XV EAAE Congress | August 29th – September 1st 2017 TOWARDS SUSTAINABLE AGRI-FOOD SYSTEMS: BALANCING BETWEEN MARKETS AND SOCIETY Farmers’ compliance costs with legislation in the field of animal welfare Kees de Roest, Alberto Menghi Research Centre for Animal Production (CRPA) Reggio Emilia, Italy XV EAAE Congress | August 29th – September 1st 2017

Title of project Assessing farmers’ costs of compliance with legislation in the field of environment, animal welfare and food safety Commissioned by the European Commission, Directorate-General for Agriculture and Rural Development Period 2012 - 2014 Tender : AGRI – 2011 – EVAL - 08 XV EAAE Congress Presentation Title 1

Partners Study undertaken by: CRPA – Centro Ricerche Produzioni Animali, Italy In association with TI – Thünen Institute of Farm Economics, Germany IFCN – International Farm Comparison Network, Germany University of Ghent, Belgium 34 contracted country experts XV EAAE Congress Presentation Title 1

Structure of presentation Objectives Legislation analysed Methodology Results XV EAAE Congress Presentation Title 1

Objectives To provide a comprehensive description and assessment of the costs of compliance with EU legislation in the fields of environment, animal welfare and food safety at farm level in selected EU Member States; To provide a comprehensive description and assessment of the costs of compliance for farmers in a number of third countries with equivalent legislation in their respective countries, as well as with EU legislation as exporters to the EU; To compare the costs of compliance with environmental, animal welfare and food safety legislation for EU and third country farmers and to draw conclusions with respect to the impact on competitiveness. XV EAAE Congress Presentation Title 1

Countries and sectors investigated in the project case studies dairy beef sheep pork poultry wheat apple wine European Union   Bulgaria 1 x Denmark 2 Finland France 4 Germany 5 Hungary Ireland Italy Poland Netherlands Spain United Kingdom 3 Total 27 Third Countries Argentina Australia Brazil Canada Chile New Zealand South Africa Thailand Ukraine USA 16 XV EAAE Congress Presentation Title 1

Data networks Agribenchmark beef & sheep Agribenchmark cash crops Agribenchmark horticulture Agribenchmark wine International Farm Comparison Network (IFCN) Interpig XV EAAE Congress Presentation Title 1

Typical farm approach A typical farm is a model farm representing the most common farm type for a specific product in a specific country or region. The necessary technical and economic data to define a typical farm are collected by farmers and local experts. The typical farms are fully comparable worldwide as the same standard rules are used. The typical farm is a tool used to estimate the total cost of production per unit (i.e. euro/kg of milk, euro/ton wheat etc.). XV EAAE Congress Presentation Title 1

With/without scenario Costs of compliance: The methodological scheme   Base scenario (2010) Typical farm approach 1) Selection phase Relevant region/s Relevant farm size Relevant production system Relevant management performance    2) Data collection Advisors and farmers involvement Typical farm data collection 3) Elaboration phase Data input in the calculation tools Data elaboration Feedback from advisors and farmers Final results -/+ With/without scenario Panel process 1) Selection phase Relevant legislation identification 2) Panel discussion Identify farm strategies according to the logical diagrams Discussion on the With/without scenarios Identify costs items affected Quantify costs items 3) Elaboration phase Preliminary results 4) Fine tuning Feedback from the Project Team and from the Steering Group XV EAAE Congress Presentation Title 1

Logical diagram XV EAAE Congress Presentation Title 1

Production costs of milk in selected countries Own calculations XV EAAE Congress Presentation Title 1

Costs of compliance of dairy farms with animal legislation welfareegislation unit base without difference % change Finland FI25 €/100 kg milk 75.05 0.00 FI69 70.15 Germany DE31 65.35 65.12 0.23 0.36 DE95 35.00 34.91 0.09 0.26 DE650 34.72 34.45 0.27 0.78 Ireland IE48 31.04 IE115 26.71 Netherlands NL76 41.96 Poland PL15 40.66 PL65 37.68 Argentina AR170 19.95 AR400 22.16 New Zealand NZ974 23.18 XV EAAE Congress Presentation Title 1

Costs of compliance for dairy farms Group housing of calves until the age of 6 months In Argentina and New Zealand calves are already housed in groups In Germany still investments concerning group housing of calves needed to be done XV EAAE Congress Presentation Title 1

Production costs of pig meat in selected countries Own calculations XV EAAE Congress Presentation Title 1

Costs of compliance of pig farms with animal welfare legislation unit base without difference % change Denmark DK614 €/100 kg SW 139.16 138.25 0.91 0.65 Germany DE187 152.76 149.44 3.32 2.17 Netherlands NL369 142.30 139.55 2.75 1.93 Poland PL50 130.29 125.66 4.63 3.55 Brazil BR500+750 107.92 0.00 USA USA3200 88.88 Own calculations XV EAAE Congress Presentation Title 1

Costs of compliance for pig farms Group housing of sows Minimum space allowance for sows, gilts and fattening pigs Renovation of floors Introduction of enrichment material Increase of fibre in feed XV EAAE Congress Presentation Title 1

Production costs of broiler meat in selected countries XV EAAE Congress Presentation Title 1

Costs of compliance of broiler farms with animal welfare legislation Directive on Chickens kept for meat production (2007/43/EC) FR DE IT BR TH maximum stocking density x o minimum spillage of drinkers availability of feed permanent access to litter ventilation to avoid overheating heating/cooling systems for stocking density over 33 kg/m2 maximum noise level minimum light intensity inspection of chickens disinfection of materials and buildings record keeping limitations on surgical interventions Own calculations XV EAAE Congress Presentation Title 1

Costs of compliance of broiler farms with animal welfare legislation unit base without difference % change France FR40kBRET €/100 kg SW 83.80 0.00   FR40kPDL 86.90 86.13 0.77 0.89 Germany DE40kN 86.92 85.62 1.30 1.49 DE30kS 90.02 89.42 0.60 0.66 Italy IT187kER 98.40 99.50 -1.10 -1.22 Brazil BR16kD 60.08 BR28kEX 63.99 Thailand TH60k 87.95 Own calculations XV EAAE Congress Presentation Title 1

Costs of compliance for broiler farms Reduction of stocking density from 42 to 39 kg/m2 Construction of light openings in broiler buildings Increase of stocking density from 33 to 39 kg/m2 in Italy In Brazil and Thailand stocking densities already low due to hot climate, higher stocking density are not economically convenient because of higher mortality rates XV EAAE Congress Presentation Title 1

Costs of compliance of pig farmers with other policy fields Own calculations XV EAAE Congress Presentation Title 1

Thank you for your attention! Centro Ricerche Produzioni Animali – C.R.P.A. S.p.A. XV EAAE Congress Presentation Title 1