Quotulatiousness

June 4, 2017

QotD: The Empire of the Cow

Filed under: Economics, History, Humour, Quotations — Tags: , — Nicholas @ 01:00

Whatever you might say against European imperialism and colonialism, it was good for the dairy industry. Ditto the railways which, beginning with the Great Western, made a fortune delivering rural milk supplies to the Great Wen of London, using methods soon copied by entrepreneurs in Paris, New York, Bombay. We forget, don’t we, that before 1860 or so, almost all dairy farming for urban consumption was done within the cities; to say nothing of other animal feedlot operations, including poultry and eggs; market gardening, horticulture and so forth. I’m with the hipsters for bringing it all back.

I cast no aspersions on the milkers of buffalo, goats, sheep, camels, donkeys, horses, reindeer, yaks, when I recognize that the Holstein/Frisian cow was the great cause and inspiration for the rise of what Max Weber murkily called the Protestant Ethic and the Spirit of Capitalism, emanating from the north-west of Europe. Instead, as will be seen, I champion them.

Neil Cameron interviewed the learned Professor Gerhard Fleischkopf, in a cover piece for the Idler magazine, more than a quarter-century ago, to publicize a thesis that still hasn’t been taken seriously enough by the historians. Contra Weber, Fleischkopf showed that it wasn’t the Germans, Dutchmen, Normans, English who launched this cultural revolution. Rather it was their cows, who forced them to rise very early every morning, lest they be kicked upon finally approaching the engorged teats with their milk-stools and pails; forced them otherwise to adopt patterns of behaviour entirely in the interest of the cows. Their philosophical and theological outlook — a dramatic break from the mediaeval scholastic synthesis — was not in any sense original to them, but instead an artefact of their cultural and intellectual manipulation, by cows. And so, too, their adaptive pushiness towards those of other lands — those lesser breeds without modern dairying techniques — whom they subjugated in turn, as agents of the cow.

David Warren, “A new model for society”, Essays in Idleness, 2015-07-20.

March 12, 2017

Reasons for THE INDUSTRIAL REVOLUTION

Filed under: Britain, Europe, History, Technology — Tags: , , , — Nicholas @ 02:00

Published on 26 Feb 2015

The Industrial Revolution transformed and shaped our modern world as we know it. Why did the fundamental changes of the Industrial Revolution begin in Great Britain? In our first episode about the era of Industrial Revolution, Brett explains how the agricultural revolution, a few inventions in the textile industry, the steam machine, improving means of transport and an overall changing society created a solid basis for the coming changes of the late 18th century.

March 6, 2017

QotD: Organic food “standards”

Filed under: Environment, Government, Health, Quotations, Science, USA — Tags: , , , , — Nicholas @ 01:00

In December 1997 when USDA proposed standards for organic agricultural production, the original version was rejected by the organic enthusiasts, largely because it would have permitted the use of organisms modified with modern genetic engineering techniques (“GMOs”) – which would have been quite sensible in the view of the scientific community. In the end, modern genetic engineering, which employs highly precise and predictable techniques, was prohibited, while genetic modification with older, far less precise, less predictable and less effective techniques were waived through.

The resulting organic “standards,” which are based on a kind of “nature good, technology evil” ethic, arbitrarily define which pesticides are acceptable, but allow “deviations” if based on “need.” Synthetic chemical pesticides are generally prohibited, although there is a lengthy list of exceptions listed in the Organic Foods Production Act – while most “natural” ones are permitted. Thus, advocates of organic agriculture might be described as “pragmatic fanatics.” (Along those lines, the application as fertilizer of pathogen-laden animal manures, as compost, to the foods we eat is not only allowed, but in organic dogma, is virtually sacred.)

What, then, is the purpose of organic standards? “Let me be clear about one thing,” Secretary of Agriculture Dan Glickman said when organic certification was being considered, “the organic label is a marketing tool. It is not a statement about food safety. Nor is ‘organic’ a value judgment about nutrition or quality.”

