Profile on Danish Cattle Federation and Facts of Danish Cattle Husbandry 2004 Danish Cattle Federation
Contents Foreword... 3 Facts and current challenges 2004 Danish Cattle Federation... 4 Present activities... 6 Farmers united in one organization... 10 Fewer but bigger cattle farms... 12 Breeding... 14 Four dairy breeds... 16 Maize replaces fodder beets... 18 More new loose-housing systems... 20 Many farmers join the milk recording... 22 The Central Cattle Database contains all data on cattle... 24 Quality in Danish veterinary work... 26 The national milk quota is allocated to 6,600 milk producers... 28 The economic development... 30 Danish agricultural production a great export asset... 32 Cattle research development of new knowledge... 34 Additional information... 36
Profile on Danish Cattle Federation and Facts of Danish Cattle Husbandry DANISH CATTLE FEDERATION 2004
Danish Cattle Federation 2004 Editor Trine Barrett Translation Proofreading Layout Graphics Photos Printed by Eva Højmark Dahl, Danish Dairy Board Mogens Stendal Inger Camilla Fabricius Christian E. Christensen Jens Tønnesen / Danish Agriculture Media GP TRYK Numbers printed 4,000 ISBN 87-7470-895-3 Danish Cattle Federation Udkaersvej 15, Skejby, DK-8200 Aarhus N Telephone +45 8740 5000 Fax +45 8740 5010 www.landscentret.dk; e-mail dk@landscentret.dk
Foreword Danish Cattle Federation is the national organisation for Danish cattle farmers and the Danish Dairy and Beef industry. Our mission is to contribute to profitable earnings in cattle farming by means of advisory service, research and innovation, health programmes, quality improvement and political influence. With this publication we would like to present to our visitors, partners and contacts from other countries a status of business in Denmark and a picture of our current activities and challenges. Enjoy the reading! Peder Philipp Chairman
Facts and current challenges 2004 Danish Cattle Federation The Danish Cattle Federation was established in 2002 by the four organisations Danish Agriculture, the Danish Dairy Board, the Danish Livestock and Meat Board and A.I. Centre Dansire. The purpose was to unite all cattle-related activities and interests within advisory service, research, development, business economics and politics in order to gain a stronger position in relation to the surrounding world and to make the most efficient use of the resources. The main task for the Danish Cattle Federation is to work for the highest possible income for the cattle farmers. We aim at optimising the production of milk and beef, taking into consideration both the demands from the market and the consumers (farm to fork approach) and the whole of the farm (fields, stable and economy). In addition, the Danish Cattle Federation aims to ensure the most rational planning of the service, advisory and control tasks and to secure the best possible political conditions for the sector. Part of National Advisory Centre The Danish Cattle Federation has a staff of approx. 120. In addition, a number of employees from the founding organisations enter into networks with the Danish Cattle Federation staff to solve joint tasks relating to sectorial policies, communications, raw material, quality and research. The staff is organised within two main areas called Advising and Primary Production with 80 employees and Veterinary Conditions and Quality of Primary Produce with 40 employ- ees. The main part (around 85) of the employees is placed at the Danish Agricultural Advisory Service, National Centre, in Skejby near Aarhus. The Danish Cattle Federation is part of the national advisory centre that offers specialised guidance and know-how to the local advisory centres and develops advisory methods and tools for all branches of agriculture. The National Centre is owned by Danish Agriculture and has a staff of 500 with the Danish Cattle Federation being the biggest department. The founding organizations of the Danish Cattle Federation and their representation on the Executive Committee: Danish Agriculture (national farmers organization) represents 40,000 farmers Danish Dairy Board represents the dairy sector Danish Livestock and Meat Board represents the cattle slaughterhouses and companies A.I. Centre Dansire represents the cattle breeding organisations Danish Beef Cattle representing the beef producers 7 members 4 members 2 members 1 member 1 observer Profile Danish Cattle Federation 4
Vision The Danish cattle farming sector is the most competitive in Europe in relation to economy, sustainability and quality. 5 Profile Danish Cattle Federation
