Livestock sector in the region, policy in relation to food production and efficiency (Slovenia, Croatia, Serbia & Macedonia) Marija Klopčič 1, Marija Špehar 2, Ante Ivanković 3 Vladan Bogdanović 4, Dobrila Janković 5, Gjoko Bunevski 6 1 University of Ljubljana, Biotechnical Faculty, Department of Animal Science, Slovenia 2 HPA Croatian Agricultural Agency, Zagreb, Croatia 3 University of Zagreb, Faculty of Agriculture, Zagreb, Croatia 4 University of Belgrade, Faculty of Agriculture, Institute of Animal Science, Belgrade, Serbia 5 Faculty of Agriculture, Animal Science Dept., Novi Sad, Serbia 6 Faculty of agriculture and food, University Ss Cyril and Methodius in Skopje, R. of Macedonia Budapest, 31.10.2014
Introduction of Slovenia (in 2014) Surface area: 20,273 km 2 Population: 2,062,455 Population density: 101.7 per km 2 Length of borders: 1,370 km Length of rivers/streams: 26,600 km Altitude - average: 556.8 m Share of forest land: 63.3 % Arable land: 8.6 % Share of utilized agricultural area: 25.5 % Average size of farms: 6.3 ha of agric. land
Livestock production Livestock production is the most important agricultural branch in terms of value. The total value of agricultural output is 959 million, in which livestock production contributes 511 million.
Animal stock in Slovenia (2000-2013) 2000 2013 No of cattle 493.670 462.300 No of cows and pregnant heifers 205.306 185.829 No of dairy cows 117.775 103.131 No of farms with dairy cows 16.869 7.191 Average no of dairy cows/ farm 7,0 14,3 No of dairy cows in milk recording 67.838 82.856 No of farms in milk recording 6.227 4.437 Average no of cows in MR / farm 10.9 18,7 No of suckler cows 69.189 62.681 No of farms with suckler cows 27.105 20.379 Aver. No of suckler cows / farm 2,6 3,1 No of pigs 603.594 347.310 No of sheep 96.227 119.976 Poultry (x 1000) 5.106 4.007 Horses 14.407 22.673
The importance of livestock production for the agricultural area in Slovenia National indicator 2007 2008 2009 2010 2011 2012 GDP of total national economy (m )¹ 34,594 37,244 35,556 35,607 36,172 35,466 GDP of agricultural sector (m ) 1,625 1,687 1,542 1,575 1,702 1,725 Rural population as % of total population 51.1 51.4 51.7 52.0 52,1 52,0 Labour force in agriculture as % of overall labour force 9.1 8.6 8.6 8.7 8.6 8.6 Structure of gross agricultural output (%)² - animal production 45.2 47.3 46.6 44.5 45.1 46.3 - milk production 14.6 16.1 13.9 13.6 14.5 14.6 - beef production 12.1 11.6 13.1 12.4 12.8 14.0 - pig production 7.5 7.3 6.1 5.5 5.3 5.2 - sheep meat and milk production 0.8 0.7 0.8 0.7 0.7 0,7 - poultry meat and eggs production 9.0 10.3 10.1 9.8 10.2 10,5 ¹BDP Bruto domači proizvod; ²Vir: Statistični letopis Republike Slovenije 2008 2013
The importance of livestock production for the agricultural area in Slovenia National indicators 2007 2008 2009 2010 2011 2012 Indicators of milk production - number of farms delivering milk to processing plants 8.668 8.608 8.191 7.859 7.191 6.900 - average milk production/cow/year in milk recorded herds (kg) 6.016 6.043 6.012 6.062 6.110 6.224 - average milk purchase price at farm gate ( /100kg) 28,05 32,97 25,87 26,83 30,45 30,13 Indicators of beef production - Daily gain of all cattle (1000 t) (87,1)* - Beef production in slaughter houses (1000 t) (43,3)* 77,8 77,2 74,7 77,6 80,2 38,4 37,2 35,6 35,7 35,8 - Domestic beef production (1000 t) 43,0 44,5 41,0 43,2 44,7
1980 1985 1990 1995 2000 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 No of herds Cows per herd Changes in numbers of milk suppliers (number of dairy herds) and average number of dairy cows per herd 70000 16 60000 14 50000 40000 30000 20000 12 10 8 6 4 10000 2 0 0 No of herds cows/herd
Overview of the dairy food chain
Diversification Agricultural activities Suckler cows Beef/pigs/sheep/goats Horses / bees Vineyards/horticulture Forestry Non-agricultural activities Special local products Milk & meat products Oil, honey, Energy production Machinery services Agro-tourism Cottage industry.
