1

agri benchmark ORGANIC an approach to understand and compare organic farming systems world-wide

International Conference on Sustainable Development of Natural Resources in Africa, Ghana, 5 - 7 December 2011

Jürn Sanders, Gerold Rahman Institute of Farm Economics Institute of Organic Farming

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1.  Why do we need to compare organic systems world-wide? 2. What is agri benchmark?

3.  Establishment of agri benchmark ORGANIC – step by step

Contents

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Why do we need to compare organic systems?

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Growth of the global organic area and market for organic food and drinks, 2000-2008

Source: Own presentation based on IFOAM / FIBL (2011)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 0

10

20

30

40

50

60

Are

a (m

illio

n he

ctar

es)

Rev

enue

s (b

illio

n U

S$)

Organic Area

Revenues

0

10

20

30

40

50

60

5 Sanders/Rahmann

To sum up

! Organic supply and demand is growing → international trade / quality standards / competitiveness are

becoming more important

! General information on organic farming available → FiBL/IFOAM: World of Organic

!  BUT – There is a lack of detailed information on  production structures  economic performances  processing and trade

at global scale

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What is agri benchmark?

2

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Key characteristics

!  International network of agricultural economists, advisors, producers and specialists in key sectors

!  Internationally standardised methods to analyse farms

!  Combination of farm-level knowledge, international commodity markets and value chains

!  “You put your country in and get the world back”

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Countries in the agri benchmark Cash Crop Network

Countries participating in agri benchmark Cash Crop

Priorities for new countries

Crops in the comparison: Corn Soybeans Wheat Sugar beet Rice Rapeseed Oats Rye (Malting) barley Sunflower Sorghum Cotton Peas Beans Palm oil Pipeline: Sugar Cane

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Countries in the agri benchmark Beef & Sheep Network

Participating countries 2011

Participating countries with national networks

Participating countries with national networks based on agri benchmark

Contacts for further growth

Countries with sheep analysis

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Establishment of further agri benchmark branches

Commodity related   Dairy   Pig and poultry   Horticulture

Farming system related   Organic farming

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Establishment of agri benchmark ORGANIC – step by step

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Approach

First step:

Description of the organic sector

Second step:

Comparison of production costs

Third step: Comparison of ecological parameter (e.g. GHG emission, soil quality)

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Step 1 - Description of the organic sector Country profile

!  Area under organic management !  Number of organic farms !  Production structure (e.g. farm size, land use, crop rotation) !  Number of farm animals per livestock category !  Production techniques (e.g. pasture, silage, feedlot, cut&carry for

beef cattle) !  Physical performances / Yields !  Farm gate and consumer prices !  Processing and trade structure !  Import and export !  Production and certification requirements

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Overview of ecological indicators Indikators Environmental areas

1 Nitrogen saldo + + ++ ++ +

2 Phosphorous saldo ++ ++ ++ +

3 Organic matter level ++ + +

4 Energy efficiency ++ +

5 Greenhouse gase emission ++

6 Soil compaction ++

7 Biodiversity potential ++

8 Soil erosion ++ +

9 Pesticid intensity + ++

10 Landscape protection ++

Bio

dive

rsity

Air

Wat

er

Soi

l

Res

sour

ces

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Organic farms

Conventionell farms

Experimental stations

Example: sustainable indicators for German organic and conventional farms

Gefördert durch die Bundesanstalt für Landwirtschaft und Ernährung und das Johann Heinrich von Thünen-Institut

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10000

15000

20000

25000

30000

35000

1,50 2,00 2,50 3,00 3,50 4,00 4,50 5,00 5,50 6,00

Nutzungsdauer [a]

Lebe

nsle

istu

ng [k

g*Ku

h-1 ]

Ökol. Betriebe Süd (6) Konv. Betriebe Süd (5) Ökol. Betriebe West (6) Konv. Betriebe West (5)

Ökol. Betriebe Ost (2) Konv. Betriebe Ost (4) Ökol. Betriebe Nord (2) Konv. Betriebe Nord (2)

Milk yield per cow life

Years of lactation

Milk

yie

lds

per c

ow li

fe (k

g)

Organic cows

Organic cows

Organic cows

Organic cows

Conventional cows Conventional cows

Conventional cows Conventional cows

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Biodiversity

!

Num

ber f

lora

spe

cies

Organic Conventional

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Energy input and –output of a farm ha-1

0

50

100

150

200

250

2 4 6 8 10 12 14 16 18 20

Energie-Input [GJ ha-1 a-1]

Net

to-E

nerg

ieou

tput

[GJ

ha-1

a-1

]

PB öko.

PB konv.

Organic Conv.

Energy input (GJ ha-1 a-1)

Ene

rgy

oupu

t (G

J ha

-1 a

-1)

4

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GHG emission per ha and year

-1000

0

1000

2000

3000

4000

5000

6000

2 4 6 8 10 12 14 16 18 20

Energie-Input [GJ ha-1 a-1]

THG-

Emiss

ionen

[kg C

O 2 eq

ha-1

a-1 ]

PB öko. PB konv.G

HG

em

issi

ons

(CO

2eq

ha-1

a-1

)

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C sequestion in the soil (CO2 sink)

conventional organic

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increasing emissions

GHG emission from conventional and organic farms (20:20) per ton of wheat and crop rotations

Wheat conv.