Present activities The Danish Cattle Federation transfers know-how, advisory service and development within all aspects of milk and beef production. A wide range of activities goes on from cultivation of roughage, the composition of feeding rations and prevention of cattle diseases to the use of new technology and farm management. At present, however, certain areas require special focus as they are important to the farmer s economy, or because there is a need for a more long-term rationalization of the cattle sector s solving of common tasks. Adjusting to the reform of the Common Agricultural Policy The Danish implementation of the European CAP is finalized. The EU reform reverses the conditions for agricultural production, and makes it much more market orientated. The expected effect on the cattle sector is a 25 per cent fall in the number of suckler cows, a minor fall in the production of calves for beef production, while milk production will continue unchanged. However, the crop rotation plan will change on many farms due to the decoupling of support. In future the grass area is expected to increase at the expense of areas with whole crops. The cattle advisers will be busy optimising the production within the new framework, where more than DKK 7 billion in agricultural support will be distributed according to the new principles. Need to reinforced advisory efforts The number of cattle farmers to advise is decreasing and those remaining are facing economic difficulties due to falling milk prices and changes in the farm subsidy. At the same time the Government has removed the subsidy to advisory services from the budget bill, which forces the agricultural centres to increase the price for advisory service. This is not the best basis for making the cattle farmers seek advice. However, the Danish Cattle Federation intends to try, as good advising gives contribution margin to the farmer and this is highly needed. Your Dairy Farm Your Goals In 2004, under the headline Your Dairy Farm Your Goals, The Danish Agricultural Advisory Service brings additional focus on cattle farmer advisory service. On the basis of key figures of the financial results, production and health of the individual farms, the 6,600 milk producers will receive a Profile Danish Cattle Federation 6
The Danish implementation of the EU reform The Hybrid Model, where 73 per cent of all milk and beef premiums will be distributed according to the cattle farmers land in 2005. Decoupling of arable crops area and animal premiums apart from 75 per cent of the special male bovine animal premium and 50 per cent of the ewe premium. Single premium to areas in rotation of DKK 2,300 per hectare (approx. EUR 310) and DKK 500 per hectare (approx. EUR 67) to permanent grass land. From 2009 to 2012 the premiums for permanent grass land will gradually increase to the same amount as for areas in rotation. This will be financed by decreasing the coupled beef premiums. 7 Profile Danish Cattle Federation
tailor-made offer for result-improving advisory service. The farmer and the adviser will propose a target for improvements, agree on action plans, and the adviser will ensure the implementation and effectiveness of the plans. New model for the health advisory service In 2003, The Danish Cattle Federation, The Danish Veterinary Association and the Danish Veterinary and Food Administration agreed to test a new health advisory model. The new model is based on regular visits by the veterinarian to livestock herds to keep the cattle health under close observation. The target is to focus on preventive measures and to optimise medical treatment. The pilot project runs throughout 2004 involving approx. 100 herds with livestock with the object of having a finished concept to be operational in 2005. Benchmarking Differences in management level often explain the difference between good and less good economic and production related results of a farm. With increasing herd size it will be even more important for the manager to register herd incidents methodically and to make use of the available management tools. The Danish Cattle Federation offers advisory service to provide assistance in achieving a comprehensive view to monitor production and to compare the farm s results with others. Logistics The management itself and the planning of the work are relevant focus areas, too. As an example, The Danish Cattle Federation and local advisers have developed advisory tools and advisory proposals concerning logistics in farms. Nordic cooperation The number of dairy cows in Denmark is decreasing while the milk yield is growing. Thus, there are fewer cows to cover the joint costs of the cattle sector related to research, development, advisory service, disease control, operation and further development of the central cattle database, and political activities within the sector. It is therefore obvious that The Danish Cattle Federation seeks