Trends in production, consumption and trade Production stil increased; share of production for processing increased importantly; in 2006 intake by Slovenian dairies declined significantly due to raw milk sold to Italy (25 to 40 %) Consumption much higher than in EU-15 remains rather stable (220 240 kg/capita) Country is an net-exporter of dairy products (including raw milk)
Milk and meat consumption per capita (in Slovenia - Butter 0.9 1.5 Product in kg/capita/year 2000 2012/13 EU-27 (2010) Meat and entrails 88.5 89.1 77.0 Beef meat 20.6 19.8 16.0 Pork meat 38.1 39.2 41.0 Poultry meat 24.8 26.2 17.0 Sheep/lamb and goat meat 0.6 0.9 3.0 Horse meat 0.3 0.2 Fish 6.5 8.3 21.4 Eggs 10.8 7.4 13.0 Honey 1.0 1.4 1.3 Milk and milk products 231.4 218.7 - Milk fresh milk and fermented d. products 69.2 72.8 63.1* - Cheese and cottage cheese 10.0 14.1 16.6*
Government actions preparing sector for challenges ahead in Slovenia Land policy encourage land consolidation Technical and institutional modernization, aimed at increasing productivity and efficiency in the chain; Regional policy support farming in less-favored areas by encouraging farming with nature conservation and/or tourism; Rural development programs aimed at creating nonagricultural employment in rural areas
Sustainable development of livestock production in Slovenia
Introduction of Croatia (in 2014) Land area: 56,610 km 2 Sea surface area: 31,067 km 2 Population: 4,284,889 Population density: 78.4 per km 2 Length of borders: 2,375 km Share of forest land: 47 % Agricultural area: 3,2 mio ha Average size of farms: 5.6 ha of agric. land
Livestock production in Croatia to the nineties of the twentieth century animal production was largely covered needs of food industry and domestic consumption during the last two decades, significant changes in primary animal production, processing and animal product markets happened: specialization and intensification of production, improving of active technologies, enlargement of production units, through new quality standard, liberalization of market, through creating recognizable trademarks, traceability, liberalisation of the food product market increased the demand for competitiveness and distinctiveness of national animal production consumers attitudes have changed significantly during the last two decades, and today, the hygienic safety, traceability and origin of the product have become essential criteria
General about livestock production in Croatia Cattle and sheep production in 2011 Cattle population 444,000 cattle; 191,000 dairy cows; 110,000 in milk recording milk production 624 mil. kg 17,400 milk suppliers 36,050 kg milk / producers 140 kg milk / capita beef production 53 800 t 12.12 kg / capita Sheep population 630,000 heads sheep milk production 2.79 mil. kg 6,100 kg / producers 0.63 kg / capita sheep meat production (lamb and sheep meat) *10 070 t 2.27 kg / capita
Processing and consumption Changes are noticeable in the primary processing of animal products. Cow's milk is processed in 42 dairies 7 of them taking 84% of supplied milk part of their needs are met by importing milk Sheep milk is processed in 16 dairies 5 of them taking 94.5% of supplied milk Consumption cow's milk is 77.4 kg + 24.3 kg of milk products = 165 kg milk beef meat: 9.9 kg per capita pork meat: 16.5 kg per capita poultry meat: 18.8 kg per capita sheep/lamb meat: 2.3 kg per capita
Cattle population Reason for change 1. war 2. liberalization of market, trade with genetic material 3. depopulation of rural area, loose of interest for animal production 4. change of organizational structure of farm 5. relationship between prices input (fuel, feed) : output (milk) Number of animals ( 000) 1000 900 800 700 600 500 400 300 200 977 830 1 590 519 461 443 427 417 2, 3 4 5 466 483 454 444 100 0 1980 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Source: Annual Reports of the Croatian Agricultural Agency (1980 2011) Year
Cattle production Adjustment to the actual economic and market environment develop of farmers competitiveness increase the size of cattle population increase interest in livestock production help in managing of market relations (production: processing: market) optimize level of production per animal adjustment of production technology to genotype using specific models crossing in the production maintaining of native breeds such recognizable of marketable brands
Production system Traditional system of milk production traditional technology, low investment, low production produce milk and meat mainly for their own purposes Modernized traditional system of milk production improved technology, medium level of investment modernized traditional system involves small dairy farms, up to 15 cows The system of small conventional dairy farms Harmonized technology, medium to high levels of investment, a market-oriented commodity production Specialized system of large dairy farms larger herds, modern technology, high investment, production >7000 kg lactation Holstein, Brown Swiss competitive milk production milking, feeding and other working operations are automated
