1. Eidgenössisches Departement für Wirtschaft, Bildung und Forschung WBF Bundesamt für Landwirtschaft BLW Development and future perspectives for Agricultural Policy in Switzerland and Europe Bernard Lehmann, Federal Office for Agriculture FOAG Dairy Press Tour Switzerland, 27 October 2013

2. 2 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Overview Information about Swiss Agriculture Challenges for Agriculture History of Agricultural Policy in Switzerland Current Agricultural Policy Outlook

3. 3 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture About Swiss Agriculture Natural conditions Jura Alps Plains

4. 4 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Arable land 23 % Meadows and pastures 59 % Fruit and vegetables, 2% Vineyards 1% Sown meadows, forage crops 15 % About Swiss Agriculture Land Use

5. 5 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture 2010: 10.3 bn CHF Source: OFS About Swiss Agriculture Product portfolio

6. 6 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Overall self-sufficiency rate Switzerland: about 60% Kg per person and year Milk Fresh Fruits Fresh Vegetables Cereals Potatoe Sugar Wine Pork meat Cheese Fats & Oils Chicken meat Beef meat Eggs Fish Cream Butter Cacao Veal meat Source: Farmers Union About Swiss Agriculture Food consumption and production Imports Swiss production

7. 7 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Challenges for Swiss Agriculture Switzerland as an island? Prices for production inputs Farm size Prices for agricultural products

8. 8 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Quelle: Global Footprint Network (2009) Challenges for Agriculture Need for ressources Sustainable development Human Development Index Ecological Footprint (Global hectares per person) Land per person

9. 9 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Challenges for Agriculture Climate Change Quelle: World Bank (2010): World development Report 2010: Sources: Mu ̈ ller and others 2009; World Bank 2008c. Need for irrigation water (m 3 /ha)

10. 10 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Challenges for Agriculture Mitigate negative emissions Fine Dust Pesticides Nutrients Greenhouse gas

11. 11 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Challenges for Agriculture Enhance positive emissions Biodiversity Landscape Decentralized settlement Soil protection

12. 12 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Step I  Decoupling of support (direct payments)  Price reductions  Incentives for specific ecological services (e.g. biodiversity)  Tariffication of market access instruments (WTO) Focus: decoupling and environment 199319941995199619971998199920002001200220032004200520062007 Step II „AP 2002“  Liberalisation of domestic markets  Competitiveness  Abolition of market intervention systems  Cross-compliance for all direct payments Focus: market orientation Step III „AP 2007“  Abolishment of dairy quota system  Further steps toward more competitiveness  Strengthening of rural areas and social accom- panying measures Focus: competitiveness / social sustainability History of Swiss Agricultural Policy Step by step reform process

13. 13 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Output Food Impact on Environment, Animals, Landscapes (& Risks) Biodiversity, fragmented agricultural landscapes Emission per area (Water, Air, Soil) Less productive production systems because of ecological motivation Reserving space for biodiversity Productivity / ha Past policies Agricultural Policy 2014-17 History of Swiss Agricultural Policy Impact of change in Agricultural Policy

14. 14 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture History of Swiss Agricultural Policy Development of Producer Support Estimate OECD 2013 % of gross farm receipts Commodity Output Non commodity criteria OECD 2013

15. 15 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Current Swiss Agricultural Policy Agricultural Policy 2014-2017 Land use planning Improvement of production structure Border protection Contribution for food security and quality of landscape Programmes Art 37: Dairy trade contracts Art 11: Innovative projects Biodiv. Landscape Ressources Systems Agricultural Policy 14/17

16. 16 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Current Swiss Agricultural Policy Dairy market policy  Allowance for milk processed into cheese plus allowance for feeding without silage  Federal Council has possibility to extend self-help measures of an organization - that meets specific requirements - to non-members (since 2002)  Art 37: Stepwise procedure for dairy contracts 2014  Milk producer and processor must conclude a contract that fulfills minimum requirements  Possibility for the government to make contract compulsory  Worst case: Government designs an obligatory contract

17. 17 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Outlook The role of Agricultural Policy C HALLENGES FOR A GRICULTURE AND F OOD E CONOMY F UNCTION AND POSITION IN THE DYNAMICS OF THE MARKETS (A BBILITY TO WITHSTAND COMPETITION AND TO GROW ) F UNCTION AND PLACE IN S PACE AND E COSYSTEMS (S PACE - AND E COSYSTEM COMPATIBLE PRODUCTION SYSTEMS = A GROECOSYSTEMS )

18. 18 Dairy Press Tour Switzerland, 27 October 2013 Bernard Lehmann, Director General Federal Office for Agriculture Thank you for your attention