Eder, M.1, Kirner, L.1 and Zollitsch, W.2
1
1 Institute of Agricultural Economics, University of Agricultural
Sciences Vienna,
Peter Jordan-Strasse 82, A-1190 Vienna, Austria.
2
Department of Animal Science, University of Agricultural Sciences Vienna,Gregor Mendel Strasse 33, A-1180 Vienna, Austria;
Tel. +43-1-147654-3282, Fax: +43-1-47654-3254, e-mail: zoll@edv1.boku.ac.at
1. Development of organic farming
In the late 1980s, the Ministry of Agriculture decided that the improvement of the sustainability of agricultural production should be one aim of Austria's agricultural policy. Since Austria joined the EU in 1995, subsidies have been paid to those farmers producing within the regulations of a national program for sustainable agriculture ("OEPUL"), based on the EU regulation 2078/92, and including measures such as increased diversification of crop rotation, continual plant cover, etc. Today the most extensive measure within this program is the conversion of farms from conventional to organic agriculture. About 17.5 % of the program's financial support is currently paid to organic farmers (Eder, 1998). Before this, subsidies have been granted to farms in conversion to organic agriculture since 1991; since 1992, all organic farms have received payments from the Federal Ministry of Agriculture. One of the consequences of this policy was a significant and almost immediate increase of the number of organic farms (Figure 1; Eder, 1998).
Figure 1. Trend of the number of organic farms in Austria.
2. Regional distribution and structure of organic farms
Currently, the regional distribution of organic farms in Austria is highly uneven: 65 % of all organic farms are located in the alpine regions, another 30 % are situated in the medium altitude regions, while less than 5 % are located in the lowlands of eastern and south-eastern Austria (Eder, 1998; Kirner and Schneeberger, 1999a). The number and percentage of organic farms in the different alpine zones (graded according to the steepness of the location and hence to the degree of difficulty for agricultural production) are given in Table 1 (Eder, 1998).
Table 1. Number and percentage of organic farms in alpine zones
| Alpine Zone* | Number of organic farms |
Organic farms per zone (%) |
Number of organic farms relative to all farms (%) |
| -- | 2408 |
13.3 |
1.4 |
| 1 | 2854 |
15.8 |
9.8 |
| 2 | 3954 |
21.8 |
15.7 |
| 3 | 6784 |
37.5 |
22.0 |
| 4 | 2108 |
11.6 |
31.9 |
* Steepness of location and difficulty of production increases with higher number
The main reason for the high percentage of organic farms in the alpine areas is that traditional alpine farms have always been relatively small and produce within low input grassland systems. A similar situation applies to the mixed farms (grassland plus arable land) in the medium altitude areas. This means that, for these types of farms, there was no need for tremendous changes in their production techniques when converting to organic agriculture, whereas the opposite was true for the more specialized crop-producing farms of the lowlands. From an animal husbandry point of view, the traditional alpine systems of milk production are characterized by small herds of dairy cows, which are kept in tie stalls during the winter period, but have access to free range for up to 24 hours during the summer months. These aspects are also valid for organic farms (Kernel and Schneeberger, 1999b).
Organic farming can have an important impact on the regional socio-economic situation, especially in alpine areas: while only 31% of all Austrian farms are operated on a full time-basis, the corresponding value for organic farms is over 51 % (Eder, 1998; Kirner and Schneeberger, 1999a). This is also an important aspect from the livestock management point of view: the time available may be an essential factor in animal welfare (Baars, 1998).
A recent study was conducted utilizing cluster analysis to identify farm specific criteria in order to define groups of farms with similar production structures (Eder, 1998). Some important results of this study are shown in Table 2.
Table 2. Specific traits of organic farms with a similar structure of production
| Cluster of farms focussing on: | Representing % of organic farms1) |
Agricultural land per farm, ha2) |
Livestock units3) |
Number of animal species, n |
| Crop production | < 12 |
15.8 |
8.6 |
1.9 |
| Low input grassland | 58 |
9.3 |
10.4 |
2.5 |
| Milk production | < 23 |
22.2 |
29.0 |
2.8 |
| Beef cows | < 7 |
23.1 |
29.0 |
2.8 |
| Monogastric animal husbandry | 0.4 |
24.9 |
27.3 |
2.2 |
| S / Æ | < 100 |
14.0 |
15.8 |
2.5 |
1)
Farms highly specialized in products like wine, fruits etc. were excluded from the analysis.2) Mountain pastures are not included.
3) Based on liveweight equivalents, but taking into account differences in the nutrient excretion of different species.
A total of 96% of all organic farms raise livestock of some kind (Eder, 1998; Kirner and Schneeberger, 1999a), but the regional distribution is not at all uniform: livestock can be found on almost every organic farm in the alpine areas, while in some lowland regions of eastern Austria only 40% of organic farmers keep animals. On 87.1%, 63.0%, and 18.9% of organic farms, cattle, dairy cows, and sheep are kept, respectively. The percentage of farms on which pigs and chickens are raised are 49.1% and 50.8%, respectively (Kirner and Schneeberger, 1999a).
