TNI Academy

TNI Academy

Behavioral and Experimental Economics Studies

Behavioral and Experimental Economics Studies

Tailored Food

Tailored Food

Sustainability Standards Assessments in Global Value Chains

Sustainability Standards Assessments in Global Value Chains

Farmer sustainability transition assessment tool

Farmer sustainability transition assessment tool

Final report from the MATS Project Final Conference (November 19-20, 2024)

Final report from the MATS Project Final Conference (November 19-20, 2024)

The MATS Project Final Conference was held on November 19-20, 2024, at the conference facilities of the European Economic and Social Committee (EESC). Five sessions with different MATS-themes were carried out during the two-day conference, including 1) Social and Human Rights Considerations for Sustainable Agricultural Trade, 2) Economy & Markets Perspective, 3) Modelling Techniques for Assessing Linkages between Trade Regimes, Market Dynamics, and Sustainability, 4)
Governance, Trade Regimes and Transition Pathways to Sustainable Trade, and 5) Joint policy lessons from MATS, Trade4SD and VCA4D.

Each session consisted of presentations and panel discussions, with 5-7 panelists. About sixty people registered and attended the on-site meeting, and more than 50 people registered for attending online.

The conference featured interviews with invited speakers and panel discussants, and all interview videos are available on the project website and MATS project YouTube channel (link here).

Web and social media outreach on the conference was distributed via Twitter and LinkedIn during the two-day conference, and more information about the conference is available on the MATS project webpage.

You can access the full report here

The MATS Project is featured in Allevatori Top Magazine

The MATS Project is featured in Allevatori Top Magazine

One of the key objectives of the MATS project is to develop analytical frameworks and tools that support the assessment of policy impact, especially in relation to trade dynamics. This concept is akin to a digital version of the butterfly effect, with policies being designed and implemented in the EU having impacts across the World, for several countries and value chains. Unraveling these intricate connections is the responsibility of Andrea Bassi, CEO of KnowlEdge (KE), with support from Alberto Menghi, a senior researcher at the Research Centre of Animal Production (CRPA) in Reggio Emilia, Italy. KE and CRPA are MATS project partners. 

This article focuses on dynamics pertaining the dairy sector. In the framework developed and applied by MATS, social and environmental sustainability are crucial components of the dairy value chain. While it is well-known that wages in developing countries are lower than in Europe, our interest lies in understanding the social effects of wage increases for dairy workers in an African country, and the effort required to increase labor and animal productivity as a way to offset the financial impact of higher labor costs. Specifically, on the social side, we aim to determine whether the additional income families receive each month can enhance their children’s education or improve their nutrition, thereby reducing the average mortality rate in that country and increasing labor productivity. In essence, over a medium to long-term analysis, our goal is to assess whether a small change—such as an extra $30 per month in salary—can lead to a significant, amplified outcome, like an increase in the number of graduates in that African country, while maintaining profitability for the sector.

Read more (in Italian)

Brazil: The Evolution of Cattle Farming and the Sustainability Challenge

Brazil: The Evolution of Cattle Farming and the Sustainability Challenge

Lola Izquierdo, Agri Benchmark Beef & Alberto Menghi, CRPA | 16 December 2024

Source: Agri Benchmark

Brazil ranks as the world’s second-largest beef producer and a leading exporter, holding 27.7% of the global market. With a national herd exceeding 200 million, cattle farming is a cornerstone of the Brazilian economy and a major source of rural employment. The leading export position of Brazilian beef is due to the high level of competitiveness of its beef farms. In 2021, the international research network agri benchmark Beef calculated that the total cost of production in Brazil can range from a minimum of €239/100 kg of carcass weight (CW) on large typical farms (with up to 5,000 heads sold per year) to a maximum of €628/100 kg CW on small farms (with 35 heads sold per year). In comparison, typical EU farms produce beef at costs ranging from a minimum of €465/100 kg CW on medium-sized German farms (with an average of 285 heads sold per year) to a maximum of €699/100 kg CW on French farms (with 75 heads sold per year). Furthermore, over recent decades, the sector has grown significantly, supported by favourable government policies, technological innovations, and rising global beef demand. However, sustainability challenges are a major concern, with issues like deforestation, greenhouse gas (GHG) emissions, and land degradation at the forefront. Additionally, not all farmers have equal access to resources, meaning that modernization benefits often bypass small and medium-sized farms.

Key Technological Advancements Driving Change

A major shift in Brazilian beef farming has been the move from low-input, extensive grazing systems to sustainable intensification practices. Technology has played a pivotal role in improving productivity and reducing environmental impact, helping Brazil maintain its competitive edge. Key advancements include:

1. Enhanced Pasture Management: High-yield tropical grasses, like Brachiaria, have become central to boosting productivity. Suited to Brazil’s climate, these grasses improve cattle health, meat quality, and reduce costs. Innovations in pasture rotation and degradation control help preserve soil health and combat erosion, laying the groundwork for long-term sustainability.

2. Integrated Crop-Livestock Systems (ICLS): Integrating livestock with crops or forestry, particularly in crop-livestock-forestry systems (ICLFS), is emerging as a sustainable model. These systems increase land efficiency, promote biodiversity, and diversify farm income. Adding trees into the mix helps sequester carbon, provides shade for animals, and supports animal welfare, aligning with Brazil’s low-carbon agriculture goals and climate commitments.