cooperation across borders to Sweden and the other Nordic countries. Danish and Swedish milk producers have common interests through their joint cooperation with the dairy company, Arla Foods. Therefore, The Danish Cattle Federation has initiated close cooperation with The Swedish Dairy Association to make Danish and Swedish cows finance the necessary development. We recommend a joint coordination and prioritization of the funds for cattle research, and specifically agreements have been made on cooperation on the estimation of breeding value and DNA research as well as the development of a new system for evaluation of feed value and feed planning. Further, we plan to cooperate within the field of cattle housing, health, animal welfare and comprehensive advisory service. Finland is also a member of the Nordic Breeding Estimation group, and Norway and Iceland participate in the development of the joint feeding value estimation system called NorFor. Focus on quality assurance On 1 April 2004 the public control for milk producers was converted into self-checking, concurrently with the implementation of the Arlagaarden quality control programme for the milk suppliers of Arla Foods. Both programmes require inspections by an impartial authority to ensure compliance with the quality requirement and documentation. For rationalisation purposes, we have agreed with Arla Foods and the authorities that visits under both schemes should be made by the quality advisers of The Danish Cattle Federation and local cattle advisers. This will be a new challenge and a new role for the advisers. In order to take precautions against conflicts of competence, the regular adviser will not be the person responsible for a follow-up in case of the requirements of the quality programme having not been met. Profile Danish Cattle Federation 8
9 Profile Danish Cattle Federation
Farmers united in one organization Danish farmers main organization is called Danish Agriculture. It became a reality from 1st January 2003, when the two agricultural organizations The Danish Farmers Unions and The Danish Family Farmers Association decided to merge in November 2002. The new organization handles the economic, professional, social and cultural interests of all Danish farmers. The two organizations have only merged on a central level. At the local level there are still local farmers unions and family farmers associations. The local unions and associations offer independent advisory services. Since 1st April 2003 they have cooperated under the name of Danish Agricultural Advisory Service. 60 local advisory centres Danish Agricultural Advisory Service offers advice at two levels. I.e. the individu- al farmer receives his general consultancy advice and service from one of the 60 local advisory centres. On small subject areas the advisory service comes directly from specialists on a national level. Specialized advice to the local advisers Apart from the local advisory centres the Danish Agricultural Advisory Service has a staff of approx. 500 at the National Centre in Aarhus, Jutland. Popularly speaking the National Centre is a wholesaler specializing in knowledge and development, whereas the local centres are retailers offering services to the farmers. The main task of the National Centre is to be the link between research and practical agriculture and to service and advise the local centres. In addition it solves tasks that are taken best care of on a national level. Facts Danish Cattle Federation 10
11 Facts Danish Cattle Federation
Fewer but bigger cattle farms The structural development in Denmark has been rapid in recent years. From 1975 to 2003 the cattle population has decreased by 45 per cent. In the same period the number of dairy cows has been reduced by 47 per cent, whereas the number of suckler cows has increased by 14 per cent. In 2003 suckler cows constituted 16 per cent of the cow population. The male bovines account for the most significant fall in the cattle population. The number of male bovines fell by 55 per cent from 1975 to 2003. In 10 years the number of dairy cattle farms has decreased by 55 per cent and at the same time the average size of a dairy cattle farm has doubled. In 2003 there were 7,300 farms of an average size of 81 cows. During 10 years the percentage of farms with more than 100 cows has increased from approx. 