Swiss Agricultural Policy

SWISS AGRICULTURAL POLICY Objectives, tools, prospects 32 CONTENTS 3 Editorial 4 Basic conditions for agriculture 10 A new direction for agricultural policy 12 Implementing the agrarian reforms 16 International commitment 18 The tools of agricultural policy 20 Examples 26 Intermediate assessment 28 Key figures 31 Contacts EDITORIAL The Swiss population demands an agricultural sector which meets market demands and operates in an environmentally friendly way. In a popular vote held in 1996, a clear majority of the electorate voted in favour of adding a corresponding article on agriculture to the federal constitution. The multifunctional tasks for agriculture set out in this article include ensuring food supplies, conserving natural resources, taking care of the landscape and encouraging decentralised settlement. Changes that have occurred within and outside the country have had a decisive influence on Swiss agricultural policy. In fact a new system has been adopted. Today famers have to compete on the market – price and sales guarantees are a thing of the past. Protection against international competition has been reduced and maintaining their market share now represents an important challenge to Swiss farmers. Today as much as 40% of food is imported. The key elements of Swiss agricultural policy include direct payments as compensation for communal and environmental services provided by farmers. As op posed to agricultural products, landscape is not a tradeable good one can buy anywhere. Farmers maintain the landscape at their production site and are remunerated through direct payments. Agriculture in Switzerland is going through a difficult time at present: costs are high, com petition from abroad is becoming tougher and rational operation is not made easy by production conditions. Political support is necessary if farmers are to fulfil their obligations. They make an essential contribution towards maintaining a high standard of living in our densely populated country. The results of an intermediate assessment of agrarian reforms are positive. The chosen path is to be further pursued. For example, it has already been decided that milk quotas will be abolished in 2009. Whether the objectives can be achieved in the long term de pends to a great extent on the international environment. Food production and agricultural trade must be sustainable worldwide, and Switzerland intends to support this aim at an international level. Manfred Bötsch Director of the Federal Office for Agriculture 5 A variety of landscapes FARMLAND IS NOT ABUNDANT IN SWITZERLAND Switzerland comprises different cultures with different languages. The landscape is equally varied. High mountains, deep valleys, steep mountain meadows and rolling hills make up two-thirds of the surface area. Arable land, meadows, forests and settlements characterise the central lowlands, which are densely populated: good agricultural land is rare. Housing, industry, transport and agriculture all fight for their share of the land. For agriculture, this means difficult working conditions in upland and mountain areas. There is always less agricultural land available in the most desirable areas. In addition, lack of space with a dense transport network and many villages and towns make it difficult to farm the land economically. More than half of the farms in Switzerland have only 5 to 20 hectares of land, the Swiss average being 16 hectares. Bottom: 14% of the surface area of Switzerland is Alpine pastures. Main photo on the right: A typical landscape in the Swiss central lowlands. IN SWITZERLAND, AGRICULTURE HAS TO FACE PROBLEMS OF SMALL FIELDS DEFINED BY DIFFERENT TYPES OF NATURAL OBSTACLES, DIFFICULT TERRAIN AND A HARSH CLIMATE. 6 A variety of services HIGH-QUALITY PRODUCTS AND BEAUTIFUL SCENERY HAVE A PRICE The public’s demands for quality and safety with regard to food are high. Many consumers want to know exactly what is on their dinner-plate and how their food has been produced. But that’s not all. The people also appreciate being able to spend their free time in a well cared for and varied landscape. And furthermore, the diverse landscape also attracts fo reign tourists to Switzerland. Swiss farmers produce good quality food. General appreciation for the important role the farmer plays in maintaining the quality of farmland is also increasing. If agricultural land were not used the landscape would be very different. Food production and care of the landscape are a good combination, but with the high level of prices in Switzerland they do not come free. Fair prices for producers and direct payments for maintaining the land scape are necessary if farmers are to be able to fulfil the task allotted to them. Main photo on the left: Mowing mountain meadows is an important part of main taining the landscape. Bottom: Dairy farming is the most important branch of Swiss agriculture. THE MANY DEMANDS OF SOCIETY TODAY CAN BEST BE MET BY A MULTIFUNCTIONAL AGRICULTURAL SECTOR. 9 A variety of farm types TRADITION AND INNOVATION COMBINE WELL Despite rapid economic and social evolution, customs and tradition are highly valued in Switzerland. Many customs originated in the farming community, including the festivities to mark the cattle being taken up to the summer Alpine pastures, which are very popular among the population as a whole. Traditional products are also much sought after; old recipes and the use of state-of-the-art technology are easily combined. Tradition and inno vation provide an impetus for new products, sales channels or ways of working together. Agriculture has taken up the challenge of combining tradition and innovation. Conditions are difficult, however: production costs are high, competition is constantly increasing and funds for compensation for public goods are limited. Many farmers have therefore decided to specialise and invest in modern equipment. Others provide services on the farm itself or simplify their production and have a second paid job. Here they enjoy the support of re searchers and extension services. Main photo on the left: Agricultural and food research leads to improvements in the quality and safety of farm produce as well as production methods. Main photo, top: Cow fights in the Valais have a long tradition. AGRICULTURE HELPS TO MAINTAIN RURAL COMMUNITIES. 