Wheat org.

Crop rotation conv.

Crop rotation org.

(Heißenhuber 2008)

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Visualisation of nutrient cycles (Bavaria; Hülsbergen 2008)

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Summary and outlook

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What agri benchmark is bringing to the table

1.  National and local capacity building through

–""trainings –""joint data collection / focus group discussions – joint research projects.

2.  Exposure of national experts to global developments: creates ability to judge external impacts; allows to built own networks.

3.  A lasting national infrastructure of experts, farmers (groups) and advisors (if any).

4.  Make transparent natural, political and economic framework conditions and use of technologies and their impact on farmers decisions and production/income.

5.  Creation of time series: demonstrate how production systems evolve over time.

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Headquator Institut für Betriebswirtschaft Johann Heinrich von Thünen-Institut (vTI) Bundesallee 50, 38116 Braunschweig Germany

Contact

Jürn Sanders Tel.: +49-531-596-5123 Fax: +49-531-596-5199 E-mail: juern.sanders@vti.bund.de Internet: www.agribenchmark.org

www.vti.bund.de

agri benchmark - passionate about facts

Source: www.oekolandbau.de / Copyright BLE 26 Sanders/Rahmann

Mission statement

agri benchmark – understanding agriculture worldwide agri benchmark is a global, non-profit network of agricultural economists, advisors, producers and specialists in key sectors of agricultural the value chains. We use internationally standardised methods to analyse farms, production systems and their profitability. Our farm-level knowledge is combined with analysis of international commodity markets and value chains. In this way we are able to provide scientifically consistent and soundly based answers on strategic issues to decision makers in policy, agriculture and agribusiness.

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Step 2 - Comparison of production costs The data and the methods

! Typical farms representing majority of production in important regions (e.g. typical organic dairy or beef farm)

! Typical production systems = prevailing

! Harmonised selection of regions, farming systems, data collection and processing (standard operating procedure)

! Feedback with advisors and producers

! Detailed production systems and economic / financial data

! Whole farm data and allocation of costs to enterprises

! Consistent data sets and comparability of results 28 Sanders/Rahmann Source: agri benchmark

Pasture Silage Feedlot Cut & Carry

Feed % in > 30% > 30% > 50% grains > 30%dry matter pasture silage and and other freshly cut grass

other forages energy feed & other vegetation

Management/ Outdoor Closed or semi- Confined, large, Mix of pens and Housing year round or open barns with open pens, grazing of paths System part of the year slatted floors partially with and paddies

and/or straw bedding sun-covers

Extent of Low Medium High Low purchase feed

Type of animals Mainly steers Mainly bulls Mainly steers Mainly bulls(and heifers) (and heifers) (and heifers) (and heifers)

Main locations Southern Europe, North America, Asia and AfricaHemisphere, China, Australia, Italy,Ireland, UK increasingly Spain, South Africa,

South America incr. South America

Farm sizes Small to large Medium Large Small1,000-50,000 headone time capacity

Step 2 - Comparison of production costs / Example beef Production systems– feeding and management

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Step 2 - Comparison of production costs / Example beef Total cost by production systems 2010

0

200

400

600

800

1000

1200

1400

UA-

275

BR-6

00B

BR-6

00BR

-340

CO

-160

BR-2

40AR

-600

AU-3

10BR

-140

AR-5

50C

O-1

30C

O-3

50AU

-540

ID-1

00AU

-450

UK-

35C

O-4

5U

K-80

UA-

5600

CN

-300

DE-

285

DE-

525T

AR-1

200

PL-3

0D

E-28

0U

K-90

PL-1

2D

E-23

0FR

-200

SE-2

10FR

-90B

AT17

5TC

Z-50

0FR

-60

AT-1

20FR

-70

UK-

98AT

-35

SE-1

00D

E-80

0N

O-1

7AT

-25F

NO

-60

CO

-800

PE-1

700

MX-

1500

US-

75K

AU-2

7KAR

-40K

BR-1

550

AU-4

5KU

S-72

00AU

-15K

ZA-7

5KC

A-96

00ZA

-300

0ES

-550

0ES

-440

CN

-200

0IT

-288

0TIT

-910

ES-6

00C

N-9

40

Total capital cost Total land cost Total labour cost Other non-factor costs Feed Animal purchases

US$ per 100 kg carcass weight sold

Pasture

Feedlot

Silage

Source: agri benchmark 30 Sanders/Rahmann

Annex

6

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Share of organic area in total UAA, 2009

Source: Own presentation based on IFOAM / FIBL (2011)

% < 0.5

0.5 - < 1.0 1.0 - < 2.0

> 2.0

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Estimated value of exports of organic food and drinks in selected countries, 2009

Source: Own presentation based on IFOAM / FIBL (2011)

Aus

tral

ia1)

Aus

tria

Bol

ivia

Can

ada

Cos

ta R

ica

Cro

atia

Cze

ch R

epub

lic

Den

mar

k Fa

lkla

nd

Finl

and

Hun

gary

In

dia

Mex

ico

Net

herla

nds1

)

New

Zea

land

Pe

ru 0

40 80

120 160 200 240 280 320

Mio

. €

525

1) 2007