The existing state of the livestock production industry in Europe

Livestock Production Science, 9 (1982) 283--305

283

Elsevier Scientific Publishing Company, Amsterdam -- Printed in The Netherlands APPENDIX I THE EXISTING STATE OF THE LIVESTOCK PRODUCTION INDUSTRY IN EUROPE D. LANARI and C. DE ROEST This appendix consists of short reports for each of the European countries. Some interesting facts and figures for the livestock industry in these countries in 1980 are presented. These reports are not intended to give a complete survey of the livestock industry. Although an attempt has been made to present consistently the figures for the labour force, the contributions to the gross national products, the numbers of farms and animals, facts about natural ecological conditions, the feedstuff situations and present developments, much further information could have been added. It would have taken another volume to do so. It is anticipated, however, that this appendix will give the reader interesting back-up information for the body of the report itself. THE SCANDINAVIAN COUNTRIES (Denmark, Finland, Norway, Sweden, Iceland ) In the Scandinavian countries animal production is responsible for at least three-quarters of gross agricultural output. The northern climate of these countries limits arable cropping and they have to rely on imports for cereals and protein feed. The conditions for grass cropping are good. Animals have to be housed for the greater part of the ,,ear. Animal production is thus comparatively costly in these areas. Another c o m m o n feature o f the Scandinavian countries is the oredominance of small family farms. In some of these countries (Norway, Finland) this farofly-farm basis is reinforced by policies having the aim of restricting the size of intensive livestock enterprises. These policies, however, are also intended to reduce surplus production in some sectors of livestock production for which it is difficult to find export-market outlets (milk, eggs). Denma~

Within the Scandinavian area Denmark is a special case because it has become a member of the EC and is a longtime major exporter of animal r)roducts. About 9% of the labour force is engaged in agriculture, and of total agricultural production some 73% is derived from animal production. Animal production is based mainly on indigenous feed production but imports of feedstuffs have increased significantly for the last 15 years. Imports consist of oil cakes and other cereal substitutes* and citrus pulp. In the future *For example, manioc, molasses, bran, etc. 0301-6226/82/0000--0000/$ 05.75 © 1982 Elsevier Scientific Publishing Company

284 the tendency to import cheap protein feeds is likely to continue for beef and dairy cattle. In this sector there still seems to be room for exl~ansion of production. For poultry meat and egg production there is likely to be little improvement in the high levels of farm efficiency alrea4y achieved. Farm efficiency in pork production may improve further, as the average size of enterprises is increasing and feeding methods are becoming more rationalised. At present 52% of the pigs are in herds of 200 or more, compared to 27% in 1970. The concentration process will u n d o u b t e d l y proceed at a slower rate in the 1980s and 1990s. Denmark was the first country in Europe to start SPF production of pigs on a commercial scale. This may create certain advantages over other countries in the future. In beef and milk production there has been a trend toward more intensive feeding using less green fodder and a higher input of concentrates per animal. However, with higher prices for energy and concentrate feed expected in the future, energy- and protein-rich feed inputs may be reduced and replaced by increased domestic green-fodder production. The model unit of farm production in Denmark is an owner-occupied farm of slightly more than 20 ha. By restricting farm amalgamations to certain limits, efforts are made to preserve the family-farm character of agricultural production and to avoid large-scale industrial units. Moreover, legal constraints are increasingly being imposed to prevent non-agricultural residents from buying agricultural land. These measures are also intended to discriminate against part-time farmers and to foster a family-farm structure as homogeneous as possible. Finland About 13% of the Finnish labour force works in agriculture and the figure is decreasing (in 1965, 30% of the labour force was employed in agriculture). Finland is self-sufficient in almost all animal products or has exporting capacity. The self-sufficiency rate for milk has reached 127%, for pork 110%, and for beef, veal, and poultry meat, about 100%. The farm structure is characterised by small family farms, 11 ha on average. Agricultural policy has a significant impact on farm structure. In all sectors of animal production upper limits on size are set to control the supply of t)roducts. Policy is also affected by strong, non-economic criticism of too intensive and large-scale production units. Production volume is also controlled by marketing fees and !oremiums. Finland will continue to be dependent on imports of cereals and cereal substitutes in the future. Efforts are currently being made to increase the production of oilseeds in order to diminish imnorts of soyabean meal and other protein-rich feedstuffs. Sweden In Swedish agriculture, which employs only 4% the total labour force,

285 animal production accounts for 77% of total gross farm output. Self-sufficiency has been reached in all animal products. In this c o u n t r y also the small family farm predominates -- 60% of all units operate less than 20 ha. In ~ig production, however, 69% of the units had more than 200 pigs in 1979. In its agricultural policy Sweden aims at production targets that can always meet emergency needs. Attempts are made to restrict the expansion of big livestock enterprises and to stimulate production on family farms capable of development. Further specialisation in Dig and poultry production is to be expected. Also, in beef production a more extensive agricultural system based on bigger units is foreseen. In general, an increasing number of rational and viable family farms will be based on a mixture of livestock and forest production.

Norway In Norway some 9% of the labour force is currently working in agriculture. Farms are in general small; the average size is about 8 ha, and only 400 farms have more than 50 ha of arable land. In contrast to the other ~ a n d i n a v i a n countries Norway imports most animal products. Self-sufficiency rates for these products fluctuate around 90%, and in some cases have even declined. Only in milk production has self-sufficiency been achieved. In the last 10--15 years Norway has considerably increased its imports of feed grains, whereas the area of permanent grassland and pastures has decreased continuously. This trend is expected to be reversed in the future, as a result of extending the areas under permanent grassland in favour of extensive livestocl~ production. Goverment policy subsidises fertiliser costs in order to stimulate this development. Norwegian agricultural policy emphasises regional aspects of a~icultural development. It is stressed that the development of agriculture should go hand in hand with regional development plans and the need to stabilise the demogranhic structure in economically weak areas. Within this concept extensive animal production will play a key role in regional development plans, and special attention is given also to part-time farmers in this respect. The future farm structure of Norway will probably consist of two farm types: full-time, more or less commercially organisert family farms and part-time farms.

