Eidgenössisches Departement für Wirtschaft, Bildung und Forschung WBFBundesamt für Landwirtschaft BLW

Development and future perspectives for Agricultural Policy in Switzerland and Europe

Bernard Lehmann, Federal Office for Agriculture FOAG

Dairy Press Tour Switzerland, 27 October 2013

2 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Overview

• Information about Swiss Agriculture

• Challenges for Agriculture

• History of Agricultural Policy in Switzerland

• Current Agricultural Policy

• Outlook

3 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

About Swiss Agriculture

Natural conditions

Jura

Alps

Plains

4 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Arable land 23 %

Meadows andpastures59 %

Fruit and vegetables, 2%Vineyards1%

Sown meadows, forage crops 15 %

About Swiss Agriculture

Land Use

5 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

2010: 10.3 bn CHF

Source: OFS

About Swiss Agriculture

Product portfolio

6 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Overall self-sufficiency rate Switzerland: about 60%

Kg per person and year

MilkFresh Fruits

Fresh Vegetables

CerealsPotatoe

SugarWine

Pork meatCheese

Fats & OilsChicken meat

Beef meatEggsFish

CreamButterCacao

Veal meatSource:

Farmers Union

About Swiss Agriculture

Food consumption and production

Imports

Swiss production

7 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Challenges for Swiss Agriculture

Switzerland as an island?

Switzerland Germany France Austria0

20

40

60

80

100

120Prices for production inputs

Switzer-land

Germany France Austria0

10

20

30

40

50

60

ha

Farm size

Milk Wheat Corn Pork0

20

40

60

80

100

120Prices for agricultural products

0

10'000

20'000

30'000

40'000

50'000

60'000

70'000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Cheese import and export total (in t)

Importe ExporteQuelle: OZD

8 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Quelle: Global Footprint Network (2009)

Challenges for Agriculture

Need for ressources

Sustainable development

Human Development Index

Eco

logi

cal F

ootp

rint (

Glo

bal

hect

ares

per

per

son)

Land per person

9 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Challenges for Agriculture

Climate Change

Quelle: World Bank (2010): World development Report 2010: Sources: Müller and others 2009; World Bank 2008c.

Need for irrigation water (m3/ha)

10 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Challenges for Agriculture

Mitigate negative emissions

Fine Dust

Pesticides

NutrientsGreenhouse gas

11 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Challenges for Agriculture

Enhance positive emissions

Biodiversity

Landscape Decentralized settlement

Soil protection

12 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Step I Decoupling of support (direct

payments)

Price reductions

Incentives for specific ecological services (e.g. biodiversity)

Tariffication of market access instruments (WTO)

Focus: decoupling and environment

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Step II „AP 2002“ Liberalisation of domestic

markets Competitiveness Abolition of market

intervention systems

Cross-compliance for all direct payments

Focus: market orientation

Step III „AP 2007“ Abolishment of dairy

quota system

Further steps toward more competitiveness

Strengthening of rural areas and social accom-panying measures

Focus: competitiveness /

social sustainability

History of Swiss Agricultural Policy

Step by step reform process

13 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Output Food

Impact on Environment, Animals, Landscapes (& Risks)

Biodiversity, fragmented agricultural landscapes

Emission per area(Water, Air, Soil)

Less productive production systems because of ecological motivation

Reserving space for biodiversity

Prod

uctiv

ity /

ha

Past policies

Agricultural Policy 2014-17

History of Swiss Agricultural Policy

Impact of change in Agricultural Policy

14 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

History of Swiss Agricultural Policy

Development of Producer Support Estimate

OECD 2013

% of gross farm receipts

Commodity Output

Non commodity criteria

OECD 2013

15 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Current Swiss Agricultural Policy

Agricultural Policy 2014-2017

Land use planning

Improvement of production structure

Border protection

Contribution for food security and quality of landscape

Programmes Art 37: Dairy trade contracts

Art 11: Innovative projects

Biodiv.

Landscape

Ressource

s

Systems

Agricultural Policy 14/17

16 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Current Swiss Agricultural Policy

Dairy market policy

Allowance for milk processed into cheese plus allowance for feeding without silage

Federal Council has possibility to extend self-help measures of an organization - that meets specific requirements - to non-members (since 2002)

Art 37: Stepwise procedure for dairy contracts 2014

Milk producer and processor must conclude a contract that fulfills minimum requirements

Possibility for the government to make contract compulsory

Worst case: Government designs an obligatory contract

17 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Outlook

The role of Agricultural Policy

CHALLENGES FOR

AGRICULTURE AND FOOD ECONOMY

FUNCTION AND POSITION IN THE DYNAMICS OF THE MARKETS

(ABBILITY TO WITHSTAND COMPETITION AND TO GROW)

FUNCTION AND PLACE IN SPACE AND ECOSYSTEMS(SPACE- AND ECOSYSTEM COMPATIBLE PRODUCTION

SYSTEMS = AGROECOSYSTEMS)

18 Dairy Press Tour Switzerland, 27 October 2013Bernard Lehmann, Director General Federal Office for Agriculture

Thank you for your attention