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17/06/2015 © IFCN 2015 | 1
IFCN Conference 2015
Assessing farmers’ cost of compliance with
legislation in the fields of environment, animal
welfare and food safety
The dairy sector
Presented by:
Dorothee Boelling
IFCN, Dairy Farm Analysis
17/06/2015 © IFCN 2015 | 2
Participating partners
• Anna-Maija Heikkilä, Sami Ovaska, Finland
• Dorothee Boelling, IFCN, Germany
• Fiona Thorne, Cathal Buckley, Ireland
• Michel de Haan, the Netherlands
• Ewa Koloszycz, Poland
• Hugo Quattrochi, Argentina
• Nicola Shadbolt, New Zealand
• Project coordinator Alberto Menghi, CRPA, Italy
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Outline/Agenda
1. Introduction to the project
2. Examples for some cost calculations
3. Results: cost of compliance
Thanks to the contributing partners:
Sami + Anna-Maija, Fiona + Cathal, Michel,
Ewa, Hugo, and Nicola for the case studies
Alberto for the project management
Dorothee for compilation of the dairy data
and report writing
The output:
This presentation gives a summary of an
EU-project where partners of IFCN worked
successfully together.
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Country specifics
Country Cow no. Production
system Housing Breed Milk yield
DE 31/ 95,
650
Stanchion barn/
free stall
Summer grazing/
indoor Si, HF, HF 6.8, 9.2, 7.8 t
FI 25, 69 Stanchion barn,
free stall
Summer grazing,
indoor Ayr*HF ~ 8.7 t
IE 48, 115 Grazing Grazing HF ~ 7 t
NL 76 Free stall Summer grazing HF 8.4 t
PL 15, 65 Stanchion barn,
free stall Summer grazing
Local/HF,
HF 6.7 t, 8.5 t
AR 170, 400 Grazing Grazing HF 5.2 – 5.8 t
NZ 974 Grazing Grazing Jer*HF 5.8 t
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EU legislation under consideration
Directive: Guideline for the individual countries to establish the national law
Regulation: Law is uniform across the Member States
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Our guiding question:
What would the farmer do differently
if the legislation was not in place?
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Environment: Nitrate Directive
Environment: Nitrate Directive FI DE IE NL PL AR NZ
Max level of N from animal manure (kg N/ha) 170 170 170 250 170
No nitrogen on water logged or frozen land x x x x x
Obligatory fertiliser planning + soil samples x x x x x
Annually farm based nutrient balance x x x x x
Application of fertilisers has to be recorded x x x x x
Buffer strips to water courses inside NVZ x x x x x x
Minimum storage capacity required x x x x x
Special equipment to avoid leakage x x x x
Catch crops on maize land x
Correct transport of excess manure x
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Germany: Nitrate Directive
• EU: Storage capacity required for 180 days
• Farmer: storage capacity necessary for 135 days
additional storage capacity is needed
• Investment costs
• Depreciation
• Maintenance
Benefit: better utilisation of slurry, therefore less fertiliser costs
Change in costs between -0,04% and -0,16%
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Food safety: Id & reg of bovine animals
Food Safety: Regulation on
Identification and registration of
bovine animals
FI DE IE NL PL AR NZ
Marking each animal after birth or arrival on
farm with 2 ear tags x x x x x x x
Replacement of lost ear tags x x x x x x x
Registration of all births, deaths, animal
movements x x x x x x x
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Germany: Identification and registration
• EU: Two ear tags all the time
Lost ear tags are to be replaced within one week
• Farmer: Animal identification is needed
BUT: Two ear tags are not necessary
No replacement of lost ear tags within one week
Additional work for replacing lost ear tags and for record keeping is needed
Change in costs between -0,05% and -0,10%
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Argentina: Identification and registration
• AR: all bovine animals have to be tagged and recorded
• Farmer: enough to tag and identify only female animals,
males are for fattening and slaughtering
Tagging of male calves
• Purchase of ear tags
• Labour for tagging the animals
• Labour for record keeping
Change in costs between -0,06%
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Cost of compliance: Environment
0
0,1
0,2
0,3
0,4
0,5
0,6
0,7
0,8
FI-25 FI-69 DE-31 DE-95 DE-650 IE-48 IE-115 NL-76 PL-15 PL-65 AR-170 AR-400 NZ-974
€/1
00
kg
mil
k
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Cost of compliance: Animal Welfare
0
0,05
0,1
0,15
0,2
0,25
0,3
FI-25 FI-69 DE-31 DE-95 DE-650 IE-48 IE-115 NL-76 PL-15 PL-65 AR-170 AR-400 NZ-974
€/1
00
kg
mil
k
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Cost of compliance: Food Safety
0
0,2
0,4
0,6
0,8
1
1,2
FI-25 FI-69 DE-31 DE-95 DE-650 IE-48 IE-115 NL-76 PL-15 PL-65 AR-170 AR-400 NZ-974
€/1
00
kg
mil
k
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Summary
1. Finland, Germany, and Ireland had compliance costs of 1 to 1.5%
2. The Netherlands had high compliance costs of ~2.7% due to the nitrate directive which already caused costs of 1.5%
3. In Poland, EU legislation is introduced only stepwise and many legislations were not yet implemented. Costs were on the same level as non-member states (AR and NZ) and accounted for < 1% compliance costs
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Thank you for your attention!
The final report can be found at:
http://ec.europa.eu/agriculture/external-studies/farmer-costs-2014_en.htm
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Germany: Costs of id & reg
Germany Unit Base
DE-31 Id+regist
Base
DE-95 Id+regist
Base
DE-650 Id+regist
Land €/100 kg 5.23 5.23 3.92 3.92 2.03 2.03
Labour €/100 kg 22.77 22.73 6.59 6.56 7.08 7.07
Capital €/100 kg 2.65 2.65 1.90 1.90 1.54 1.54
Non-factor costs €/100 kg 34.70 34.70 22.58 22.58 24.07 24.07
Total cost of the dairy
enterprise €/100 kg 65.35 65.31 35.00 34.96 34.72 34.70
Change of the milk
production costs % -0.07% -0.10% -0.05%
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Argentina: Costs of id & reg
Argentina Unit Base
AR-170 Id+Regist
Base
AR-400 Id+Regist
Land €/100 kg 2.32 2.32 2.66 2.66
Labour €/100 kg 4.22 4.21 3.92 3.91
Capital €/100 kg 0.75 0.75 0.73 0.73
Non-factor costs €/100 kg 12.67 12.67 14.85 14.85
Total cost of the dairy enterprise €/100 kg 19.95 19.94 22.16 22.15
Change of the milk production costs % -0.06 -0.06