1110 The principal objectives of Swiss agricultural policy are set out in the federal constitution, according to which the Confederation undertakes to devise measures for promoting agriculture that enable it to fulfil its multifunctional tasks. A new direction for agricultural policy MULTIFUNCTIONAL AGRICULTURE AS A WAY INTO THE FUTURE Sunday 9 June 1996, was an important day for agriculture in Switzerland. On that day over three-quarters of the voters approved a new article on agriculture to be added to the constitution. With this decision the Swiss population confirmed their desire for a multi functional and sustainable agricultural sector. Four main tasks for Swiss agriculture The main tasks of agriculture in Switzerland are described in the federal constitution. It is to make a major contribution towards ensuring food supplies for the population. Production methods are to be used which ensure that future generations will have a fertile soil and clean drinking water. This means that ecological standards are an important objective of agricultural policy. Furthermore, the new article recognises that taking care of the land scape is an essential task of agriculture. A varied landscape means a high quality of life for the population and is at the same time the basis of a flourishing tourist industry. Finally, agriculture is to help maintain rural areas, an aim which is also supported by regional poli cies. Agrarian reforms were unavoidable At the end of the 1980s, agricultural policy, which then guaranteed farmers fixed prices and markets for their products, had reached its limits. The cost of such a policy for the public coffers was rising continually and the ecological deficit in the agricultural sector was becoming more and more obvious. In addition, efforts towards deregulating world trade were creating increasing pressure to abolish protectionist measures in agriculture. A major political decision was called for. Proportion of state funds allotted to production and sales, direct payments and basic improvements 1990/92–2002 Production and sales 50 1990/92 2002 75 A fundamental change in the system As a result of a decision taken by parliament, comprehensive agrarian reforms were intro duced in Switzerland in 1993. The core of these reforms is the almost total abolition of market intervention and the introduction of direct payments not based on production as compensation for the farmers’ public and ecological services. During the 1990s, state guarantees for prices and markets were gradually faded out, causing farmers’ earnings to fall substantially. Today, farmers have to reckon with prices which are around 25% lower than ten years ago. Since 1999, all direct payments have been based on stringent proof of ecological performance (cross-compliance). This ensures that ecological methods are used throughout the country. The multifunctionality of agriculture is undisputed The lack of space in Switzerland means that agriculture has to fulfil various functions simultaneously. It is multifunctional, which is the best way that agricultural policy can take into account the different requirements. Multifunctional agriculture comes at a price, however: public goods have to be remunerated separately. Maintaining the landscape is a service which is dependent on the location and cannot simply be “bought” anywhere. Producer, consumer and import price index for food 1992–2002 80 70 100 1992 1994 1996 1998 2000 2002 Direct payments 25 90 Producer price index for agriculture National index of consumer prices for food and beverages Price index for imported foodstuffs 110 % % Basic improvements 1312 Ecological direct payments create an additional incentive Particular services are remunerated separately through ecological direct payments. Parti cipation in this programme is optional. The aim of one of the proposed programmes is to create valuable habitats for animals and plants. Among other things, the farmer receives additional payment for extensive meadow-land, reed-beds, natural field margins, perma nent flowery meadows and rotated fallow fields, hedges, copses and wooded river banks and standard fruit trees (with trunk and crown). An additional programme was started in 2001 aimed at raising the quality of these ecological zones and encouraging farmers to link them up. Organic farming is also subsidised. Between 1993 and 2002, the number of organic farms rose fivefold to reach a total of 6,000. Particularly animal-friendly stabling and regular outdoor exercise for animals are also encouraged. The requirements for these programmes are far more stringent than the terms of legislation on animal protection. In 2002 30% of all animals were kept in particularly animal-friendly conditions and 61% had regular out door exercise. Every summer 120,000 cows and 350,000 calves, 220,000 sheep and 20,000 goats spend three months on Alpine pastures. Farmers receive payment for trans humance on condition that they farm the Alpine pastures in an environmentally friendly way. A separate programme aims specifically to improve the quality of the water in prob lem areas. The system of direct payments was introduced in 1993. They are not based on production and enable Switzerland to fulfil its commitments to the WTO. They represent compensation for public goods expected by the public and provided by farmers and the latters’ contribu tion towards preserving the environment. The change over from the old to the new system was implemented step-by-step. Proof of ecological performance (cross-compliance) encourages farmers to adopt environmentally friendly methods Since 1999 ecological standards have become even more important: farmers receive direct payments only if they meet certain requirements. The key elements of proof of eco logical performance are an appropriate proportion of ecological compensation areas, rational use of fertilisers, crop rotation, soil protection, economic and specific use of plant treatment products and animal welfare measures. Linking direct payments to these con ditions has resulted in almost all farmland in Switzerland being used in a more environ mentally friendly way than in former times. General direct payments are compensation for basic services A distinction is made between general and ecological direct payments. General direct payments are compensation for the basic tasks, as set out in the constitution, of ensuring food supplies, maintaining the landscape and helping to preserve social structures in rural areas. Food production based solely on market demands cannot ensure this variety of services. Direct payments are therefore necessary. General direct payments are made up of a sum based on the area of the farm plus a sum for grazing animals. In upland and mountain areas additional sums are paid out to allow for the more difficult farming con ditions. This ensures that basic requirements are met all over the country. Areas under organic farming 1993–2002 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Implementing the agrarian reforms DIRECT PAYMENTS AS A KEY TOOL OF AGRICULTURAL POLICY Switzerland has various tools with which to implement its agricultural policy. The main tools include direct payments which are not based on production. Today the amount of funding used for market support is far lower than before. Import con t rols permitted by the WTO help to ensure that agriculture in Switzerland will de velop in a socially acceptable way. 50’000 75’000 100’000 25’000 Ecological compensation areas 1993–2002 In order to receive direct payments a farmer must set aside at least 7% of his farmland (exception in the case of fruit, vines and vegetables: 3.5%) for ecological compensation areas which he must manage according to special criteria. ha1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 50’000 75’000 100’000 25’000 ha 1514 Reduction of market support The role played by the state in relation to the market has changed dramatically over the past few years. On the internal market, prices and quantities produced are largely deter mined by supply and demand. With the exception of milk, production-based subsidies are few. Overall, such subsidies were reduced by a third between 1999 and 2003. On the other hand, agrarian reforms reinforced tools which are less interventionist vis-à-vis the market. For example, self-help measures taken by inter-branch bodies and producers’ organisations or measures to promote sales are supported. Labelling traditional products from specific areas is also encouraged. Compulsory labelling of foreign products which are produced using methods forbidden in Switzerland should lead to greater transparency. Import duty on foreign products is still important since Swiss farmers work in a country where high costs and a high standard of living prevail. Milk quotas are abolished Dairy farming is a particularly important branch of agriculture in Switzerland, generating one-third of earnings. Some 25% of the milk produced is processed and exported, mainly in the form of cheese. By 2007 cheese trade with the European Union will be completely deregulated. This means that pressure on milk production will rise once again. The central element of the present dairy sector is subsidies for cheese production, whereby milk which is processed to make cheese is subsidised, regardless of whether the resulting cheese is sold within Switzerland or abroad. At present, the quantity of milk produced is regulated by the state. In 2003, however, the Swiss parliament decided to abolish milk quotas in 2009. In addition, it approved legislation by which production-based milk subsidies may be converted into direct payments. Meat and crop production principally for home consumption Unlike cheese, the production of meat and crops is not geared towards export. In the case of meat, 70% of Swiss consumption is home-produced, while 45% of plant products consumed in Switzerland are home-produced. For both cattle and arable farming, import controls are an important tool for assisting home production. Additional funding is used in particular for certain plant products, including sugar-beet, oil-seed, potatoes and fruit. In the case of oil-seed, the aim is to maintain a minimum production within Switzerland. Improving competitivity Agrarian reforms have increased pressure on farmers to become more competitive. Over the past few years, for example, the market has seen a greater range of agricultural products and direct marketing of products and specialities has increased. Nevertheless, between 1990 and 2002 the total number of farms fell by 25,000 to 68,000. Challenges are still tough. Structures need to be set up to offer farmers good prospects for the future. Public funds will therefore continue to be made available to improve basic production conditions. Subsidies and investment loans are available for construction work. Start-up assistance in the form of interest-free loans enables young farmers to take over farms. An important role is also played by the publicly funded agricultural research stations and extension services, which are essential for a sustainable agricultural sector. THE STATE IS DRASTICALLY REDUCING ITS DIRECT INTERVENTION IN THE MARKET AND URGING INCREASED