Course:AGEC502

Topics in Food Market Analysis
AGEC 502
Section:
Instructor:	Rick Barichello
Email:	rick.barichello@ubc.ca
Office:	McML 339
Office Hours:	M/W 3:30-4:30pm
Class Schedule:	M/W 9:30-11:00am
Classroom:	McML 260
Important Course Pages
	Syllabus
	Lecture Notes
	Assignments
	Course Discussion

Course Outline

This course covers a variety of topics related to food prices and food markets and how they work. This includes food price determination and predicted price paths; the functioning of food markets, domestic and international; trade in food products and issues related to the integration of food commodity markets; concentration and market power in food markets; and the role of various institutions in the operation of food markets. There is an emphasis on combining data with theory, and learning how markets in general work, then applied to the sometimes-unique circumstances of the food sector. Various models of food markets will be covered.

Learning Outcomes

Upon completion of this course, students should be able to:

Use a variety of analytical tools to probe questions and important issues concerning food markets, both domestic and international.
Develop an ability to review critically articles and studies concerning food markets.
Learn key issues in understanding sound empirical analyses in the food sector, including importance of data and institutional elements.
For at least one food commodity, integrate the specific topics below to arrive at a sound understanding of its economics, such as price patterns, margins within marketing chain, technical change at farm and processing levels, international competition and trade patterns, market concentration, and any other key economic changes within the recent past.

Policies and Deadlines

As an important element of a professional program, designed to prepare you for success after you leave UBC, it is assumed that you will arrive in class on time and hand in assignments on time. 5 points are awarded for class attendance on time. Late arrival more than twice will result in automatic loss of the 5%. If there is an exceptional situation requiring late arrival, early departure, or absence from class, a student with a valid reason must have emailed the MFRE Program Coordinator, mfreadmin@exchange.ubc.ca, at least two days before the due date. The deadlines on assignments (and generally across MFRE courses), the penalty for late submission is 5% per minute. Similarly , your full attention in class is expected. It is a classroom policy to turn off your mobile phones in class (including no sending or reading text messages).

Course Grading

Activity	Percent of Grade
Participation (5% for on-time attendance; 5% for class contributions)	10%
Assignments (2 @ 7.5%)	15%
Midterm Exam	20%
Final Exam	35%
Class Presentation: Important food market institutions (teams of 3-4)	20%
TOTAL:	100%

Presentation:

Teams of 3-4
Topic and components to meet Learning Outcome #4 above; please discuss with me
Must include thorough lit review, empirical component/data and its analysis (flexibility on what that may be)
Focus on key issue in food markets, or in food market literature, with application to 1 commodity

Schedule, Lecture Topics, and Selected Readings

Section	Dates	Lecture Topics	Readings
Section 1	Sept 8, 13, 15, 20	Aggregate Food Price Dynamics: Short run and Long run data Causation of LR commodity price trends Short term price pattern; Livestock cycles Seasonal price movements: Storage Volatility Modelling price movements: general equilibrium displacement models	Ch. 2, "Trends and Volatility in Agricultural Commodity Prices," C.L. Gilbert in A. Sarris and D. Hallam, FAO 2006; (HD9000.5.A358.2006). Daniel Sumner, "Recent Commodity Price Movements in Historical Perspective," American Journal of Agricultural Economics, Vol 91, no. 5, 2009:1250. Norwood Lusk, Ch. 5, pp. 128-138. Norwood Lusk, Ch. 3, pp. 78-92. Gilbert pp. 46-56.
Section 2	Sept 22, 27, 29, Oct 1	Trade: Deriving and using excess supply and demand models Effects of government programs on world prices Effects of currency depreciation WTO agreements and reforms: effects on agricultural markets	Alex McCalla/Tim Josling, 1985, Ch. 2. Michael Reed, International Trade in Agricultural Products, 2001.
Section 3	Oct 4, 6, 13, 18	Concentration: Monopoly, monopsony, vertical integration, pricing Changing market structure Food Margins Supply Chains	F.B. Norwood and J.L. Lusk, Agricultural Marketing and Price Analysis, 2008: Ch. 4, 6, 10, 11. Steve McCorriston, Ch. 6 in Sarris-Hallam.
Section 4	Oct 25, 27, Nov 1, 3	Market Integration: Rural-urban markets model Basic market integration models Domestic-international market integration	Ch. 4 in C. Peter Timmer, W. Falcon, and S.R. Pearson, Food Policy Analysis. Ch. 8 in Sarris-Hallam.
Section 5	Nov 8, 10, 17	Institutions	R. Barichello, BULOG paper. R. Barichello, Milk paper.
Section 6	Nov 22, 24, 29	Presentations	buffer

Note: Dates subject to change. Midterm and Final exam to be scheduled.