Iceland In Iceland more than 80% of animal production consists of cattle and sheep. Milk and sheep meat are the main products. Pig meat and poultry products are much less important in Iceland's agricultural production, but are nevertheless being produced up to self-sufficiency levels. The agricultural labour force constitutes about 7% of the total working population. Further decline can be envisaged in the future, although at a much lower rate than in the past. It is of little value to indicate farm size in

286 terms of land area, because this varies enormously. A stable structural development is expected which will be based on relatively small family farms (measured in terms of herd size). Cattle herd size at present averages about 25 milking cows. Owing to the relatively low returns for exports, measures have been taken to reduce milk and m u t t o n production. Reduction of sheep numbers, however, is less recommendable, because there is a remunerative export demand for skins and wool. The production of milk and sheeo meat is based mainly on green-fodder crops produced domestically, whereas pork and p o u l t ~ production relies upon imported feeds. It is likely that in the future the production of beef and veal will be based on the extensive rough pastures of Iceland. The already very high level of consumption of sheep meat will probably not increase. Since export markets for sheen meat have reached saturation levels, no further rise in sheep numbers is foreseen. EASTERN EUROPE (Poland, German Democratic Republic, Czechoslovakia, H u n g a ~ , Romania, Bulgaria, USSR) The agricultural structure of the eastern European countries is quite different from that prevailing in other European countries. Except for Poland, where small family farms are predominant, in eastern Europe large-scale industries -- State farms and cooperatives -- provide the bulk of agricultural production. Another characteristic of eastern Europe countries is that a significant part of the total labour force is still engaged in agriculture (more than 15%, and in some countries 25% (Poland, Rumania)). The main policy objective of these countries has been ro reacb self-sufficiency in all animal products. In the 1960s most of them achieved production levels that were sufficient to sustain their own populations, except the GDR and the CSSR, where this has occurred only recently. For wheat, however, these levels seem at present to be lower than desired in some countries. Regarding feed resources, eastern European countries are dependent on imnorts from abroad. This is true especially for the USSR, which has tri~led its maize imports to sustain its increasing animal production. The only exceptions are Hungary and Rumania, which are able to exoort considerable quantities of maize and feed barley. Poland

Polish agriculture employs about 25% of the total labour force. The Polish farm structure reveals a distinct dichotomy. There are mainly large-scale State farms and cooperatives in the northwest and southeast of the country, while elsewhere smaller family farms prevail. Average farm size varies between 4.8 ha in the private sector to 480 ha in the cooperative and 1170 ha in the State farm sectors.

287 The structural policy of Poland in agriculture emnhasises the development of the socialised sector b y promoting the organisation of production cooperatives of 3--5 individual farmers in order to establish more specialised production units. Mechanisation, specialisation and land consolidation will be the key features of future Polish agriculture development, especially in animal production. German Democratic ReDu blic

In contrast to the case for other eastern European countries, the agricultural labour force in the GDR is a very small proportion of the total labour force. Also, in the G D R self-sufficiency has been reached in all animal products, b u t the country remains extremely dependent on feedstuff imports. Maize ~roduction is unimportant, and the production of feed barley is not keeping ~ace with growing feed requirements. The process of collectivization, initiated some 30 years ago, has been extended throughout the country, resulting in cooperatives and State farms averaging between 930 and 1250 ha in size. Private plots of cooperative members and independent small family farms vary between 0.5 and 1 ha in size. Since quantitative production objectives have been achieved, future emphasis will be on improving the efficiency and quality of production. Attempts are being made to increase the division of labour between crop and cereal production, or, in other words, more attention will be given to further specialisation and concentration of production. In the State farm sector, for example, cattle numbers per farm increased from 350 to 1560 between 1960 and 1978. Considering the higher average cattle numbers in other eastern European countries it may be assumed that the concentration process has not yet come to an end. The area of feed grains is likely to be extended in order to reduce feed grain imports. To this end interfarm cooperative crop production units will be set up in the future. Czechoslovak ia

In the CSSR more than 90% of the agricultural land area is in State farms and cooperatives, the collectivisation process having been completed some 15 years ago. Cooperatives operate farms averaging 2240 ha, whereas the State farms may be responsible for up to 10000 ha. A few small private farms of about 1 ha remain in the Slovakian hills and mountainous areas. The agricultural labour force constitutes about 14% of the total labour force. In the recent past agricultural and animal production has suffered, particularly from organisational problems accompanying the collectivisation process and causing inefficiency. Self-sufficiency rates for animal products n o w vary between 98 and 103%. Czechoslovakian production plans have the aim of achieving higher production levels in crop production, such as feed grains. Recently the areas under feed barley and maize have been extended.

288 Further concentration and specialisation in all sectors of animal production can be expected in the future. By 1990 it is planned to concentrate 75% of pigs in units with more than 1000 head. The national average for dairy cows in collective farms is 99 per unit, but there are 482 s~ecialised units with an average of 552 dairy cows each. In the crop sector ~rimary attention will be paid to the production of grain and its rational use for livestock feeding. Other priority areas are the improvement of efficiency in roughage production, further modernisation of fodder crop harvesting and processing and an expansion of domestic production of protein-rich feeds.

Hungary The Hungarian Socialist Republic is unique among the eastern European countries in having export surpluses for all animal products. In the last 10 years exports of live pigs, pork, beef and veal, and poultry products have increased considerably. Hungary also is a net exporter of maize. The area planted to maize for silage will probably be further extended in the future. Imports of feed barley are decreasing. State and collective farms exist alongside small-scale family farms and the private plots of agricultural labourers. In general the State farms are larger in size than the collective farms. Of the State farms with cattle, 96% have herds of more than 800 head, and in dairy farming the numbers per farm often exceed 600 milking cows. Pig farming units have 6000 head or more. The objective of future development in animal production is a further division of labour between large-scale and small-scale farms, with small-scale farms operating primarily in labour-intensive sectors. In the development of the pigbreeding sector, for example, a major role will be ~laved by the expansion of small-scale farms with the assistance of large-scale farms interms of breeding stock, feedstuffs and advice on feeding technology. Further development of production systems will be emphasised, rather than increases in farm size. More attention will also be given to the improvement of feed conversion rates and ways to economise on energy input.