COMPETITION. Earnings from production 1990/92–2002 2000 3000 1000 1990/92 2002 4000 m. CHF Federal expenditure for production and sales 1990/92–2002 Dairy farming Cattle farming Arable farming 600 900 300 1990/92 2002 1200 m. CHFDairy farming Cattle farming Arable farming 1716 The agricultural agreement with the European Union The agricultural agreement between the European Union and Switzerland came into force on 1 June 2002. This agreement facilitates market access for both parties. It includes on the one hand, a reduction or complete abolition of import duty on certain products, and on the other hand simplified commercial procedures. The core of the agricultural agreement concerns cheese; all trade barriers will be abolished by 2007. From then on, it will be pos sible for Switzerland and all EU countries to import and export all types of cheese with no restrictions on quantities and no import duty. An evolutionary clause allows for the ag reement to be modified in the future. Moreover, bilateral negotiations on further agreements have included discussions on processed agricultural products such as chocolate and biscuits. Sustainable development in mountain areas A further major area of Switzerland’s international political activities concerns the develop ment and problems of agriculture in mountain areas. In June 2002, in close collaboration with the Food and Agriculture Organization (FAO), Switzerland organised an international conference on “Sustainable Agriculture and Rural Development in Mountain Areas”. Around 200 participants from 57 countries approved the Declaration of Adelboden, which defines specific problems encountered by mountain farmers and the particular develop mental potential of such areas. It urges all governments and interest groups to support concrete strategies and tools for promoting sustainable agriculture and rural development in mountain areas. Imports of agricultural products exceed exports by a factor of more than 2. In 2002 Switzerland imported agricultural product to a value of CHF 8.5 billion while exports brought in only CHF 3.5 billion. Agriculture in Switzerland is greatly affected by efforts being made to further deregulate world trade. Complete deregulation of markets for agricultural products is unfavourable to the need of many countries, including Switzerland, to maintain their own agricultural sector. Non-trade concerns should be paid more attention by the WTO The WTO Agreement on Agriculture is centred on improving market access and reducing export subsidies and domestic support. Together with other countries, Switzerland is also urging that non-trade concerns be taken into account. These countries fear that, with further steps towards deregulation, not only will their food production decrease but the non-commercial services provided by agriculture will fall below a desirable level. Examples of non-trade concerns are maintaining rural communities, environmental protection, gua ranteeing good quality food, ensuring food supplies, labelling and indication of origin, as well as animal welfare. Switzerland to improve market access for the least developed countries Switzerland is keen to help the 49 poorest developing countries (LDCs). On 1 January 2002 import duty on all agricultural products supplied by these countries was reduced by 30%, and it is planned to make a similar reduction in 2004. At a later date no import duty at all will be levied on agricultural products from LDCs. International commitment THE INTERNATIONAL DIMENSION OF SWISS AGRICULTURE The European Union is Switzerland’s main trading partner for agricultural pro ducts. The agricultural agreement which came into force on 1 June 2002 facilitates mutual access to markets. In WTO negotiations, Switzerland, along with other countries, has urged that more attention be paid to non-trade concerns. Degree of self-sufficiency 2001 50 75 25 100 Import and export of agricultural products and processed foodstuffs per head of the population in selected countries 2001 0 500 1000 500 1500 1000 Exports Export excess Import excess Imports F NL AUS USA D GB CH J Milk and dairy products Meat (including fish) Vegetable products Total foodstuffs Imports and exports 2002 4000 6000 2000 Total value of exports CHF 3,535 million Total value of imports CHF 8,530 million 1000 3000 5000 European Union Developing countries USA Other countries % m. CHF US $ THE TOOLS OF AGRICULTURAL POLICY Switzerland has various tools for implementing its agricultural policy, which can be divided into the following categories: production and sales, direct payments and basic improvements. As a rule, the Federal Office for Agriculture is respon sible for implementation. Further information can be obtained at www.blw.admin.ch. GENERAL TOOLS SPECIFIC TOOLS PRODUCTION AND SALES DIRECT PAYMENTS BASIC IMPROVEMENTS Dairy farming · milk quotas (to be abolished in 2009) · additional payments for cheese-making · additional payments for not silaging · domestic and export grants for dairy products Cattle farming (including egg production) · grants for reducing the meat supply (temp.) · export grants for breeding animals and other livestock · subsidies for reducing the egg supply (temp.) · subsidies for constructing animal-friendly hen-houses Arable and fruit farming · subsidies for areas devoted to oil-seed · subsidies for processing and marketing su gar-beet, oil-seed, potatoes, fruit and wine · subsidies for adopting new crops and inno vative varieties in fruit-farming and vine yards (only until 2011) · vineyard register · Support for self-help measures · Register of protected designations of origin and geographical indications · Support for sales promotion · Compulsory declaration of production methods forbidden in Switzerland · Import duty and tariff-rate quotas according to WTO regulations · Proof of ecological