Sheep production: Population sheep population - 630 000 animals 93% sheep for meat production 7% sheep for milk production 1000 920 900 Number of animals ( 000) 800 700 600 500 400 300 200 100 751 539 444 427 427 528 580 721 680 643 630 0 1980 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Year
Sheep production: Technologies traditional technologies Mediterranean and mountain part of the Croatian dominant technologies mainly use autochthonous breeds less investment in the production process intensive production technologies in the continental part mainly use allochthonous breeds higher investments in the production process
CONCLUSION decrease of dairy cattle number had no significant effect on produced milk quantity, while had negative effect on quality beef calf number sheep milk is processed in quality cheeses, and as valuedadded product is placed on market standard models of sheep and beef meat production are recognisable on national level, but they need to undergo quality standardization due to appropriate market approach
Introduction of the Republic of Serbia (in 2011) Surface area: 88,361km 2 Population: 7,186,862 Population density: 95.5 per km 2 Share of forest land: 35 % 5.1 mil ha of agricultural land 3.3 mil ha of arable land 0.84 mil ha of pastures 0.61 mil ha of meadows Arable land: 36.2 % Share of utilized agricultural area: 66 % Average size of farms: 5.63 ha of agric. land
Basic National Indicator (www.stat.gov.rs) Year 2007 2008 2009 2010 2011 GDP (Gross Domestic Product) Agricultural sector (mil ) 2,380 (8.4% of GDP) 2,850 (8.7% of GDP) 2,254 (7. 8% of GDP) 2,180 (7.8% of GDP) 2,630 (9.2% of GDP) GDP Total national economy (mil ) 28,470 32,670 28,960 28,010 28,650 Gross output milk production in % of Gross Agricultural Output (GAO) 15.00 15.69 14.52 Not available yet Not available yet Gross output beef production in % of GAO 12.15 11.44 13.62 Not available yet Not available yet
In Serbian agricultural production 70% comes from plant and 30% from livestock production; Within livestock production, the share of cattle sectors is about 43%; The share of cow s milk in the total value of livestock production is 25%, while share of beef production is 17.6%.
Number of cattle Cattle Cows + Heifers Slaughtered 2250 Number of head, in 000 2000 1750 1500 1250 1000 750 500 250 1979 1135 810 1776 1082 685 755 1246 818 524 1079 721 560 436 938 937 542 368 0 1985 1990 1995 2000 2005 2010 2015 Year
PROSPECTS FOR FUTURE SECTOR DEVELOPMENT FARMERS PERSPECTIVE / RESOURCE AVAILABILITY About 149,000 farms are more or less involved in dairy production; For future sector development very important are: - the age of owner, - contact with Agricultural Extension Services, - willingness for applying new technological solutions, - Ministry support, - availability of bank credits or other financial sources.
PROSPECTS FOR FUTURE SECTOR DEVELOPMENT FARMERS PERSPECTIVE / RESOURCE AVAILABILITY About 71% of farmers have regular contact with Agricultural Extension Service, while 23% of farmers have time-to-time contact; 75% of farmers have expressed a positive expectation from the future membership of Serbia in EU, although these expectations are not clearly defined; Over 86% farmers intend to expand or improve cattle production in the short term, while about 6.5% had no such intention;
PROSPECTS FOR FUTURE SECTOR DEVELOPMENT FARMERS PERSPECTIVE / RESOURCE AVAILABILITY The farmers ways for the improvement of production: increase in the number of animals / increase of the farm capacities, adaptation of farm facilities and improvement in the conditions of nutrition, housing and care, animals genetic improvement, more favourable bank credit terms and regulation of the situation on the market;
HOW DO FARMS NEED TO CHANGE Become bigger: implies more effective livestock farms. Increase yields: implies changes in genetic value, breed structure, feeding, overall management. Increase milk and gain production per kg concentrate: implies improvement in forage management & better ration formulation as well as better feed conversion.
HOW DO FARMS NEED TO CHANGE Improve hygiene: implies not just housing & hygiene, but also health care, welfare, milking conditions, cooling. Improve environment: implies more effective management and utilisation of manure and silage effluent.
HOW DO FARMS NEED TO CHANGE What investments are needed: More animal of appropriate genetic value / potential; Bigger and better buildings & equipment for animals, milking and milk storage; Better farm, forage & feeding machinery; Better storage for manure & silage.
