markets for poultry, pork, beef and processed meat products are monitored. Their implications for the national and EU-market as well as in context with policy measures at national and EU - level are discussed.
Cattle breeder in Africa (©  Wolfgang Bayer (Göttingen))
The economic role of livestock for households in Subsaharan African countries

Different livestock husbandry as well as their economic role for households in Subsaharan African countries are studied.
Zoll – Douane sign (©  wikimedia.org)
Impact of Trade Agreements

Regional trade agreements, such as TTIP (Trans Atlantic Trade and Investment Partnership) between the EU and the USA, are under fire: for some people welcome the dismantling of trade barriers because of better market access and higher revenues; while others expect a sold-out of high social and health standards in Europe.

(©  )
Dairy markets - quo vadis?

How do the milk markets develop? What influence do political and economic factors have on the supply and the demand of milk and dairy products? What are the driving factors in domestic and international trade in dairy products?
Children from the rural areas in Zambia (©  IAPRI / Rhoda Mofya-Mukuka)
Diversified Agriculture and the Nutrition of Zambian Children

Zambia and particularly the Eastern province have one of the highest rates of malnutrition in the world. Stunting in children is 46.7% in Zambia, and even 51.7% in Eastern Province. The most vulnerable are the children from rural households which depend entirely on seasonal agricultural production and income, and survive on diets that are deficiency in proteins and other important nutrients. Given that the expensive Zambian policy of subsidizing maize production might negatively affect the nutrition of children, there is a debate on changing policies to foster a nutrition-sensitive agriculture at farm level.
(©  Simon Bonse)
Food, fuel or fibre?

Policy makers around the world have put policies in place that promote the use of biomass for energy purposes. The Thünen Institute analysis the impact of these policies.