Organic standards are wholly arbitrary, owing more to the dogma of an atavistic religious cult than to science or common sense. And whatever their merit, as a December 2014 report in the Wall Street Journal described, the standards are not being enforced very effectively: An investigation by the newspaper of USDA inspection records since 2005 found that 38 of the 81 certifying agents – entities accredited by USDA to inspect and certify organic farms and suppliers — “failed on at least one occasion to uphold basic Agriculture Department standards.” More specifically, “40% of these 81 certifiers have been flagged by the USDA for conducting incomplete inspections; 16% of certifiers failed to cite organic farms’ potential use of banned pesticides and antibiotics; and 5% failed to prevent potential commingling of organic and nonorganic products.”

[…]

The bottom line is that buying “certified organic” products doesn’t guarantee that they will be free of genetically engineered ingredients. Even so, buying organic should please those consumers who think that paying a big premium for something means that it’s sure to be better. We hope that at least they get the benefit of the “placebo effect.”

Henry I. Miller and Drew L. Kershen, “Fanaticism, Pragmatism and Organic Agriculture”, Forbes, 2015-07-08.

August 18, 2016

QotD: The environmental and economic idiocy of the ethanol mandate

Ever since the beginning of the ethanol mandate it was obvious to anybody with eyes to see that the whole thing was a boondoggle and a huge waste for everybody except ADM. What the Greens failed to understand is that if you prop up corn prices by buying, distilling and burning massive amounts of corn whisky in cars, two things are going to happen. One the price is going to go up, making things like cow feed and other uses of corn more expensive and 2. farmers are going to, without restraint, plant ever larger amounts of corn, which will 1. push out other crops like wheat and 2. require more land use to plant even more corn. Which is why you can now go from Eastern Colorado to Western NY and essentially see nothing but corn. Millions of acres of corn, across the country, grown to burn. Somehow this was supposed to be environmentally friendly?

J.C. Carlton, “The Law Of Unintended Consequences Hits Biofuels”, The Arts Mechanical, 2016-08-07.

June 28, 2016

QotD: The real locavore’s dilemma

Filed under: Economics, Environment, Quotations — Tags: , , — Nicholas @ 01:00

Today’s typical environmentalist and locavore fancies that he or she possesses more and better knowledge than is contained in market prices. He or she is mistaken in his or her arrogance. The environmentalist who moralizes in favor of recycling cardboard containers and the locavore who boasts that he helps the environment by paying a few cents more for locally grown cabbages and cantaloupes focus on a small handful of visible aspects of production and distribution – such as the wood-pulp contents of the cardboard container or the fuel used to transport agricultural produces over long distances – and leaps without warrant to the conclusion that sticking that used cardboard containers into recycling bins, or reducing the amount of fuel burned to transport produce, generates net benefits for the environment. But there is simply no way that the recycling champion or the locavore can really know what he thinks he knows.

How much energy is used to recycle cardboard containers compared to the amount of energy used to produce new cardboard containers? What is the environmental impact of the chemicals used to cleanse used cardboard of the residue from its earlier uses so that that cardboard can be recycled for another use? How much fertilizer and energy – and what sorts – does your local small-scale farmer use to grow kale and cucumbers compared to the amounts and sorts used by the more-distant, larger-scale farmer? What is the full environmental impact of using land in suburbs such as Fairfax, VA, and Dobbs Ferry, NY, to grow vegetables for sale a local farmers’ markets compared to the impact of using that land differently?

The above are only a tiny fraction of all the relevant questions that must be asked and answered with reasonable accuracy before anyone can possess enough knowledge to be confident that recycling or ‘buying local’ are in fact good for the environment.

Don Boudreaux, “Quotation of the Day…”, Café Hayek, 2016-06-16.

February 18, 2016

QotD: FDR’s New Deal

Filed under: Economics, Government, Quotations, USA — Tags: , , , — Nicholas @ 01:00

Franklin Delano Roosevelt won the 1932 presidential election in a landslide, collecting 472 electoral votes to just 59 for the incumbent Herbert Hoover. The platform of the Democratic Party whose ticket Roosevelt headed declared, “We believe that a party platform is a covenant with the people to be faithfully kept by the party entrusted with power.” It called for a 25 percent reduction in federal spending, a balanced federal budget, a sound gold currency “to be preserved at all hazards,” the removal of government from areas that belonged more appropriately to private enterprise, and an end to the “extravagance” of Hoover’s farm programs. This is what candidate Roosevelt promised, but it bears no resemblance to what President Roosevelt actually delivered.