Rumania Rumania can still be characterised as having an agricultural economy, since about 35% of the labour force is engaged in agriculture. Animal production contributes about 44% of total agricultural output. Self-sufficiency rates for animal products range from 105 to 115%, and the task in the future will evidently be to maintain these self-sufficiency rates in the face of growing demand for animal products. An advantage of Rumanian agriculture is its self-sufficiency in feed grains. Production, particularly of maize, has increased continuously, and maize exports have quadrupled in a period of 10 years. In Europe Rumania is the second biggest maize-exporting

289 country after France. The farm structure of Rumania resembles that of the CSSR, although productivity levels are much lower. Productivity in milk production is among the lowest for eastern Eurooean countries (2000 kg of milk annually per cow). In the future Rumania's own feed resources will probably be used to raise these low productivity levels. Programmes foresee the improvement of pastures and feed supplies and have the aim of optimal utilisation o f agricultural land. Furthermore, fertilitv rates will be raised and mortality rates reduced. Regarding the farm structure, continuous concentration and specialisation of livestock production leading inevitably to larger farm sizes may be expected. A salient feature of Rumania's agriculture is its v e ~ significant production of sunflower seed, which contains some 35% of crude protein. In the future such prorein-rich products may be used to a greater extent in the production of concentrate mixes.

Bulgaria In Bulgaria the area of cultivated land is limited, with little opportunity for expansion. Great attention is therefore given to keeping less pro~tuctive land in production, and financial support is provided for measures to prevent erosion. Bulgaria is completely self-sufficient in all types of animal products; however, per capita consumption levels are, except for poultry meat, far below those of other eastern European countries. Bulgaria is trying to increase the size of most of its agricultural enterprises. Together with producing on an even larger scale than at present, special attention will be given to improving the efficiency of animal production by gradually decentralising economic decisions to the farms themselves in order to create economically self-supporting organisations. Bulgarian cooperatives and State farms are among the largest in eastern Europe, with 5280 ha typical for cooperative farms and over 30000 ha for State farms. Pig and poultry farming are already practised on an industrual basis and efforts will be made to increase the number of agro--industrial complexes in cattle and sheep farming. Indeed, in pig and poultry, farming still larger production units, up to 10000 pigs and to 12 million chickens, are being advocated. A salient difference between Bulgaria and the other eastern European countries is its favouring of enormous state a~o--industrial complexes; the other countries feel that they have already reached the limits of farm size and are emphasising increased efficiency of production.

USSR Of all the EAAP countries the USSR takes a special place because of its large numbers of animals: for example, the Soviet Union has about 45% of the

290 total EAAP cattle herd, 43% of its milking cows, 2~% of its pigs, 53% of its sheep and some 35% of its poultry. The Soviet Union, therefore, is of special interest in projecting the development of farming systems for animal production in EAAP countries. As is true for almost all eastern ~ r o p e a n countries, agriculture is of vital importance in the national e c o n o m y of the Soviet Union. In 1978, 21% of the labour force was employed in Soviet agriculture. The number declined rapidly in the 1960s, b u t levelled off in the 1970s. The present share of agriculture in national income averages about 18%. This share has decreased at a much lower rate than the labour force. Thus, Soviet agriculture's labour force as a proportion of the national total, and its share of the GNP have become larger, implying a significant improvement in agricultural income. It is expected that in the future both figures will decrease further. In the last 30 years the share of animal production in total Soviet agricultural production has risen substantially, from 45% in 1950 to 55% in 1979. This development, which characterises all eastern European countries, has been in response to growing demand in these rapidly growing economies. Therefore there has been a marked increase in Soviet animal numbers. Cattle numbers, for example, increased b y an average of 2.25% per year between 1960 and 1978, and poultry, numbers reached an annual growth rate of 3.5%. As saturation levels in the consumption of animal products have not yet been reached, a further increase in animal numbers is foreseen. Although self-sufficiency in animal products has almost been reached, per capita consumption will certainly rise continuously, making heavy demands on animal production. Soviet agriculture is based on a threefold agricultural system, namely, the State farms, the cooperatives, and the individual plots of cooperative members. In contrast with the case for all other eastern European countries, the State farms are the most important (in terms of land area) agricultural sector in the Soviet Union. However, the cooperatives have the most livestock. Nonetheless, the role of the private farms of cooperative members is not negligible. They dispose of 21% of total head of cattle, 32% of all milking cows, and about 20% of all pigs. The striking feature, however, is that the private farms are losing their prominent position in almost all livestock sectors. In 1960 individual farms produced 82% of hen eggs, while b y 1977 their share had declined to 30%. Table I shows that this development is not confined to the poultry. sector. The main cause of the declining importance of individual farm production has been the decreasing number of cooperatives, which are being replaced partly by State farms. In fact, the number of State farms has increased threefold in the past 20 years, while the number of cooperatives has declined b y almost 50%. Evidently the decline in the cooperatives' share of agricultural production has been accompanied b y a reduction in the role of the individual sector in Soviet agriculture. In this respect developments in the Soviet Union and Bulgaria are similar. In other eastern European countries the trend is exactly the opposite.

291 TABLEI Meatanddairyproductioninthe Product

Total meat Beef Pork Mutton Poultry meat Milk Eggs Wool (greasy)

USSR(percentages) a

Socialised sector

Private sector

1960

1978

1960

1978

58.5 69.5 54.2 52.5 31.7 52.8 18.4 78.5

73.7 95.6 62.3 60.1 59.0 71.1 65.9 81.3

41.5 30.5 45.8 47.5 68.3 47.2 81.6 21.5

26.3 4.4 37.7 39.9 41.0 28.9 34.1 18.7

aSource: Statisticeskij jezegodnik stran-czlenow Sowieta, Moscow, 1979, and a u t h o r ' s calculations.