2.5 per cent of all farms in 1991 to 22 per cent in 2002. This is an explosive development compared to that of other countries within the EU. In 2003 the average dairy cattle farm had 81 cows and a farm with suckler cows had 11 cows. Uneven regional dispersion of dairy cattle The dispersion in Denmark of dairy cattle farms is uneven. Half of the dairy cattle farms are gathered in the four southern counties of Denmark. Few employed in agriculture Only 4 per cent or about 80,000 of Denmark s 5.2 million inhabitants are Average Danish dairy cattle farm (Milk recorded herds as of October 2004). Number of Cows 90.0 Hectares 86.5 Yield, kg milk 8,442 Fat, kg 364 Protein, kg 292 Milk quota, kg 675,000 employed within the primary agricultural production. Yet, Danish farmers production can feed 15 million people. Another 100,000 persons are employed within agro-industry, primarily the food industry. Danish cattle farms are private property As general rule Danish cattle farms are taken over by direct sale. The most common ownership within Danish cattle farms is private property. Approx. 90 per cent of all farming units are sole proprietorships owned by the farmer personally. There are only a few corporation-owned units, nor are there many co-operatively owned farming units. Facts Danish Cattle Federation 12
The number of cattle farms has decreased and at the same time the average size of a dairy cattle farm has doubled. The development in Denmark has been explosive compared to that of other countries within the EU. 13 Facts Danish Cattle Federation
A.I. Centre Dansire selects bull calves with the highest pedigree indices among the offspring of the bull sires and at the age of 9-12 months the calves enter an A.I. station. At the age of 11-12 months semen is collected from a young bull for the first time. After quality approval 800-1,000 straws are used for test inseminations. The S-index a formula for healthy and high yielding cows The Danish breeding goal is long-living healthy and productive dairy cows. The Danish S-index includes all traits of economic significance in cattle production. The S-index was introduced in 1982. Over the years the index has been continuously improved and adjusted according to changes in the conditions for cattle production. The figure shows the traits incorporated in the S-index. Breeding No. of tested young bulls No. of straws per young bull, avg. % inseminations with young bulls Breeding plan, 2004. High yield improvement In the period from 1990 to 2002 all dairy breeds in Denmark have had a considerable increase in yield. In that period SDM-DH has had an increase due to breeding of 37 kg of protein. The total increase is 55 kg of protein. The progress in yield due to breeding seems to continue. SDM- Danish Holstein Danish Jerseys Danish Red Dairy Breed 300 60 60 1,000 900 800 32 31 30 Facts Danish Cattle Federation 14
When the S-index is applied, several traits will improve at the same time. A large part of the increase in protein yield is due to genetic progress. Progress in protein production in first lactation for SDM-DH. 15 Facts Danish Cattle Federation
Four dairy breeds Denmark has four breeds of dairy cattle, i.e. SDM-Danish Holstein, Danish Red Dairy Breed, Danish Jerseys and Danish Red and White Holstein. SDM-Danish Holstein counts for over 70 per cent of all Danish dairy cattle. Number of beef cattle stabilized The stock of suckler cows has stabilized on approx. 110,000 cows in around 11,000 herds. A major part of the herds are owned by part-time farmers. Approx. 30,000 suckler cows are purebred. Some 20 breeds are represented in Denmark. The most popular breeds are Li mou sine, Hereford and Simmental. Export of Danish genes During the first half of 2004 a total of 164,500 doses of bull semen were exported. Foreign countries show great interest in health and the S-index, which brings semen from Danish bulls into focus. DANSIRE INTERNATIONAL is the Danish cattle breeding export organisation for bull semen and embryos. Breeding material with focus on total merit and health traits has been made available in more than 40 countries. Average milk yield in milk recorded herds, 2003/04. Breed Milk, kg. Fat % Prot. % SDM-Danish Holstein 8,900 4.12 3.38 Danish Red Dairy Breed 8,119 4.25 3.55 Danish Jerseys 6.185 5.95 4.09 Danish Red and White Holstein 7.820 4.37 3.49 All breeds 8,442 4.31 3.46 Facts Danish Cattle Federation 16
Distribution of beef cattle breeds. 17 Facts Danish Cattle Federation
