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The Goods, the Bad, and the Ugly: Data and the food system

Julian Lampietti's picture
Photo Credit: Goodluz/Shutterstock.com

The business of agriculture and food is driven by data, making it the treasure trove of today’s agri-food system. Whether it’s today’s soil moisture, tomorrow’s weather forecast, or the price of rice in Riyadh, every bit of data can improve the efficiency with which the world’s 570 million farmers put food into the mouths of its soon-to-be eight billion consumers. Digital technologies are facilitating the flow of data through the food system, shrinking information asymmetries and fashioning new markets along the way. How can we ensure these new markets are appropriately contested, and the treasure does not end up in the hands of a couple of gunslingers? Is there a public sector’s role in generating and disseminating data that on the one hand encourages innovation and competition and on the other reduces opportunities for market capture? One place to look may be at the crossroads of internet and public goods.

We all remember from econ class that public goods can’t be efficiently allocated by markets because they are non-rival and non-excludable. There are precious few examples of true public goods – national defense, clean air, and lighthouses come to mind. That is, at least until Coase’s in “The Lighthouse in Economics” argued that lighthouses are excludable because it was possible to temporarily turn-off the lighthouse when a ship sailed by that didn’t pay their port fees.

Planet of the Apps: Making small farms competitive

Julian Lampietti's picture
 
Photo: Shutterstock

Apps have revolutionized everything from getting to work, keeping in touch with faraway friends, and dating (though the jury’s still out on this one). Can apps be the salvation of the world’s farms that are under two hectares in size – a group that most people think is going the same way as humans in Planet of the Apes?

Economies of scale in agriculture (or any other sector) occur when the average cost per unit of production decreases as farm size increases and conventional wisdom suggests that farms need to get bigger to be competitive. And this is exactly what is happening in richer countries, though the trend is less clear in poorer countries.