performance balanced use of fertilisers appropriate proportion of ecological compensation areas crop rotation suitable soil protection meaures selection and specific application of plant treatment products animal-friendly conditions for animals · Further conditions minimal amount of work age limit agricultural qualifications (as of 2007) limits for income, assets and for pay ments per labour unit · Spatial planning · Land and tenancy rights for farmers · Protection of nature and the landscape · Research and training Structural improvements · grants to communal projects for: reapportionment of farmland providing access by road and installing water and electricity regional projects involving agriculture construction work in upland and mountain areas · investment loans (interest-free) for individual farmers: renovation and construction of new farm and residential buildings start-up loans for young farmers diversification into activities closely linked with farming Social measures · interest-free loans for farmers in financial need through no fault of their own · grants for re-training (only until 2011) Research and development · funding and operation of agricultural re search stations · grants to the Research Institute of Organic Agriculture · support for basic and further training as well as extension services (Federal Office for Pro fessional Education and Technology · promotion of animal husbandry and plant breeding Food safety · licensing system for inputs, testing of diffe rent varieties, fodder and seed controls · protecting plants against dangerous pests · eradicating livestock epidemics (Federal Ve terinary Office) · regulations concerning foodstuffs: registra tion, ingredients, labelling, declaration and hygiene (Federal Office of Public Health) · compulsory labelling for genetically modified organisms Promoting genetic diversity · national plan of action for maintaining biodi versity in flora and fauna General direct payments · payments based on acreage: basic amount for total area of farmland and additional amount for open arable land for sloping terrain in upland and moun tain areas for sloping terrain and terraces in vineyards · payments for animals: grazing animals kept under difficult production conditions in upland and mountain areas Ecological direct payments · payments for organic farming · payments for extensive production of cereals and rape-seed · payments for particularly animal-friendly conditions · payments for transhumance of grazing animals · payments for ecological compensation areas: extensive meadow-land, less intensive meadow-land, reed-beds hedges, copses and wooded river banks flowery meadows, rotated fallow fields, natural field margins standard fruit trees (with trunk and crown) · payments for the quality and interlinking of ecological compensation areas · payments for improving water quality in problem areas 18 19 2120 Many farms in the Swiss central lowlands practise intensive farming, as in the Wauwil valley north of Lucerne, for example. On the initiative of the Swiss Ornithological Institute in Sempach, a project for improving the birdlife in this area was set up in 1995 and has been running successfully since. The measures taken are supported by public funds. Some 40 farmers are participating in the project, as well as local nature conservation organisations and all the boroughs within the area. Open discussion between those involved has been an important factor in ensuring the success of the project. A number of valuable protected areas already existed in the Wauwil valley. To these were added the ecological compensation areas created under the new agricultural policy. Thanks to the fact that these protected habitats are now linked up, animals and plants can flourish over a wider area. The large farm run by the cantonal prison has been a positive bonus to the project; new ideas and methods are tried and tested there. Many people also come to look at these pilot projects. Tests are carried out using key species to see whether the aims concering flora and fauna have been achieved. Ordinance on eco-quality In 1993 direct payments were introduced with the aim of promo ting biodiversity on farmland. The first survey made after this date revealed that although the proportion of land reserved for ecological compensation rose considerably, the quality and locations were not satisfactory. This finding led to the ordinance on eco-quality which came into force in 2001. Financial incentives have been introduced with the specific aim of improving the qua lity of certain ecological areas and linking them up to form a net work. Network subsidies are paid only if a regional network plan exists. The measures that have been agreed with the farming community include aims with regard to flora and fauna which should be achieved within six years. In the 1970s, Philippe Collaud’s father built a new cowshed half a mile outside St. Aubin in the canton of Fribourg. Since then things have changed. The producers’ price for milk has fallen and regulations concerning environmental and animal protection have been made more stringent. Philippe Collaud’s cowshed no longer met current requirements. Alex Collaud, whose farm buildings were in the village, faced similar problems but he could not modernise his farm. Together with a third farmer, he and Philippe built a modern shed for 80 cows. The three farmers decided on a simple structure, with the advantage that, apart from the foundations and the concreting, they were able to do almost all the construction work themselves. There are many advantages with a communal cowshed: the construction and running costs are lower for each person involved and less work is needed. In addition, the work can be shared, thus leaving each farmer more free time, especially at weekends. Structural improvements CONSTRUCTING A MODERN COWSHED – A JOINT PROJECT Animal-friendly conditions Animal welfare is a major issue in Switzerland. As early as 1981, for example, keeping battery hens for egg production was banned, and since 1999 it has been forbid den to feed anti-microbial perfor mance-enhancing substances. The state runs special programmes to promote particularly animal friendly conditions. Interest-free loans are available for improving facilities. Farmers in upland and mountain areas receive additional grants which do not have to be repaid. Bonuses are paid for the construction of particularly suit able animal sheds. Division of labour: Alex Collaud (left) is often to be found working in the fields while Philippe Collaud spends more time with the animals. Biodiversity PREVENTING LOSS OF FLORA AND FAUNA THROUGH NETWORKING 23 Over 20 years ago one thing was clear to Pius Caminada, a young mountain farmer from Vrin in the Grisons: if farmland was not reapportioned he could not continue farming. In 1982 the land-owners in Vrin voted in favour of a general reapportionment of farmland. At the end of this highly complicated process Pius Caminada had 19 separate plots in stead of the 120 he had had before. New farm tracks were also made throughout the area. Both measures made it considerably easier for all concerned to farm, which is why the process was subsidised from public coffers. The mountain village of Vrin, with a population of 280, has exhausted the advantages offe red by reapportionment of land. This move led to a reawakening among the population and generated new interest in future development. Since many cowsheds were in the village itself, it was included in the new plans. Some sheds in the village were converted. New, modern cowsheds which blend in well with the old buildings have been built on the edge of the village. The slaughterhouse was finished in 1999, which represented a further mile stone. The farmers can now have their animals slaughtered on the spot and sell the meat themselves. This generates considerably more income than when the animals were sold to a large slaughterhouse. Reapportionment of farmland A MOUNTAIN VILLAGE TURNS OVER A NEW LEAF The slaughterhouse designed by the well known architect Gion A. Caminada (top) is used by all the farmers in the area. Mountain agriculture In mountain areas farmers have to deal with difficult topography and harsh climatic conditions, factors which are taken into account in agricultural policy. In the case of direct payments, special payments are made for farms on steep land, and payments per head of cattle are also higher. Cattle farming in the mountains plays an important role in relation to nature. Alpine farming is supported through transhumance supplements. Alpine cheese is highly popular and the number of different types is almost endless. Direct sales channels, where tourism and regional development also play a major role, have increased in importance. 22 High-quality products A CHEESE ON THE ROAD TO SUCCESS Designation of origin The system of protected designa tions of origin, better known under the French abbreviation AOC, protects local products and the traditional methods used in their manufacture. It is a guarantee for consumers that they are buy ing an authentic product and thus enhances successful marketing. In 1997 Switzerland passed the necessary legislation for setting up a register of designations of origin, which is kept by the Federal Office for Agriculture. Discussions are currently being held with the European Union to establish mutual recognition of registers of protected products. In many respects, the Tête de Moine is an exceptional cheese. It is produced in nine dairies in the Swiss Jura Mountains and the milk used to make it comes from one clearly defined area. The cheese is left to ripen for around 3 months on planks of spruce before being supplied to shops. Tête de Moine is one of the few Swiss cheeses included in the register of protected designations of origin. For the consumer this guarantees that each Tête de Moine cheese is an original product made in the specific mountain area in the Swiss Jura, has been produced using traditional methods and has been through rigorous tests. Tête de Moine has been made for more than 800 years. It is particularly well known because it is normally not cut but shaved off into little rosettes using a special apparatus (“girolle”). A special association takes care of marketing the cheese. Advertising outside Switzerland has proved worthwhile: over the past few years the amount exported has steadily risen. In 2002 a total of 737 tonnes of Tête de Moine were sold outside Switzer land. The main foreign customer is Germany. Tête de Moine bears the much coveted AOC label, i.e. the name and manufacturing method are protected. 2524 Switzerland is one big meadow. Over 70% of farmland comprises meadows and pastureland. This explains why dairy and meat farming is such an important part of Swiss agriculture. The quality of the meadows is of great importance and fodder for winter feed is carefully preserved. In Switzerland up to 70% of fodder for cows comes from the meadows. When meadows are sown, the plant mixture is determined specifically in accordance with local conditions and always includes clover. The variety of in part contradictory requirements is particularly evident in meadowland management. On the one hand, farmers need high-grade fodder to achieve a high level of milk production using their own fodder and to buy in a minimum of concentrates. On the other hand, meadows also have to meet ecological criteria and offer a habitat for flora and fauna. Agroscope FAL Reckenholz, the Federal Research Station for Agroecology and Agriculture, has therefore drawn up a concept of staggered intensity for farming meadowland, according to which both requirements can be met by adapting the use and