Maize replaces fodder beets Land use 2003 (1,000 hectares). Total cultivated acreage 2,654 Cereals, total 1,502 Wheat 667 Rye 35 Barley 714 Oat 49 Triticale and other cereals for ripening 37 Roots, total 94 Fodder beets 8 Grass and green feed in crop rotation, total 444 Lucerne 4 Maize for animal feed 118 Cereals and pulse for whole crop 111 Grass and clover grass (not set-aside) 211 Grass land outside the crop rotation (not set-aside) 162 Set-aside, total (incl. non food) 225 Consumption of mixed feed for cattle (million kg). 1997 2000 2003 Concentrate mixtures for cattle, total 1,412 1,506 1,274 Concentrate mixtures, low in protein for cattle, not for calves 573 680 519 Concentrate mixtures, high in protein for cattle, not for calves 535 481 417 Mineral mixtures for cattle 43 33 32 Half of the cultivated land in Denmark is cultivated with cereals. Since 1980 a total of approx. 120,000 hectares of fodder beets and maize have been grown on cattle farms. While the acreage with fodder beets has dropped drastically from 1990 to today, the acreage with maize is increasing almost correspondingly. Cows at pasture 75 per cent of the dairy cows are turned to pasture during the summer. 40 per cent of the cows are turned to pasture day and night, while the rest are typically in the stable during the night. The trend of recent years is that an increasing number of cows are kept in stables all year round typically in big herds with loose housing systems without the option of sufficient grazing. By and large, the heifers in all dairy herds are at pasture during the summer, and 60 per cent of the farmers choose to turn their calves to pasture. Maize silage a popular feed Since the beginning of the 1990s, maize silage has gained ground on the Danish dairy herds. Maize silage together with grass and clover grass silage is the most applied roughage during the winter. Typically, the roughage will be fed as a roughage mix or together with concentrates as TMR (total mixed ration). More farmers use raw ingredients The sales of concentrate mixtures for cattle have declined by more than 10 per cent during the past 10 years. This trend is probably due to the application of more raw ingredients at the expense of ready-to-use mixtures. The larger share of raw ingredients is a consequence of more numerous loose housing systems and mixing carts, making the adding of raw ingredients into the complete feed comparatively easy. Facts Danish Cattle Federation 18
In big herds, fewer dairy cows are turned to pasture during summer. Maize silage together with grasssilage is the most applied roughage during winter. (Data from 117 dairy herds). 19 Facts Danish Cattle Federation
More new loose-housing systems An increasing number of new cattle houses have been built since the midnineties, resulting in half of the dairy cattle now being stalled in loose-housing systems. The most employed form of loose-housing system is the cubicle system. Approx. 65 per cent of the dairy cattle are housed in cubicle systems, and approx. 8 per cent in deep-litter. Automatic milking systems (AMS) still in the minority In 2004, 350 herds had AMS installed. In average, the herds have two milk robots with a milking frequency of 2.71 per cow per day. Young stock in loosehousing systems The major part of the young stock is stalled in loosehousing systems, in either deep-litter or in cubicles. Approx. 80 per cent of the heifers are in loose-housing systems. In approx. half of the herds, calves are stalled in single boxes for the first four weeks, and in approx. 10 per cent, the calves are in outdoor calf huts. Facts on milking systems - Data from 2,800 herds Herds with pipeline milking machines, % 43 Herds with herringbone milking parlours, % 40 Herds with milking carousel, % 2 Herds with AMS, % 5 Facts on cattle barns Dairy cows in loose-housing systems with cubicles, % 65 Dairy cows in loose-housing systems with deep-litter, % 8 Dairy cows in tied-up barns, % 26 Herds in loose-housing systems with cubicles, % 49 Herds in loose-housing systems with deep-litter, % 8 Herds in tied-up barns, % 42 Facts Danish Cattle Federation 20
Figure 6.1. New housing systems for dairy cattle in Denmark 21 Facts Danish Cattle Federation
Many farmers join the milk recording Milk recording enjoys great support in Denmark. In 2004 93 per cent of the dairy farms had joined the milk recording. During the period from 1994 to 2004 the number of farms in the milk recording has been reduced from 11,700 herds to 6,000 herds, and the average number of cows per herd has increased from 50 to 90 cows. Two different methods of milk recording Traditionally there are two methods of recording: A- recording where the technician takes the milk samples and B-recording where the farmer takes the samples. Approx. 14 per cent of all farms practise use of A-recording. At least 11 recordings are made every year. However, since 2000 six recordings per year have been accepted as official milk recording. Approx. 