Concentration of livestock production

Martin BOSCHMA, Alain JOARIS, Claude VIDAL (Eurostat)

Over the last twenty years, livestock has played and continues to play, a major role in agriculture, but the circumstances under which farmers run their farms have changed fundamentally. This can be noted especially in central and northern areas of the European Union, where small extensive holdings have been replaced by modern, more intensive and specialised holdings. These developments together with the utilisation of improved feed stuffs and the introduction of more specialised animal types, have led to a large growth in the production and the productivity of the livestock sector. This in turn has led to new pressures on the environment.

Intensification and scale enlargement

Together with arable farming, livestock husbandry has always been an important and traditional part of agriculture. But the number of holdings specialising in this kind of agriculture has declined by one third over the last 20 years, more than the 25% decrease reported for all farms. In 1995, the 2.1 million farms specialised in livestock husbandry represented only 28% of all the agriculture holdings in the EU 15.

The total agricultural area (AA) used by these specialised holdings has also decreased over the same period, but only by 6%. In 1995 it covered a little bit less than half the total AA in the European Communities: 40 million hectares in EU 9 and 54.3 million hectares in EU 15.

These figures clearly show the trend for these specialised holdings over the last 20 years: a scale enlargement, i.e. fewer but larger farms. The average area used by such a farm in EU 9 has increased by 40% between 1975 and 1995 and reached 28.5 ha in 1995, 50% more than the average size farm in EU 15: 17.5 ha.

Intensification and specialisation

Economically, livestock husbandry is also of considerable importance in the agricultural sector. The total standard gross margin of specialised livestock holdings has doubled over the last 20 years, but this increase is only slightly larger than for all holdings taken together. In 1975, 40 % of total ESU for EU 9 came from the specialised livestock holdings, while in 1995 this percentage decreased slightly to 38% (EU 9) and is even less with 36% for EU 15.

The holdings specialising in grazing livestock (mainly cattle) provide the most important part of the total standard gross margin of the holdings specialised in livestock husbandry. Their share is increasing over time together with that of holdings specialised in pigs and poultry. On the contrary, mixed livestock farm are losing importance. In 1995 for EU 9, only 9% of the holdings specialised in livestock were active in several types of livestock husbandry ¹, down from 22% in 1975.

The relationship between agriculture and the environment is not static. Agriculture has intensified and intensification has in turn increased pressure on the environment. Livestock husbandry is more and more taking place on specialised and even very specialised farms with more and more intensive farming practices. Depending on the cultivated area on the farm and on the equipment installed for the processing of manure, the impact on the environment can be either positive or negative. For example, increasing specialisation can also increase a manure application that is unsuitable for the type of land on the holding. This could over the years lead to a build-up of nitrate or phosphate deposits. The increasing number of animals is the major source of ammoniac emissions, which lead to soil and water acidification and contribute to damage to forests through acidity in rainfall. In general, farming practices that intensify the use of inputs will increase the emissions.² But management aiming towards sustainable agriculture and an increase in specialisation while cultivating the right type of crops on which to spread the manure following good agricultural practices need not have such a negative impact on the soil, perhaps even the contrary (by a decrease in the use of mineral fertilizers).

Cattle husbandry: fewer holdings but more animals per holding.

The traditional sector of livestock is cattle husbandry (Figure 1). Cattle are kept either for milk or meat production; the milk sector is dealt with separately because of its specific nature. Increases in mechanisation and automation, combined with increases in labour costs have led to significant changes in the structure of the cattle sector.

The decrease in number of holdings for a broadly constant cattle population in the global EU context (80 Mio EU 9 in 1978 and 85 Mio EU 15 in 1995) have led to a major increase in the average number of cattle per holding (Figure 2). In most Member States the number of cattle per holding with cattle has at least doubled in the last 20 years. The increase measured in Livestock Units echoes the growth of the number of heads in most Member States where structure of the livestock kept on the farm remains more or less the same. But in B, F, and NL the share of young cattle is becoming more important. The number of LSU per holdings with cattle is not increasing, although the number of heads is (Table 1).

