Production and Trade Impacts of CAP Post 2022 Reform on Main Croatian Crop and Livestock Markets—Partial Equilibrium Modelling Approach

The Latest Common Agricultural Policy reform intends to expand and strengthen environmental and social support and to liberalise the delivery model carried out through strategic planning. This paper aims to assess the potential impacts of the new CAP reform on the main agricultural markets in Croati...

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Main Authors: David Kranjac, Krunoslav Zmaić, Tihana Sudarić, Marija Ravlić, Magdalena Zrakić Sušac, Ivo Grgić, Ilona Rac, Emil Erjavec
Format: Article
Language:English
Published: MDPI AG 2021-12-01
Series:Agronomy
Subjects:
Online Access:https://www.mdpi.com/2073-4395/11/12/2518
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author David Kranjac
Krunoslav Zmaić
Tihana Sudarić
Marija Ravlić
Magdalena Zrakić Sušac
Ivo Grgić
Ilona Rac
Emil Erjavec
author_facet David Kranjac
Krunoslav Zmaić
Tihana Sudarić
Marija Ravlić
Magdalena Zrakić Sušac
Ivo Grgić
Ilona Rac
Emil Erjavec
author_sort David Kranjac
collection DOAJ
description The Latest Common Agricultural Policy reform intends to expand and strengthen environmental and social support and to liberalise the delivery model carried out through strategic planning. This paper aims to assess the potential impacts of the new CAP reform on the main agricultural markets in Croatia. The impact assessment is analysed using the AGMEMOD model where, in addition to the baseline scenario, three scenarios of potential changes are developed and compared to the baseline. Changes in market patterns (production, yield and net trade) at the end of the simulated period are compared with the baseline scenario results by 2030. The reduction in support levels to production, abolishment of voluntary coupled supports and introduction of additional environmental constraints have a significant impact on the main Croatian agricultural markets. Crop markets prov to be less dependent on subsidies, so that market pattern changes will not mean the loss of Croatia’s net export status for soft wheat, maize and soy beans, while barley no longer holds this status. Livestock sectors, especially beef and dairy, in addition to demonstrating a distinct lack of competitiveness even before the Croatian accession to the EU, additionally suffer significant production volume losses along with an increase in imports. Although significant, changes to the Croatian agricultural market are not dramatic enough to cause a complete production breakdown by 2030.
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spelling doaj.art-ba147bcc6483416caf3e3d69895318322023-11-23T03:23:08ZengMDPI AGAgronomy2073-43952021-12-011112251810.3390/agronomy11122518Production and Trade Impacts of CAP Post 2022 Reform on Main Croatian Crop and Livestock Markets—Partial Equilibrium Modelling ApproachDavid Kranjac0Krunoslav Zmaić1Tihana Sudarić2Marija Ravlić3Magdalena Zrakić Sušac4Ivo Grgić5Ilona Rac6Emil Erjavec7Faculty of Agrobiotechnical Sciences Osijek, Josip Juraj Strossmayer University of Osijek, Vladimira Preloga 1, 31000 Osijek, CroatiaFaculty of Agrobiotechnical Sciences Osijek, Josip Juraj Strossmayer University of Osijek, Vladimira Preloga 1, 31000 Osijek, CroatiaFaculty of Agrobiotechnical Sciences Osijek, Josip Juraj Strossmayer University of Osijek, Vladimira Preloga 1, 31000 Osijek, CroatiaFaculty of Agrobiotechnical Sciences Osijek, Josip Juraj Strossmayer University of Osijek, Vladimira Preloga 1, 31000 Osijek, CroatiaFaculty of Agriculture, University of Zagreb, Svetošimunska cesta 25, 10000 Zagreb, CroatiaFaculty of Agriculture, University of Zagreb, Svetošimunska cesta 25, 10000 Zagreb, CroatiaBiotechnical Faculty, University of Ljubljana, Jamnikarjeva ulica 101, SI-1000 Ljubljana, SloveniaBiotechnical Faculty, University of Ljubljana, Jamnikarjeva ulica 101, SI-1000 Ljubljana, SloveniaThe Latest Common Agricultural Policy reform intends to expand and strengthen environmental and social support and to liberalise the delivery model carried out through strategic planning. This paper aims to assess the potential impacts of the new CAP reform on the main agricultural markets in Croatia. The impact assessment is analysed using the AGMEMOD model where, in addition to the baseline scenario, three scenarios of potential changes are developed and compared to the baseline. Changes in market patterns (production, yield and net trade) at the end of the simulated period are compared with the baseline scenario results by 2030. The reduction in support levels to production, abolishment of voluntary coupled supports and introduction of additional environmental constraints have a significant impact on the main Croatian agricultural markets. Crop markets prov to be less dependent on subsidies, so that market pattern changes will not mean the loss of Croatia’s net export status for soft wheat, maize and soy beans, while barley no longer holds this status. Livestock sectors, especially beef and dairy, in addition to demonstrating a distinct lack of competitiveness even before the Croatian accession to the EU, additionally suffer significant production volume losses along with an increase in imports. Although significant, changes to the Croatian agricultural market are not dramatic enough to cause a complete production breakdown by 2030.https://www.mdpi.com/2073-4395/11/12/2518CAP reformimpact assessmentAGMEMODagricultural marketsCroatia
spellingShingle David Kranjac
Krunoslav Zmaić
Tihana Sudarić
Marija Ravlić
Magdalena Zrakić Sušac
Ivo Grgić
Ilona Rac
Emil Erjavec
Production and Trade Impacts of CAP Post 2022 Reform on Main Croatian Crop and Livestock Markets—Partial Equilibrium Modelling Approach
Agronomy
CAP reform
impact assessment
AGMEMOD
agricultural markets
Croatia
title Production and Trade Impacts of CAP Post 2022 Reform on Main Croatian Crop and Livestock Markets—Partial Equilibrium Modelling Approach
title_full Production and Trade Impacts of CAP Post 2022 Reform on Main Croatian Crop and Livestock Markets—Partial Equilibrium Modelling Approach
title_fullStr Production and Trade Impacts of CAP Post 2022 Reform on Main Croatian Crop and Livestock Markets—Partial Equilibrium Modelling Approach
title_full_unstemmed Production and Trade Impacts of CAP Post 2022 Reform on Main Croatian Crop and Livestock Markets—Partial Equilibrium Modelling Approach
title_short Production and Trade Impacts of CAP Post 2022 Reform on Main Croatian Crop and Livestock Markets—Partial Equilibrium Modelling Approach
title_sort production and trade impacts of cap post 2022 reform on main croatian crop and livestock markets partial equilibrium modelling approach
topic CAP reform
impact assessment
AGMEMOD
agricultural markets
Croatia
url https://www.mdpi.com/2073-4395/11/12/2518
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