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Livestock within a multi-market modeling framework: the example of IMPACT Conference on Mainstreaming Livestock Value Chains, Section 4: Data and Tools Best Western Premier Airport Hotel, Accra , Ghana. 5-6 Nov, 2013 Siwa Msangi, Dolapo Enahoro An Notenbaert, Mario Herrero, Signe Nelgen Petr Havlik

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Livestock within a multi-market modeling framework: the example of IMPACT

Conference on Mainstreaming Livestock Value Chains, Section 4: Data and Tools

Best Western Premier Airport Hotel, Accra , Ghana.

5-6 Nov, 2013

Siwa Msangi, Dolapo Enahoro

An Notenbaert, Mario Herrero, Signe Nelgen

Petr Havlik

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Livestock in the context of global agriculture

The challenge of modeling global agriculture comes from:• Representing the various linkages between markets – in

terms of consumer choice behavior, linkages b/w output markets & important mkt inputs (e.g. labor, fertilizer)

• Accounting for the scarcity of important inputs into production (land, water, feed, etc) – in quantity terms

• Adequately representing the producer decisions and objectives (profit maximize/cost minimize/stock-holding)

• Representing the heterogeneity of production systems• Differentiating behaviors for annual vs perennial activities

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Improving livestock representation in IMPACT

Starting from the IFPRI IMPACT model – we have been working to improve the representation of livestock – in a way that addresses these challenges

Have undertaken this in a number of steps• Disaggregate livestock production across systems• Capture differences in feed requirements across these

systems• Link the availability of these feeds to what is available on

the landscape or what can be obtained through markets Has been a step-wise process, that has required re-

thinking some key aspects of how livestock is modeled

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Overview of model structure

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The Global Livestock Production Systems

Source: FAO, 2011

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Distributions of Livestock

Fig 2: Distribution of Cattle in Livestock Systems in Developed Countries

Fig 3: Distribution of Cattle in Livestock Systems in Developing Countries

Fig 4: (Percent) Distribution of Sheep and Goat in Livestock Systems

MixedRangelandUrbanOther

MixedRangelandUrbanOther

Mixe

d

Range

land

Urban

Other

0

10

20

30

40

50

60

Developed CountriesDeveloping Countries

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Key components of livestock modeling

Demand-side factors are similar to those for other non-livestock commodities.

Food demand is mainly driven by • Per-capita income growth • Population• Urbanization (and other preference shifters)

Feed demand occurs for marketed and non-marketed feed products – whereas we observe marketed feeds in data, we have to calculate the non-marketed feed uses This is often where FAOSTAT data do not agree with the

feed demands derived from biophysical requirements for animal growth

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As people get richer they consume more animal products

Consumption of Meat

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Key components of livestock modeling The supply-side of agricultural markets are driven by both

biophysical & economic drivers of change Biophysical components relate to

• Climate (temp, water) – determine biological stress• Soil quality – matters to vegetative growth (grasslands)• Animal growth and nutrient requirements

Economic factors relate to Technological change (productivity, efficiency) System change (extensive -> mixed -> intensive)

Animal numbers – monogastrics are annual activities, whereas ruminants have herd dynamics that reflect producer decisions and biophysical determinants

Yield per animal – relates to feed (availability & practices)Page 9

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Key components of livestock modeling The key decisions we should model for livestock are:

• Feed mix (across marketed & non-marketed feeds)• Stocking rates (has an implicit land use dimension)• Off-take and cull

The land use dimensions of livestock are complex and differ across systems (which we don’t capture well) Extensive systems – needs to be explicit Mixed systems – depends on prodn of crop residues &

availability of other supplementary feeds Intensive systems – has no explicit LU dimension

The land use dimensions of transhumance are entirely missed in much of the macro-modeling that is done

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Breakdown of Livestock Feed

Demand for pasture & grass expected to grow the fastest

Page 11IMPACT model (2013)

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Aquaculture Now a Major Meat Sector

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In only 20 years, aquaculture has grown to nearly match the share of beef in global meat production

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Aquaculture: Fastest Growing Food Sector

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Growth of aquaculture almost 2x as fast as other food/meat sectors

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Changes in Global Use of Fishmeal for Feed

Source: Shepherd (2012)

Aquaculture ‘crowding out’ livestock for fishmeal feed use Fishmeal and protein meals are substitutable, but with limits Livestock (esp poultry) have been able to find substitutes for

fishmeal more easily compared to fish

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Global Demand for Fishmeal from Livestock and Aquaculture

Page 15IMPACT model (2013)

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Feed sourcing from co-products

Important co-products from industrial processes like biofuels production will continue to be used as feed

Page 16IMPACT model (2013)

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The importance of co-products

The future success of the bioeconomy depends on the added-value of co-products derived from chemical conversion processes (e.g. DDGS from biofuels) – for use in important sectors such as livestock

When ‘by-products’ become ‘co-products’ (i.e. something to be used rather than disposed of) – then the commercial potential & profitability improves

The failure of jatropha to take off is due to low yields as well as limited co-product value for uses in animal feed (compared to other oilseeds) – needs more R&D

The processing waste from fish food preparation will become increasingly valuable source of feed for fish

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Summary & Implications for Policy

The future for livestock (and fish) depends heavily on the ability to manage feed & disease Gains in technical efficiency and sourcing of

additional feeds will be critical for livestock and fish (fish & poultry are the most efficient feed converters)

Monogastrics & aquaculture will still compete for feed Sharing of best practices in management is crucial

Some key weaknesses in modeling livestock are: Modeling rangeland/grassland availability Relatively few biophysical models (compared to

crops) – still don’t capture heat/water stress directly Capturing the land-use dimensions still a challenge

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THANK YOU!

See: http://www.ifpri.org/