There remains a huge difference in the average number of cattle per holding between northern and southern Europe. For example in 1995, the UK average (87) was nearly nine times that of Portugal (10).

The total AA of the farms with cattle husbandry has decreased at the European level since 1975 (25 Mio hectares in EU 9 in 1975 and 24 Mio hectares in EU 9 in 1995). But the number of cattle per AA does not show such a clear trend (Figure 3). There was a constant and general increase between 1975 and 1985 which has been stopped or at least slowed after 1985, probably due to the introduction of the milk quotas in 1984. This measure has had different consequences in Member states such as Greece and Italy, where cattle livestock intensity has on the contrary increased.

Holdings specialising in cattle represent the most extreme type of livestock husbandry. In 1995, for the whole EU 15, the number of holdings specialised in cattle was 52% of the holdings specialised in livestock, and 59% of those specialised in grazing livestock. In EU 15, in 1995, 53% of the holdings with cattle were specialised (61% for EU 9), but the difference between Member States is quite important (Figure 4).

The standard gross margin of cattle production is also quite large compared to other enterprises. In most Member States, the economic size of holdings specialising in cattle husbandry is higher than the national average for all farms (Figure 5). For EU 15 it was 25 ESU in 1995, which is two thirds more than the average economic size of all holdings taken together. But cattle production is not that homogeneous either since cattle rearing and fattening farms have always a smaller economic size than dairy ones, although there are large differences in absolute terms between Member States. The economic size of dairy farms is always higher than the national average, whereas rearing and fattening holdings are very often below.

Among the already highly specialised cattle holdings, dairy specialists are even more specialised. Two thirds of the standard gross margin from specialised holding in livestock husbandry and three quarter from those specialising in cattle come from holdings specialised in dairying. The differences between the north and the south of Europe are significant. In 1995 on average 90% of the holdings with dairy cows in Finland and Sweden were specialised versus only 11% in Greece.

Dairy cows: the effect of the milk production quotas

Within cattle husbandry milk production has always held a special place. Normally in winter the cows are kept indoors and during summer they graze outside. So on the holdings, grassland (meadows) and/or fodder crops should be available. The introduction of the milk production quotas in 1984 has greatly influenced this sector, as they continue to have a great impact on the structure of holdings. In 1995 in EU 15 one quarter of the total number of cattle were dairy cows. Dairy cows were kept on more than 50% of the holdings with cattle (Figure 6).

During the last twenty years the number of dairy cows has decreased sharply in the EU. The most important reasons for this are not only the introduction of the milk quotas, but also the increase in milk yield per cow, the improvement of feedingstuffs, the reduction of cost through the introduction of new machines and the increase of the labour cost (see article "Changes in agricultural employment"). The number of dairy cows has decreased considerably in several Member States. A drop between 30% and 40% in the number of dairy cows was recorded in France, Denmark and in Luxembourg between 1975 and 1995. In Ireland the reduction was only 13%. In Germany, due to the reunification, the trend is relatively stable at only 3%. The decrease of the total number of dairy cows became more important in all Member States after 1985, following the introduction of the milk production quotas. The drop in the number of dairy cows has mainly taken place after 1984 for EU 9, since 39% of the total decrease of the last 20 years in these Member States has taken place between 1985 and 1989/90 and 47% between 1989/90 and 1993³. 

The decline in number of holdings with dairy cows has been considerably greater. Between 1975 and 1995, more than 1.5 million holdings with dairy cows disappeared in EU 9. According to the FSS, only 30% of the holdings surveyed in 1975 remained in 1995, even less in Denmark, France and Italy where only a quarter of the 1975 number was found (Table 2). By 1985, 57% of this decline had already taken place and the introduction of the milk quota speeded up the process with an additional 25% decrease lost between 1985 and 1989/90.

