Browsing by Author "Ortega, Jorge"

Now showing 1 - 3 of 3
  • Thumbnail Image
    Item
    In search of economically significant food losses: Evidence from Tunisia
    (ELSEVIER SCI LTD, 2021) Anriquez, Gustavo; Foster, William; Ortega, Jorge; Rocha, Jozimo Santos
    Large estimates of food losses among farms and intermediaries publicized recently by several international organizations invite the question: Why do economic decision makers live with such losses? The intuitive, economic response would be that the marginal benefits of loss reduction do not exceed the marginal costs. This paper analyzes the possibility that economically significant losses nevertheless might be occurring at the farm and wholesale levels in two cases that have drawn attention in the Near East and North Africa. In Tunisia, concerns exist that farm equipment, especially harvesting equipment, is a major source of wheat losses in a country for which the grain plays an important role in diets and the national import bill. Our analysis finds that smaller wheat farms do have relatively large physical losses, compared to large farms, attributable to the use of older and imperfectly adjusted harvesting equipment. Nevertheless, given the scale of most operations in Tunisia, there is little incentive for farmers to make the specific investments that would significantly reduce losses. In Egypt, local experts have focused on large post-harvest losses of tomatoes, an important crop, largely produced by small-scale farmers. We examine the effectiveness of plastic crates for reducing food losses in harvesting, transport and storage as compared to traditional palm crates. We find that there is perhaps a marginal gain to be had in terms of the value of losses avoided, but such gains are likely within a margin that makes adoption of plastic economically ambiguous.
  • No Thumbnail Available
    Item
    Modeling the economic impact for Chile of an import ban on genetically modified maize
    (2024) Foster, William; Ortega, Jorge; Vargas, Gonzalo
    We estimate producer and consumer surplus changes due to a possible GM maize import ban in Chile, which produces only non-GM grains for internal use. Without foreign non-GM sources, the ban's effect on domestic maize prices would be so significant as to induce Chile to switch from net exporter to net importer of animal products. Fixed factor owners in farm production would benefit significantly, although non-GM maize imports would moderate gains. Total social welfare measures would decline considerably, requiring large offsetting noneconomic benefits for a ban's political viability. Without non-GM imports, internal maize prices would likely eliminate domestic animal product industries; with possible imports, industries and final consumers would suffer, but much less. Currently, the country is a net importer of grain and a net exporter of pork and poultry, and so most welfare losses on the demand side of the market for maize would be in terms of the economic rents generated by the pork and poultry sectors. International competition would protect final consumers to the extent that animal product imports based on GM feed were permitted.
  • No Thumbnail Available
    Item
    Understanding Farm-Level Incentives within the Bioeconomy Framework: Prices, Product Quality, Losses, and Bio-Based Alternatives
    (2021) Jansen, Sarah; Foster, William; Anriquez, Gustavo; Ortega, Jorge
    The bioeconomy framework emphasizes potential contributions of life sciences to novel, bio-based products and to discover economic uses for what would otherwise be considered waste or loss in traditional production systems. To best exploit this perspective, especially for biowaste innovations, economists should develop behavioral models that integrate decision-making with biophysical concepts. The supply to bioeconomy uses of farm production otherwise lost depends on the relative net benefits of adjusting production across a range of quality levels. Without understanding such incentives, one cannot fully anticipate the effects on prices and consumer welfare due to new alternatives. The analysis here examines farm-level incentives that determine quality, sales and loss levels, and possible switching of supplies to alternative uses. We present a farmer decision model of the distribution of product qualities, total losses, and the adoption of alternative profitable activities, such as for antioxidants or other novel bioproducts. We demonstrate how the introduction of bio-based alternatives changes opportunity costs of resource use, altering product quality proportions and sales to traditional markets. Adopting biowaste alternatives depends on scale, productivity, and fixed costs; adopting these reduces the proportion of production going to traditional buyers/consumers and shifts downward the distribution of traditional product (e.g., food-grade) qualities.