As can be expected, the available feedstuffs determine the choice of the livestock species in organic farming: while 27% of all goats and 26% of all sheep kept in Austria are living on organic farms, the national averages for cattle, horses, and pigs are 15%, 13%, and 1%, respectively. The regional differences range from 9% to about 42% for goats and sheep, from 3% to 39% for cattle, from 2% to 28% for horses, and from < 1% to 17% for pigs. Those alpine provinces with an overall low pig population typically have a higher percentage of pigs raised on organic farms. Almost 2/3 of farms that keep pigs have fewer than 3, probably for the recycling of byproducts (Eder, 1998; Kirner and Schneeberger, 1999a).
In Figures 2, 3, and 4, the distribution of dairy cows, pigs and chickens among organic farms is shown. These figures clearly show that a concentration process of pigs and chickens has taken place in organic farming as well: 7% and 4% of the organic farms are raising half of the organic pigs and chickens, respectively. This trend may actually lead to "organic" systems that are no longer land-dependent (Wiener, 1996; Baars, 1998). In contrast to this, 25% of the farms with the biggest herds are keeping half of the organic dairy cows.
Figure 2. Distribution of dairy cows among organic farms.
Figure 3. Distribution of pigs among organic farms.
Figure 4. Distribution of chickens among organic farms.
The variability of farm structures shows that a prerequisite for successful measures in organic farming (e.g. extension, research) is adherence to the specific conditions of the addressed cluster (i.e. farm type) and the region.
3. Reasons for "reconversion", obstacles to conversion
By the year 2000, it will be possible for organic farms that have received financial support from the national OEPUL programme to return to conventional agriculture without having to repay the subsidies. Based on a representative sample of organic farms, Kirner and Schneeberger (1999b) concluded that 12.7 % of organic farms are not planning to participate in the program as organic farms in the future. A factor analysis (Chi-square-test) showed that the province in which the farm is situated, the turnover from on-farm-sales, the education of the farmer and whether or not the farmer is a member of an organic farmers' association have significant impacts in this context. From a comparison of specific structure elements, it can be concluded that farmers who choose to return to conventional farming operate significantly smaller farms (12.9 ha versus 16.7 ha), but are keeping dairy cows with a significantly higher performance (5060 kg versus 4660 kg) than farmers who continue organic farming. The latter is in agreement with the conclusions drawn by Freyer (1991) and Schulze Pals (1994).
According to the farmers, a lack of premium prices (88%), a surplus of costs over returns for organic production (81%), and the frequent changes of organic farming regulations (79%) are the main reasons for the decision to give up organic farming. In comparison to this situation, the need to invest in the reconstruction of cattle barns is of minor relevance (18%).
In a study published by Kirner and Schneeberger (1999c), several criteria of organic farms were compared with those of farms receiving subsidies from the national program OEPUL under the title "renunciation of yield-increasing means of production" (hereafter, these farms will be addressed as RYM-farms). The reason for this comparison is that there is a potential for RYM-farms to convert to organic farming, since these farms do not use soluble mineral fertilizers and are severely restricted in the application of synthetic biocides. However, there are no regulations for the animal husbandry on RYM-farms.
According to the study, organic farms show a higher degree of differentiation of production and product diversification, they are organized in a more labour-intensive manner, and the farmer tends to have a more comprehensive agricultural education than RYM-farmers. Based on a questionnaire, Kirner and Schneeberger (1999c) found that 31 % of the RYM-farmers are at least considering conversion to organic farming, whereas 69 % are definitely not planning to convert. The factors relevant to the negative decision are shown in Table 3.
The results given in Table 3 show that the most important arguments against conversion are economic in origin (prices, additional expenditures, etc.). However, the answers also indicate that there are several factors in connection with animal husbandry that may cause farmers to be reluctant to convert, especially barn (re)construction and the relatively high prices of certain organic feedstuffs. The general concern about the expected increase in workload during conversion (67% of the answers) must be seen as a specific potential problem for animal health and welfare (Baars, 1998). A lack of knowledge of specific production techniques and a lack of information about organic farming are not considered important factors inhibiting the further growth of organic farming.
Limiting factors in animal husbandry will therefore have a major impact if the growth of the organic sector is to be maintained. This is again emphasized by the 10% of farmers who already considered the additional costs during the process of conversion: all of them expected investments into barn buildings (currently, the majority of organic farmers keep their dairy cows in tie stalls; Kirner and Schneeberger, 1999b), 39% of them mentioned the additional costs of organic concentrates (the majority of farms rely on concentrates which are imported into the system).
In contrast to this, costs for buildings other than barns and for machinery were each mentioned by 15% of the farmers questioned. About 16% of those farmers who are not planning to convert to organic farming would reconsider their decision if higher subsidies were given for investments into barns, 22% of them would do so if significant additional payments per ha of land were offered (Kirner and Schneeberger, 1999c).
