"La PAC dans tous ses Etats", conférence le 20 novembre 2014

1. « La PAC dans tous ses États »
Déclinaison de la PAC et impacts dans sept pays européens
Jeudi 20 novembre 2014
Germany
Simon Schlueter
Implementation of agricultural policy
for improving sustainability and profitability
Deutscher Bauernverband

2. Allemagne
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

3. Allemagne
Ruminent livestock
sector in Germany
Structure of dairy farmers in Germany

4. Allemagne
Ruminent livestock
sector in Germany
Germany: milk delivery
1,000 tons, standard month
Source: ZMB, BLE

5. 54,430,000 €
North America
30,655,000 €
Central and
South 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.com
Milchkanne © J.M. - Fotolia.com
Pfeile © M.Gove - Fotolia.com
Importance of export markets

6. Allemagne
Ruminent livestock
sector in Germany
Cattle population in the EU
in Mio. pieces, count May/June 2014 change from previous year in %
EU‐28 total
France
Germany
UK
Ireland
Italy
Spain
Poland
Netherlands
Belgium
Romania
Austria
Denmark

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Ruminent livestock
sector in Germany
The German beef market
Market supply in 1,000 tons
domestic production – slaughter weight
xx
exports
imports
Per capita consumption in kg
Beef exports 2014*
the most important sales countries
Beef imports 2014*
the most important import countries

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Ruminent livestock
sector in Germany
Price development for young bulls
Producer price for young bulls
(R3) in Germany
free slaughterhouse
in Euro per kg slaughter weight
monthly average (without VAT)
annual average

9. Allemagne
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)

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Impacts
of the new CAP
Change of basic payment and Greening between 2015‐2019
Eligible Basic payment plus Greening 1)
area /
payment
entitlements
in Euro per ha in Euro per ha in Euro per ha
Baden‐Württemberg
Bavaria
Brandenburg/Berlin
Hesse
Mecklenb. West. Pom.
Lower Saxony/Bremen
Northrine‐Westphalia
Rhineland Palatinate
Saarland
Saxony
Saxony‐Anhalt
Schlesw.Holst./Hamburg
Thuringia
Germany (average)
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

11. 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 to
225-231 mio. € p.a.

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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

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Impacts
of the new CAP
Young farmer scheme
 25 % in addition the the basic payment for max. 5 years
 for max. 90 hectars
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

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(EU-financed) until 2013/14
1. Pillar
Agri-environment
scheme (voluntarily)
2007-2013: ca. 0,6 Mrd. € p.a. in D
Less favoured area
payment
2007-2013: ca. 0,3 bn. € p.a. in D
Single farm payment
(linked to CC)
2013: ca. 5,37 bn. € in D
=> ca. Ø 316 €/ha
of the new CAP
from 2015
2. Pillar
(co-financed)
Impacts
Agri-environment
scheme (voluntarily,
stricter than Greening)
Less favoured area
payment
Young farmer scheme
Greening
(ca. 85 €/ha)
Basic premium
(linked to CC)
Small farmers
Redistribut. payment (first hectares)

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Common Market Organisation: Milk
Abolition of milk quota: 31st March 2015
Safety net
Milk package
Impacts
of the new CAP

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Evolutions
for the livestock sectors
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

17. Allemagne
CAP: Expectations
Evolutions
for the livestock sectors
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 further
increase
►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

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Evolutions
for the livestock sectors
Expectation cattle fattening
Efficiency of production can be increased
Management of the farm is crucial for success
Cattle demand does again increase in Germany

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Evolutions
for the livestock sectors
Expectation milk
production

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Thank you
for your attention!