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--- production_activities_as_the_core [2019/12/06 11:25] – created justinap
+++ production_activities_as_the_core [2019/12/06 13:46] – [Linking production activities and the market] justinap
@@ Line 10: / Line 10: @@
 The following table gives an example for selected activity related information from the CAPRI data base.
+**Table 1: Example of selected data base elements for a production activity**
+{{::tab01.png?nolink|}}
+==== Technology variants for production activities ====
+For most activities there are two technologies available, typically a low and a high yield variety. Usually they are defined to cover each 50% of the activity level observed in ex post data, but with some particularities in the sugar sector (see //‘\sugar\techf.gms’//).
+==== Linking production activities and the market ====
+The connection between the individual activities and the markets are the activity levels. Total soft wheat produced is the sum of cropped soft wheat hectares multiplied with the average soft wheat output coefficient. In cases like pig meat, as mentioned before, several activities are involved to derive production.
+The produced quantities enter the farm and market balances. Production plus imports as the resources are equal to the different use positions as exports, stock changes, feed use, human consumption and processing. These balances are only available at Member State, not at regional level. Production establishes the link to the EAA as well, as average farm gate prices are unit values derived by dividing the values from the EAA by production quantities.
+The three basic identities linking the different elements of the data base are expressed in mathematical terms as following. The first equation implies that total production or total input use (code in the data base: GROF or gross production/gross input use at farm level) can be derived from the input and output coefficients and the activity levels (LEVL):
+{{:equation_01.png?nolink|}}
+The second type of identities refers to the farm and market balances:
+{{::equation_02.png?nolink|}}
+The farm balance positions are seed use (SEDF) and losses (LOSF) on farm (only reported for cereals) and internal use on farm (INTF, only reported for manure and young animals). NETF or net trade on farm is hence equal to valued production/input use and establishes the link between the market and the agricultural production activity. Adding imports (IMPT) to NETF defines total resources, which must be equal to exports (EXPT), stock changes (STCM), feed use on market (FEDM), losses on market (LOSM), seed use on market (SEDM), human consumption (HCOM), industrial use (INDM), processing (PRCM), and use for biofuel production (BIOF).
+The third identity defines the value of the EAA in producer prices (EAAP) as sold production or purchased input use (NETF) in physical terms multiplied with the unit valued price (UVAP):
+{{::equation_03.png?nolink|}}
+The following table shows the elements of the CAPRI data base as they have been arranged in the tables of the data base.
+**Table 2: Main elements of the CAPRI data base**