Table 3. Factors inhibiting the conversion to organic farming (percentage of answers given by farmers for the respective factor).
| Potential obstacle for | Number of farmers, |
Answers, % |
|
| conversion | N |
"absolutely true or "true" |
"somewhat true" or "not true" |
| Lack of premium prices | 188 |
83.0 |
17.0 |
| Need to reconstruct cattle barns | 199 |
79.3 |
20.7 |
| Surplus of expenditures over returns | 181 |
79.0 |
21.0 |
| High bureaucratic efforts | 202 |
74.3 |
25.7 |
| More expensive purchased foodstuffs | 181 |
74.0 |
26.0 |
| Strict and frequent controls | 179 |
71.0 |
29.0 |
| Too much work due to additional efforts | 185 |
67.0 |
33.0 |
| Need to reconstruct other barns | 154 |
64.3 |
35.7 |
| Farm is too small | 190 |
57.4 |
42.6 |
| Problems with broad leafed-dock (grassland) | 164 |
42.7 |
57.3 |
| Farm may go out of business | 183 |
39.9 |
60.1 |
| High animal performance or intensification is impossible | 155 |
28.4 |
71.6 |
| Lack of information about organic farming | 171 |
27.5 |
72.5 |
Based on the analysis of structural elements, it is concluded that in alpine-dominated regions the group of organic farms is more heterogeneous than a comparable group of conventional farms. In Austria, the largest subgroup of organic farms is formed by small farms producing in low input grassland systems; another significant subgroup is focussing on cattle production. As can be seen from the distribution of animals on organic farms, a concentration process has taken place in pig and poultry husbandry. Among others, factors related to animal husbandry may have inhibitory effects for the further growth of organic farming in Austria.
A combination of measures rather than a focus on single activities is needed in order to increase the motivation of farmers who are running farms with an objectively high potential for conversion to organic production:
- Increased marketing activities on the part of the farmers and the organic farmers' associations as well as co-operation with retail partners are necessary to achieve a higher profit share for the organic farmers.
- Subsidies to promote the activities mentioned above would have a positive impact. This applies especially to financial support of investments into barn reconstruction.
Summary
About 20,000 (i.e. 9% of the total) farms are producing under organic standards in Austria. The regional distribution of these farms is highly uneven: while some 65% of all organic farms are situated in the alpine regions and another 30% in medium altitude regions, only less than 5% of all organic farms are producing in the lowlands.
About 96% of all organic farms keep some kind of animals, 87% of them raise cattle. 49% and 51% keep pigs and poultry, respectively. Clear regional concentrations are found for the farms focussing on the marketing of pigs and poultry products.
In recent studies, factors were evaluated which are inhibiting a further increase of the numbers of organic farms. These surveys showed that for the analyzed farms a low price difference between organic and conventional products (83%), the need to invest in the (re)construction of cattle barns (79%) and the high costs for means of production (79%) are major obstacles to conversion. Higher subsidies for organic farming may convince some 20% of those farmers who are already participating in a national program for sustainable agriculture, but are currently unwilling to convert to organic farming, to change their minds.
Therefore, it can be concluded that a mixture of measures, taking into account the specific regional conditions rather than focussing on single factors, will promote the growth of organic farming in Austria.
References:
Baars, T. (1998) Future systems in organic farming: Animal production, health and welfare. In: Isart, J. and Llerena, J.J.. Proceedings of the Fourth ENOF Workshop, Edinburgh, 25-26 of June 1998, pp. 31-38.
Eder, M. (1998) Der Biologische Landbau in Österreich. Situationsdarstellung und Produktionsstrukturanalysen. Dissertation thesis, University of Agricultural Sciences Vienna.
Freyer, B. (1991) Ökologischer Landbau – Planung und Analyse von Betriebsumstellungen. Margraf, Weikersheim.
Kirner, L. and Schneeberger, W. (1999a) Vergleich der Struktur der Betriebe mit biologischer Wirtschaftsweise und Verzicht auf bestimmte ertragssteigernde Betriebsmittel im österreichischen Umweltprogramm. Die Bodenkultur 50: 133-141.
Kirner, L. and Schneeberger, W. (1999b) OEPUL-Teilnahme der Biobetriebe und Betriebe mit Betriebsmittelverzicht ab dem Jahr 2000. Der Förderungsdienst (Beratungsservice) 47: 85-89.
Kirner, L. and Schneeberger, W. (1999c) Hemmfaktoren einer Ausweitung des Biologischen Landbaus in Österreich. Die Bodenkultur: in print.
Schulze Pals, L. (1994) Ökonomische Analyse der Umstellung auf ökologischen Landbau – Eine empirische Untersuchung des Umstellungsverlaufes im Rahmen des EG-Extensivierungsprogrammes. Landwirtschaftsverlag, Münster.
Wiener, B. (1996) Vergleich zwischen Legehennen- und Milchkuhfütterung auf biologisch wirtschaftenden Betrieben in der Steiermark. Diploma thesis, University of Agricultural Sciences Vien