The EU Common Agricultural Policy (CAP) aims to promote agriculture throughout the EU by increasing farmers’ incomes and supporting the provision of public goods such as the environment. It is funded from the European Commission (EC) budget and accounts for roughly 40% of total EC expenditure. It is divided into two pillars. Pillar 1 includes both direct payments to farmers and market management measures. Pillar 2 focuses on improving the structural and environmental performance of agriculture and on promoting local/rural development. Pillar 2 requires Member State co-financing.
The EU has recognised that making development policy in isolation is not sufficient. Its commitment to Policy Coherence for Development seeks to ensure that all policies, not only development assistance, promote growth in developing countries. Any decision on CAP reform options must, therefore, be analysed against development goals.
Indonesia’s food market has changed in response to a changing and growing economy. The report examines changes in the food consumption pattern and measures the growth of modern food retail chains, packaged food purchases, and food imports in the world’s fourth-most-populous country. The evidence suggests that Indonesians are moving toward modern global purchasing and consumption patterns, but more slowly than in some comparable countries. Barriers to foreign and domestic commerce, affecting the development of modern food retail supply chains, are important constraints on food market change in Indonesia. Further change in Indonesia’s retail food sector will help determine future growth in imports, including from the United States.
A presentation of Goldman Sachs analysis: a 5-year outlook on agriculture, livestock and biofuels.
Many governments intervene directly in agricultural product, in particular food, markets. A quantitative assessment of the impact of the policy changes on the desired objectives is important as it helps inform and shape the policy debate on the reform alternatives and increases transparency of government policy. This paper reviews the literature on multi-market models which offer more accurate ex ante impact analysis than single-market models by including potentially important indirect effects. While fairly complex and requiring large amounts of data multi-market models are however much simpler than computable general equilibrium models. They are typically applied at the sector level and have proven quite popular in particular in agricultural policy reform impact analysis. While more recent work has emphasized the poverty reduction and income distribution objective the models can generate a range of information relevant to policy makers. Key Words: Multi-market models, agricultural policy impact analysis.