Remarkable differences exist between the State farms and the cooperatives. In the former average livestock numbers have remained fairly stable, while in the latter pronounced concentration and specialisation have occurred. Cooperatives with up to 600 head of cattle are vanishing, and in the future the majority of cooperatives in the Soviet Union will keep 2000--3000 head of cattle. In the State farms there has been no such development, except for cow numbers, which more than doubled in the period 1960--1980. A possible explanation of these trends might be that the State farms have achieved their upper limits in terms of livestock numbers, while the cooperatives have been making up their arrears. Under this hypothesis, cooperatives will still have to increase average livestock numbers substantially in the future. The efficiency of Soviet animal production is rather low. Average annual milk production per c o w does not exceed 3000 kg, and considerable improvements in the efficiency of meat production could also be made. A significant disparity in meat production efficiency exists between the socialised and private sectors of agriculture. Relating beef production to cattle numbers, the private sector achieves three times better results than the socialised sector, namely 185 versus 64 kg per year. A large part of this difference results from the different cattle management techniques used in the private sector, where there is more personal care of the animals. A similar result can be noted for the pig sector. No significant differences are apparent in average milk production per cow. Improvement of animal production efficiency depends on three factors: (1) changes in the organisation and systems of production by developments toward concentration, specialisation and cooperation; (2) the development of fodder production and modernisation of feeding systems; and (3) increasing the biological quality of breeds and improving the useful traits of animals.

292 Since continued growth in animal production is anticipated, higher inputs of concentrate feeds will be necessary. This will demand higher production of cereals and protein-rich feeds. As the Soviet Union is, with annual variations, dependent on feed imports, in the future it will probably continue to import feed grains, and in increasing quantities, to sustain a rapid growth in animal production. Increased Soviet demand for feed grains would not be without repercussions on the world cereal market. Another future requirement is further improvement in the biological quality of animal breeds. A certain upgrading of local breeds by introducing superior foreign breeds has taken place, and this trend must continue. In recent years there has been a tendency to limit the number of pure-bred Simmental (34% of total cattle breeds) and to increase the proportion of lowland, black and white cattle, b o t h pure-bred and cross-bred with local breeds. For many years genetic improvement was oriented mainly towar~ increasing milk yield, but in the last 15 years more attention has been given to dual-purpose breeds. In the future the proportion of dual-purpose breeds will rise further, as the purpose of cattle selection in the USSR is to obtain cows with an annual milk yield of 5000--5500 kg, a fat content of 3.8--3.9%, and a bodyweight of 550--650 kg. In order to expand the breeding basis for beef more beef breeds such as Charolais, Aberdeen Angus and Hereford will be imported. Soviet animal production will be shaped increasingly under the influence of highly efficient, complex systems of machinery and equipment and of efficient working methods. This calls for continued division of labour, increasing scale of production (cooperatives), and the development of cooperation among enterprises. Thus the next stage is the further development of agro--industrial complexes including cooperative and State farms as well as the agricultural enterprises and organisations serving agriculture. In 1980, 9000 interfarm enterprises and organisations were already in operation. Their number will certainly increase. In summary, efficient management and cooperation, higher inputs of feed grains mid protein-rich feeds, and a marked improvement of animal breeds will be the key to the development of the Soviet Union's animal production in the future. THE NORTHWESTERN EC COUNTRIES (Belgium, Luxembourg, France, Federal Republic of Germany, The Netherlands, United Kingdom, Ireland) The countries in this group are predominantly industrial and have a relatively high standard of living. During the last 30 years they have made great advances in output per unit of land, labour and capital. There has been an increase in average farm size with a corresponding decrease in the number of farms. Nevertheless, structural problems of small and fragmented farms still remain in some countries, especially in upland areas. The t y p e of farm enterprises has also changed during the last 30 years, with

293 a swing away from mixed farming to more specialisation, especially in livestock farming; for instance, poultry farming is increasingly carried out in specialised enterprises. Cattle farming is the most important agricultural sector, especially in the grass-growing areas of the north and west. A b o u t 60% of all farms in the EC produce milk and/or beef, which together make up one-third of the total value of EC farm output. Increasing intensification of farming combined with the high levels of regulated prices within the EC have led to the present problems of overproduction -- especially of milk. Belgiu m / L u x e m b ou rg

As in all industrialized countries of western Europe the contribution of agriculture to the GNP has declined in Belgium and Luxembourg. Presently it accounts for about 3% of the GNP, and 3.5% of the total labour force is e m p l o y e d in agriculture. Animal production accounts for a b o u t 70% of agricultural o u t p u t and is the main branch of Belgian agriculture. Farms are mostly small (one-third of the full-time farmers have less than 5 ha of land) and often fragmented. Family farms making very limited use of hired labour are typical. Belgium imports cereals for food and animal feed, is 90--100% self-sufficient in milk and beef, and produces surpluses of pig meat and eggs. In the last 20 years there has been a tendency to shift from arable to livestock farming using local forage and concentrates, a shift in response to EC market outlets for livestock products. Total milk production has remained fairly stable in the last two decades, while beef production has increased. Annual milk yield averages 3800 kg per cow, which, surprisingly, ranks among the lowest in the EC. Substantial progress has been made in pig farming, as the Droduction of pork has doubled in the last 10 years to reach 170% self-sufficiency. A similar development has occurred in poultry, meat production. This sector doubled its production between 1960 and 1970. However, it is necessary to enquire into the future prospects of the agricultural systems applied in animal production. If cereal prices would increase significantly, the intensive raising of y o u n g bulls (up to 475 kg liveweight in 12--13 months) would run into serious problems. In recent years this system has already faced difficulties as a result of high calf prices. Optimistic prospects for the future expansion of extensive pasturing exist neither for steers nor for older cows, because land concentrations in these densely populated countries will limit the development of this low-input system. Therefore, the semi-intensive fattening of bulls and heifers in 18--24 months based on maize silage, sugarbeet tops and various grassland products remains the most probable system for expansion. In pig farming there is still room for concentration in the future. Probably the cereal content of c o m p o u n d feed will decrease and be substituted increasingly by manioc and maize gluten feed.

294 The agricultural systems applied in ~oultry farming have already reached their upper limits in Belgium and Luxembourg, so in this sector little progress is expected. On the contrary, societal demands might even lead to more extensive production methods; legislation could prevent the creation of more industrial-type production units.

