Introduction: Context and Motivation

1
Introduction Context and Motivation

• Economics of Food Markets
• Lecture 1
• Alan Matthews

2
Food Markets
Factor markets Input markets
Farm product markets
Wholesale markets
Retail markets
3
Characteristics of food markets

• Factor markets
• Missing markets (environment, agricultural
  research), regulation of competing uses (land)
• Primary commodity markets
• Competitive markets characterised by volatility,
  declining terms of trade and weak bargaining
  power of producers
• Input and food wholesale markets
• Concentrated markets, concerns about market power
• Food retail markets
• Changing consumer behaviour, asymmetry of
  information, food safety, advertising
• International trade markets
• Level playing field?, disease spread, food miles

4
The policy analysis perspective

• Food markets are heavily regulated for all kinds
  of reasons
• What objectives?
• What instruments?
• Is the intervention efficient?
• Is the intervention equitable?
• Tools of welfare/cost benefit analysis

5
The Food Markets course

• Examines policy issues arising from the operation
  of food and agricultural markets
• Emphasises blend of institutional knowledge and
  application of economic principles
• Uses simple graphical analysis of markets as the
  principal methodology
• Addresses topical issues, e.g. sugar reform, WTO
  trade talks

6
Food Markets outline

• Introduction and motivation
• Agricultural policy objectives why support
  farming?
• EU agricultural policy
• Economics of price support policies
• World market effects of agricultural support
  policies

• WTO and agricultural trade rules
• Impacts of agricultural trade liberalisation
• Managing agricultures impact on the environment
• Market power in the food chain
• Food law and food safety

7
Food Markets assessment

• Examination ( 80)
• Eight questions, answer four
• Two assessments (10 each)
• Tutorial classes
• Active learning, student presentations
• Contact and office hours
• Mondays, Thursdays 2-3 pm
• alan.matthews_at_tcd.ie

8
(No Transcript)
9
(No Transcript)
10
Food markets reading

• Wide reading expected
• Reading pack?
• Send expressions of interest to hwang_at_tcd.ie