The German pork industry responds to societal demands
Transcription
The German pork industry responds to societal demands
Les Cahiers de l’IFIP Revue R&D de la filière porcine française Vol 1 - N° 1 - 2014 The German pork industry responds to societal demands: from private labels to sectoral initiative Christine ROGUET (1) et Michel RIEU (2) (1) IFIP-Institut du Porc, La Motte au Vicomte, 35651 Le Rheu Cedex, France (2) IFIP-Institut du Porc, 34 boulevard de la Gare, 31500 Toulouse [email protected] In Germany, faced with society’s growing demands for animal-friendly production and the risk of tighter regulation, the actors in the pork industry have organized themselves to make a credible response without undermining their competitiveness. Two approaches were chosen. The first one imposes stringent requirements for animal welfare at production level, and distinguishes animal-friendly products with a label. Examples include the labels Aktion Tierwohl of the slaughter cooperative Westfleisch and Für Mehr Tierschutz of the slaughter firm Vion. However, their higher costs and prices lock these labelled products in a market niche, and their abundance is confusing. Germany has tried another graduated approach involving more farms. The industry’s collective sectoral “animal welfare initiative” - Initiative zum Tierwohl, launched in 2012, brings together all the stakeholders in the pork industry: producers, slaughter companies, retailers and NGOs. One pig in three will be concerned. Here we describe why, how and with what results these responses have been developed. Our analysis is extended by examples from the Netherlands and Denmark. 2014 -Ifip-Institut du porc - All rights reserved La filière porcine allemande face aux demandes de société : des labels privés à l’initiative collective En Allemagne, devant la montée en puissance des demandes de société pour des modes d’élevage plus respectueux du bien-être des animaux et face au risque d’un durcissement de la réglementation, les acteurs de la filière porcine se sont organisés pour apporter une réponse crédible sans entamer leur compétitivité. Deux voies ont été choisies. La première consiste à imposer des exigences à la production très fortes et à différencier les produits par un label. Les labels «Aktion Tierwohl» de la coopérative d’abattage Westfleisch et «Für Mehr Tierschutz» de l’abatteur Vion en sont l’illustration. Mais en raison des coûts et prix plus élevés, ces labels ne parviennent pas à dépasser le stade de la niche de marché et leur profusion sème la confusion. L’Allemagne a alors tenté un autre pari : faire progresser plus d’élevages mais d’un pas moins grand. Lancée en 2012, l’initiative collective de branche «bien-être animal» - «Initiative zum Tierwohl» - associe tous les acteurs de la filière porcine : producteurs, abatteurs-découpeurs, distributeurs, ONG. Elle devrait à terme concerner un porc produit sur trois. L’article montre pourquoi, comment et avec quel résultat ces initiatives se sont développées. Une ouverture sur les Pays-Bas et le Danemark enrichit la réflexion. Keywords: labels, differentiation, animal welfare, Germany, pork Mots clés : labels, différenciation, bien-être animal, Allemagne, porc Les Cahiers de l’IFIP - Vol 1- n° 1 - 2014 1 The German pork industry responds to societal demands: from private labels to sectoral initiative Introduction A degraded context Pork production in Germany saw a strong growth between 2000 and 2011 (+31%). It has since been stagnating in a less favourable economic and political context. Pig farming has become more intensive, with an ever increasing geographical and structural concentration. Specialisation of farming activity into breeding or fattening, and the considerable live animal flows this generates (10 million piglets imported into Germany in 2013, counting only cross-border trade), have lent the activity a strongly industrial image. These trends are being challenged by German citizens, whose voice has lately become louder. Their concerns find a sympathetic ear in the country’s main farming Länder among Ministers of Agriculture from the environmentalist party die Grünen (the Greens). Initially shaken by virulent criticism, the German pork industry has rallied and mounted a counterattack based on two thrusts: (i) make modern farming better known, and (ii) cause it to evolve to meet societal demands without under-mining its