10 per cent of all farms make only six recordings per year. The milk recordings are checked In order to check the quality of the recordings carried out, the results of the milk recordings are checked against the quantity and fat content of the milk supplied to the dairy plant. To obtain official approval of the milk recordings the deviations between milk recordings and milk supplied to the dairy plant must stay within agreed fixed limits. Furthermore, every month a random number of farms are selected for an additional check by the technician. On an annual basis three per cent of the farms are selected for an additional check. Electronic milk meters are a success The increasing number of dairy cows per farm makes the practical work in connection with the milk recording more and more time-consuming for the farmer. Since 2003 electronic milk meters (TruTest) have been used. We expect that 60 per cent of all farms will use electronic milk meters by the end of 2005. Along with the introduction of electronic milk meters, bar codes for identification of the milk sample glass have been introduced for safer identification between cow and milk sample. Facts Danish Cattle Federation 22
RYK national organisation In 2004 a new organization dealing with nationwide registration and milk recording has been set up under the Danish Cattle Federation. Besides there are five independent milk recording organizations. RYK Registration and Milk Recording has five local offices with a staff of 105, of whom 55 are technicians who cooperate directly with the dairy farmers. 23 Facts Danish Cattle Federation
Elektronic ear tags reading the number automatically saves the farmer time formerly used on manual registration. The Central Cattle Database contains all data on cattle The Central Cattle Database contains the statutory recordings of sales and calvings from all cattle herds. The database also includes data from milk recording, ear tags, pedigree control, breeding values, treatment of diseases, health monitoring, inseminations, slaughterhouse data and dairy deliveries. The shared utilization of data from various sources simplifies the data recording for the farmer and facilitates the adviser s access to the information. The Central Cattle Database is also used for registration of sheep and goats. Animal Registration the access to the Central Cattle Database The computer program Animal Registration gives access to registration and search for data in the Central Cattle Database. Advisers and farmers use the same program, which gives plenty of advantages in relation to the application and development of Animal Registration. The most basic registrations and orders can also be made on the website www.webdyr.dk, or by telephone (voice response). Herd management Approx. 25 per cent of all dairy cattle herds use the Animal Registration on farm. This gives the farmer rapid and easy access to information and to printing production statements and management lists. The Animal Registration system leaves the farmer to decide which information to print and on which animals. Health monitoring The Central Cattle Database also provides the data basis for the surveillance of Mad Cow Disease (BSE) and the infectious diseases (BVD, IBR and Salmonella Dublin). In connection with their approvals of animals to be slaughtered, the Central Cattle Database selects the animals to be tested for BVD and Salmonella. Blood samples from slaughtered animals reduce the cost for test significantly. Facts Danish Cattle Federation 24
25 Facts Danish Cattle Federation
Type of analysis Analysis frequency Analyses of milk. Required by law Average in 2003 Bacterial count Once a week Yes 6,800 (geometric average) Cell count Once a week Yes, once every 4 weeks 239,000 (geometric average) Quality in Danish veterinary work Souring inhibitors Freezing point Anaerobic spores Once every 4 weeks Once every 12 weeks Once every 4 weeks (Oct.-May) BVD free status Non-BVD free status, infected Milk delivering herds 96,5 % 38 herds Not milk delivering herds (1-24 animals), Not milk delivering herds (< 25 animals), Yes - Yes - 0.526 No 110 (geometric average) Status on BVD, 2004-29/09/2004. 49,3 % 14 herds 39,2 % 21 herds Danish cattle are very healthy. The veterinary contingency plan covers tasks such as monitoring, preventive contingency plan, and eradication contingency plan.the preventive contingency plan has been set up to prevent diseases and infections from being brought into the country. The eradication contingency plan covers activities essential in limiting the spreading of diseases and infections, once they appear. Monitoring on diseases In Denmark we have a targeted monitoring of IBR, Leucosis, BVD, and Salmonella Dublin. The monitoring consists in risk-based blood testing. This means taking more tests where the risk is highest and at the same time avoids unnecessary double-testing. Many analyses of milk Most of the analyses carried out on milk are required by law. The result often has an impact on the milk payment to the farmer. The chase for a low cell count has started In 2003 it was decided to bring the national average of the geometric cell count below 200,000. Since October 2003 rigorous demands have been introduced, caus ing an economic loss for the farmers who deliver milk with a cell count above 200,000 cells per millilitre. A low cell count has top priority at many farms in 2004. Facts Danish Cattle Federation 26