In the first year of the New Deal, Roosevelt proposed spending $10 billion while revenues were only $3 billion. Between 1933 and 1936, government expenditures rose by more than 83 percent. Federal debt skyrocketed by 73 percent.

Roosevelt secured passage of the Agricultural Adjustment Act (AAA), which levied a new tax on agricultural processors and used the revenue to supervise the wholesale destruction of valuable crops and cattle. Federal agents oversaw the ugly spectacle of perfectly good fields of cotton, wheat, and corn being plowed under. Healthy cattle, sheep, and pigs by the millions were slaughtered and buried in mass graves.

Even if the AAA had helped farmers by curtailing supplies and raising prices, it could have done so only by hurting millions of others who had to pay those prices or make do with less to eat.

Perhaps the most radical aspect of the New Deal was the National Industrial Recovery Act (NIRA), passed in June 1933, which set up the National Recovery Administration (NRA). Under the NIRA, most manufacturing industries were suddenly forced into government-mandated cartels. Codes that regulated prices and terms of sale briefly transformed much of the American economy into a fascist-style arrangement, while the NRA was financed by new taxes on the very industries it controlled. Some economists have estimated that the NRA boosted the cost of doing business by an average of 40 percent — not something a depressed economy needed for recovery.

Like Hoover before him, Roosevelt signed into law steep income tax rate increases for the high brackets and introduced a 5 percent withholding tax on corporate dividends. In fact, tax hikes became a favorite policy of the president’s for the next ten years, culminating in a top income tax rate of 94 percent during the last year of World War II.

Lawrence W. Reed, “The Great Depression was a Calamity of Unfettered Capitalism”, The Freeman, 2014-11-28.

December 3, 2015

Even the IPCC agrees that corn ethanol is a waste of effort and resources

In Forbes, James Conca wraps up the latest IPCC Working Group reports’ comments on the viability of biofuel production from corn:

OK, can we please stop pretending biofuel made from corn is helping the planet and the environment? The United Nations Intergovernmental Panel on Climate Change released two of its Working Group reports at the end of last month (WGI and WGIII), and their short discussion of biofuels has ignited a fierce debate as to whether they’re of any environmental benefit at all.

The IPCC was quite diplomatic in its discussion, saying “Biofuels have direct, fuel‐cycle GHG emissions that are typically 30-90% lower than those for gasoline or diesel fuels. However, since for some biofuels indirect emissions — including from land use change — can lead to greater total emissions than when using petroleum products, policy support needs to be considered on a case by case basis” (IPCC 2014 Chapter 8).

The summary in the new report also states, “Increasing bioenergy crop cultivation poses risks to ecosystems and biodiversity” (WGIII).

The report lists many potential negative risks of development, such as direct conflicts between land for fuels and land for food, other land-use changes, water scarcity, loss of biodiversity and nitrogen pollution through the excessive use of fertilizers (Scientific American).

The International Institute for Sustainable Development was not so diplomatic, and estimates that the CO2 and climate benefits from replacing petroleum fuels with biofuels like ethanol are basically zero (IISD). They claim that it would be almost 100 times more effective, and much less costly, to significantly reduce vehicle emissions through more stringent standards, and to increase CAFE standards on all cars and light trucks to over 40 miles per gallon as was done in Japan just a few years ago.

November 23, 2015

Minimization of Total Industry Costs of Production

Filed under: Economics — Tags: , , , — Nicholas @ 04:00

Published on 18 Mar 2015

This section connects several ideas covered in previous videos about the price system and profit maximization. In this video, we begin to understand two basic functions of the Invisible Hand. In competitive markets, the market price (with the help of the Invisible Hand) balances production across firms so that total industry costs are minimized. Competitive markets also connect different industries. By balancing production, the Invisible Hand of the market ensures that the total value of production is maximized across different industries. We’ll use the example of minimizing total costs of corn production, and demonstrate our findings through several charts.

