1. Maitoa taidolla myös tulevaisuuddessa Chiefadvisor Ole Kristensen, Knowledge Center for Agriclture, Denmark AGRICULTURE IS GLOBALIZING, WHAT DOES THAT MEAN FOR OUR DAIRY FARMERS.

2. Local community National community European community World community 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 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

3. A growing population A growing middle class Positive market prospects Volatile prices Resource management and efficiency Animal welfare Future production conditions - production on market terms

4. Competitive milkproduction Denmark Competitive compared to: Other milkproducers Other types of farmproducts Other use of farmland Finland New Zealand Price of milk Price of production factors

5. 5...| Factors that influence competitiveness (special for Finland)  Geografic and climatic conditions. (water, short growing season, distances)  Holding structure. (FI relative small holdings, < 40 cows, strong consolidation (-40% 2003-2010))  Ownership, workforce and level of skills. (family farms, less than 13% other workers, well educated farmers)  Production facility  Level of investment. (374 to 558 euro cow/year from 2000 to 2009, transition from tied up to loose housing)  Economy in milkproduction (high cost, to labour consuming - efficiency)  Strenght of the value chain

6. 6...| Precipitation Tons milk pr. km 2 45% 2% 6% 8% 18% 26%

7. 7...| Net investments in dairy farming Source: FADN FI

8. The costs of producing milk (average 2007-2009)

9. Feed and other input supply ProductionProcessingRetailConsuming Profit recirculated in the value chain Profit Product innovation and development Keep and maintain the cooperatives competitvenes Through productionstrategies Cooperative can mitigate the price variation

10. 2 July 201010...| The value chain is dominated by strong Cooperatives

11. International networks 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/ 2 July 201011...|

12. Leadership and management tools - managerial coaching(advisory board, legal board, mentor) - management roles, allocation and staffing - tools ex SOP, LEAN, - management implementation. Key Performance Index (KPI)

13. 13...| The KPI Tool Translated - generic

14. 14...| Rene Rasmussen Marts 13th 2014 Reproduction results Number of insemination Average Target Fertility rate Achived Ready for pregnancy test

15. Advisory 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

16. National discussion groups - Focus 1.Leadership 2.Strategy 3.Economy SWOT, budget etc Strategy plan Economy reports Tools Meeting on the farm Dialog and discussion Input to the host

17. Choose what you need ”Coffeeclub” ClubOne to one Mentor National discussion group Advisory board Stable School Local network groups “Many of the really good leaders are not head of anyone. People follow them nonetheless - consciously or unconsciously.” Board

18. Education and social media Discussion groups, FACEBOOK groups (cows) SUOMI24 – discussion group Agronet Agricultural newspapers – discussion Twitter Webinar Farmers as mentors Foreign homepages 2 July 201018...| Video Pictures Files Word

19. 19...| Conditions inherent in nature Low density  long distances  extra costs Farm structure (FI)  extra costs Strongly dependent on economic support Strong value chain Research, advisory service Less strong competition from other types of farming Level of investment Relatively high solvency Age structure 55 (FI= 0,25 EU average=0,11)

20. Will Finish milkproduction be competitive in the future?  Geografic conditions  Huge distances, short growing season, not the best land allocation  high cost to produce Structure of the holdings  Average herd size number 19 in EU  70% of the cows in herdsize less than 100 cows  Owner and workforce Good age distribution between ( 55 years) About 87% is family labour Farmers with a good education. More education needed? Investment  Cost of production ? Valuechain A good advisory system (AKIS)