competitiveness. Communication involves classical measures such as open days, which have proliferated (top agrar, 2014a). In Germany, like in France, despite societal criticism of certain farming modes, farmers have a good image in public opinion, and enjoy the confidence of consumers (poll conducted in 2013 in Germany by GfK Panel Services Consumers, SUS, 2013a). Professional communication also makes use of the social networks, websites and blogs. In Germany’s current social and political context, in particular in the north-west part of the country, communication is a necessary but non-sufficient condition for refurbishing the image of pork production. The actors in the pork sector fully appreciate the risks incurred by ignoring societal demands (tighter regulations, drop in meat consumption, etc.). To improve farming conditions and inform customers, they have thus taken two routes. The first consists in imposing very strict requirements on production and distinguishing the resulting products with a quality label. However, the extra costs and higher prices of these products trap them in a narrow market niche. The second route proposes graduated requirements to mobilise larger volumes, and does not differentiate the products. The communication on the progress made benefits everyone, and the extra cost is spread overall. Supported by original documentation, contacts with professionals and thorough knowledge of the pork industry in northern Europe, we present these two approaches, namely private quality labels and sectoral initiative, developed in recent years in Germany. Our analysis is extended with a look at responses in the Netherlands and Denmark. Geographical and structural concentration 2 Gross home production, base 100 in 2000 Trends 2000 - 2013 130 Germany: +29% 120 110 Denmark: +10% Belgium: 100 Netherlands: -2% France : -4% 90 Source: IFIP from Eurostat and national sources, estimates for 2013 80 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Figure 1: Evolution of pork production in France and in northern European countries The trends depicted in Figure 1 have been accompanied by a strong geographical and structural concentration of production. This led to record animal densities in some regions such as North Brabant in the Netherlands (7.5 LU /ha UAA) or western Flanders in Belgium (6.0 LU/ha). In comparison, the density is half this level in Côtes-d’Armor in Brittany or Farm size class: the Weser-Ems Lower Saxony (Roguet et al., sub<100 region sows in100-199 200-499 500-749 750 et + mitted). 2003 2010 2003 2010 2003 2010 2003 2010 2003 2010 Structurally, the farming model has changed radically in 100 the last decade (Rieu and Roguet, 2012). For pig breeding, trends have been especially marked in Denmark and the Netherlands (Figure 2). 75 he livestock unit (LU) is a reference unit which facilitates the aggregation of livestock from various species and age as per convention, via the use of specific T coefficients established initially on the basis of the nutritional or feed requirement of each type of animal (1 dairy cow = 1 LU, 1 breeding sow weighing 50 kg and over = 0.5 LU...) Les Cahiers de l’IFIP - Vol 1- n° 1 - 2014 +4% 50 22 21 19 2014 -Ifip-Institut du porc - All rights reserved 1 With more than 5 million tons of carcass equivalent produced, Germany is by far the biggest pork producer in the EU. The strong growth in its production since 2000 contrasts with the stagnation and subsequent regression seen in France (Figure 1). Along with its Danish, Dutch and Belgian neighbours, Germany forms a powerful production area, responsible for 42% of pork production in EU-28 in 2013 (Roguet and Rieu, 2011). The German pork industry responds to societal demands: from private labels to sectoral initiative Political measures Farm size class: <100 sows 100-199 200-499 500-749 750 et + 2003 2010 2003 2010 2003 2010 2003 2010 2003 2010 100 75 50 22 19 21 7 25 14 25 56 18 8 35 0 Denmark Netherlands 3 11 3 Belgium 5 23 14 Germany 7 9 10 7 France Source: Eurostat, structure survey in 2003 and agricultural census of 2010, processed by IFIP Figure 2: Distribution of sows per farm size class according to country, and trends from 2003 to 2010 Mounting social protest The spatial concentration of animal production has been accompanied by growing opposition from the population, local or not, who have been protesting against the negative effects on their surroundings (odours, noise, pathogens, etc.) and on the general environment (pollution of air and water). 