The Austrian Case 2014 – 2020Challenges – Targets - Priorities

Supporting investments in Austrian

agriculture and rural areas

Seminar, 1 October 2015, Vienna

Austrian Chamber of Agriculture

Current Situation

Austrian Agriculture / Forestry

Agriculture in Austria

Small structured, farm-based agriculture – linked to forestry From medium-size to competitive, larger farms High proportion of less-favoured areas (3/4 of the area) Production of high-quality food regional food is important

for consumers 2/3 of agricultural expenditure for rural development High proportion of organic farming (1/5 of the area under

organic management ) ~ 90 % of the area under agri-environment schemes (RDP) 60 % part-time farmers - Relatively low intensity of production Prime goal: Comprehensive Agriculture and Forestry

Land use in Austria1,4 Mio. ha arable land1,3 Mio. ha grassland0,5 Mio. ha extensive grassland andalpine pastures /alps

High decrease of agricultural holdings in the last 10 years

Upstream economicsector of agriculture

24.60011 bn. €

Upstream economicsector of agriculture

24.60011 bn. €

Agriculture150.0006,5 bn. €

Agriculture150.0006,5 bn. €

Downstream economicsector of agriculture

395.00067 bn. €

Downstream economicsector of agriculture

395.00067 bn. €

• Crops und seeds• Plant protection• fertilizer• Agricultural machinery

• Crops und seeds• Plant protection• fertilizer• Agricultural machinery

• Agriculture• Forestry• Fisheries

• Agriculture• Forestry• Fisheries

• food and animal feed• beverage production• Lignin, sawmill, pulp• food retail• wholesale• catering

• food and animal feed• beverage production• Lignin, sawmill, pulp• food retail• wholesale• catering

Food supply chain: Number of employees / Revenues

Total: 560.000 employees

Challenges

Austrian Agriculture / Forestry

Basic conditions and challenges

Concentration in food trade (Austrian consumer -regional origin) Austria's agriculture exports – high value Dependency: export food – positive – but

external influence (Russia) Climate change – very powerful effects in Austria Farms: high dependency on common agricultural

policy payments (CAP) High demands of society – agriculture Positive income effects: energy and biomass

Very strong impacts on climate change in Austria (Central Europe)

Structure of the Austrian food retailing sectorHigh Concentration – “Three Big Player”

Spar29,8%

Hofer20,3%

Lidl5,0%

Markant3,8%

Zielpunkt 3,3%

Rest3,4%

Rewe34,4%

Source: Handelszeitung

Agriculture under pressure of Civil Society Animal Welfare / Environmental ProtectionLow Input farming, etc.

„Showcase Sector“

Austrian

Biomass / Bioenergy

Share of renewable energy in the EU28(Percentage of gross final energy consumption)

Source: Eurostat (data for 2012)

Austria is a pioneer in renewable energy and created a successful bioenergy

cluster

Development of gross domestic energy consumption of renewable energy from 1980 to 2014 in TJ

Data source: Statistics Austria

Positive long-termdevelopment ofbioenergy since

1980 by creating asuccessful

"Bioenergy Cluster"

Employment generated by renewable energy in 2013 Main contribution by bioenergy: approx. 20.000 FTE/a

Source: BMLFUW, ÖBMV, 2014

Employment generated by renewables amounts to

40.000 in 2013

50% or 20.000 FTEby bioenergy technologies

(solid, liquid & gaseous)

Research & Development

Investments

Austrian Agriculture / Forestry

Austria: high expenditures on Research & Development

0,42 0,430,69 0,76 0,82 0,86 0,90

1,121,27 1,27 1,30 1,30

1,50 1,511,65 1,72 1,72 1,73

1,88 1,97 1,982,16 2,18 2,20 2,24 2,26 2,40 2,40

2,79 2,80 2,84 2,87 2,92 2,983,34 3,41 3,55

4,204,36

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

% of G

DP

Quelle: OECD

Gross domestic expenditure on R&Das a percentage of GDP

2012 or latest available year 2002 or first available year

Share of Investments for Agriculture in AustriaElements of the capital account 2010-2014

Plantations251%

Animals955%

Machinery1.08154%

Buildings75837%

Other563%

source: Statistik Austria

Targets – Requirements – Priorities

Austrian Agriculture / Forestry

Strengths of Austrian agriculture andforestry

Good interconnectedness organisations High standards in education and training Diversity in production - diversity is our

strength Efficient partnership in the value chain Strong development of renewable

resources

We are working on …

Transparency in agricultural markets and of costs dialog with producers is necessary

To maintain our position towards the final consumer – Which story do we impart with the product?

Easy access to direct payments as an important income factor for the rural structure and production

Equipment, regional planning, road construction, logistics – to save the production bases

Push the work on risk- and income insurances

Future of Austria´s agriculture and forestry„Investment needs“ Education: Improving communication and liguistic skills

(training courses) of farmers & expanding professional media work

Cooperation in marketing strengthening position Pushing and initiating innovations education and

guidance offers Force practical research Agricultural research &

integrated sciences Advancement of renewable resources (income

opportunity) Support the energy independence of the farms

Best Practice

Austrian Agriculture / Forestry

Dairy farm „Madlstatthof“, Wildschönau

Dairy farm „Madlstatthof“, Wildschönau

Meat-processing company Schirnhofer, in Kaindorf – a transparent factory

Direct marketing and Adaptation and Extension at Pöllauer „Farmer-store“ (Naturpark Pöllauertal)

Agrotourism Farm Holidays on „Bike-Farm“ Moser

Examples for Biomass Heatings Plants

Quality is our force,

diversity is our strength!

Alles Gute!

Thank you!