The market impacts of shortening feed supply chains in Europe

Abstract

Recently, consumers’ awareness regarding food production has increased, leading to a growing focus on shorter food supply chains and regional or local food systems. In the livestock sector, these developments are closely related to a regionalization of feed production. At the same time, a low self-sufficiency rate in protein feed is being reported for many European countries. In this paper, we analyze market impacts resulting from a complete switch to regionally produced feed in the European livestock sector. We simulate a shortening of feed supply chains in European livestock production using a large-scale agricultural sector model. Livestock production was restricted to feed that can be produced within the same EU member state. Our work represents a first step towards a simulation of regional or local food systems. The results reveal large increases in the prices of livestock products in Europe due to the shortening of feed supply chains. This is a result of a significant increase in livestock production costs. The ability to supply livestock products with regionally produced feed in the EU would be improved through a reduced consumption of livestock products.