fertilisation of meadowland to local conditions. Applied research MEADOWS TO FULFIL VARIOUS REQUIREMENTS Specifically designed seed mix: Depending on what is needed, the quality of the fodder or the ecological value of meadows is improved. Passing on knowledge Thanks to the system for passing on agricultural knowledge the results of research and political stipulations regarding agriculture can be quickly implemented. The system involves the three areas of research, training and exten sion and the aim is to promote sustainable agriculture. Basic re search is carried out at the De partment of Agricultural and Food Sciences at the Zurich Federal In stitute of Technology and applied research at agricultural colleges and federal research stations which report to the Federal Office for Agriculture. Training and ex tension services are provided by the cantonal authorities, both areas being subsidised from pu blic funds. As a result of considerable economic pressure often only the most productive varieties of plants are grown. This leads to a drop in genetic diversity in cultivated plants. Old varieties are becoming rarer and with them local knowledge and corresponding traditions. The aim of the Inventory of Plant Varieties in Southern Switzerland is to discover rare varieties of vegetables, cereals and potatoes in that part of the country. Through the media the population has been urged to register rare varieties. Another part of the project is to test methods of tapping into local knowledge. Village markets have proved to be an excellent source. A very special variety of buckwheat was discovered on the market in Brusio in Poschiavo, for example. And in a remote valley in the Ticino, in a former shop which used to sell seed, various types of beans came to light. These seeds have now been planted in a special garden. Other interesting findings involve varieties of rye and maize. Genetic resources RARE VARIETIES IN SOUTHERN SWITZERLAND National plan of action In 1996 in Leipzig, 150 countries approved the worldwide plan of action drawn up by the United Nations Food and Agriculture Organization (FAO) aimed at maintaining and using plant ge netic resources in a sustainable manner. Switzerland’s national plan of action is part of this inter national effort. The Federal Office for Agriculture is supervising the plan and working in close col laboration with the Swiss Com mission for the Conservation of Cultivated Plants. The first phase of the plan (1999-2002) focused on setting up a network and an inventory of old cultivated plants. In the second phase, which is now underway, the emphasis is on implementing conservation concepts and public relations. The national plan of action led to the discovery of rare varieties of beans in a village in the Ticino. 2726 Intermediate assessment after ten years SWITZERLAND INTENDS TO PURSUE ITS CHOSEN PATH Thanks to agrarian reforms, major improvements have been made over the past few years. Today, Swiss agriculture is much more orientated towards market demands and ecological principles than ten years ago. Even if there still remains a lot to do, the path chosen is the right one. Changes will continue to be made in the structure of agriculture. It is not the aim of Swiss agricultural policy to maintain the old structure. But the new policy must ensure that the necessary changes are as socially acceptable as possible and that farmers who have decided to continue farming are offered good conditions in which to do so. Through direct payments it is possible to fulfil the aims set out in the constitution and at the same time respect the terms of agreements signed with the WTO. If the agricultural sector is deregulated too quickly, however, it will be difficult to fulfil the mandate laid down in the con stitution. The aim is to ensure a vital but at the same time environmentally friendly agricultural sector. For this reason Switzerland supports the principle of sustainable and multifunctional agriculture at an international level. A VITAL AGRICULTURE IS ESSENTIAL FOR SUSTAINABLE DEVELOPMENT. View of the Toggenburg and the Churfirsten. No. of people in gainful employment Primary sector 172’000 of which agriculture 130’000 Secondary sector 1’046’000 Tertiary sector 2’954’000 Total 4’172’000 BFS, 2002 KEY FIGURES General data Land-use in Switzerland Total area 42’285 km2 Farmland 24% Summer pastures 14% Forest 30% Lakes, rivers 4% Built-up areas 6% Unproductive mountain areas 22% SFSO Agricultural land Total area 10’698 km2 Natural and pastureland 61% Sown meadows 11% Arable land 26% Fruit, vines, vegetables 2% SFSO, 2002 Gross value added Primary sector 4555 Million CHF of which agriculture 3375 Million CHF Secondary sector 105’798 Million CHF Tertiary sector 297’469 Million CHF Total 407’822 Million CHF SFSO, SFU, 2001 Household expenditure Food, beverages, tobacco 10% Entertainment, recreation, culture 7% Transport 7% Hotels, restaurants etc. 7% Other goods and services 12% Insurance 21% Taxes and other charges 13% Donations, gifts 2% Rent, energy, furniture 21% SFSO, 2001 Federal expenditure on agriculture and food Production and sales 979 Million CHF Direct payments 2429 Million CHF Basic improvements 223 Million CHF Miscellaneous 435 Million CHF Total 4066 Million CHF Federal accounts, FOAG, 2002 Expenditure on agriculture and food represents 8% of the total federal budget. In addition to federal ex penditure, the agricultural sector receives CHF 500 million from cantonal and local authorities. Farms 1990 2002 0–3 19’819 7784 3–10 27’092 16’700 10–20 31’630 23’640 20–30 10’041 11’789 30–50 3549 6133 50–100 634 1296 >100 50 79 Total 92’815 67’421 Size of farms (in hectares of agricultural land) SFSO Data on agriculture Employees 1990 2002 Total family members 217’477 160’834 Managers 92’815 73’510 Other family members 124’662 87’324 Non-family 36’084 36’102 