key: cord-0561082-vlxfxoy1 authors: Goold, Conor; Pfuderer, Simone; James, William H. M.; Lomax, Nik; Smith, Fiona; Collins, Lisa M. title: A mathematical model of national-level food system sustainability date: 2020-12-14 journal: nan DOI: nan sha: 35cd8ca78b69ac32a218155ea70ddbb30ce52dcd doc_id: 561082 cord_uid: vlxfxoy1 The global food system faces various endogeneous and exogeneous, biotic and abiotic risk factors, including a rising human population, higher population densities, price volatility and climate change. Quantitative models play an important role in understanding food systems' expected responses to shocks and stresses. Here, we present a stylised mathematical model of a national-level food system that incorporates domestic supply of a food commodity, international trade, consumer demand, and food commodity price. We derive a critical compound parameter signalling when domestic supply will become unsustainable and the food system entirely dependent on imports, which results in higher commodity prices, lower consumer demand and lower inventory levels. Using Bayesian estimation, we apply the dynamic food systems model to infer the sustainability of the UK pork industry. We find that the UK pork industry is currently sustainable but because the industry is dependent on imports to meet demand, a decrease in self-sufficiency below 50% (current levels are 60-65%) would lead it close to the critical boundary signalling its collapse. Our model provides a theoretical foundation for future work to determine more complex causal drivers of food system vulnerability. Food security is defined as "when all people at all times have physical, social and economic access to sufficient, safe and nutritous food to meet their dietary needs and preferences for an active and healthy life" [26] . The realisation of food security depends on the three In this paper, we develop and analyse a stylised model of a food system inspired by the systems dynamics modelling of [42] and [63] , yet simple enough to offer general theoretical results. We focus on modelling a national-level food system, where the effects of international trade on domestic production is examined. Like the stylised models used to understand the causal processes in evolution, epidemics, and ecological interactions, our approach necessarily ignores many important features of real food systems. Nonetheless, its relative simplicity allows us to elucidate the precise conditions under which different stable modes of behaviour important to food system resilience emerge in our system. We apply our theoretical model to the case of the UK pork industry, a key contributor to the UK meat industry which currently employs 75,000 employees and is worth £1.25 billion [15] . Historically, pig industries have been of much interest to economists and agronomists as one of the first investigations into business or 'pork' cycles [29, 12, 24, 31, 42, 71, 49, 63] . Business cycles reflect the oscillations between commodity prices and supply, which have been posited to be the result of both endogeneous (e.g. [43] ) and exogeneous mechanisms (e.g. see [28] ). Over the last 20 years, however, the size of the UK pig industry has decreased by approximately 50%, from 800,000 to approximately 400,000 sows, due to a combination of legislative, epidemiological, and trade-related issues [67, 13] . Following the ban on sow gestation crates in 1999, as well as disease outbreaks in the early 2000s, imports of pig meat increased by 50% [16] , exceeding domestic production. While domestic production has returned to accounting for around 60-65% of total supply [16] , the UK pig industry is still at risk from high costs of production [23] and 'opportunistic dealing' within the pork supply chain favouring cheaper imports [8] . The sustainability of the UK pig industry is, thus, a concern for UK food system resilience, particularly with the incipient threats of Brexit and the COVID-19 pandemic that are affecting international trade, labour availability, commodity prices, and consumer demand [52, 25, 51] . We demonstrate how our food systems model can be used to infer the sustainability of the UK pork industry using Bayesian estimation, enabling us to quantify full uncertainty in parameter estimtates. Our food system model is composed of coupled ordinary differential equations, with the state variables of capital, inventory, consumer demand, and price ( Figure 1 ; see variable and parameter definitions in Table 1 ). While we focus on food commodities, the model's generality means that it could be applied to other types of commodity. Capital represents a raw material used to gauge the viability of the domestic industry, which could represent, for instance, the number of animals in the breeding herd for meat industries (e.g. [42] ) or the number of paddy fields in rice supply chains (e.g. [11] ). Inventory is the stock of The general structure of the theoretical complex food system model. Blue circles denote the the four state variables (capital, inventory, demand and price). Solid arrows indicate the different flows into and out of each state variable comprising their rate of change, and the arrow labels display generic functions of the model state variables and parameters (see Table 1 for the specific definitions used in this model). Dashed arrows show dependencies between different state variables and flows. processed food commodity being investigated. consumer demand represents the amount of inventory demanded per time unit by the population of consumers, and is dependent on the commodity price. The commodity price represents the price received by producers per unit of commodity produced, although we do not distinguish between producer and retail prices here (i.e. the producer price is assumed to be directly proportional to the retail price). While many of the mechanisms in supply chain functioning may be represented as a discrete-time system, we assume the aggregate behaviour of the national-level food system is adequately approximated in continuous time by a system of differential equations. Capital changes according to the equation: with initial condition at t = 0, C 0 . The parameter a is the rate of capital change (increase or decrease) depending on the price to capital production cost (b) ratio. Captial depreciates at rate e, where e −1 is the average life-time of capital. Inventory changes according to: The first term represents the amount of inventory generated by domestic capital per time unit (i.e. domestic supply), where f is a production rate, and g is a conversion factor representing the amount of inventory units produced per unit of capital. Inventory is wasted (i.e. produced but not consumed) at rate w. The third term denotes the rate of inventory consumption by consumers, which is a non-linear Holling type-II/Michaelis-Menten function asymptoting at I for D >> I. The dimensionless function I/(sD + I) can be interpreted as the proportion of the demand that can be satisfied with the current inventory level. The parameter s is the 'reference coverage' converting inventory demanded per time unit into