In 2003 it was decided to bring the national average of the geometric cell count below 200,000. Salmonella Dublin level, 2004. Level 1 Level 2 Level 3 Dairy cattle 82% 18% 11 herds Other cattle 97% 3% 10 herds 27 Facts Danish Cattle Federation
The national milk quota is allocated to 6,600 milk producers For quite a number of years the Danish national milk quota has remained at 4,455 million kg. The Danish national quota is allocated to the individual milk producer as a farm quota with an individually fixed fat content. A milk quota equals the amount of milk that a milk producer can deliver to a dairy plant, without becoming liable to additional levy. The structural development among Danish milk producers has continued at the same pace during the past few years. The figure below shows the structural development during the milk quota regime from 32,700 farms with an average quota of 152,000 kg. in 1984/85 to the present 6,600 farms with an average quota of 675,000 kg. per farm. This is a dramatic development in just 20 years. An annual nine per cent drop in the number of farms is forecasted for the next couple of years. If the forecast applies, merely 4,100 milkproducing farms will remain in 2009/10. Farms with a milk quota as of 1 April 2004 by regions. Regional structural development In the past couple of years milk quotas on a large scale tend to move to South Jutland by way of the quota exchange. In the past three years the local milk producers bought close to 25 million kg. more than they sold in each quota year. Two quota exchanges a year Presently there are two quota exchanges a year one in May and one in November. The principle of the quota exchange is that all producers may submit a bid for purchase or sale of quota. When all bids received in due time are recorded at the Danish Milk Board, the market clearing price is calculated as the cut-off between the supply and the demand curves. The market clearing price is fixed for milk at a fat content of 4.36 per cent, as each bid is adjusted according to the fixed fat content of the individual farm quota. The principal of the milk quota exchanges will change during 2004. Facts Danish Cattle Federation 28
During the past years, the number of farms has decreased while the average milk quota has increased. Traded quota and market clearing price of past milk quota exchanges. 29 Facts Danish Cattle Federation
The economic development Over a period of 10 years the economic result on dairy farms has been approx. DKK 200,000 in 2002-prices. From 1993 to 2002 the results in 2002-prices have decreased by 21 per cent. The results for farms with Jerseys and larger breeds have been more or less the same. More extensions On average the cattle farmers invested DKK 602,000 in 2002. The propensity to invest has been increasing for several years. Especially the dairy producers with 150-200 cows have invested most. These producers made a net investment in 2002 of almost DKK 14,000 per cow. The largest farms had on average the highest debt percentage in 2002. The figure shows the debt percentage among conventional farms in 2002. The farms with less than 50 cows represent approx. 25 per cent of all dairy producers. The financial cost has increased evenly over the latest 10 years. In 2002 there was a drop of 5 per cent compared to 2001, due to a lower level of interest rate. Falling milk prices Since 1996 the average milk price has experienced a real decline of DKK 0.43 per kg ECM calculated in 2003-prices. This equals a reduction of 17 per cent over the latest ten years. The milk price is expected to fall in the near future due to the EU reform. Economic development at Danish dairy farms, DKK. Year 1996 1998 2000 2001 2002 2003 Gross margin/cow incl. young stock, Jerseys Gross margin/kg ECM, Jersey Gross margin/cow incl. young stock, other breeds Gross margin/kg ECM, other breeds 8,655 9,834 11,065 10,439 10,444 10,645 1.29 1.40 1.50 1.41 1.38 1.33 9,438 10,215 10,672 10,440 10,858 10,670 1.29 1.36 1.39 1.32 1.37 1.31 Year 1996 1998 2000 2001 2002 2003 Milk price, per kg ECM Milk price, 2003-level, per kg ECM Milk prices per kg ECM, DKK. 2.38 2.40 2.37 2.48 2.46 2.36 2.79 2.71 2.54 2.60 2.52 2.36 Facts Danish Cattle Federation 30
Development in investment per cattle farm Debt percentage at conventional farms in 2002 divided into six groups. 31 Facts Danish Cattle Federation