France France is the EC's largest agricultural producer. A b o u t 2 million people are employed in agriculture, i.e., just under 10% of the labour force. Farm size is small in most regions, although it varies greatly between them. In comparison to other EC countries, animal production in France contributes less to agricultural production (about 60%) owing to extensive arable crop production, which makes France Europe's largest cereal exporter. In the last 15 years a rapid growth has taken place in cattle production, mainly in grassland areas, increasing the self-sufficiency rate for milk to 115% and for beef and veal to 103%. Pig meat production has developed at a lower rate, as it has severe competition from other EC member states. The production of poultry meat has stabilized, after significant increases in the 1960's and 1970's. In its agricultural policy France emphasises the modernization of viable farms in more remote areas. Aid has been extended to part-time farmers in mountainous areas, where the demand for livestock buildings has increased considerably. In line with production increases and the concentration process, feed imports, particularly of protein-rich feeds, have risen significantly. In future the composition of animal feeds will thus be altered by increasing the proportion of domestically produced protein-rich feeds, such as alfalfa, peas and beans, soyabeans and rapeseed In connection with the use of maize silage, the use of urea could lead to a reduction in imports of soyabeans. Also, the use of synthetic amino acids is being envisaged. In certain areas, such as the central west and Brittany, beef production enterprises will increase the productivity of grassland and will try to obtain richer grass silage to reduce the input of concentrate feed.

The Federal Republic o f Germany Agriculture in the FRG contributes 4% of the country's GNP and employs less than 5% of its permanent labour force. The number of holdings has decreased considerably since the Second World War, b u t average farm size is still only 14 ha. A striking feature of West German agriculture is that more than half of the farms are worked on a part-time basis. In spite of the smallness of farms and the part-time farming structure, domestic output provides some 72% of domestic food consumption. In animal production self-sufficiency has been reached only in milk, and

295 surplus production puts the milk market under pressure. Lower rates apply for all other animal production branches. For beef and veal, pork and poultry meat the self-sufficiency rates are respectively 97%, 88% and 58%. Indoor feeding of bulls up to 550 kg liveweight is c o m m o n , and contributes to about 40% of total beef production. This system was stimulated by favourable beef--barley price ratios, b u t more grass and maize silage will be incorporated in the feed ration in the future. Another system based on summer fattening of steers and bulls is concentrated in Schleswig--Holstein and will probably gain in importance because of its more economic use of highenergy resources. Pork production will be increasingly rationalized and concentrated on larger farms. Feed conversion can still be improved considerably. Production in those areas where local grain is used (Bavaria) has the greatest opportunities for expansion. Production in the north based on purchased feed will face severe competition from the southern areas and countries like Denmark and The Netherlands. The Netherlands

Dutch agriculture is highly productive and intensive. The Netherlands produces 8.6% of total EC agricultural o u t p u t on 2% of its agricultural land. Agriculture is of vital importance to the economy, contributing some 8% to the GNP. It employs, however~ less than 6% of the labour force. The Netherlands is a net exporter of agricultural products, especially of animal products. In 1976 the self-sufficiency rates for butter, cheese, total meat, veal, pork and poultry were 577%, 239%, 636%, 780%, 209% and 361%, respectively. Only for beef and cereals is the country a net importer (97% and 24% selfsufficiency). Dutch farming is based on the family farm. Sixty-five percent of all farms have less than 20 ha at their disposal, with an average farm size (1978) of 15.2 ha. As such the structure of farming is very homogeneous in comparison with that for other European countries. The number of part-time farmers is very limited. Animal production accounts for almost 70% of total agricultural output, and it has increased tremendously in the last 20 years. In dairy farming the number of cows and the milk yield per c o w have risen considerably, reaching over 5000 kg per c o w on average. Beef o u t p u t is more or less a by-product of dairy farming, as over half of the beef produced originates from culled dairy cows. The number of specialised beef farms is small. Veal production is much more important, as demonstrated by the fact that more than 80% of all bull calves are used for veal. The production of pork, concentrated mainly in the south and east of the country, has also risen substantially. One explanation of these remarkable developments is the very favourable

296 price ratio between products and feed in The Netherlands, due to the proximity of large sea ports. Moreover, a very rapid substitution of cereals by many kinds of by-products and ta~)ioca has taken place. In addition, MCA's* have favoured export possibilities to EC member countries. In the future these favourable factors may lose their importance. Non-economic criticism of the present intensive veal, egg and pig meat production units may reduce the expansion of these sectors. The growth of compound-feed use also will probably slow down, since very high imput levels have already been achieved.

United Kingdom In many aspects concerning agriculture the UK is unique among European countries. It is a major importer of food and feedstuffs, has a very. small agricultural labour force (2.5% of the total labour force), and its average farm size of about 65 ha is double or triple that of other European countries. The UK has an import need for almost all animal products, with self-sufficiency rates varying between 62% for pork and 72% for beef and veal. Only for poultry meat and eggs has a a b o u t 100% self-sufficiency been attained. British agricultural policy seeks to raise self-sufficiency for animal products in order to reduce the burden on the UK balance of payments. This view was pressed in the governmental White Paper Food from Our Own Resources, which was revised later in the memorandum Farming and the Nation. Cattle farming in the UK also differs markedly from that in other European countries. About one-third of the cattle population consists of beef breeds, mainly the traditional British ones such as Hereford and Aberdeen Angus. The production of beef and veal from these as well as Friesian breeds has increased substantially in the last 20 years, favoured by higher price ratios due to the accession of the UK to the EC. As in many other countries various beef production systems are being applied in the UK. For beef from dairy herds three representative systems may be distinguished: (a) barley beef; (b) 18-month beef from spring-born calves; and (c) 18-month b e e f from autumn-born calves. In the future an increase in the production of barley beef, based on the domestic production of barley (the UK is a barley-exporting country), will be convenient. Summer fattening of spring-born calves also offers favourable opportunities for the future. Regarding the beef breeds, summer fatterning on pasture could show an increase and will be accompanied by breed improvement programmes stressing the higher feed utilisation efficiency of Charolais and Simmental breeds.

