International Model for Policy Analysis of Agricultural Commodities and Trade (IMPACT Model) IMPACT Development Team IMPACT Beginnings • Early 1990s – IMPACT development begins – Lack of consensus about policies needed to feed the world requires new analytical tools • 1993 – 2020 Vision for Food, Agriculture and the Environment Initiative. • 1995 - First published results using IMPACT – Global Food Projections to 2020: Implications for Investment (Rosegrant, Agcaoili-Sombilla and Perez, 1995) – Considers the effects of population, investment, and trade on food security and nutrition in developing countries 2 IMPACT Timeline • • • • 1998-2002 – The Food Model integrates a water simulation model (IWSM) – Water availability becomes a driving variable on agriculture productivity – Food model has to disaggregate regionally to integrate the IWSM correctly moving from 36 countries to 281 Food Production Units 2000-2005 – Expansion to 40 commodities 2005-2010 – Continued commodity refinement – Oilseed and Sugar modules Added – Fish Dropped 2010-2013 – Update to new version of the model (IMPACT 3) – Base data updated to 2005 – Expansion to 56 commodities – Geographical disaggregation to 159 regions, 154 basins, and 320 FPUs 3 IMPACT Model - Basic Idea • The IMPACT model is designed to examine alternative futures for global food supply, demand, trade, prices, and food security. • The IMPACT model allows IFPRI to provide both fundamental, global baseline projections of agricultural commodity production and trade and malnutrition outcomes along with cutting-edge research results on quickly evolving topics such as bioenergy, climate change, changing diet/food preferences, and many other themes. 4 IMPACT Model - Schematic 5 IMPACT Model - Briefly • Disaggregated agricultural commodities (56 commodities) • Disaggregated spatial allocation of crop production at sub-national level (159 countries, and 320 food production units) • Details on physical use of land and water, trade policies, with resulting trade • World food prices are determined annually at levels that clear international commodity markets • Iterative year-by-year demand and supply equilibration • Output indicators – calorie availability, malnutrition measures, share at risk of hunger, water consumption, yield growth and total production, area 6 IMPACT Model - Briefly • Food production is driven by both economic and environmental factors and has both extensive and intensive components (area x yield) • On the production side the model also accounts for the presence of irrigation and for exogenous technological change • Food demand is a function of commodity prices, income, and population • Feed demand is a function of livestock production, feed prices, and feeding efficiency • Other demand changes proportionally to food and feed demand • Biofuel demand an exogenous calculation of demand for feedstock from different commodities (sugar, oils, maize, other) to meet a share of mandates in major countries 7 IMPACT Spatial Resolution 159 154 320 • Countries • Water Basins • Food Production Units 8