As a consequence the average number of dairy cows per holding has greatly increased. At EU 9 level, the average more than doubled between 1975 and 1995, rising from 12 to 30. The average for EU 15 in 1995 is 23. In most Member States the largest increases occurred before 1990, but are slower since then. Here as well the major change took place after 1985. For EU 9, more than 60% of the increase took place between 1985 and 1995 of which half between 1985 and 1989/90 only. Over the same period, the number of holdings with large herds of more than 50 dairy cows have doubled in EU 10, but their share in total number of farms with dairy cows has increase from 2 to 6%. In 1995, EU 15 counts 110 000 farms with such large herds, 95 % of them is housed in EU 10.

Over the last 20 years, fodder crops and grassland available on the farm have not always been sufficient to feed the animals, nor is the land available on which to spread the increase volume of manure always sufficient. The farmers have been obliged to purchase more feedingstuffs, very often imported. The decrease in cereals prices induced by the CAP reform in 1992 will benefit intensive farming practices, but will also give preference to EC produced feedingstuffs and will improve the competitiveness of cereal production areas for the dairy cattle husbandry. It is not yet possible to assess the extent of these effects on the environment as data is not yet available. 

Usually an increase in the number of cows per holdings and per ha of fodder crops grown, measures an increase in the pressure on the environment and this increases as purchased feed and milk yield per cow increase. The situation is radically different from Member State to Member State. In Belgium, Germany, France, Luxembourg and in the Netherlands, the number of cows per ha fodder crops was already high compared to the Community average in 1975 (0.9). The Farm Structure Survey reports a decrease of this ratio for these Member States since 1985. In some cases, 1995 is even below the 1975 level.

The data at regional level show the large structural differences between the Member States and their regions (Map 1). Of course these differences in structure have also a different influence on the soil, air and possibly on the water. In Greece, Italy, Portugal and Spain an important part of the dairy production takes place in regions where, for climatic reasons, the possibility of growing fodder crops is very limited. However, these "high-density" dairy units do not generally pose nitrate-related problems since large arable areas are generally available close-by to the holdings where manure can be spread. Therefore the density ratio certainly over-estimates the pressure dairy farming might have on the environment in these countries and does not reflect the pressure dairy farming might have on the environment.

The bulk of dairy production comes from specialised dairy farms. Here also, the level of specialisation i.e., holdings producing mainly milk has increased considerably. While the number of holdings with dairy cows has decreased by 70% over the last 20 years, the reduction is "only" 50% for the specialised dairy farms. In 1975, 36% of the holdings with dairy cows in EU 9 were specialised ones, in 1985 51% and 62% in 1995. In EU 15, the share of the specialised holdings is lower at 58%, ranging from 83% in The Netherlands to 11% in Greece.

The production of milk per cow has increased greatly during the last twenty years. This is due to a number of factors such as an improved awareness of the relationship between feedstuffs and milk production, the rearing of more productive types of dairy cows, as well as the availability of improved tools and equipment. In EU 9 the average annual milk production per dairy cow increased by about 45% between 1975 and 1995. Following the introduction of the milk quotas in 1984, milk production per dairy cow increased per dairy cow by 20% in EU 10 between 1985 and 1995. This data has been calculated using the total cow milk production on farms and the average number of dairy cows per year. Taking into consideration that dairy cows produce milk on average only 10 months of the year, the production of milk in EU 9 has risen from around 12 kg milk per cow per day in 1975 to more than 18 kg in 1995 (Figure 7). This improvement in the productivity has also led to increase the manure production, and thus pressure on the environment. Although the number of dairy cows per ha forage crops has been more or less stable over the last 20 years in the European Community the actual pressure, due to the increase of manure production for a dairy cow might follow a different trend.

Once again, there are great differences between the north and the south of Europe both in the amount and in the increase of milk production trends over the last 20 years. In 1995, countries with higher intensive production systems such as Denmark, Sweden and the Netherlands recorded an average yield of around 6500 kg per cow. In Member States where the husbandry is more extensive, such as Greece and Ireland, the yield is also lower, around 4200 kg.