*Monetary Compensatory Amounts.

297 With the adoption of the new EC sheep market regulations British sheep production seems to have excellent prospects for the future. The UK has the largest sheep population in Europe, with more than 40 breeds and many crosses. This sector is especially adapted to the exploitation of hill and marginal farming areas. Given the already highly efficient production methods employed for poultry meat and egg production, it is unlikely that there will be any drastic improvements in feed conversion efficiency in these sectors. The process of concentration has already reached such levels that there might even be a slight reverse trend taking into account animal health and welfare aspects. Ireland About 18% of Ireland's labour force is engaged in agriculture and this sector contributes some 14% to the GNP. Large areas of abundant permanent grassland dominate the Irish countryside. Livestock production is by far the most important branch of a~iculture and supplies more than 85% of total agricultural output. An equable climate, adequate rainfall and fertile soils allow grass to grow over a long season, providing the conditions for a very extensive system of animal production. Indeed, the input of concentrate feed compared to that in other European countries is very low, while intensive industrial-type livestock farms are almost unknown. Self-sufficiency rates for the various types of animal products are v e ~ high: 196% for dairy products, 533% for beef and veal, 144% for pork, 128% for m u t t o n and lamb, and 99% for eggs and poultry. The cattle population (6.7 million) contains 1.6 million dairy cows (mainly Friesian) and 0.42 million beef cows (mainlv Hereford cross). Almost all the progeny of the latter and of dairy cows not required as herd replacement are raised for beef. Exports of live calves to the EC, however, are increasing. Entry into the EC has meant much more favourable price ratios for Irish animal production and has stimulated the use of c o m p o u n d feeds in cattle rations, accompanied by an active extension programme. At present the average concentrate feeding of dairy cows is about 450 kg. The average size of dairy herds is 21 cows, and is increasing at the rate of 1.5 cows per year. The average size o f beef herds is 6 cows and not increasing. Seventy-seven percent of the cows calve in the spring. Average milk production is 3100 kg per cow per year. The sheep population consists of 1.6 million ewes producing 1.3 million slaughter animals per year. Fifty percent of the population consists of Scottish Blackface and Cheviot types, is in mountainous areas, and is increasing in size. The remaining 0.8 million ewes, mainly of Galway and Suffolk types, are in lowland areas, and numbers have been declining in recent years. The pig industry is highly industrialised with 68% of production being in large units (over 1000 pigs) and 64% of sows in herds o f over 100. The sow population is 140000, with a total production of 2.0 million pigs per year.

298 Almost all production is for bacon, and 45% is exported. The pig sector has, suffered severe economic difficulties in recent years, and: numbers have declined somewhat b u t are expected to recover. The poultry industry serves only the domestic market and is highly integrated, with 95% of eggs and 100% of broilers produced in large units (respectively over 1000 laying hens and 10000 broilers). THE ALPINE COUNTRIES (Austria, Switzerland) Austria and Switzerland, the most mountainous countries in Europe, have large proportions of small farms. Extended subsidy-programmes and producer price protection are applied in order to maintain farming in marginal areas and preserve the rural infrastructure. In both countries, especially in the Alpine regions, intensive animal production is the mainstay of farming. Cattle and pig products together contribute more than 60% and 70% respectively of the total values of farm outputs in Austria and Switzerland. Austria

In the 1970s the rural exodus in Austria diminished to a rate of 3% per year (previously 5%), and at present about 10% of the labour force works in agriculture or forestry. Two-thirds of those employed in agriculture work full-time in the sector; the remainder are engaged part-time. The animal production sector accounts for 70% of the value of total farm output. For pig and poultry meat Austria has small import needs, while its milk and beef and veal production exceed domestic consumption. To limit surpluses in milk production, for which it is difficult to find export-markets, an individual quota system is being applied. This accounts for some of the reduction in c o w numbers that has occurred in recent years. As a consequence the number of calves born has declined substantially and will continue to do so in the future. Gradually this will lead to a separation of milk and beef production. Considerable structural changes have affected Austrian cattle production during recent decades. The number of farms keeping cattle decreased by 28% between 1968 and 1978. The number of small herds is tending to decline, but most dairy herds, especially in Alpine areas, are still very small, with expansion limited b y the costs of investment. Since the farms engaging in cattle breeding are situated mainly in the mountainous and grassland regions, b y far the greatest part of the calves is still used for breeding purposes. In the future the production of calves of b e e f and dual-purpose breeds in mountainous areas will gain importance, whereas fattening and milk production will take place in the valleys. In pig production there will be a tendency toward specialized mechanized units, especially in the northeastern lowlands, as a supplementary enterprise on arable farms of limited area.

299 As economies of scale in poultry meat production have not yet been fully exhausted as in most north western European countries, poultry production is also tending to shif toward large, specialized units. In contrast to Switzerland, Austria is self-sufficient in feed grains, which are produced mainly in the northern and northeastern lowlands, where arable farms predominate. It is very likely that the production of feed grains will be further increased to provide a sound feed basis for Austrian animal production. Switzerland

Agriculture in Switzerland contributes about 3% to the GNP and employs 6% of the labour force. Except for milk, all animal products have to be imported to some extent, notwithstanding the fact that the animal sector accounts for almost 80% of the value of agricultural output. Since 1977 quota systems have been introduced in an attempt to limit milk production, which had been exceeding demand. About 2.2 million ha, half the land area of Switzerland, is in agricultural use and more than 80% of this area is permanent grassland. The climate varies enormously, from the cold of the high Alps to the mild climate in valleys. Cattle production is found especially in Alpine regions with pastures on the lower slopes, whereas arable, fruit and some dairy farms are situated on the plateau between the Jura and the Alps. Pig and poultry farming are quite dispersed throughout the country and in many cases are secondary activities. Cattle farming in the Alpine regions is characterized by a marked division of labour between upland pasture farms and dairy or fattening farms in the valleys. Calves of valley farms are raised on the Alpine pastures by mountain farmers and later sold again to farmers in the valleys. This type of agricultural system will also play an important role in the future, because it keeps marginal upland pastures in production. Mountain farmers receive direct income payments to sustain this type of production. With regard to poultry and pig farming a certain specialization of production can be expected, especially in the arable farming areas between the Jura mountains and the Alps. This process, however, will have its limits, because Swiss legislation prohibits too large production units, and also the battery system to house laying hens is forbidden. Regarding feed grain production, policy is directed toward achieving selfsufficiency, but this will be very difficult because self-sufficiency targets have also been set for animal products. In any case, more domestically produced cereals will probably be incorporated in Swiss compound-feed production in order to alleviate import requirements.

