The economics of legumes

Figure 1: The Economics of Legumes and its TRUE place

The Economics of Legumes deals with the bit in the middle of Figure 1. Basically what it answers is how we can ensure equilibrium between supply (farmers) and demand (consumers), while keeping an eye on the impact on other aspects such as trade and environment.   

Supply – farmers. Why would they uptake production of (novel) legumes? The first thing that comes to mind relates to profits and the economic sustainability of the farm, however that’s necessary but not always (never?) sufficient. Farmers’ decision-making may be influenced by non-economic factors, such as their perceptions of how what they create affects others beyond farmgate – environment, human health; or access to information – have they read about novel legumes?, maybe heard about other farmers already producing them successfully?; an eye for innovation – why not try something new? But, is there a market for it?

Demand – consumers. Why would consumers change shopping habits? Why would they be willing to buy (and consume) (novel) legumes? Are they doing something to help farmers? Would a change in diet reduce their environmental footprint? Or improve their health? Is there enough information about the benefits to society, environment that novel legumes may bring? Do consumers have access to it/are they convinced about it?

To get a very good idea about answering the above, our research will use a number of novel methods, from farm level modelling, to farmer and consumer behavioural analysis, and assessment of the impacts of behavioural change on the performance of the sector, trade and environment. We combine micro- and macro-economic techniques such as spatial statistics, linear programming models incorporating risk analysis, structural choice models and sectoral economic models to assess the supply and demand of sustainable and profitable legumes across Europe in a farm to fork approach. More specifically, we will analyse (1) farm performance in a number of scenarios following introduction of (novel) legumes into farm production in a number of European countries; (2) willingness to uptake by farmers of and willingness to pay for by consumers for (novel) legumes as market forces are a main influence on production choices; and (3) impact of farmer and consumer intentions/behaviour on sectoral and trade performance at EU level. More after we collect the data!