commodity units, and is interpreted as the number of time units-worth of inventory processors desire to have in stock. Perishable food commodities (e.g. meat) will have a lower reference coverage, whereas less perishable items (e.g. rice, flour) can be stored for longer periods and, therefore, stock levels can be controlled by increasing s, lowering the proportion of demanded units satisfied. The final term in equation 2 represents international trade, and its formulation can communicate different dynamics between domestic producers, processors and retailers. We retain simplicity by assuming that trade is proportional to the difference between a reference demand level (h) and current domestic production (f gC). When h > f gC, inventory is imported, and when h < f gC, inventory is exported. Realised demand (D) is a function of h and the current commodity price (see below), and therefore h represents the expected, baseline demand all else being equal [63] . Trade levels adapt to the reference demand to avoid a positive feedback between higher prices, lower demand, and collapse of the commodity market for countries that are net importers, or a positive feedback between low prices, high demand, and exponentially increasing production for net exporters. In some industries, including the UK pork industry, cheaper international imports lower the domestic commodity price [1] , and thus importing more than domestic supply when demand drops due to higher prices is a mechanism for lowering the commodity price and increasing demand. The difference between reference demand and domestic production that is traded, however, is limited by factors such as trade tariffs (e.g. [25] ) or the ability of a nation to attract trade partners, and thus the parameter k controls the proportion of this difference. For countries that rely on international trade to supplement domestic supply to meet demand (net importers), 1 − k represents the self-sufficiency of the domestic industry (i.e. the percentage of total supplies produced domestically). The instantaneous rate of change in demand is modelled as a simple function of reference demand and the commodity price to reference price ratio: The parameter m controls the time-responsiveness of demand. The reference price q is typically interpreted as the price of substitute items [63] or could represent consumers' overall willingness to pay. When the current price exceeds the reference price, demand falls, and vice versa. Many models exist for describing the price of commodities (e.g. see [37, 14] for some examples), and we adopt a relatively simple formulation here that has the rate of change of price depend only on the coverage: The coverage is a dimensionless quantity representing the amount of commodity needed to sustain current demand for s time periods divided by the current inventory level. At rate given by r, the price increases when the coverage exceeds one, sD/I > 1, and decreases when coverage falls below 1. To make our model more generalisable, we non-dimensionalise the system of equations above (see supplmentary materials for non-dimensionalisation) using the dimensionless quantities in Table 2 , which reduces the number of parameters from 12 to 8. The non-dimensionalised system of equations is: where {v, x, y, z} now represent the dimensionless state variables, τ is rescaled time, and the dimensionless parameter groups are denoted by Greek letters. Cost of capital production A range of data is collected on the UK pork industry, but raw time series data is only available for certain variables and time frames. To fit our theoretical model, we focused on Reference profitability β e/a Capital replacement-depreciation ratio δ f gC 0 /(ahs) Initial production-demand ratio ω w/a Waste-production ratio γ 1/(as) Capital replacement-coverage ratio κ k Trade strength µ m/a Demand response-capital replacement ratio ρ r/a Price response-capital replacement ratio The breeding herd represents the main capital of meat industries I Amount (kg) of new pork available for consumption [16, 3] Calculated as UK production (from [16] ) plus imports and minus exports (from [3] ) D No data available Demand is a latent quantity P All pig price (kg/deadweight) [18] The price producers receive, assumed to be proportional to the retail price Table 3 : UK pork industry data sources used to fit the food systems model monthly data over a period of 5 years from 2015 through 2019, which covers the available annual data for the 'All pig price' per kilogram of deadweight (i.e. a combined price for standard and premium pigs). All data sources used to fit the model are presented in Table 3 . Monthly data for the inventory of pork, taking into account current levels of consumption and waste (e.g. the amount held in cold storage), is not reported in the UK. However, as an approximation, we used the total new monthly supplies, calculated as domestic production of pig meat plus imported pig meat minus exported pig meat. No data is available on consumer demand, as this is a theoretical quantity. Missing data was considered missing completely at random (i.e. ignorable) because data collection schemes are largely independent and fixed. For instance, missing breeding herd data were not considered dependent on the price or new supplies data. The parameters and initial conditions of the non-dimensionalised model were estimated using Bayesian estimation in the probabilistic programming language Stan [10] using the RStan interface in R [62, 53] using Stan's Runge-Kutta 4th and 5th order integration scheme (see Stan code in the supplementary materials). The available monthly time series data, Y , for month i and state variable j was assumed log-normal distributed (to ensure positivity): where Z j is the state variable computed from the food systems model. In addition to fitting the state variables of the model to the time series data, we fit the UK monthly production figures, and the monthly imports and exports, to the respective flows from the model: Imports ∼ Lognormal(ln(kh), 2 ) Exports ∼ Lognormal(ln(kf gZ 1 ), 3 ) To aid computation, all parameters were transformed to a similar scale and given standard unit normal prior distributions (see full model specification in the supplementary materials), and were back-transformed to the appropropriate scale when integrating the model. We did not estimate the parameters b (cost of capital production) and g (conversion factor from capital to inventory units) because these were known with enough certainty beforehand: b was set to the 138.3 p/kg (the average cost of production between 2015 and 2020), and g was set to 82.4 kg/pig, reflecting the average slaughter weight of pigs (109.9kg) multiplied by a 75% dressing yield (0.75) most recently reported by [2] . We ran 4 Markov chain Monte Carlo (MCMC) chains consisting of 2,500 iterations of warmup and 2,500 iterations of sampling, providing 10,000 samples from the posterior distribution for inference. All chains ran without any divergent transitions, and all parameters had effective sample sizes >> 1000 andR statistics (i.e. the Gelman-Rubin diagnositc) 0.99