2014 -Ifip-Institut du porc - All rights reserved However, social debate on farming in northern Europe more specifically concerns the farming model itself and the modes of production under development. These are deemed industrial, too intensive, over-reliant on importing raw materials for feed and on exporting live animals or meat, inefficient in terms of conversion of vegetable proteins into animal proteins, risky for health (epizootics, zoonosis, antibiotic resistance) and neglectful of animal welfare (Roguet, 2012). In Germany, all the main associations for the protection of animals and the environment, some thirty in number (listed on the website http://www.wir-haben-es-satt.de/), have come together in an umbrella organisation, “Wir haben es satt! Bauernhöfe statt Agrarindustrie” (“We’ve had enough! farms, not agroindustry”). This association supports demonstrations against local farming or slaughtering projects, and organises every year a large demonstration outside the Berlin agricultural show (die Grüne Woche) to protest against the industrialisation of animal production in Germany (30,000 participants in 2014 according to the organisers). Citizens also express themselves by voting. At the last elections in Lower Saxony in 2013, the socialists and ecologists (die Grünen) made intensive agriculture one of their policy targets. After Johannes Remmel in North Rhine – Westphalia in 2010, Christian Meyer became Minister for Agriculture in Lower Saxony in February 2013. In all, today, six Länder have a Minister for Agriculture from the Green party. New stringent farming regulations have been voted in, contributing to an appreciable extent to the arrested growth of animal production in north-western Germany: •Right to collective action in 2013 in North Rhine – Westphalia for recognised animal protection associations to file complaints on behalf of animals. • “Animal welfare” action plan in Lower Saxony with three objectives for pig farming: ban tail docking, ban castration without anaesthesia, and ban farrowing crates. •More stringent building laws in 2013 for farms with more than 560 sows or 1500 fattening stalls. •Implementation of better available methods: compulsory air washer for farms with more than 750 sows or 2000 fattening stalls in the three Länder in northwestern Germany. •New directions for aid from the second pillar of the CAP (Agrarinvestitionsförderprogramm, AFP, programme for the promotion of investments) towards better animal welfare (Table 1). Table 1: Subsidy rate for pig farm building 2014–2017 Land Lower Saxony N. Rh. – Westphalia Schleswig-Holstein Baden-Württemberg Bavaria Hesse Rhineland-Palatinate Saarland Brandenburg MecklenburgVorpommern Saxony-Anhalt Saxony Thuringia Base (%)* Higher (%)** 20 20 20 15 20 20 301 30 ou 402 40 40 40 353 40 40 20 40 20 40 40% (50% in disadvantaged areas) 20 40 Source: top agrar, 3/2014, translation C. Roguet * Obligations for base programme: bedding area with appropriate dry litter, deep litter or comfortable surface, at least three different manipulable materials. ** Obligations for higher programme: 20% more surface area per animal at all stages, farrowing crate with a minimum surface area of 6 m² and sows free running after farrowing. 1 +10% if there are even stricter animal welfare requirements (surface area, handleable materials, etc.) - 2 Sows: 40% up to 200 stalls, 30% thereafter, fattening pigs: 40% - 3 +5% if on straw. Les Cahiers de l’IFIP - Vol 1- n° 1 - 2014 3 Gross home production, base 100 in 2000 Trends 2000 - 2013 130 The German pork industry responds to societal demands: +29% private labels to sectoral initiative Germany: from 120 The Dutch example 110 Denmark: +10% From imposition to incentive Belgium: +4% In the Netherlands, faced with societal demands for 100 better farm animal welfare, the public authorities first Netherlands: -2% -4% chose a regulatory approach. The first lawFrance on: animal health and welfare (Gezondheids- en Welzijnswet voor 90 Dieren) of 1994, which officially entered force Source: IFIPinto from Eurostat and national sources, estimates forwith 2013 (Varkensbesluit) in 1998, attested to their ambition, 80 standards set well above European rules: gestating sows 00 01 02 03 04 05 06 07 08 09 10 11 12 13 in groups by the fourth day after insemination (4 weeks in the directive), 0.40 m² per piglet, and 1 m² per fattening pig (Table 2). Table 2: Farm size class:Minimum surface area per pig (in m²) These surface area standards imposed on farms built <100 sows 100-199 are 200-499 500-749 750after et + 2003. All farms are to comply by 2013 at the latest. In the Netherlands, the total sales turnover of Beter Leven products has increased dramatically since the label was created, climbing from 22 to 473 million euros between 2008 and 2013 (Figure 3). 