Annex 1


need to be modified and adjusted to the conditions of the country being studied. The analysis
of aggregates needs would have to be complemented by a disaggregated view, taking into
consideration different population groups, different geographical areas, different (groups of)
food items, different market prices, etc. Such issues are discussed in Chapter 4 of the Manual.

 Figure A-1: Basic model of an aggregate food situation in a closed economy

 price requirements


demand


/supply


Po ------------------


A R


-s, volume


Figure A-2: Basic model of an aggregate food situation in an open economy

price requirements


demand


production


:< imports | I N


C B R


volume


Description of the model:

The model contains five basic elements:

* Production curve: The production curve shows the volume of aggregate food production
 at varying market prices of food. Food production includes subsistence production as well
 as food production for sale on the market. (The production curve in Figure A-1 originates
 at 'spr', the level of subsistence production at a market price of zero. As a market price of


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f