November 5, 2015

The high-church organic movement is feeling under threat

Filed under: Business, Environment, Health, Media, Politics, USA — Tags: , , , , — Nicholas @ 02:00

Henry I. Miller & Julie Kelly on the less-than-certain future of the organic farming community:

The organic-products industry, which has been on a tear for the past decade, is running scared. Challenged by progress in modern genetic engineering and state-of-the-art pesticides — which are denied to organic farmers — the organic movement is ratcheting up its rhetoric and bolstering its anti-innovation agenda while trying to expand a consumer base that shows signs of hitting the wall.

Genetic-engineering-labeling referendums funded by the organic industry failed last year in Colorado and Oregon, following similar defeats in California and Washington. Even worse for the industry, a recent Supreme Court decision appears to proscribe on First Amendment grounds the kind of labeling they want. A June 2015 Supreme Court decision has cleared a judicial path to challenge the constitutionality of special labeling — “compelled commercial speech” — to identify foods that contain genetically engineered (sometimes called “genetically modified”) ingredients. The essence of the decision is the expansion of the range of regulations subject to “strict scrutiny,” the most rigorous standard of review for constitutionality, to include special labeling laws.

[…]

Organic agriculture has become a kind of Dr. Frankenstein’s monster, a far cry from what was intended: “Let me be clear about one thing, the organic label is a marketing tool,” said then secretary of agriculture Dan Glickman when organic certification was being considered. “It is not a statement about food safety. Nor is ‘organic’ a value judgment about nutrition or quality.” That quote from Secretary Glickman should have to be displayed prominently in every establishment that sells organic products.

The backstory here is that in spite of its “good vibes,” organic farming is an affront to the environment — hugely wasteful of arable land and water because of its low yields. Plant pathologist Dr. Steve Savage recently analyzed the data from USDA’s 2014 Organic Survey, which reports various measures of productivity from most of the certified-organic farms in the nation, and compared them to those at conventional farms, crop by crop, state by state. His findings are extraordinary. Of the 68 crops surveyed, there was a “yield gap” — poorer performance of organic farms — in 59. And many of those gaps, or shortfalls, were impressive: strawberries, 61 percent less than conventional; fresh tomatoes, 61 percent less; tangerines, 58 percent less; carrots, 49 percent less; cotton, 45 percent less; rice, 39 percent less; peanuts, 37 percent less.

August 20, 2015

One of the slickest marketing campaigns of our time

Filed under: Environment, Europe, Health, USA — Tags: , , , , , — Nicholas @ 04:00

In Forbes, Henry I. Miller and Drew L. Kershen explain why they think organic farming is, as they term it, a “colossal hoax” that promises far more than it can possibly deliver:

Consumers of organic foods are getting both more and less than they bargained for. On both counts, it’s not good.

Many people who pay the huge premium — often more than 100% — for organic foods do so because they’re afraid of pesticides. If that’s their rationale, they misunderstand the nuances of organic agriculture. Although it’s true that synthetic chemical pesticides are generally prohibited, there is a lengthy list of exceptions listed in the Organic Foods Production Act, while most “natural” ones are permitted. However, “organic” pesticides can be toxic. As evolutionary biologist Christie Wilcox explained in a 2012 Scientific American article (“Are lower pesticide residues a good reason to buy organic? Probably not.”): “Organic pesticides pose the same health risks as non-organic ones.”

Another poorly recognized aspect of this issue is that the vast majority of pesticidal substances that we consume are in our diets “naturally” and are present in organic foods as well as non-organic ones. In a classic study, UC Berkeley biochemist Bruce Ames and his colleagues found that “99.99 percent (by weight) of the pesticides in the American diet are chemicals that plants produce to defend themselves.” Moreover, “natural and synthetic chemicals are equally likely to be positive in animal cancer tests.” Thus, consumers who buy organic to avoid pesticide exposure are focusing their attention on just one-hundredth of 1% of the pesticides they consume.