472.9 Source: Ministerie van Economische Zaken, Monitor Duurzaam Voedsel, 2010 and 2013, translation C. Roguet 147.2 311.7 2003 2010 2003 2010 2003 2010 2003 2010 2003 2010 Netherlands objective for Germany 2013 (for comparison) Revised Law of 2005 in 2010 Directive Live weight 2001/88/ 75 (kg) EC 50 < 10 22 21 10 - 20 20 – 30 25 0.15 19 0.20 25 14 0.30 0.20a 0.20a 0.40b 0.30b 7 5 8 23 3 14 11 300– 50 0.40 0.603 0.50 Denmark Netherlands Belgium Germany 56 18 50 – 85 0.55 85 - 110 0.65 ≥ 110 1.00 35 0.80 1.30 1.00 0.20 2008 0.35 9 7 10 7 0.50 France 1.00 Source: IFIP from Neufassung der Tierschutz-Nutztierhaltungs-verordnung (Germany, August 2008) and Varkensbesluit (Netherlands, March 2005) However, in view of the extra costs generated, the Ministry for Agriculture had to moderate its ambitions in 2010. The choice was thus made to give more encouragement to private initiative in the sector to differentiate and identify products that met societal demands. Organic production (Milieukeur varkens and De Groene Weg) was the first example. But its market share is extremely small. Fewer than 1% of animals are raised by organic farming in the Netherlands. Between organic and standard, the Beter Leven label To improve the living conditions of 99% of the animals on conventional farms, Dierenbescherming, a powerful Dutch association for animal protection, launched its Beter Leven label in 2007. Labels with stars show consumers the products derived from animals that have enjoyed the best welfare. For example, a “one star” chicken has had a longer time to grow and has had more space and stimulation. Les Cahiers de l’IFIP - Vol 1- n° 1 - 2014 68.1 22 0.80 0.65 structure survey in 2003 Eurostat, 0.75 by IFIP and agricultural census of 2010, processed 1.00 135.6 0.15 (a) Up to 15 kg, (b) from 15 to 30 kg 4 An expanding market 2009 2010 2011 2012 2013 Figure 3 : Evolution of Beter Leven turnover (million euros) In pork production, some 900 farmers produce more than 800,000 Beter Leven pigs (Table 8). Thirteen out of the 16 biggest distributors in the Netherlands offer products with the Beter Leven label. In 2011, Albert Heijn, leader in food distribution in the Netherlands with a market of 1 million pigs, claimed to sell only Beter Leven pork. Table 4: Number of Beter Leven raised animals in the Netherlands in 2010 (total 6.8 million) Beter Leven Total Meat chickens Laying hens Pigs Cattle 3 391 900 273 300 536 700 78 000 502 500 1 554 890 288 000 200 000 - 30 000 - - 3 894 400 1 858 190 824 700 278 000 Source : Ministerie van Economische Zaken In practice, although almost all the pork they sell has at least one star, some products are not labelled. Albert Heijn explains this by procurement difficulties and by the fact that prepared products containing more than 5% of other animal products are not entitled to carry the label. 2014 -Ifip-Institut du porc - All rights reserved 100 A “two star” pig has had straw and access to outdoors. The “three star” level denotes fully organic agriculture. The specifications for the Beter Leven label for pigs are summarised in Table 3 (opposite). The German pork industry responds to societal demands: from private labels to sectoral initiative Table 3: Beter Leven specifications Criterion Standard 2.25 m² per sow 0.4 m² (+30%) / piglet 1 m² (+42 to +20%) 2.5 m² per sow 0.5 m² per piglet 1.2 m² per FP* 2.5 m² per sow 0.6 m² per piglet 1.3 m² per FP* None None 1 m² per FP* 1.9 m² per sow 1 m² per piglet or FP* 1.9 m² per sow Pasture for pregnant sows Group husbandry of pregnant sows Mandatory since 2013 Mandatory since 2007 Feeders banned in 2020 Farrowing crates 3.5 m² min Sows restrained 3.8 m² min Sows restrained Chains Wood, tube with straw From 2015, at 40 pigs and more, straw mandatory Straw Type of floor 60% slatted, 40% solid 60% slatted, 40% solid 50% slatted, 50% solid Castration Allowed with anaesthesia Banned Banned Banned Tail docking Allowed Allowed