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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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Maitoataidollamyöstulevaisuuddessa

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

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


Future production conditions production on market terms
Future production conditions with their surrounding environment- production on market terms

  • A growing population

  • A growing middle class

  • Positive market prospects

  • Volatile prices

  • Resource management and efficiency

  • Animal welfare


Competitive milkproduction

Competitive with their surrounding environmentcompared to:

Competitivemilkproduction

Othermilkproducers

New Zealand

Finland

Denmark

Price of milk

Other types of farmproducts

Price of production factors

Otheruse of farmland


Factors that influence competitiveness special for finland
Factors with their surrounding environmentthatinfluencecompetitiveness(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


Precipitation with their surrounding environment

Tons milk pr. km2

2%

45%

18%

26%

6%

8%


Net investments in dairy farming
Net investments in dairy farming with their surrounding environment

FI

Source: FADN


The costs of producing milk average 2007 2009
The costs of producing milk with their surrounding environment(average 2007-2009)


Profit recirculated in the value chain
Profit with their surrounding environmentrecirculated in the valuechain

Profit

  • Product innovation and development

  • Keep and maintain the cooperativescompetitvenes

  • Through productionstrategiesCooperativecanmitigate the price variation


The with their surrounding environmentvaluechain is dominated by strongCooperatives


International networks
International with their surrounding environmentnetworks

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/


Leadership and management tools
Leadership with their surrounding environment and management tools

  • - managerial coaching(advisoryboard,

    legal board, mentor)

  • - management roles, allocation and staffing

  • - tools ex SOP, LEAN,

  • - management implementation.

  • Key Performance Index (KPI)


The kpi tool translated generic
The KPI Tool with their surrounding environmentTranslated - generic


Rene Rasmussen Marts 13th 2014 with their surrounding environment

Reproductionresults

Achived

Fertility rate

Target

Number of insemination

Average

Ready for pregnancy test


Advisory board support you the way you choose
Advisory with their surrounding environment 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


National discussion groups focus

Leadership with their surrounding environment

Strategy

Economy

National discussiongroups - Focus

Tools

  • SWOT, budget etc

  • Strategy plan

  • Economyreports

  • Meeting on the farm

  • Dialog and discussion

  • Input to the host


Choose what you need
Choose with their surrounding environmentwhatyouneed

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.”


Education and social media
Education and social media with their surrounding environment

  • Discussiongroups,

    • FACEBOOK groups (cows)

    • SUOMI24 – discussiongroup

    • Agronet

    • Agricultural newspapers – discussion

  • Twitter

  • Webinar

  • Farmers as mentors

  • Foreignhomepages

Video

Pictures

Files

Word


  • Strong value chain with their surrounding environment

  • 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


Will finish milkproduction be competitive in the future
Will Finish with their surrounding environmentmilkproduction 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)