Some consumers think that the USDA National Organic Program (NOP) requires certified organic products to be free of ingredients from “GMOs,” organisms crafted with molecular techniques of genetic engineering. Wrong again. USDA does not require organic products to be GMO-free. (In any case, the methods used to create so-called GMOs are an extension, or refinement, of older techniques for genetic modification that have been used for a century or more.)

August 9, 2015

QotD: The distinctive scent of the Black Forest

Filed under: Europe, History, Humour — Tags: , , — Nicholas @ 01:00

There was one night when, tired out and far from town or village, we slept in a Black Forest farmhouse. The great charm about the Black Forest house is its sociability. The cows are in the next room, the horses are upstairs, the geese and ducks are in the kitchen, while the pigs, the children, and the chickens live all over the place.

You are dressing, when you hear a grunt behind you.

“Good-morning! Don’t happen to have any potato peelings in here? No, I see you haven’t; good-bye.”

Next there is a cackle, and you see the neck of an old hen stretched round the corner.

“Fine morning, isn’t it? You don’t mind my bringing this worm of mine in here, do you? It is so difficult in this house to find a room where one can enjoy one’s food with any quietness. From a chicken I have always been a slow eater, and when a dozen — there, I thought they wouldn’t leave me alone. Now they’ll all want a bit. You don’t mind my getting on the bed, do you? Perhaps here they won’t notice me.”

While you are dressing various shock heads peer in at the door; they evidently regard the room as a temporary menagerie. You cannot tell whether the heads belong to boys or girls; you can only hope they are all male. It is of no use shutting the door, because there is nothing to fasten it by, and the moment you are gone they push it open again. You breakfast as the Prodigal Son is generally represented feeding: a pig or two drop in to keep you company; a party of elderly geese criticise you from the door; you gather from their whispers, added to their shocked expression, that they are talking scandal about you. Maybe a cow will condescend to give a glance in.

This Noah’s Ark arrangement it is, I suppose, that gives to the Black Forest home its distinctive scent. It is not a scent you can liken to any one thing. It is as if you took roses and Limburger cheese and hair oil, some heather and onions, peaches and soapsuds, together with a dash of sea air and a corpse, and mixed them up together. You cannot define any particular odour, but you feel they are all there — all the odours that the world has yet discovered. People who live in these houses are fond of this mixture. They do not open the window and lose any of it; they keep it carefully bottled up. If you want any other scent, you can go outside and smell the wood violets and the pines; inside there is the house; and after a while, I am told, you get used to it, so that you miss it, and are unable to go to sleep in any other atmosphere.

Jerome K. Jerome, Three Men on the Bummel, 1914.

July 16, 2015

“Biodynamic” wine-making – New Age woo-woo marketing bullshit … that sells

Filed under: Business, Science, USA, Wine — Tags: , , — Nicholas @ 04:00

On a recent wine tour in the Beamsville Bench region, I watched a fascinating interaction between a winery representative and a potential purchaser. Out of respect, I won’t identify the winery (although there are a few in both Beamsville and Niagara who profess to be “biodynamic” wineries), but the question was asked and the poor winery employee had to fight against her own clear instincts and try to describe in positive terms the utter bullshit that is “biodynamic” theory. Kindly, the questioner allowed her off the hook quickly and our group moved off to taste some other wines.

At Boing-Boing, Maggie Koerth-Baker links to an older article at the SF Weekly saying:

[…] biodynamic farming is, essentially, organic farming … plus a heaping helping of astrology, mysticism and some delightfully medieval-gothic growth preparations. (One involved taking fresh cow skulls, stuffing them with oak bark, burying them at the fall Equinox, unearthing in spring and adding minute amounts of the resulting goop to compost piles. Ostensibly to promote healing in plants.) Perhaps unsurprisingly, large, independent, peer-reviewed studies haven’t found much of a difference between biodynamic and organic grapes. Now, some folks like biodynamic wine, and that’s cool. I just think people ought to know what it is they’re paying a premium for.