Pig husbandry: the most intensive sector

The large number of pigs per hectare may have a high impact on the environment in some regions of the EU. Air and soil especially need constant protection against the negative influences from intensification. The problems are compounded when these intensive farms form large clusters in some regions of the EU The regions with highest density of pigs (i.e. pigs per ha) can be identified in some areas in the Netherlands and France (Box 1). 

Following a constant increase since 1975, the total number of pigs in the EU 12 reached a peak of 107.5 million in 1993, before decreasing slightly in 1995. In EU 15 in 1995, the FSS recorded 112 million pigs (Figure 8).

On the contrary, the number of holdings with pigs has decreased by more than 70 % since 1975 in EU 9 and halved in EU 12 over the last 10 years.

The above developments have led to a steady growth in the number of pigs per holding. In 1995, the average number of pigs per holding in Belgium, Denmark, Ireland, the Netherlands and the United Kingdom was well above 500 pigs per holding and more than fivefold the EU 15 average. About one third of EU 15 pigs are reared in these countries. But about the same share of the total is in five other Member States: Greece, Spain, Italy, Austria and Portugal, where the average number of pigs per holdings is well below the EU 15 average (Figure 9).

Compared to the dairy sector, the number of holdings specialised in pig rearing and fattening is very low. But the level of specialisation is growing and the average economic size of pig holdings has increased five and even eight-fold in some Member States over the last twenty years. Although only 6% of the holdings with pigs were specialised in EU 15 in 1995, this is already six times more than in EU 9 in 1975 (6% as well in 1995). 

The Community does not show a very homogeneous picture for the level of specialisation. In Belgium, Denmark, Ireland, the Netherlands, Finland and the United Kingdom, more holdings are specialised in pig husbandry (from 13% to 50%), whereas in Greece, Italy and Portugal only 2% are. The countries where the higher number of pigs per holding are recorded, are also those where a more important share of the holdings with pigs are specialised. In this sector, specialisation goes together with intensification (Figure 10).

The average number of pigs per ha AA is by far the highest in the Netherlands where the 1995 figures is fourfold the 1975 one. The situation is particularly striking with, on average in 1995, more than 47 pigs per ha for the whole country, ten times the EU 15 average. This is more than 50% higher than the second highest density in Belgium and twenty times more than in Austria where the lowest figure is reported. Large differences exist between regions (Map 2).

Other grazing livestock husbandry

Sheep, goats and other grazing livestock husbandry is the sector of livestock husbandry with the fewer holdings. In 1995, the FSS reported more than 107 million sheep on 845 thousand holdings in EU 15, 70% of these animals were found in EU 9, but only 56% of the holdings. Nearly 11 million goats are recorded in EU 15 on 436 thousand holdings. Less than 30% of the holdings with goats are in EU 9 and they own less than 25% of the goats recorded in the whole EU 15. In fact nearly 50% of goats are located in Greece, with another 33% in Spain and Italy, whereas 40% of the sheep are in the United Kingdom and a further 40% in Greece, Spain and Italy.

The number of sheep and goats in EU 9 has increased by nearly 50% over the period to 1992, whereas the number of holdings with this type of livestock has decreased considerably: -56% for goats, -19% for sheep. The increase in number of animal has taken place for sheep and goats before 1993, when a quota system was introduced. Since 1993, the number of animals has been stable for EU 9, EU 10 and EU 12, although the number of holdings with sheep continues to decrease. 

But the total AA of these holdings, two thirds of which is fodder area, remained constant for holdings with sheep and even decreased for those with goats.

