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Maitoa taidolla myös tulevaisuuddessa

Maitoa taidolla myös tulevaisuuddessa. AGRICULTURE IS GLOBALIZING, WHAT DOES THAT MEAN FOR OUR DAIRY FARMERS. Chiefadvisor Ole Kristensen, Knowledge Center for Agriclture , Denmark . To be economic sustainable dairy farms have to be in line with their surrounding environment.

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Maitoa taidolla myös tulevaisuuddessa

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  1. Maitoataidollamyöstulevaisuuddessa AGRICULTURE IS GLOBALIZING, WHAT DOES THAT MEAN FOR OUR DAIRY FARMERS. Chiefadvisor Ole Kristensen, Knowledge Center for Agriclture, Denmark

  2. To be economic sustainable dairy farms have to be in line with their surrounding environment The role of agriculture within the local community(neighbouring issues, job creation, community) • National conditions regarding • Economy • Politics • Environment • Animal welfare • Social conditions • A growing population and a growing middleclass • Increasing demand for food  good market prospects • Management of resources/resource efficiency Local community National community European community World community • Decreasing income support in exchange for providing public goods • Intervention system only to be used in crisis situations • No milk quota regulation after 2015 • Production on market terms implying much greater volatility in prices

  3. Future production conditions- production on market terms • A growing population • A growing middle class • Positive market prospects • Volatile prices • Resource management and efficiency • Animal welfare

  4. Competitivecompared to: Competitivemilkproduction Othermilkproducers New Zealand Finland Denmark Price of milk Other types of farmproducts Price of production factors Otheruse of farmland

  5. Factors thatinfluencecompetitiveness(special for Finland) Geograficand climaticconditions. (water, short growing season, distances) Holding structure. (FI relative small holdings, < 40 cows, strongconsolidation(-40% 2003-2010)) Ownership, workforce and level of skills. (family farms, lessthan 13% otherworkers, welleducated farmers) Productionfacility Level of investment. (374 to 558 euro cow/year from 2000 to 2009, transition from tied up to loosehousing) Economy in milkproduction(highcost, to labourconsuming - efficiency) Strenght of the valuechain

  6. Precipitation Tons milk pr. km2 2% 45% 18% 26% 6% 8%

  7. Net investments in dairy farming FI Source: FADN

  8. The costs of producing milk (average 2007-2009)

  9. Profit recirculated in the valuechain Profit • Product innovation and development • Keep and maintain the cooperativescompetitvenes • Through productionstrategiesCooperativecanmitigate the price variation

  10. The valuechain is dominated by strongCooperatives

  11. International networks The European Dairy Farmers is a network of leading dairy farmers to exchange experience and knowledge. www.dairyfarmer.net International Farm Comparison Network www.ifcndairy.org European Cattle Innovation Partnership http://www.scar-cwg-ahw.org/index.php/livestock-sectors/cattle/

  12. Leadership and management tools • - managerial coaching(advisoryboard, legal board, mentor) • - management roles, allocation and staffing • - tools ex SOP, LEAN, • - management implementation. • Key Performance Index (KPI)

  13. The KPI ToolTranslated - generic

  14. Rene Rasmussen Marts 13th 2014 Reproductionresults Achived Fertility rate Target Number of insemination Average Ready for pregnancy test

  15. Advisory BOARD support you the way you choose Established by the farmer • Group of advisors e.g • Economy • Production • Political • Car dealer • Public person Fixed agenda

  16. Leadership Strategy Economy National discussiongroups - Focus Tools • SWOT, budget etc • Strategy plan • Economyreports • Meeting on the farm • Dialog and discussion • Input to the host

  17. Choosewhatyouneed National discussiongroup Local networkgroups Advisoryboard Stable School ”Coffeeclub” Mentor Board Club One to one “Many of the really good leaders are not head of anyone. People follow them nonetheless - consciously or unconsciously.”

  18. Education and social media • Discussiongroups, • FACEBOOK groups (cows) • SUOMI24 – discussiongroup • Agronet • Agricultural newspapers – discussion • Twitter • Webinar • Farmers as mentors • Foreignhomepages Video Pictures Files Word

  19. Strong value chain • Research, advisory service • Less strong competition from other types of farming • Level of investment • Relatively high solvency • Age structure <35/>55 (FI= 0,25 EU average=0,11) • Conditions inherent in nature • Low density  long distances  extra costs • Farm structure (FI)  extra costs • Strongly dependent on economic support

  20. Will Finish milkproduction be competitive in the future? • Geograficconditions • Huge distances, short growing season, not the best land allocation highcost to produce • Structure of the holdings • Average herd sizenumber 19 in EU • 70% of the cows in herdsizelessthan 100 cows • Owner and workforce • Good age distribution between (<35 years/>55 years) • About 87% is familylabour • Farmers with a goodeducation. More educationneeded? • Investment • Cost of production ? • Valuechain • A goodadvisory system (AKIS)

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