The EFMA Forecast

European Fertilizer Manufacturers Association The EFMA Forecast Forecast of Food, Farming and Fertilizer Use In the European Union Methodology June 05 1 The EFMA forecast : Agenda :  The methodology for the EFMA forecast : » The objectives. » The principles.  Assumptions and scenario :  The National approach.  Forecast in NMS. June 05 2 The EFMA forecast : The objectives, principles and main stages June 05 3 The EFMA forecast : Objectives & principles.  Long term consumption forecast : Parallel and convergent with sales forecast (ISC) : >> « Full convergence » by campaign n-2/n-3.  A « down-up » procedure, step by step : » » » Per country. Crop acreage forecast, considering :     Global and European Agro-economic trends. Agricultural policies. Evolution of technologies and agricultural practices. Environmental policies. Application rate forecast, considering :  Short term to long term forecast : 5 Campaigns : n-2/n-1, n-1/n, n/n+1, n+4/n+5, n+9/n+10  Based on « scenarios for the future » : » » June 05 General trends, global and European. National projections. 4 The EFMA forecast : Various stages of the process : an expert approach  1/ Building a scenario : » The « European context », prepared by the leader of the WG :   Agro-economic series & trends, world & Europe. Agricultural & Environmental policies. March  2/ The EFMA scenario for a European agriculture. >> The impact on fertilizer use, as foreseen by the forecast WG. April May May- June  3/ Adapting the EFMA scenario to national level. The impact of national situation and policies >> the « country report ».  4/ Making the national forecast.  5/ Finalizing the European approach. Critical approach of the forecast WG on each national scenario. June July  6/ Finalizing the European forecast : integration of all nationals.  7/ Publishing and circulating the forecast. June 05 September 5 The EFMA forecast : Assumptions and scenario June 05 6 The EFMA forecast : Building the EU scenario.  Back-ground information : » Quantitative.  Global : FAPRI, USDA & OECD  EU : EU Commission and EEA. » Qualitative.  Contact with EU experts (Agri & Env).  Building the scenario : » Selecting relevant information for EFMA forecasters. » Proposing a draft scenario. » Discussing the scenario in plenum. June 05 7 The EFMA forecast : Back ground information for the EU scenario June 05 8 The EFMA forecast : Back ground information for the EU scenario : EU 15 June 05 9 The EFMA forecast : Back ground information for the EU scenario : June 05 10 The EFMA forecast : Back ground information for the EU scenario : June 05 11 The EFMA forecast : Back ground information for the EU scenario : June 05 12 The EFMA forecast : Back ground information for the EU scenario : EU 25 CAP Reform E U prospects June 05 13 The EFMA forecast : Back ground information for the EU scenario : June 05 14 Scenario for the forecast ( Example ) Impact of the CAP reform : the impact assessment.  Full decoupling : (single payment per ha, whatever crop is grown) >> decrease of COPs area, crops with high application rate. but limited : safety net of the intervention price.  Cross compliance : (stricter implementation of environmental regulations) >> slight decrease of N application rate to be expected. June 05 15 The EFMA forecast : The National approach : developing the Expertise June 05 16 The EFMA forecast : The National approach. Sources of information for Application rate :  Crop needs (- nutrients from other sources).  Advisory service, consultants.  Publications (scientific, “Farmers weekly”).  Your control calculation.  Watch “other nutrient sources” (National budget !) : » farmyard manure, slurry » sewage sludge » others » efficiency June 05 17 The EFMA forecast : The National approach. Sources of information for Crop area planted :  Statistical yearbook.  Newspapers, journals, etc…  News agencies e.g. Agra Europe.  Press releases : - Ministry of Agriculture. - Growers associations. - Newspaper / journal for merchants. - International produce traders. - Plant breeders / -associations. June 05 18 The EFMA forecast : The National approach. Sources of information for Environmental policy :  Implementation of EU-rules and –programmes.  National programmes.  National / regional limitations.  points of discussion (conferences, media).  Intensity of discussions (conferences, media).  Direct contacts (ministry, n.g.o., administration). June 05 19 The EFMA forecast : The National approach. Some bits of experience :  Agriculture does not jump !  Watch out for crucial political decisions.  Never believe just one source …  Regular amendments of the set of data lead to a stable and reliable base.  You are the best one to judge and to decide !  Accept that you can’t be (always) right ! June 05 20 The EFMA forecast : Methodologies developed for the New Member States June 05 21 The New Member States A transition period for the forecast exercise :  EU 15 and EEC 10 still separated.  Three methodologies used, all “desk research” : » Trends of consumption volumes (2001 & 2002): >> Crossed with historical comparison (France). » First crop based approach (2003):  First developed for Poland : EU model for areas + “expert model” for rates.  Extended to 4 countries : Hungary, Czech Rep and Slovakia. » Second crop based approach (2004):  Crop areas : EU model + extension to other crops.  Rates : Crossing previous model, sales and local information.  Extended to 8 countries.  >> Time to use the “full method”, with Experts. June 05 22 The EFMA forecast : Thank you ! June 05 23

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