Danish agricultural production a great export asset Preserved milk products production and exports. 1,000 tonnes 1975 1980 1990 2000 2002 2003 Production 130.3 150.6 164.1 201.7 190.6 198.5 Whole milk powder 45.2 75.0 84.6 97.2 80.6 82.0 Skim milk powder 85.1 36.1 40.8 38.0 42.4 43.8 Other products 1-39.5 38.7 66.6 67.5 72.7 Exports 63.7 114.2 148.8 152.7 150.1 153.1 Whole milk powder 42.2 72.2 75.9 79.0 69.7 78.9 Skim milk powder 10.5 21.1 32.6 14.4 11.4 13.9 Infant formula - - 11.9 21.0 21.2 13.9 Other products 11.0 20.9 28.2 38.3 47.8 46.4 Destination of exports 2 EU 10.2 1.6 41.9 22.5 20.1 22.3 Other Europe - 0.2 1.4 4.0 2.5 1.0 Africa 10.6 16.3 12.8 8.3 11.3 13.7 America 5.8 6.1 18.0 37.9 24.5 24.0 Middle East 10.6 30.5 39.6 24.5 23.5 28.7 Other Third World countries 26.5 59.3 35.1 17.3 20.4 17.0 The main part of agricultural profits comes from animal production a total of 64 per cent of gross earnings in Danish farming, taken as a whole. With a population of only 5.2 million and a food production sufficient for 15 million people, Denmark exports two-thirds of its agricultural production. In 2003, 58 per cent of exports went to other EU countries, while Japan and the US were the main markets outside the EU. Agricul- tural exports in 2003 were worth DKK 57 billion in foreign currency. The dairy industry Cheese, butter and powdered milk are the main products derived from cows milk and 80 per cent is exported. The beef sector From 1975 to 2003 the production of beef and veal has declined by almost 40 per cent. The production value of beef and veal (inclusive of premiums) was DKK 3,025 million in 2003. 1) Incl. sterilized cream. 2) Comprising whole milk powder, skim milk powder and infant formula. Export of beef and beef products in value. Million DKK 1975 1980 1990 2000 2002 2003 Live cattle 124 40 7 108 37 38 Beef and veal 1,750 2,585 2,578 2,083 1,819 1,731 - EU 1,623 2,381 2,445 1,905 1,592 1,623 - Third countries 127 204 133 203 227 108 Edible by-products 27 58 70 114 55 61 Processed 39 125 131 192 195 120 Tallow 7 34 40 9 11 16 Total 1,946 2,842 2,825 2,505 2,117 1,966 Export subsidy 129 375 180 113 108 44 Total export value 2,075 3,217 3,005 2,619 2,225 2,010 Facts Danish Cattle Federation 32
Export value of dairy products. Production of slaughter cattle by categories, 1,000 head. 33 Facts Danish Cattle Federation
Cattle research development of new knowledge In 2004, The Danish Cattle Federation allocated DKK 37.5 mill. to research and development. The assignments are performed at the National Institute of Agricultural Sciences and other national research and educational centres, at Project Farms, The Cattle Research Centre and, by own employees, local advisers, researchers and Ph.d. students. Priority of the funds in 2004 has been given to projects, aiming to improve productivity here and now and to long-range initiatives to achieve effectiveness, e.g. through breeding and development of new technology for management and control of production and health. Project Farms a practical workshop The purpose of Project Farms is to make a workshop avail able to researchers and advisers for a number of projects, which may procure a data basis for comprehensive research and development projects as well as projects for demonstration. The workshops are existing farms, which are selected on the basis of project demands. In 2004, 39 farms participate in various projects. Project farms have been established as a joint venture by the Danish Institute of Agricultural Sciences, the Danish Research Institute of Food Economics, and the Danish Agricultural Advisory Service, the National Centre. The Danish Cattle Research Centre The purpose of the centre is to provide ultramodern facilities for practice-oriented cattle research. The resulting know-how is to contribute to continuous development and adaptation of Danish cattle farming. The centre consists of a cow barn for 150 dairy cows with milking robots as well as housing facilities for 150 young stock, 150 slaughter calves and 100 calves. The buildings are modern Danish cattle barns, characterized by loose-housing systems, uninsulated units and natural ventilation. The centre also includes office, conference and personnel facilities. The total area is more than 6,000 sq m. The research activities at the centre are mainly conducted by scientists and technicians from The Danish Institute of Agricultural Sciences. The Centre is financed by Danish farmers organizations and built on land leased from the Danish Institute of Agricultural Sciences. Facts Danish Cattle Federation 34
35 Facts Danish Cattle Federation
Additional information www.landscentret.dk www.mejeri.dk www.meatboard.dk www.landbrugsraadet.dk www.dansklandbrug.dk Facts Danish Cattle Federation 36
DANISH CATTLE FEDERATION 2004
Danish Cattle Federation Udkaersvej 15, Skejby, DK-8200 Aarhus N Telephone +45 8740 5000 Fax +45 8740 5010 www.landscentret.dk; e-mail dk@landscentret.dk