Total 253’561 196’936 SFSO Agricultural land according to type of use 1990 2002 Cereals 207’292 ha 173’482 ha Oil-seed 18’203 ha 20’961 ha Potatoes 18’333 ha 13’460 ha Sugar beet 14’308 ha 18’175 ha Silage and green maize 38’204 ha 40’202 ha Vineyards 14’987 ha 15’014 ha Orchards 7162 ha 6664 ha Vegetables 8250 ha 8437 ha Natural meadows, pastureland 638’900 ha 627’059 ha Sown meadows 94’436 ha 118’978 ha Other 18’525 ha 27’338 ha Total 1’078’600 ha 1’069’770 ha SFU, SFSO Livestock 1990 2002 Cattle 1858 1594 of which dairy cows 791 716 Pigs 1776 1561 Sheep 355 430 Goats 61 66 Horses 38 51 Fattening poultry 2878 4298 Laying and breeding hens 2795 2012 in 1000s SFSO Procuders’ prices 1990/92 2000/02 Milk 104.97 Cents/kg 79.23 Cents/kg Beef 9.28 Fr./kg DW1 7.64 Fr./kg DW Pork 5.83 Fr./kg DW 4.57 Fr./kg DW Poultry 3.72 Fr./kg LW2 2.76 Fr./kg LW Wheat 99.34 Fr./100kg 59.54 Fr./100kg Potatoes 38.55 Fr./100kg 35.40 Fr./100kg Sugar beet 14.84 Fr./100kg 12.17 Fr./100kg Rape 203.67 Fr./100kg 73.13 Fr./100kg 1DW: Dead weight, 2LW: Live weight FOAG, SFSO, SFU Main-income and secondary-income farms 2002 20’000 30’000 10’000 Secondary-income farms Main-income farms Lowland areas Upland areas Mountain areas A total of 470,000 people are employed in the food sector in Switzerland. Of these, 60,000 work in pre-agricultural industries and 215,000 in post-agri cultural industries. The remainder work in agriculture itself. Production 28 29 Published by Swiss Federal Office for Agriculture Concept and design Inform, Agentur für visuelle Kommunikation AG, Zurich Linguistic consultant Lukas Denzler, Zurich Printed by BuchsMedien AG, Buchs (SG) Photo of farmhouse on p. 8 and photos on p. 17: swiss-image.ch No. of copies produced German 6000 French 3000 Italian 1000 English 6000 Spanish 2000 Contact address and for orders Federal Office for Agriculture CH-3003 Berne Telephone +41 31 322 25 11 Fax +41 31 322 26 34 info@blw.admin.ch www.blw.admin.ch © 2004, FOAG Federal Office for Agriculture (FOAG) 3003 Berne www.blw.admin.ch State Secretariat for Economic Affairs (seco) 3003 Bern www. seco.admin.ch Federal Statistical Office (SFSO) 2010 Neuchâtel www.statistik.admin.ch Federal Veterinary Office (FVO) 3003 Berne www.bvet.admin.ch Swiss Agency for the Environment, Forests and Landscape (SAEFL) 3003 Berne www.buwal.admin.ch Federal Office of Public Health (SFOPH) 3003 Berne www.bag.admin.ch Federal Office for Professional Education and Technology (OPET) 3003 Berne www.bbt.admin.ch Agroscope ALP Liebefeld-Posieux Federal Research Station for Animal Production and Dairy Farming 3003 Berne 1725 Posieux www.alp.admin.ch Agroscope FAL Reckenholz Federal Research Station for Agroecology and Agriculture 8046 Zurich www.reckenholz.ch Agroscope FAT Tänikon Federal Research Station for Agricultural Economics and Engineering Tänikon 8356 Ettenhausen www.fat.ch Agroscope FAW Wädenswil Federal Research Station for Horticulture 8820 Wädenswil www.faw.ch Agroscope RAC Changins Federal Research Station for Plant Production Changins 1260 Nyon 1 www.racchangins.ch Research Institute of Organic Agriculture (FiBL) 5070 Frick www.fibl.org Zurich Federal Institute of Technology (ETHZ) Department of Agricultural and Food Sciences 8092 Zurich www.agrl.ethz.ch Lindau Agricultural Extension Centre (LBL) 8315 Lindau www.lbl.ch Romandie Agricultural Extension Centre (SRVA) 1000 Lausanne 6 www.srva.ch Swiss Farmers’ Union (SFU) 5201 Brugg www.bauernverband.ch Union of Agricultural Cooperatives and Organisations in Romandie 1000 Lausanne 6 Tel. +41 21 614 04 77 Swiss Working Group for Mountain Areas (SAB) 3001 Berne www.sab.ch AMS Agro Marketing Suisse 3007 Berne www.agromarketingsuisse.ch Swiss Commission for the Conservation of Cultivated Plants (SKEK) 1260 Nyon 1 www.cpc-skek.ch Milk production Structure 1990 2002 No. of dairy farmers 50’334 36’231 Mean annual quota per dairy farm 58’861 kg 83’407 kg FOAG Milk and dairy products Production Consumption per head Self-sufficiency Drinking milk 503.325 t 81.4 kg 97% Butter 42.226 t 5.5 kg 85% Cheese 160.403 t 19.8 kg 116% TSM, SFU, 2002 Export of dairy products Exports Semi-hard/hard cheese 44’955 t 39% 437 Million CHF 80% Powdered milk 16’168 t 14% 40 Million CHF 8% Processed cheese 4609 t 4% 34 Million CHF 6% Other dairy products 48’982 t 43% 34 Million CHF 6% Total 114’714 t 100% 545 Million CHF 100% Imports Fresh/soft cheese 16’777 t 28% 141 Million CHF 47% Semi-hard/hard cheese 11’508 t 19% 105 Million CHF 35% Processed cheese 2297 t 4% 15 Million CHF 5% Other dairy products 28’956 t 49% 37 Million CHF 13% Total 59’538 t 100% 298 Million CHF 100% Directorate General of Customs, 2002 Meat Production Consumption per head Self-sufficiency Beef 104’808 t 10.6 kg 85% Veal 34’691 t 3.8 kg 92% Pork 235’736 t 25.5 kg 92% Lamb/mutton 5930 t 1.5 kg 35% Poultry 31’196 t 9.7 kg 43% Proviande, SFU, 2002 Vegetable products Production Consumption per head Self-sufficiency Cereals 1’081’100 t 50.0 kg 62% Potatoes 528’200 t 54.0 kg 102% Sugar (beet) 1’422’041 t 47.0 kg 63% Oil-seed 67’900 t 14.5 kg 19% Dessert fruit 133’000 t 52.0 kg 35% Vegetables 309’000 t 72.0 kg 51% Red wine 546’595 hl 27.4 l 29% White wine 565’804 hl 12.3 l 74% FOAG, SFU, 2002 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 CHF 40’000 60’000 80’000 20’000 Income from agriculture Secondary income Changes in income Income from agriculture by regions 1990/92 2000/02 Lowlands Area of agricultural land 16.66 ha 20.01 ha Family members employed 1.36 FAWU1 1.26 FAWU Income from agriculture 73’794 CHF 67’864 CHF Total income 90’223 CHF 85’061 CHF Mountain regions Area of agricultural land 15.76 ha 18.68 ha Family members employed 1.42 FAWU 1.37 FAWU Income from agriculture 45’541 CHF 41’789 CHF Total income 63’394 CHF 61’514 CHF 1FAWU: Family average working unit FAT Economic results in farming 30 31 CONTACT ADDRESSES