The link is broken, but from the old URL, it’s probably this one:

When asked just what was going on, Eierman shot a glance at Jessica LaBounty, Benziger’s marketing manager, who closed her eyes and gave a quick nod. The gardener proceeded to explain that the severed heads were a vital ingredient in Biodynamic Preparation No. 505: Finely ground oak bark will be placed into the cows’ fresh skulls and stored in a shallow, moist hole or rain bucket throughout autumn and winter. The resultant concoction is then applied, in nearly undetectable quantities, to the gargantuan compost piles; Benziger’s promotional literature claims it “stimulates the plant’s immune system and promotes healing.”

Light-years from the surreal scenes at the Sonoma winery, glasses tinkled and forks hit plates of house-marinated olives in a dimly lit San Francisco storefront. Sharply dressed men and their attractive dates laughed over full pours of red and white at Yield Wine Bar in San Francisco’s up-and-coming Dogpatch neighborhood. Nearly half of the 50 wines served that night were grown Biodynamically — a fact prominently displayed on the bar’s menu. When asked what, exactly, this means, bar co-owner Chris Tavelli described Biodynamics as “the highest level of organics, you know, organic above organic.”

Among those who earn a living selling wine to the general public, this was a typical answer. Those with a vested interest in moving Biodynamic wines almost invariably use the words “natural” and “holistic” — terms that are malleable and vague, but near and dear to every San Franciscan’s heart. Its producers and sellers describe the process as “organic to the nth degree,” “the Rolls-Royce of organic farming,” or, simply, “the new organic.”

It’s an explanation Tavelli and fellow wine merchants have to make — or, more accurately, not make — now more than ever. Winemakers recently began aggressively marketing their Biodynamic status as a selling point, claiming their product to be both the “greenest” and most distinctive-tasting available. In San Francisco, Jeff Daniels of the Wine Club has added 10 new Biodynamic labels in the last year alone; Kirk Walker of K & L Wine Merchants says customer queries about Biodynamic wines have jumped in the past few years from roughly one a week to more than 30. Dozens of other San Francisco winesellers concur that they’ve augmented the number of Biodynamic wines they carry by four, five, or even 10 times of late. National chains report the same, and rank San Francisco as perhaps the nation’s top consumer of Biodynamic wine.

May 29, 2015

“The historian’s blindfolds”

Filed under: Europe, History, Religion — Tags: , , , , — Nicholas @ 03:00

Sarah Hoyt coined the term “the historian’s blindfolds” to describe historical situations where “the ‘everyone knows’ [happenings don’t] get recorded, and the ‘never happens’ or ‘happens so rarely it’s big and sensational’ gets recorded ALL the time”:

I’ve – for instance – for the last several years been very suspicious of Dickens, because my other sources for the time (not just primary sources, but those writing often in a family/biography) context paint quite a different picture.

I mean, yes, there were horrible conditions at the time, but they were horrible conditions by our perspective, and we live in an era of superabundance. And the underclass lived very disordered lives. Well, I read student doc. Our underclass just uses different substances and is better fed. Go to Student Doc “Things I learn from my patients” (it’s not coming up for me, hence not linked. Also, prepare to lose hours there. [This might the site]) BUT as “bad” as the industrial revolution might have been, it attracted droves of farmers from the countryside. And having seen it happen in real time in India and China, I’m no longer able to believe the propaganda that they were “forced” off their lands.

Farming looks like a lovely, bucolic occupation to those who have never done any, but the farming they did at the time involved no tractors, no milking machines. It was inadequate tools and inadequate strength beating inadequate livelihood out of inadequate (in most places) soil. Yeah, to paraphrase Mark Twain, the girls wove wreaths for Michaelmas, and everyone danced around the Maypole, but in between there was a very harsh reality that made the rather horrible conditions in the early mills seem like heaven and depopulated the countryside and packed the cities – as we see now in China and India.

