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POLLINATORS POLLINATION AND FOOD PRODUCTION

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THE ASSESSMENT REPORT ON <strong>POLLINATORS</strong>, <strong>POLLINATION</strong> <strong>AND</strong> <strong>FOOD</strong> <strong>PRODUCTION</strong><br />

management (i.e., national; Satake et al., 2008). Finally, the<br />

chosen scale for valuation is different from the characteristic<br />

scale of the processes that affect pollination effectiveness<br />

and product prices (a methodological problem; MEA, 2005).<br />

Scale mismatches can affect the accuracy of valuation<br />

estimates and, more crucially, the distribution of benefits<br />

from management actions.<br />

factors that need to be taken into account when considering<br />

the different temporal scales.<br />

3.2.2 Temporal factors affecting<br />

pollination valuation<br />

230<br />

4. ECONOMIC VALUATION OF POLLINATOR GAINS<br />

<strong>AND</strong> LOSSES<br />

Thus, it is crucial to delimit clear scale categories for<br />

pollination valuation. Many approaches were proposed for<br />

ecological processes and ecosystem services in general<br />

(Turner, 1988; MEA, 2005; Vermaat et al., 2005; Hein et al.,<br />

2006; Feld et al., 2009; Díaz et al., 2011; Serna-Chavez<br />

et al., 2014), but no standard categorization of scales has<br />

been proposed for pollination valuation so far. It makes<br />

sense to work with scale categories that represent the<br />

extension (spatial scale) and duration (temporal scale) of<br />

processes for which the necessary data for valuation can be<br />

collected or compiled. Variables such as crop yield and price<br />

are frequently aggregated in government censuses by farm,<br />

county, politically defined sub-state or sub-national regions,<br />

provinces/states and countries, and conducted monthly<br />

or annually. The proposed scale categories for the present<br />

assessment are defined in Table 4.5.<br />

3.2 Pollinator valuation across the<br />

temporal scale<br />

3.2.1 Rationale<br />

The temporal scale has important strategic implications that<br />

can vary between stakeholders. For example, farmers are<br />

often more interested in longer term average yields (over<br />

several years) than short-term (1 year) maximization of yield,<br />

thus considering longer time scales is essential when linking<br />

valuation to decision-making. Another example is related<br />

to the farmer decision-making in crop choice: farmers can<br />

easily switch between different annual species; however, due<br />

to the time lag between planting and productivity, switching<br />

from annual to perennial species or between perennial<br />

crops involves a major long-term commitment. Farmers’<br />

ability to switch between crops depends also on the level<br />

of investments needed by the managing choices (e.g.,<br />

irrigation costs limit the ability to switch to another crop).<br />

Thus, the temporal scale is important to consider because<br />

the meaning of the economic valuation is fundamentally<br />

scale-dependent as well as the political implications of<br />

management decisions. In indigenous beekeeping, while the<br />

majority of beekeepers take a short-term view to exploiting<br />

their seemingly abundant resources, some innovative groups<br />

and networks of local entrepreneurs have secure long-term<br />

products, processes and market sustainability laying the<br />

foundations for sustainable livelihoods and conservation<br />

(Ingram et al., 2011). In the next sub-section, we present the<br />

3.2.2.1 Price dynamics<br />

Many economic valuation studies estimate pollinators’<br />

contribution to crop production (see Section 7). In several<br />

methods used for evaluating pollination benefits, two main<br />

variables are used: the crop price (Section 2.2 and 2.4.) and<br />

the price of beehives (Section 2.1.2 and 2.3.).<br />

The variability of the crop price across time is driven by<br />

variation in both demand and supply of the crop. However,<br />

these two components of the agricultural market are prone<br />

to change at different intervals, some crops will change<br />

every few years while others will change several times a<br />

year, due to many factors (Drummond and Goodwin, 2014).<br />

Factors influencing demands include the price of substitute<br />

goods of pollinated crops, price of complementary<br />

goods, the consumers’ income, the consumer’s tastes<br />

and preferences for different crop (dependent or not<br />

on pollinators), the expectations of a pollinator decline<br />

and the demography of consumer population. Factors<br />

influencing the supply include the price of inputs, the<br />

price at a preceding period, the substitutes and their<br />

characteristics (e.g., their prices), the technology, the taxes<br />

and subsidies, the expectation about future events and<br />

the number of businesses. The complexity arising from the<br />

interaction of all these factors highlights the difficulties of<br />

predicting future crop market prices, affecting longer-term<br />

valuation estimates.<br />

The price of hiring beehives for pollination is similarly<br />

determined through equilibrium between supply of<br />

beehive from beekeepers and the demand from farmers.<br />

Professional beekeeper 2 will also aim to maximize their<br />

benefits. However, this benefit depends on the two main<br />

goods or services that this activity contributes to produce:<br />

pollination service and honey. Thus, Rucker et al. (2012)<br />

and Muth et al. (2003) demonstrated the competition<br />

between pollination service and honey market; when the<br />

price of honey was high, beekeepers preferred to produce<br />

more honey and abandoned the pollination service. The<br />

consequences for the crops market are measurable,<br />

because the decrease of the supply of pollination<br />

service has a negative impact on the yield of crops and,<br />

consequently, the price of crops will increase. Therefore, the<br />

evolution of the beehive price is also highly dependent on<br />

other markets, making predictions similarly difficult.<br />

2. Hobby beekeepers are not considered in detail here because of the<br />

limited available literature on the subject.

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