Electronic Forum on Area-Wide Integration of Specialized Crop and Livestock Production 18th June to 3rd August 2000
Basic information:
1. Your name and E-mail address:
Hay Hendriks: H.J.M.Hendriks@ECLNV.AGRO.NL
Gerrit Koeslag: G.Koeslag@ipc-training.nl
Arend Jan Nell: A.J.Nell@IAC.AGRO.NL
2. Geographic region and country: Western-Europe, the Netherlands
3. Eco zone: Temperate
4. Dominant livestock system and species: Intensive industrial system with pigs and poultry, further land based dairy farming
The case study will concentrate on pig farming; the existence of intensive poultry and dairy farming makes the situation more complicated but will only be mentioned when it is relevant in relation to the pig farming.
Key questions
1. Livestock system and the underlying causes for the development of this system:
* Intensive pig production farms, often separate breeding and fattening units. Integration is on the increase mainly as a result of animal health regulations. Most of the farms are in the range of 150 to 400 sows and about 10% of the sow farms have more than 400 sows (production of 22.6 weaned piglets of 25 kg per sow per annum) or 300 to 1500 fatteners and 5% of the farms have more than 2,500 growing/finishing pigs (growth from 25 - 110 kg in 115 days with a feed conversion rate of 2.63). In the year 2000 there were 14,524 pig farms, of which 4,471 were combined breeding/fattening enterprises, 6,100 with sows > 50 kg bodyweight and 12,895 with fattening pigs > 20 kg bodyweight.
* The pig production farms are mainly family run enterprises. The origin of the farms date from over 50 years ago when pigs were kept on mixed small family farms on sandy soils to provide extra income as well as manure for cropland. Decreasing farm size as a result of dividing the farm among children and loss of agriculture land due to urbanisation of the rural areas, expanding cities and infrastructure, and industrialisation resulted in more emphasis on pig (and in other areas poultry) production.
* The main driving forces for further expansion were: the availability of imported cheap feed ingredients (through the port of Rotterdam) mainly cassava from south-east Asia and soybean-cake from Brazil and the USA. But also technological development such as new housing systems without straw use and with partly or fully slatted floors including automatic feeding systems which reduced labour demand considerably, together with a good infrastructure (roads, energy etc), government supported research (Wageningen), agriculture extension, training and education contributed to expansion and intensification of pig farming. Up to a few years ago investments were stimulated through an attractive tax relief system. The real rapid expansion was from 5.5 million pigs in 1970 to 14 million pigs in 1999.
* The efficient production system (see above) was able to compete very well on the European market where demand was increasing as a result of increasing incomes. Live pigs for slaughter are exported to Germany and Italy (and other European countries) and piglets for further fattening to Spain. Up to recently (before the disease outbreaks of 1997 - Swine fever, and 2001 - Food and Mouth Disease) pig production was and still is a major export industry (up to 60 % of the total pig production in the Netherlands is exported).
* Pig production is concentrated in certain areas because expansion took place in those areas in the Netherlands which were at that time characterised by poor quality sandy soils and where farms were of a small size. These farmers need supplementary income and also off-farm workers who ultimately became full time pig producers took up pig production. Most pigs are kept in the provinces of Gelderland and Overijssel in the East and the provinces of Northern Brabant and Limburg in the South. Co-operatives developed for purchase and mixing of feed, co-operative banks provided credit; and private feed companies and slaughterhouses settled down in these areas.
2. Impact of the system on the environment
* Initially (before 1980) pig production was important to produce manure for crop production, convert farm produced feed crops, and recycle by-products from the agro-processing industry. At present it has developed into a mainly landless production system. Subsequently large quantities of manure were used or dumped as fertiliser on fodder maize. Resulting pollution (ground and surface water, P saturation of the soil, Cu poisoning making pastureland unsuitable for sheep grazing, ammonia emissions in the air) has resulted in a series of regulations related to management of nutrients and manure.
* Over 75 % of the feed is imported from countries in south- east Asia and from the Americas, it is likely that this has resulted in local land degradation and erosion as well as in expansion of agriculture land through deforestation
* The breeding pigs used on the farms originate from not more than 5 major (national and international) breeding companies. A recent publication in the Netherlands reported that all the original local pig breeds in the Netherlands have become extinct. The present genetic basis for pig production is very narrow, but at the same time new genetic material is imported by the breeding companies.
* Recent outbreaks of Swine Fever (1997) and of FMD (2001) which were controlled through stamping out and transport bans have resulted in massive killings of animals, overcrowding on the farms resulting in animal welfare problems, and severe economic loss.
* As a result of the environmental problems and the animals health problems an elaborate systems of regulations have been developed including: complete nutrient input - output registration; manure quota permits; regulations for housing, manure storage and manure distribution; contracts for sale of manure surplus with crop farmers; siting and zoning of pig production operations (to reduce the environmental and animal health hazards)
* Human health problems related to pig production are limited to the people working in the pig farms: back problems due to heavy physical work; and respiratory diseases due to insufficient ventilation and ammonia in the air. At times of rampant animal diseases and low pig prices the owners - operators are under severe stress leading to mental problems and an increased suicide rate.