3. Genetic and Reproductive Breakthroughs: Advances in breeding—especially with the Nellore breed, adapted to tropical climates—are enhancing the growth rates and efficiency of Brazil’s herds. Genetic programs now use sophisticated computational tools to select for traits linked to growth and environmental impact. Techniques like artificial insemination and in vitro embryo production boost herd productivity, although scaling remains a challenge, especially for small farmers.

4. Improved Feed and Supplementation: Brazil’s beef industry has made strides in animal nutrition, with mineral supplements and high-energy feeds ensuring year-round cattle health. Semi-intensive and feedlot systems accelerate weight gain, reducing emissions by shortening the time cattle spend on pasture.

Policy Support for Sustainable Intensification

Public policies have been instrumental in the beef sector’s progress. Two key policies are:

1. The Brazilian Forest Code: Updated in 2012, the code requires landowners to preserve portions of their land depending on the biome, limiting areas that can be cleared for pasture. The Rural Environmental Registry also enables government monitoring of land use and deforestation, balancing agricultural expansion with conservation.

2. The Low Carbon Agriculture Plan (ABC Plan): Launched in 2010, this plan supports low-carbon farming practices, aligning with Brazil’s climate goals. The ABC Plan promotes pasture recovery, no-till farming, and integrated systems, among other low-carbon strategies. The ABC+ Plan now extends these efforts, supporting technologies like advanced irrigation and bio-inputs.

Challenges Facing Small and Medium Farmers

Despite technological progress and supportive policies, sustainable intensification has not reached all farmers equally. Small and medium-sized producers, representing around 76% of Brazil’s agricultural workforce, face barriers in accessing financial resources, technical assistance, and knowledge for adopting new practices:

Limited Credit Access: Small-scale farmers often lack the capital needed to invest in technology. Credit programs like PRONAF offer loans for family farms, but stringent requirements can be prohibitive.

Technical Assistance Gaps: Smallholders may struggle to access the training needed to implement advanced practices, limiting their competitiveness.

Socio-Cultural Barriers: For traditional farmers, sustainable intensification may conflict with established practices. Changing these approaches requires not only financial support but also culturally sensitive education.

Environmental and Socioeconomic Impacts

Sustainable intensification has the potential to bring positive environmental and socioeconomic changes. By intensifying production on existing lands, Brazil can reduce deforestation pressure, helping to meet its climate targets of reducing emissions by 50% by 2030 and achieving carbon neutrality by 2050. Economically, sustainable practices can improve rural livelihoods and reduce poverty, provided that small and medium farmers are included. Integrated systems, such as crop-livestock-forestry, can create jobs and increase resilience in agricultural communities.

Conclusions

A robust support program is recommended to provide technical assistance for sustainable technologies, with a focus on smaller farms. Expanding access to microfinance and fostering partnerships between public and private sectors could drive innovative funding models to support sustainable beef farming.

In conclusion, while Brazil’s beef sector has made significant strides toward sustainable intensification, ensuring that these advancements reach all farmers is crucial. Continued investment in education, infrastructure, and financial support will be key to maintaining Brazil’s role as a leader in sustainable beef production on the global stage. How Brazil manages this transition will be vital to its environmental and economic future.

Sources:

MATS Case Study 10: Beef and policy coherence for sustainable development

Pereira, M.d.A.; Bungenstab, D.J.; Euclides, V.P.B.; Malafaia, G.C.; Biscola, P.H.N.; Menezes, G.R.O.; Abreu, U.G.P.d.; Laura, V.A.; Nogueira, É.; Mauro, R.d.A.; et al.

From Traditionally Extensive to Sustainably Intensive: A Review on the Path to a Sustainable and Inclusive Beef Farming in Brazil. Animals 2024, 14, 2340. https://doi.org/10.3390/ani14162340 

Why is WTO part of the Problem?

Why is WTO part of the Problem?

Christian Häberli, WTI | 9 December 2024

MATS Final Conference Group Photo – 20th of November 2024

MATS has repeatedly posited that WTO and, across the lake, the World Economic Forum are fiddling on the roofs of Geneva while Rome (FAO), New York (UN) and Paris (Climate Agreement) are burning. Umpteen “conversations” in 6 trade and 6 climate Ministerial Conferences produced NOTHING. COP29 in Baku did not even address agriculture, and earlier attempts (Koronivia + FAO) led NOWHERE. There are no agrifood sustainability standards. The WTO glass today is not half-full, it is broken: MFN tariffs remain prohibitively high. No clear rules for food dumping or food aid, export credits, risk insurance, export state trading. Poor countries refuse protecting small farmers against dumping (despite available safeguards). And African trade is impeded: food export restrictions and SPS measures without scientific justification are proliferating – against EAC and AfCFTA rules and principles. The only light in the WTO tunnel is the fact that this is the only treaty limiting trade distortions. Nonetheless, trade distortion entitlements of rich countries remain immense: EU = €60bn, JAP + US = $30bn. Worst, for MATS: no adjudicator and no delegate has acknowledged that WTO rules prohibit discrimination between two cows with different methane outputs, while Paris prescribes differentiation for two otherwise like products: an existential problem that tariff, tax, or subsidy reductions will not even begin to solve! Put crudely and simply, WTO refuses to negotiate agrifood trade and investment disciplines, and UNFCCC refuses climate mitigation standards.

Christian Häberli is a Fellow of the World Trade Institute (WTI). The WTI is one of the 14 MATS partners and plays a key role in producing deliverables such as discussion paper on the political economy on trade regimes and discussion paper on the feasibility of changes in trade regimes. In addition, WTI has conducted the MATS/Ukraine project “Repairing Broken Food Trade Routes Ukraine – Africa”. For more info about WTI activities here.