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Abstract
This paper analyses the impacts of climate change of food processing sectors
worldwide. Specifically, we analyze the impacts that changes in agricultural
productivity might have for seven food industry sectors, namely meat, vegetable
oils and fats, dairy, sugar, processed rice, other food products and beverage and
tobacco products. We analyze two different scenarios of crops yield changes
based on Müller et al. (2009), one with full CO2 fertilization and one without CO2
fertilization. We use a general equilibrium approach, given the advantages that
this methodology provides for worldwide analysis of productivity and its impacts
on production, trade and prices of primary agriculture, and ultimately, food
processing sectors. We use the GTAP computable general model with version 7
of the GTAP database, with a base year of 2004. We aggregate this database into
10 regions and 12 sectors, with special emphasis on food processing sectors. The
results show that overall, the impacts on food processing depends whether we
consider CO2 fertilization or not.