3. Systems of use and distribution of manure, manure processing
* Nutrient balance system based on actual input -output and not on standard values per animal. This system forms an incentive for the farmer to work more efficient and reduce wastage of feed and water, and reduce manure quantity. This system - when the N and P content of the manure is known - allows arable farmers to better balance the use of artificial and organic fertiliser.
* An earlier system of manure administration using standard values based on P-content of feed and manure failed. The system was not accepted by the farmers and did not include enough incentives for the farmers to reduce manure production. Feed companies reduced the P content of the feed but the N- content remained the same.
* Transport of manure to crop areas, trade and storage through manure banks.
* An intensive extension campaign in co-operation with the manure banks was implemented t reduce the use of water through management improvements. As a result of more efficient use of water (e.g. less cleaning water, less spillage of drinking water, prevent dilution with rainwater) the manure content was reduced by 50 % and the dry matter content doubled. This made the manure much more acceptable for crop farmers.
* Application of manure by injection (or ploughing under of the manure within 1 hour after application) and only during the growing season (April - August)
* Manure storage on the farm has to be covered to reduce ammonia emissions to the air and prevent dilution with rainwater, and farms require enough storage capacity in relation to farm size;
* Regulations on animal housing to reduce ammonia emissions;
* Large scale processing failed due to high costs and difficulties with the EU regulations.
In manure processing it is not such a problem to find use or a market for the solid part, however, the liquid fraction is the main problem. In the Netherlands it is not allowed to discharge the liquid fraction onto the surface water even after processing through e.g. reversed osmosis. Manure processing is expensive, average price is generally around 15 to 20 $ per m3.
* Technical solutions in manure management are primarily aimed at improving manure quality and reduce the manure quantity by reducing intake and spoilage of water (see also Helmut Döhler on 27 June). In the Netherlands the manure production per fattening pig place per annum is less than 1 m3with a dry matter content of over 10 %. This results in considerable cost savings in transport, storage and processing. Furthermore, the manure is much better accepted by farmers as a crop fertiliser.
* In other areas (e.g. China, Eastern Europe) common standards for manure production per fattening pig place per annum is over 10 m3 with a dry matter content of less than 1 %, with as a result high storage and transport cost.
4. Impact of production system on people (socio-economic effects)
* Increasing farm size and less farmers, loss of employment,
* Heavy investment and heavy dependency on credit, financial problems when farm is transferred to the successor
* None or very few small farmers, as a result of animal heath reulations outgrowers (in the form of contract fattening) for larger farmers have disappeared
* Good position on the European market
* 20 - 30 % of the feed concentrates for pigs is from Dutch origin
* Up to 50% of the feed for pigs on large farms is from by- products of the agro-processing industry
* Due to regulations on spatial and environmental issues (ammonia and odour) more than 75 % of the intensive livestock farmers in high-density areas are not allowed to expand the number of animals. Particularly farms located near forest and nature reserves will have to reduce pig numbers.
5. Response and coping strategies on the impact
* Farmers response: (1) increase farm size and operations, buy land elsewhere for manure spreading; (2) stop and sell; (3) try to produce for a niche market (e.g. organic pig farming); (4) migration of pig farmers to other EU (Spain, former East- Germany) and Eastern European (Hungary and Poland) countries and even some to Canada;
* Local and regional authorities: permits for operation or expansion (siting and size)
* Industry and farmers co-operatives: transport, storage and trade in manure; expanding business and trade to other EU and eastern European countries;
* Institutions and research: policy research to develop regulations, research to increase feed efficiency, processing of manure
* Government: animal and manure quota's, purchase of production rights, zoning to create pig free zones (animal health control); reduction of pig numbers
* Land use planning: permits for building residential houses when pig farms have to be closed;
* Integrated Chain Management: development of integrated systems of quality control and HACCP
* There are not many contracts between breeders and fatteners, farmers normally work at their own risk. It is common that fattening farms buy the piglets as much as possible from one and the same breeding farm. This is the result of government regulations which discourage for animal health reasons to bring together piglets for fattening from different farms
* Success factors: implementation of the regulations should result into an incentive for the farmers;
6. Future trends
* Stagnating consumption and demand, increasing competition from other European countries
* Increasing consumer concerns about system of industrial production, animal welfare and quality of the meat
* Consumers like to see scavenging pigs (but pollution is high from this system)
* Preference for organic meat is slowly increasing as well as the number of vegetarians
* Future: reduce number of pigs, with more pigs per farm. At present there is a steady decline in numbers of pig farms and of pigs respectively. The expectation is that by 2008 the number of pig farms has declined to 7,000/7,500 and the number of pigs to 11 million.
* In 2003 farmers with surplus manure will have to make contracts with crop farmers for manure disposal. Present rumours say that the market value of such contracts might go up to around 300 US $ per ha (to be paid to the crop farmer).
* Trade in manure production quota (present market price 300 US $ for a fattening pig place).
* Pig farmers as well as companies and co-operatives (breeding, equipment, feed, processing, extension) expand and transfer business to other EU and Eastern European countries.
Main contact person or organisation (for further information):
Hay Hendriks: H.J.M.Hendriks@ECLNV.AGRO.NL
Gerrit Koeslag: G.Koeslag@ipc-training.nl
Arend Jan Nell: A.J.Nell@IAC.AGRO.NL