300 THE M E D I T E R R A N E A N COUNTRIES (Portugal, Spain, Italy, Yugoslavia, Greece,

Turkey) Compared with the countries already discussed, the economies of the Mediterranean countries are less developed, less industrialized, and have a lower GNP per capita, while agriculture plays a relatively more important role. Agricultural o u t p u t and efficiency are increasing b u t are still far short of the levels reached in northern and western Europe. Improvement of the economic returns of farming is constrained by problems of structure (farms are small, and often fragmented) and of climate (there is little rainfall in many regions). In general, animal production in Mediterranean countries is less important than other farm sectors, generally constituting 30--40% of total agricultural output. In most regions of these countries the prerequisites for an expansion of animal production are almost totally lacking, except for northwestern Spain and the Po Valley in Italy.

Portugal Agriculture in Portugal accounts for less than 10% of the GNP and employs a b o u t 28% of the labour force. Animal production is of minor importance, contributing 38% to the total value of agricultural o u t p u t in 1974. Like almost all Mediterranean countries Portugal has to import large quantities of animal products. Self-sufficiency rates for these products v a ~ between 61% for beef and veal to 99% for pork. More than three-quarters of the farms, mainly in the north and centre of the country, are very small (less than 4 ha) and are based on traditional peasant farming methods. The land distribution is very skewed, with 0.6% of all farms having 46% of Portugal's arable land. The basic contrast between the northern humid areas and the Mediterranean south is reflected b y the livestock distribution: cattle predominate in the north, while sheep and goats prevail in the south. Most of the farms are of a mixed type, applying a low level of technology. The main obstacle to the development of animal production in Portugal is the very bad farm structure. The second most important is that a national programme is almost non-existent. When Portugal joins the EC as a full member, major effort will be necessary to bring its agriculture up to a competitive level. Perhaps certain types of group farming or the setting up of cooperatives will provide the structural environment for the introduction of more advanced technological systems in Portuguese animal production. This process will need to be accompanied by an increase in feed grain production, because improved production capacity of animals and larger herds will require more concentrated feedstuffs. As a matter of fact, such an increase would lead to a higher-energy basis for animal production. However, the necessary investments are justified economically, because present energy input in Portuguese animal production is very

301 low. The concentration and specialization process will unfold gradually because large investments are needed to change the farm structure. All these efforts will have the aim o f diminishing Portugal's dependence on food and feed imports from abroad.

Spain Because of the large climatic variations between different parts of Spain, animal production in this country has varied characteristics. The humid Atlantic northwest holds some 70% of all Spanish cattle, the dry. and hot interior is more suitable for sheep farming and extensive beef fattening systems, while pig and poultry production is situated close to the large consumer centres on the Mediterranean coasts in the north and southeast as well as near Madrid. Except for m u t t o n and lamb, animal products have gained greatly in importance in the last 20 years, n o w making up a b o u t 40% of total agricultural o u t p u t and contributing some 9% to the Spanish GNP. This production increase has made Spain almost self-sufficient in all animal products. Livestock feeds, however, have to be imported in increasing quantities. The structure of cattle farming varies greatly between regions. The principal dairy area is situated in the northwest of the country, where small farms prevail. Average herd size in this area is about 15 dairy cows per farm. Half of the dairy herd is composed of Friesians, and it seems that in the future their number will increase. Moreover the feeding systems will be increasingly rationalized as herds grow in size. Land consolidation will be necessary to solve the structural problem of small farms in this area. For this purpose also cooperative farm programmes have been set up to facilitate the introduction of mechanization and the rationalization of production systems. The dairy farmer in the northwest of Spain will thus use more concentrate feed. Spain's entry into the EC with its more remunerative milk prices will have a strong impact on such a development in the Spanish dairy system. Concerning beef fattening, it will be convenient to increase production on the large farm estates in the southern and central parts of the country. Thus the importance of extensive beef fattening systems may be further enhanced. In addition, sheep farming for the production of cheese may acquire an impetus, using marginal permanent pastures in the interior of Spain. Together with extensive cereal production this system may develop increasingly.

Italy Although industry has developed very rapidly in the last 30 years in Italy, agriculture remains of importance, accounting for about 9% of the country's GNP and employing some 12% of the total labour force. Animal products in Italy are responsible for about 40% of the total agricultural output, b u t high consumption levels make the country largely depen-

302 dent on imports. Self-sufficiency rates for milk, beef and cattle, pork and poultry meat were 73%, 61%, 76% and 99%, respectively, in 1978. For some products (such as milk) these rates are steadily deteriorating. The most important production area for Italian animal products is the Po Valley in the north. Within all animal production sectors there is a sharp disparity in farm structure. In dairy production and beef fattening, and in pig and poultry farming, large-scale commercial units operate simultaneously with very small family farms. This division into t w o farm sectors is reflected in statistics on farm size distribution, showing that nearly 70% of all Italian farms have less than 5 ha at their disposal and less than 1% of the total exceed 100 ha. In such a situation a wide variety of production methods and systems exists, especially in the traditional small familyfarm sector. The country faces difficulties in increasing its self-sufficiency rates in animal production because of a restrictive EC price policy and rapid price increases of inputs. This will also tend to work against any increase in concentrate use by the more efficient large-scale and cost-conscious dairy farmers of the Po valley. Farmers who produce beef in feed-lots will continue to have the aim of securing a larger share of the national market. However, this will involve an increased use of maize, particularly in silage grown on the farm, rather than of purchased concentrates. Eventually, with public aid the production of calves for fattening in mountainous areas could become significant in the future. However, this system is encountering larger problems than did a similar system in the Massif Central in France, because of the more pronounced marginality of the Italian mountain areas. However, some reduction in live calf imports might be attained in this way. In southern Italy the prospects for increasing sheep and buffalo farming for milk production appear rather promising following the success of this type of production in Sardinia. Pasturing sheep and buffaloes on marginal stony hills does not require large inputs. Finally, feed conversion in the modern, industry-like pig and poultry sectors has not as yet reached the levels of efficiency achieved elsewhere in the EC. Production efficiency in these two sectors can be expected to improve rapidly in the medium term.

