« La PAC dans tous ses États »Déclinaison de la PAC et impacts dans sept pays européens

Jeudi 20 novembre 2014

Germany

Simon SchlueterDeutscher Bauernverband

Implementation of agricultural policyfor improving sustainability and profitability

Alle

mag

ne

Ruminant livestock sectors in Germany►Dairy sector►Cattle sector

Impacts of the new CAP►Implementation the of new CAP►Differences from previous CAP

Evolutions for the livestock sectors

Content

Alle

mag

ne

Ruminent livestock                     sector in Germany

Structure of dairy farmers in Germany

Alle

mag

ne

Ruminent livestock                     sector in Germany

Germany: milk delivery

1,000 tons, standard month

Source: ZMB, BLE

30,655,000 €Central and

South America

54,430,000 €North America

7,444,400,000 €Europe

161,608,000 €Tariff Union Russia-Belarus-Kazakhstan

425,935,000 €Asia

134,760,000 €Arabian

Peninsula

11,093,000 €Oceania

108,686,000 €North Africa

84,569,000 €Africa

Source: Export-Union für Milchprodukte e.V.Weltkarte © white - Fotolia.comMilchkanne © J.M. - Fotolia.comPfeile © M.Gove - Fotolia.com

Importance of export markets

Alle

mag

ne

Ruminent livestock                     sector in Germany

Cattle population in the EUin Mio. pieces, count May/June 2014 change from previous year in %

EU‐28 total

France

Germany

France

UK

Ireland

Italy

Spain

Poland

Netherlands

Belgium

Romania

Austria

Denmark

Alle

mag

ne

Ruminent livestock                     sector in Germany

The German beef market

Market supply in 1,000 tonsdomestic production – slaughter weightxx

exports

imports

Per capita consumption in kg

Beef exports 2014*the most important sales countries

Beef imports 2014*the most important import countries

Alle

mag

ne

Ruminent livestock                     sector in Germany

annual average

Producer price for young bulls (R3) in Germanyfree slaughterhousein Euro per kg slaughter weightmonthly average (without VAT)

Price development for young bulls

Alle

mag

ne

Direct payments are nearly fully decoupled

Impacts                  of the new CAP

Young farmer scheme (50 €/ha)

First hectares

Greening(85 €/ha)

Basic payment(174 €/ha)

Alle

mag

ne

Impacts                  of the new CAP

Change of basic payment and Greening between 2015‐2019Basic payment plus Greening 1)Eligible

area / payment entitlements

in Euro per hain Euro per ha in Euro per ha

1) Share of Greening threrein about 85 Euro/ha. Additionally,  50 Euro/ha supplement for the first 30 ha and 30 Euro/ha for hectares 31 to 46.Source: DBV estimation on basis of BMEL figures

Germany (average)

Baden‐WürttembergBavariaBrandenburg/BerlinHesseMecklenb. West. Pom.Lower Saxony/BremenNorthrine‐WestphaliaRhineland PalatinateSaarlandSaxonySaxony‐AnhaltSchlesw.Holst./HamburgThuringia

11

Shifting from 1. Pillar to 2. Pillar

„earmarked“ shift to 2. Pillar:

• Promoting grassland areas

• Ruminant animals

• Agri-environment schemes

• Organic farming

• Less favoured area payment

• animal welfare

Shifting of 4.5%

from 2015

Direct payments

Basic payment (62 %)

Greening (30 %)

First hectares (7 %)

Young farmer scheme (1 %)

Equtes to225-231 mio. € p.a.

Alle

mag

ne

Additional support for the first hectares

in Germany round about 7 % of direct payments

►50 €/ha for the first 30 hectars and ►30 €/ha for further 16 hectars

for farms with ≥ 46 ha:►30 ha x 50 €/ha = 1,500 €►16 ha x 30 €/ha = + 480 €

►In addition to basic payment = 1,980 €

Impacts                  of the new CAP

Alle

mag

ne

Young farmer scheme 25 % in addition the the basic payment for max. 5 years for max. 90 hectars

Impacts                  of the new CAP

Eligible area of the farm

Young farmer scheme per hectare

Annual payment

30 hectares 60 hectares 90 hectares 120 hectares

this comes up to… 1 year claim… 2 year claim… 3 year claim… 4 year claim… 5 year claim

Alle

mag

ne

1. P

illar

(EU

-fina

nced

)until 2013/14

Single farm payment(linked to CC)

2013: ca. 5,37 bn. € in D=> ca. Ø 316 €/ha

Agri-environment scheme (voluntarily)

2007-2013: ca. 0,6 Mrd. € p.a. in D

Less favoured areapayment

2007-2013: ca. 0,3 bn. € p.a. in D

from 20152.

Pill

ar(c

o-fin

ance

d)

Basic premium (linked to CC)

Greening (ca. 85 €/ha)

Young farmer scheme

Agri-environment scheme (voluntarily, stricter than Greening)

Less favoured areapayment

Small farm

ers

Redistribut. payment (first hectares)

Impacts                  of the new CAP

Alle

mag

ne

Common Market Organisation: Milk

Abolition of milk quota: 31st March 2015Safety netMilk package

Impacts                  of the new CAP

Alle

mag

ne

CAP has not a big influence on the evolutions of the livestock sectors

Other impacts are crucial: Political/Societal discussion about animal husbandry

Some examples►„Industrial Livestock Farming“ („Massentierhaltung“)►Animal welfare►Outside grazing►Antibiotic resistance

Acceptance and societal consensus about production practices is necessary for sustainable animal husbandry in the long run

Evolutions                  for the livestock sectors

Alle

mag

ne

CAP: Expectations

Decreasing economic importance of Direct Payments►Development of farms should not be dependend on Direct Payments in the future

Volatility of prices remains a problem that will furtherincrease►Commodity futures exchange as one solution?

Regulatory framework remains strict in Europe►Disadvantage in cost structure

Farmers need to start discussion about CAP after 2020

Evolutions                  for the livestock sectors

Alle

mag

ne

Evolutions                  for the livestock sectors

Expectation cattle fattening

Efficiency of production can be increasedManagement of the farm is crucial for successCattle demand does again increase in Germany

Alle

mag

ne

Evolutions                  for the livestock sectors

Expectation milk  production

Alle

mag

ne

Thank you                  for your attention!