but less short (length of piglet’s tail ≥ 2.5 cm) Banned Banned Tooth reduction Allowed Transport No time limit Surface area 2.25 m² per sow 0.3 m² per piglet 0.7–0.8 m² per FP* Access to outdoors Enrichment of environment** Mandatory since 2007 and on straw 6.5 m² min Sows restrained 5 days max 7.5 m² Sows restrained 3 days max Allowed, but with commitment to stop the practice 6 h to a farm 4 h to a farm 8 h to a slaughterhouse 6 h to a slaughterhouse 4 h to a farm 6 h to a slaughterhouse * Fattening Pig. ** Large groups of pigs (20–40 pigs instead of the usual 8–12) are encouraged because they offer animals more room to move (for the same space per animal) and the possibility to divide up the space into separate areas (bedding, feeding, and defecation). Also, large stalls are better suited to the installation of equipment (e.g. straw dispensers), which are paid off sooner with a large group of animals. 2014 -Ifip-Institut du porc - All rights reserved Source: Dierenbescherming, translation C. Roguet In Germany, the sector is getting organised Specifications lacking in transparency The Westfleisch cooperative, a forerunner with the Aktion Tierwohl label The specifications that the farms are supposed to meet were not very clear, however. Although the castration of piglets was banned, together with the administration of antibiotics for pigs weighing more than 40 kg, there were no obligations stricter than the general regulations in force for surface area per animal, handleable materials, tail docking, etc. This drew sharp criticism from consumer and animal welfare associations. Producers received a bonus of 0.02 € / kg carcass, and the sale price of products was about 10% higher (Qualbrink, 2013). Investments were made in the Coesfeld slaughterhouse to monitor stunning, make a better assessment of pigs’ health status, and detect boar odour in particular. This slaughter-house has, since October 2012, been the first in Lead-up and partners Starting with the realisation that animal welfare is a growing concern among consumers, the Westfleisch cooperative, Germany’s third largest slaughterer with 7.41 million pigs and 12.6% of the total in 2013, was the first to market, in 2010, an animal welfare labelling concept for fresh meat and sausages. The label, Aktion Tierwohl (“action for animal welfare”), mirrored those developed in the Netherlands (Beter Leven) and the United Kingdom (Red Tractor, Freedom Food). Les Cahiers de l’IFIP - Vol 1- n° 1 - 2014 5 The German pork industry responds to societal demands: from private labels to sectoral initiative Commercial development In 2012, 120 farms participated in the Aktion Tierwohl label scheme with 410,000 pigs sold, and 80 farms were awaiting certification for some 350,000 pigs produced (topagrar.com, 2012). In 2013, Aktion Tierwohl reached the figure of 650,000 pigs commercialised, coming close to its objective of one million pigs. The Aktion Tierwohl range counted about twenty products (sausages and meat) distributed nationally from 2,000 retail outlets. In 2014, Westfleisch decided to stop its own label, officially to make way for the collective initiative (see below) in which the cooperative participates, informally because of its too limited success. Für Mehr Tierschutz, label of Vion and the German association for the protection of animals Lead-up and partners Seeking to stand out with a label set up in association with a recognised NGO, Vion, Germany’s second largest slaughterer with 9.60 million pigs and 16.3% of the total in 2013, initiated in 2012, with the poulterer Wiesenhof and in partnership with the German association for the protection of animals (Deutscher Tierschutzbund, DTB), the creation of the label Für mehr Tierschutz (“for more animal protection”). The federal Minister for Agriculture (BMEL) supported this project both politically and financially. A subsidy of 1 million euros was granted to set up a system of certification and inspection, and a market survey was entrusted to the University of Göttingen. The label was officially launched by the Ministry for Agriculture in January 2013 during the Grüne Woche. Ilse Aigner, Federal Minister for Agriculture from 2008 to 2013, has always refused to use regulations to impose more stringent standards of animal welfare that would weaken Germany’s competitiveness. She preferred to encourage the creation of quality labels and labelling of products according to production conditions. Campaigning European-wide for animal welfare labelling, the German Minister saw in the Für Mehr Tierschutz label “an example for the whole of Europe of reliable labelling based on high standards of animal welfare that meets consumer expectations and improves farming conditions” (topagram.com, 2013). 