Yugoslavia Over the past 30 years Yugoslavia has changed from a predominantly agricultural to an industrial country. The proportion of the labour force employed in agriculture has fallen from 68% in 1948 to 40% in 1978, when agriculture, forestry and fisheries contributed about 15% to Yugoslavia's GNP.

303 Yugoslavia is self-sufficient in most animal products, with rates ranging from 124% for beef and veal to 98% for dairy products. In the future self-sufficiency rates for beef and veal may deteriorate, owing to rapidly growing demand. Since 1946 land ownership has been divided between private farmers (who own 84% of the tilled land and produce 66% of the total output) and State farms. Private farms are small, averaging less than 4 ha, and are often fragmented. The government is trying to improve the farm structure through land consolidation and b y extending the permitted land area for private holding in upland areas from 10 to 20 ha. There is some stratification between raising and fattening in beef production. Raising is mostly a private farm activity, while fattening is often carried out by large cooperative farms. This t y p e of division of labour between private and cooperative or State farms will probably b e c o m e more important in the future. At present about 90% of the livestock is owned b y private farmers, but taking into account the accentuation of the division of labour described above the share of the State farm sector in livestock production will increase. The still considerable number of cattle used for draught purposes will gradually decrease, owing to mechanization. The country is in a rather favourable position concerning feed resources, having an export surplus of maize. In fact, Yugoslavia is one of the largest maize producers in Europe, with production centred in the fertile plain of Vojvodina. Higher cereal input in milk production will be necessary to sustain the milk o u t p u t of imported high-yielding breeds. In the future the share of these breeds will increase as attempts are made to up-grade local breeds using semen from dairy breeds from Denmark, The Netherlands and the United States. This programme will help to increase the still very low average annual milk yield per cow of 1460 kg. Poultry production is tending to shift to large specialized units. It is mainly in this sector that agro--industrial complexes will have a chance to develop further in integration with the feed sector. A similar but slower specialization process can be expected in pig production, which at present still takes place on very small family farms. Greece

Agriculture's contribution to Greece's GNP, while decreasing, is considerable -- 22% in 1966 and 15% in 1977. Agriculture employs more than one-third of labour force. Farm holdings are generally small, with 40% smaller than 5 ha, and are often fragmented. A principal aim of Greek agricultural policy is to promote land consolidation through legislation related to inheritance. Only 30% of Greece's total agricultural o u t p u t is derived from animal products. Except for poultry meat and eggs, the country, is deficient in animal products. The self-sufficiency rate for beef and veal is particularly low (48%).

304 Self-sufficiency in milk is deteriorating, and the country depends increasingly on imports of fresh dairy products. The entry of Greece into the EC will have some trade-diversion effects upon eastern European countries, a process, however, which started already some years ago. Greece will rely increasingly upon imports of animal products from EC countries. The higher EC price levels, on the other hand, will provide an impetus for increased domestic production. As early as 1976 Greek agricultural policy was putting more emphasis on livestock, feed grains and forage production to alleviate balance-of-trade problems. In the future the process of changing the farm structure will be accelerated. Land consolidation and farming subsidies will create the prerequisites for a more efficient, cooperative and intensive system of animal production.

Turkey Among the Mediterranean countries Turkey can be considered to have the least developed agriculture, although the country is still predominantly agricultural. Over one-half of the labour force is employed in agriculture, forestry and fishing, and the agricultural sector contributes 23% to the Turkish GNP. Some 75% of all farms have less than 5 ha and their labour force is composed mainly of extended families. Animal production accounts for about one-third of total agricultural output. Traditionally, sheep and goats have formed the backbone of Turkish livestock production, and sheep and goat meat consumption per capita rank among the highest in Europe. Sheep and goats are the dominant animals because they can survive on much poorer fodder than can cattle. Cattle are not numerous, and beef and dairy products are quantitatively unimportant. Beef production is based on local breeds of somewhat limited fattening capacity. Average carcass weight is less than 100 kg because a high proportion of animals are slaughtered as calves or young bulls. Small herds of cattle are ke~)t on pasture. Production levels are very low, for example 600 kg of milk annually per cow. The o u t p u t of poultry meat has risen fivefold since 1960, with production units developing especially rapidly near towns. In _more remote areas traditional production systems are in use. Because of the Islamic taboo on pork consumption, pig production is negligible. In many respects Turkey is at a much lower starting point for future development than the other EAAP countries. The basic guidelines of the agricultural five-year plan, however, call for Turkish agriculture to meet both the domestic demand for foodstuffs and the industrial demand for agricultural raw materials. This certainly implies an enormous task for animal production. Recently some large, intensive beef units have been established near urban areas. It is quite feasible that their number will increase, together with specialized poultry farms. In the more remote mountainous areas, however, two central problems limit the development of livestock production. First is the summer drought and the consequent absence of good grazing. Second is the lack of integration between

305 crop and stock farming. As yet no legume has been found that can provide feed for livestock and replenish soil fertility as does clover in temperate areas. Irrigation and_ increased use of fertilisers are ways out of this closed circle, but for many farmers these are highly difficult paths to pursue, considering rapidly rising energy prices. Cooperatives may offer some relief. In fact, they are assigned a very important role for the future. They are to constitute a major tool for agrarian reform and for the achievement of the planned objectives in agriculture. In addition, importation of European and American cattle breeds will be indispensable if genetic limitations in cattle are to be shifted. Cooperation, public investment and a marked improvement of animal breeds and feed production will be necessary to develop an animal production system that has been stagnant for m a n y centuries.