Measure 101 -Investment in Agricultural Holdings A

Measure 101 -Investment in Agricultural Holdings A Success Story on Rural Development speaker: Dr. Reinhard Schick, . Ankara 04022013 EU rural development programmes and their contribution to adjustments in the milk production sector in Member States, role of producer organisation

Success story Bavaria • • • Milk Country Bavaria 38. 000 dairy farms • 1, 24 Mio. milk cows • 7, 5 Mio. milk production, 10 Mio. t milk processing • 75 dairies (~ 50 % privat) • degree of self supply > 170 % (only cheese 326%) • Export: cheese 1. 3 Mrd € dairy products 1, 2 Mrd. € (2011), • > 6. 000 kg performance/cow) • Ø 31 cows per farm • < 50 % der Kühe in freestall • structural change 3‐ 5%/Jahr • share of part-time farming > 40 %

Structural development of dairy production will continue Number of 1960 1970 1980 1990 2000 2010 2020 dairy-farms 373 000 266 300 175 200 119 300 62 200 42 000 25 000 cows per farm 5 7 11 15 23 29 40 Actual mainstream of investment : 60 to 100 cows per farm

Success story Bavaria effects of restructuring Restructuring of sector without: • Emigration of population, • Decline of working places in the region • Major breaks bevor change of generation • Declin of income situation in the region • Break in economic diversification

Succes-story Bavaria economic data Year GDP(Billion €/95) Share of Agri(%) Population (Mio) Unemployment(%) 1970 1990 2000 2012 143 5, 4 10, 4 1, 0 270 342 423 1. 9 1, 3 1, 1 10, 9 11, 5 12, 5 5, 0 6, 3 3, 6

Development of dairy farm income fulltime family farming in Bavaria • Year • Size in ha • Profit per farm thousand Euro • Family workers per farm 1980 22 15 1, 4 2000 40 32 2010 53 52 1, 5

Investment aid –great investments Year 2007 2008 • Cases 357 1673 • Granted 41 80 volume in Mio. € 2009 2010 2011 1312 1528 1001 106 158 62 • Thereof 65% in dairy production, • Running offensive for time after Quota

Success story organic farm Fichtl 1

Success story organic farm Fichtl 2 • • Family Farm exists as independent enterprise since 1806 Family, grandfather, grandmother, farm owner and his wife, 2 sons Organic farming since 1988 Size. 150 ha meadows and pastures, 95 dairy cows, free stable, summer pasture, (yeald 7500 kg per cow and year) 1985 start of use of lost heat of milk cooling for warmwater heating 1000 l per day 55 ° Cels. 1998 Investment for new stable (double size as before) 2001 investment in Photovoltaik, production of 80 000 kwh 2004 investment in Biogas, production of 2 mio kwh sold electric energy anf heating for residential building , holidayflat and swimming pool

Success-story mountainfarm Babl 1

Successstory mountainfarm Babl 2 • • Size 50 ha meadows and pastures, 50 %rented 65 dairy cows, 8 900 kg, 4, 2% fat per year Milkingroboter and automatic feading system Diversification in Hotel (100 beds), Cheese-dairy, House brewery, horses

Successstory mountainfarm Babl 11 Development: • • • 1983 overtaking of first farm in neighbourship of actual place, before driver in mechanisation group 1983 – 1993 rent of the first farm on life annuity payment and development of dairy heard 1993/1994 first investment in guestrooms and holiday flat Rebuilding of residential house 1996 investment in petting zoo for guests 1998 investment in new cow stable 1999 reconstruction of old heifers stable to children play area and renovation of pub 2002 extension of cowstable and machinery hall 2005 construction of indoor swimmimg pool and wellness area 2009 investment in milking roboter, construction of new guesthouse heated outside pool and minigolf 2010 investment construction of cheese-dairy with shop, restaurant and house-brewery

Successstory mountainfarm Babl 3

Successstory mountainfarm Babl 4

Successstory mountainfarm Babl 5

Successstory moutainfarm Babl 6

Success – story Babl 7

Successstory mountainfarm Babl 8

Successstory mountainfarm Babl 9

Successstory mountainfarm Babl 10

Success-story Oblinger Kasing 1 Development from mixed farm (til 1990)with: • 15 dairy-cows (5500 kg) • 40 fattening bulls • 20 breeding sows • Crops and sugar beets to • A specialised dairy farm with 90 cows, 130 young cattle, average lactation in 2011 9, 152 kg, 4, 09 fat, 3, 56 protein per dairy cow Investment 930 000 €

Success-story Oblinger Kasing 2

Success-story Oblinger Kasing 3

Success-story Oblinger Kasing 4 Development • 1992 Investment in enlargement to 45 cows • 2010 Investment in new stable for 90 cows and transformation of old cow stable to use for 130 young cattle and • upbringing of high performant young breed (cows and heifers)with excellent genetic potential for sale on breeding cattel auction.

Success-story Oblinger Kasing 5

Success-stroy Oblinger Kasing 6

Success story Bavaria Changes in Bavarian dairy production • Increase in commercial production • Utilisation of economies of scale at farm level • Tremendous improvement in product quality at all levels • Trend to diversification in processing on farm level

Success – story Germany Outlook • • • Agricultural holdings will continue modernisation and restructuring and diversification , which should bring cost reduction, increased labour productivity and improved efficiency of production and trade. Stimulation by the ongoing CAP reform and liberalisation of world trade as a result of WTO negotiations. This would involves the creation of favourable conditions for the development of economically viable agricultural holdings and industrial plants. The scope for financial assistance in this respect is likely to be limited in the future. Support measures will be aimed at the reduction in the number of farms with cows as well as in dairy cattle accompanied by an increased production scale. Indispensability to further support for restructuring, Volume in future years will depend on available funds.

Succes-story EU-Conclusions v Facing the challenges of global warming, of energy, of biodiversity, and facing the socialchallenges of the economic crisis, the future of EU dairy production cannot rely • on a few big dairy farms, • on unreliable export, more import • of inputs, more transport. v • Only a sustainable European dairy production • on family farms, with strong EU legislation • including supply management, will be able to face these challenges. v Less soy, more grasslands, stable dairy farm structure