6 Les Cahiers de l’IFIP - Vol 1- n° 1 - 2014 Transparent, demanding specifications The Für Mehr Tierschutz label proposes two levels of requirements (against three for Beter Leven in the Netherlands), similarly distinguished by stars. The specifications are summarised in Tables 2 and 3. The extra cost arising from the increased surface area alone (1.1 m² instead of the German standard of 0.75 m²) is estimated at about 0.1 €/kg of carcass by the University of Göttingen (Theuvsen, 2013). Table 5: Specifications for Für Mehr Tierschutz label Upper level Entry level •N o tail docking (from 01/01/14) • No castration without analgesics: Entire males, castration under analgesics and anaesthesia (inhalation of isoflurane or injection, CO2 forbidden) or vaccination against boar taint. • S ystem for cooling air or fine water spray (high pressure). • Daylight mandatory with openings of minimum crosssection 3% of the ground area, minimum lighting 80 lux in activity area, day/night cycle followed. •T ransport : 200 km and 4 h max. • S laughter: deep anaesthesia with CO2 or electric, health inspections • Maximum size: 3000 fattening places •M aximum size: 950 fattening places • Surface area: +33% over • Surface area: +100% over standard prescribed by law standard prescribed by law •F loor: activity area slatted, • F loor: activity area slatted, bedding area on straw or bedding area on straw equivalent (mat) •L arger stalls to separate •H andling equipment: areas of activity, bedding straw dispenser and defecation (1 for 12 pigs) •D ifferent temperature areas: access to small yard • GMOs forbidden in feed Source: IFIP from specifications of DTB (DTB, 2012), translation C. Roguet For the country’s animal protection associations, the Für Mehr Tierschutz label offers real improvements for animals. Its requirements go well beyond national regulations, even at its entry level. 2014 -Ifip-Institut du porc - All rights reserved Germany to be certified by the Dutch label Beter Leven, just before Tönnies’s Rheda and Sögel plants. One of the conditions for this recognition is compliance with the IKB specifications, a Dutch quality guarantee system comparable to the German QS. The German pork industry responds to societal demands: from private labels to sectoral initiative Table 6: Minimum surface area per pig for Für Mehr Tierschutz label One star Two stars Stall m²/pig Stall of which bedding of which bedding Outdoor yard < 50 kg 0.70 0.25 0.75 0.25 0.30 50-120 kg 1.10 0.60 1.60 0.60 0.50 ≥ 120 kg 1.60 0.90 2.40 0.90 0.80 Source: IFIP from specifications of DTB (DTB, 2012) However, the ultimate aim of the associations is for the upper level obligations, which are met by NEULAND, to apply eventually to all farms. For the DTB, “This twolevel label will increase the pressure on the legislator to raise minimum standards, because it will show that a transition towards better welfare is possible” (Agrarheute.com, 2013). Commercial development 2014 -Ifip-Institut du porc - All rights reserved According to Vion, the potential market share is 10–15% for products from farms offering animals better living conditions. They expect to reach this figure in five years, from 2012 to 2017. Germany’s main large retail chains (Edeka, Lidl, Aldi, Netto, Kaiser’s und Tengelman, Coop eG Kiel with Sky, and Kaufland) theoretically commercialise products labelled Für Mehr Tierschutz. However, at the beginning of 2014, after a year on the market, results were disappointing. Only 40,000 labelled pigs (and 9 million meat chickens) had been commercialised out of a total of 10 million pigs slaughtered by Vion in Germany. The market share is insignificant, and only 16 pig farms (14 “one star” and two “two star”) and 44 poultry farms (all “one star”) are certified. For the researchers at the University of Göttingen who have been monitoring the approach, the current failure is not explained by low consumer demand. In a survey on purchasing behaviour in Germany conducted in 2013 at the request of the Federal Ministry for Agriculture, 44% of those polled claimed to be mindful of