So, our first problem with finding out if there really was a “first night” right for the seigneur is to figure out the difference between the accounts and the truth. There is no direct evidence, but remember all the recording of the times was done by church men who might very well not know what was going on. Sometimes, granted, it was willful not know. The village priest determinedly didn’t know of certain things that went on around May Day and I’m fairly sure would continue not knowing if he walked in on it and saw it. Because he wasn’t stupid and stuff that’s been going on for two thousand years and yet is of a nature not to be co-opted into the church celebration of this or that saint (St. Anthony and St. John with bonfires and wild herbs and jumping over the fires, and trekking to the city and across the city to see the sunrise on the sea, for instance, for Summer solstice. Yeah. Perfectly normal Catholic tradition) couldn’t be stopped cold, but knowing about it would mar his ability to preach against certain things which he must preach against. (“It was a morning in May—” And for the record this particularly guppie always thought going amaying is about gathering the flowers to put in every entrance to the house to word off evil spirits. But I am an ODD and often unable to see what’s right before my eyes because I was told it was different.)

The problem of the “first night” is compound by several issues: we’re talking a span of about 2000 years. It’s about sex and everyone lies about sex, or shuts up about it, which can be the same. We have fundamental disagreements on the basic nature of men and women. And that’s what I’m going to go with. Because that’s the interesting part.

May 15, 2015

This is why California’s water shortage is really a lack of accurate pricing

Filed under: Economics, Government, USA — Tags: , , , — Nicholas @ 05:00

David Henderson explains:

Of the 80 million acre feet a year of water use in California, only 2.8 million acre feet are used for toilets, showers, faucets, etc. That’s only 3.5 percent of all water used.

One crop, alfalfa, by contrast, uses 5.3 million acre feet. Assuming a linear relationship between the amount of water used to grow alfalfa and the amount of alfalfa grown, if we cut the amount of alfalfa by only 10 percent, that would free up 0.53 million acre feet of water, which means we wouldn’t need to cut our use by the approximately 20 percent that Jerry Brown wants us to.

What is the market value of the alfalfa crop? Alexander quotes a study putting it at $860 million per year. So, assuming, for simplicity, a horizontal demand curve for alfalfa, a cut of 10% would reduce alfalfa revenue by $86 million. (With a more-realistic downward-sloping demand for alfalfa, alfalfa farmers would lose less revenue but consumers would pay more.) With a California population of about 38 million, each person could pay $2.26 to alfalfa growers not to grow that 10%. Given that the alfalfa growers use other resources besides water, they would be much better off taking the payment.

May 6, 2015

China’s burgeoning wine industry

Filed under: Business, China, Wine — Tags: , , — Nicholas @ 05:00

At The Diplomat, Jack Detsch looks at the rapidly increasing Chinese wine sector:

China has surpassed France, the world’s foremost producer and exporter of wine, in total acreage, but don’t expect to bring a Ningxia over to a dinner party any time soon.

“I think they largely have the wrong grapes planted,” Geoff Kruth, Chief Operation Officer of the Guild of Sommeliers, a Sonoma-based non-profit, says. “They’re trying to model Bordeaux and plant cabernet – things that may not even really grow well there.”

Production is still on the rise, with China pushing through the ranks from the world’s eighth largest producer of wine in 2013 to the sixth biggest in 2016, due to growing acreage and soaring domestic demand. Wine consumption in China has increased by nearly 45 percent in the past 15 years, and vine planting jumped by 5 percent in 2014 alone, up to a total of 1.97 million acres, according to the International Organization of Vine and Wine. Chinese consumers have an especially discerning palate for red wine. In 2013, China became the world’s largest market for reds, a lucky color in folklore, downing 1.86 billion bottles, moving past France in that category. Per capita consumption is also on the rise.

But many Chinese vineyards aren’t producing wines yet, and much of the acreage dedicated to growing grapes is still used for appetizers and brandy, not wine. The majority of wine producers in Eastern and Western China, where companies in Xinjiang, Ningxia, and Gonsu have had success, produce bulk wine. At times, they’ve been competitive on a global level: in 2011, Jia Bei Lan, a winery in Ningxia, took home a coveted international gold medal for its 2009 Bordeaux blend.

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