As possible consequence of this evolution is that pressure of holdings with sheep and goats could be more important in 1995 than it was in the past. The average number of animals per hectare AA could measure such a trend. This has increased by 60% for holdings with sheep over the last 20 years and by 30% for holdings with goats since 1989/90. For sheep, 95% of the increase took place before 1993, half of which occurred between 1987 and 1993. The increase between 1993 and 1995 is the less important registered since 1975. For goats, figures are only available since 1989/90 and show that the increase between 1993 and 1995 is three to four times more important than between 1989/90 and 1993.

Poultry husbandry

Following recent outbreaks of disease in the cattle and pig populations, consumer demand for poultry meat has increased over the last years, but quality issues could jeopardise the process in the future. While pig, cattle and laying hen numbers have decreased, the total number of table fowl has increased steadily from 1975 onwards (Table 3).

The number of holdings with poultry has decreased significantly: in the last 20 years more than two thirds of the holdings in EU 9 have disappeared. In 1995 the number of holdings with table fowl at EU 12 very little lower than the EU 15 figures. Particularly Finland and Sweden have very few holdings with table fowl. The variations from Member State to Member State in the number of table fowl and laying hens per holding are large however the 1995 figures in Sweden show more than 52 000 birds on average per holding. In Portugal the count is less than 100 birds per holding. The differences amongst holdings with laying hens are less extreme.

Even if highly intensive, the poultry sector is the least specialised of all livestock sectors. In 1995 on only 1 % of the holding with poultry two third of the activities consist of poultry activities. In other words most poultry farming is carried out in conjunction with other primary activities. Only the Netherlands and the United Kingdom have a significant level of specialist poultry husbandry (43% and 25% respectively), whereas the rest of the Member States have a degree of specialisation of fewer than 10 % or even less than 1 %.

Livestock Units (LSU) par ha: an environmental indicator

During the seventies and eighties, enlarging the holding has often led to more animals per holding and/or per hectare. A certain decrease in intensification has become apparent in the nineties onwards due partly to new environmental legislation in some Member States. This has also reflected the danger of epidemic diseases and the introduction of the milk quotas and higher milk yield per cows within the quota system. Quotas have also been introduced for sackler cows and ewer, and to less extent the quotas for sheeps and the premium system for cattle introduced in 1993.

The appropriate tool to measure the number of animal per hectare is the so-called livestock unit (LSU), which makes it possible to compare different animals with each other and give an indication of the effect on the soil by total livestock in a standardised way. 

This total LSU is important in relation to the available agricultural area, especially because most of the environmental problems linked to livestock production are caused by the regional intensification of the husbandry, often located very near to the ports where the imported feedingstuffs are shipped. The overall pressure is made up of the pressure posed by individual animal production sectors. In some regions, the already high pressure on the environment due to high intensity of pig production is exacerbated by the intensity of the other livestock husbanderies. The LSU per ha gives a good indication of the total intensity of livestock husbandry (Map 3). However, it is to be noted that similarly high LSU numbers per hectares may cause different environmental pressures depending on the predominant livestock type for each zone and its management. So, for instance, eutrophication by high nitrogen and phosphorus levels in water tends to be frequent in pig production areas whilst soil degradation often occurs in zones with high grazing sheep numbers. 

In some Member States e.g. the Netherlands, legislation has been implemented which obliges the holding to keep data on the production of phosphate. If production is higher than 2.5 LSU per ha the farmer has to pay a manure fee, based on the fact that the available agricultural area on that holding is not sufficient to spread the produced manure. The number of holdings subject to this fee has increased during the last 10 years.

It can be noted that during recent years the LSU per ha in EU 12 has been roughly the same, but there are large differences amongst Member States.

The overproduction of manure in most Member States is more a problem when viewed at a regional level than at a country level, but even at this regional level, the picture is too general. Indeed, very intensive livestock husbandry is seldom homogenous at the level shown. Therefore, the measure of this ratio in the districts of the regions where the average is quite high would give a more precise indication of where the environmental problems actually are. Moreover, in regions where such problems do not appear at this level of aggregation, a more detailed breakdown might reveal important problems in some districts.

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