Using the Farm Accounts Data Network (FADN) to identify the structural characteristics and economic performance of EU cattle systems
F. Colson, V. Chatellier and K. Daniel
Institut National de la Recherche Agronomique,Rue de la Géraudière, B.P. 71627,
44316 Nantes,France.
Abstract
This paper presents a method for the comparative analysis of both the structural characteristics and economic performance of cattle farms in twelve European Union Member States. This analysis is based on 1991 data from the Farm Accounts Data Network (FADN), which using 58 000 representative farms produces a comprehensive data network of 4.4 million professional farms.
The typology used covers all cattle farms over five livestock units in size, which it classifies into four types according to the type of cattle involved (dairy, suckler cows, mixed milk and beef, beef fattening). The 1.4 million European cattle farms can thus be classified as follows: 61% dairy, 23% suckler cow, 6% mixed beef and milk and 10% beef fattening. The dairy and mixed systems are specialised (the gross income from livestock (milk and beef) represents, on average, more than 70% of the farm's total gross income) whereas on suckler cow and beef fattening farms, the gross income from livestock represents just one third of the total.
The average size of European cattle farms is 37 hectares, with 62% fodder area and 40 livestock units, that is to say an average stocking density of 1.74 livestock units per hectare of fodder. Analysis of economic performance shows very important differences between Member States, which are a result of the differences in the size and specialisation of farms.
In the countries of northern Europe, economic scale, earnings and the return on capital increase as cattle production intensifies. In the countries of southern Europe (Italy, Spain, Portugal and Greece), farms are small in size, fodder area is limited and the effect of intensification on income is less marked.
Whereas dairy farms are mainly concentrated in populated areas of intensive production, suckler cow farms are found in sparsely populated regions, where the agricultural potential is limited. In all countries, suckler cow systems are generally less specialised and less profitable than dairy farms. On the other hand they have a larger fodder area and are heavily dependent on direct subsidies.
The technical and economic data which is available in the FADN has proved very useful in characterising different cattle production systems and in appraising the different effects of the proposal for CAP reform presented by the European Commission in it's position paper Agenda 2000.