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Benefits of diversity
Will Martin
18 January 2017
Four approaches
• Cirad-INRA: Agrimonde Terra
– Qualitative scenarios with quantitative impacts
• Foodsecure: Quantifying broad scenarios
• SIMPLE: Focus on food & land demand
• Convergence: Is growth faster in poor ctries?
Agrimonde-Terra: Unexpected result
The urgent need to change pathway
Land use
changes
in Mha
Qualitative assumptions (sustainable intensification for cropping livestock and agroecological livestock)
 Secure access to land. Stabilization of global warming, carbon storage, energy transition. Crops –
livestock associations. Rediversification of crops and crop systems. Agricultural employment;
ecosystem services provided by land
Qualitative hypotheses
Insecure access to land
 dual system.
Runaway climate.
Globalized value chains.
Few services provided
by land.
Little employment in
agriculture.
Lack of nutriments.
Overweight and non-
comunicable diet-
related diseases.
Inequalities.
Poor biodiversity and
low resilience of
systems.
4 Foodsecure Scenarios
Foodsecure: Prices will change
Wheat Real PriceRice Real Price
0
0.5
1
1.5
2
2.5
2015
2018
2021
2024
2027
2030
2033
2036
2039
2042
2045
2048
PaascheIndex_Base2011,RMEAT
Meat Real Price
• Aggregate demand for food
• Supply
– Land
– Intermediates
– Productivity
SIMPLE Drivers
Monte Carlo
Analysis: 5,000
different model
predictions
SIMPLE: account for uncertainty in
drivers & economic responses
66% of simulations
show a LR price
decline
Source: Hertel, Baldos and van der
Mensbrugghe (2016)
But can’t rule out
significant price
rises if:
- Fertility
declines slow
- Income growth
is stronger
- Productivity
pessimists are
proven right
Convergence: Faster growth in South?
0.511.52
(tons/capita/year)
0
5000
1000015000
0 10000 20000 30000 40000 50000
GDP per capita, PPP 2005 $
Fitted Calorie Consumption Curve Fitted CE Consumption Curve
Growth convergence matters 2009-50
2009 2030 2050
CE Cons 6360 9326 12249
CE Prod 6360 10073 15019
0
2000
4000
6000
8000
10000
12000
14000
16000
(mil.Tons)
Uniform Growth
2009 2030 2050
CE Cons 6360 10107 14905
CE Prod 6360 10125 15978
0
2000
4000
6000
8000
10000
12000
14000
16000
(mil.Tons)
Rapid Convergence
Conclusions
 Forecasting is difficult
 Especially when it involves the future
 Can’t know what will happen
 Although broad regimes group key drivers
 More value in the deviations from a central projection
 Than in the projection itself?

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Benefits of diversity

  • 1. Benefits of diversity Will Martin 18 January 2017
  • 2. Four approaches • Cirad-INRA: Agrimonde Terra – Qualitative scenarios with quantitative impacts • Foodsecure: Quantifying broad scenarios • SIMPLE: Focus on food & land demand • Convergence: Is growth faster in poor ctries?
  • 3. Agrimonde-Terra: Unexpected result The urgent need to change pathway Land use changes in Mha Qualitative assumptions (sustainable intensification for cropping livestock and agroecological livestock)  Secure access to land. Stabilization of global warming, carbon storage, energy transition. Crops – livestock associations. Rediversification of crops and crop systems. Agricultural employment; ecosystem services provided by land Qualitative hypotheses Insecure access to land  dual system. Runaway climate. Globalized value chains. Few services provided by land. Little employment in agriculture. Lack of nutriments. Overweight and non- comunicable diet- related diseases. Inequalities. Poor biodiversity and low resilience of systems.
  • 5. Foodsecure: Prices will change Wheat Real PriceRice Real Price 0 0.5 1 1.5 2 2.5 2015 2018 2021 2024 2027 2030 2033 2036 2039 2042 2045 2048 PaascheIndex_Base2011,RMEAT Meat Real Price
  • 6. • Aggregate demand for food • Supply – Land – Intermediates – Productivity SIMPLE Drivers
  • 7. Monte Carlo Analysis: 5,000 different model predictions SIMPLE: account for uncertainty in drivers & economic responses 66% of simulations show a LR price decline Source: Hertel, Baldos and van der Mensbrugghe (2016) But can’t rule out significant price rises if: - Fertility declines slow - Income growth is stronger - Productivity pessimists are proven right
  • 8. Convergence: Faster growth in South? 0.511.52 (tons/capita/year) 0 5000 1000015000 0 10000 20000 30000 40000 50000 GDP per capita, PPP 2005 $ Fitted Calorie Consumption Curve Fitted CE Consumption Curve
  • 9. Growth convergence matters 2009-50 2009 2030 2050 CE Cons 6360 9326 12249 CE Prod 6360 10073 15019 0 2000 4000 6000 8000 10000 12000 14000 16000 (mil.Tons) Uniform Growth 2009 2030 2050 CE Cons 6360 10107 14905 CE Prod 6360 10125 15978 0 2000 4000 6000 8000 10000 12000 14000 16000 (mil.Tons) Rapid Convergence
  • 10. Conclusions  Forecasting is difficult  Especially when it involves the future  Can’t know what will happen  Although broad regimes group key drivers  More value in the deviations from a central projection  Than in the projection itself?