Objectives and visions of future agricultural and rural development in Serbia dynamic and competitive agricultural farms, operating according to modern and environmentfriendly standards; a profitable processing industry, capable of manufacturing products of high demand for domestic and international markets; rural areas to maintain its attraction for people to live and work in, and at the same time evolve their own identity.
Introduction of the former Yugoslav Republic of Macedonia (in 2013) Surface area: 25,713 km 2 Population: 2,107,000 Population density: 83.4 per km 2 Climate: 3 type (mediterranean, continental, high mountain) Rains: 680 mm/year; Sunshine annual quantity: 2100-2450 h; Altitude: average = 829 m (70% up to 1000 m);
Farming conditions of the R. of Macedonia Good climate and relatively good soils offer comparative advantage for accomplishing high yields in agricultural production Half of the territory (50.8%) is used for agriculture, split almost equally between arable and pastures A cattle breeding is in very strong competition with vineyard, vegetable and fruit production, from one side, and with small ruminant production on hill-mountain area, in the other side Facing with the development of other agricultural branches in the present situation, dairy and beef production is in a difficult situation, with the tendency of decreasing of the number of farmers with cattle
Basic National Indicator (www.stat.gov.rs) Year 2007 2008 2009 GDP (Gross Domestic Product) Agricultural sector (mil ) 1,066 (18% of GDP) 1,269 (19% of GDP) 1,131 (17% of GDP) GDP Total national economy (mil ) 5,965 6,720 6,677 Gross output milk production in % of Gross Agricultural Output (GAO) 12.2 17.0 12.9 Gross output beef production in % of GAO 0.11 0.08 0.16
Macedonian surface area and population Agricultural land 1.244.000 ha 49,2% Pastures 658.000 ha 50,8% Areable land 610.000 ha 49.2% Woodland 997.000 ha 38,8% Swapland 330.000 ha 12,0% Population employed in agricult. 226.498 11,6% Population in rural area 39%
Livestock The livestock number in Macedonia is relatively small: 256.000 cattle heads 680.000 heads of sheep 255.000 heads of pigs 31.500 heads of horses 150.000 heads of goats 2.264.000 heads of poultry Cattle production is still the leader livestock branch in the state From livestock production, traditionally only lamb meat production is export oriented
Milk production In the R. of Macedonia there are 87 registered dairy plants Annually processed around 150.000 tons of milk From totally 45.127 dairy farmers, only 11.000 farmers (24,33 % i.e. one of four farmers) has delivered his milk to the milking plant The larger dairy farms with more than 200 cows per farm, are still the nucleus of high-performance cattle, mainly for Holstein breed of cows
Types of cattle farmers in the R. of Macedonia According to the number of cows per farm and the level of production, there are three basic types of cattle farmers: Small farmers, with traditionally rearing of low productive breeds of cattle, with low input, keeping 1-3 cows with the annual production od 2,000-2,500 kg milk per cow. They are not a market oriented farmers. Family farming, with the average of 10-15 cows per farm and the annual production of 4,000-5,000 kg milk per cow. They have a medium input in farming. Mainly they are mixed farmers, with a different agricultural production and different sources of income. Specialized dairy and beef farmers, with the capacity more than 50 cows per farm, with high input, higher milk production with more than 7,000 kg per cow. Their number in R.Macedonia is small, but they have to be stimulated by the state in future.
Consumption According to the average milk and meat consumption per household in RM in 2010 the average was: 156,9 kg of cows milk and 33 kg beef per household i.e. approximately 39 kg milk per head and 10 kg beef per citizen
Perspectives of Macedonian agriculture Ecological clean land for organic agriculture; Mxture of nations, religions, climate, cultures, etc. Organizing of farmers in Associations; Growing domestic market and consumption level for milk and meat products Use of domestic products: cheese, meat, fruit, vegetable, grape, wine, rakija, Development niche products for both domestic and export market Ability to create new EU approved slaughtering/processing facilities
Constraints, challenges and opportunities in WBC Constrains and challenges o o o o Structure: many small farms and small plots Strong decline during last years in cattle, sheep and goats population Milk and meat processing industry are in several locations not very well developed which has impact on farm gate prices (low capacities of processors) Livestock farmer organizations and services need further development Opportunities o o o o o o Livestock sector has long tradition, particularly rearing of ruminants EU accession perspective / IPARD / Agri-Environmental Measures Programmes to preserve traditional animal breeds Domestic and export markets for products from ruminants Serbia and Croatia beef production with maize Grassland-based ruminant production system in Slovenia 45