animal welfare when making their purchases, and 76% wanted information on animal welfare for food products (BMEL, 2014). The researchers also cite several studies confirming that consumers are willing to pay extra for better animal welfare. For Achim Spiller, who teaches food marketing at the University of Göttingen, a broad marketing campaign with television commercials would be necessary to inform consumers about this new label and give it a chance to succeed. At the beginning of January 2014 at the Grüne Woche in Berlin, the briefly appointed Federal Minister for Agriculture Hans-Peter Friedrich made a positive assessment of the Für Mehr Tierschutz label, considering it to be “an important step towards more transparency and freedom of choice for consumers, and towards better welfare on the farm”. For the chairman of DTB: “The effect of this label has been to deepen the political debate on the farming model”. The DTB intends to broaden the label’s scope to cover all animal productions. The Tierwohl initiative: the power of collective action Lead-up and partners The fact that none of the many labels that have been created has managed to assert itself, combined with the desire of Tönnies, the top slaughter company in Germany, with 15 million pigs (25.5% of the total), not to remain outside the race helped to foster the idea of a collective sectoral initiative (top agrar, 2012). Unlike its competitors, Tönnies does not propose a concept in its own name, but instead an initiative associating all the different actors. “We must stop racing for the best label. We can penetrate this market only by acting together. The aim is to communicate more openly on animal welfare and so regain the confidence of consumers who are lost in a forest of different labels” declares Dr. Wilhelm Jaeger, Head of the Agriculture Department at Tönnies. The first success of the project was the signature, at the end of August 2012, of the declaration Initiative zum Tierwohl by the main slaughterers (Tönnies, Vion, Westfleisch and the meat syndicate), three of the country’s four biggest retail chains (Edeka, Rewe and Kaufland) and the organisations representing the farmers (DBV, ISN and ZDS). Its leitmotiv is “by financial incentives, enable farmers to take more account of animal welfare, without undermining their competitiveness”. Founded in 1988 by five NGOs, including the German association for the protection of animals (DTB), the Association for the Environment and Protection of Nature (BUND) and the Association for Rural Agriculture (Arbeitsgemeinschaft Bäuerliche Landwirtschaft, AbL), the association NEULAND drew up a very stringent set of specifications for production that was respectful of animals and the environment. The products are commercialised under the NEULAND marque through buchery retailers and restaurants. 2 Les Cahiers de l’IFIP - Vol 1- n° 1 - 2014 7 The German pork industry responds to societal demands: from private labels to sectoral initiative Pig and poultry farmers (meat chickens and turkeys) will receive a bonus to offset extra costs if they raise their animals according to welfare criteria that are stricter than those in force in current regulations. For one year, the representatives of the entire sector worked on the concept, motivated -despite difficulties in reaching agreement- by the same evidence: the sector must act on animal welfare now because societal and political pressure has become too strong. On 5 September 2013 was signed the collective sectoral initiative for better animal welfare for pigs and meat poultry (Initiativen zum Tierwohl, 2013, signatories in Table 4). QS (Qualität und Sicherheit GmbH) coordinates its implementation. It will also carry out audits in farms. Welfare and QS audits will be combined (cost about 100 euros per farm site to be borne by the farmer). Among the signatories to the initiative, some have drawn attention to the risks inherent in bringing the Initiative Tierwohl (voluntary) too close to the QS programme (compulsory). The animal protection NGO PROVIEH joined the initiative in March 2013. The planned timeline includes an assessment in 2014 of the Initiative by the Bundeskartellamt (fair trading body), which will make sure it does not hinder competition among retailers. To preclude this risk, the bonuses will be paid independently of market trends. A compensation fund will be set up through which the bonuses will be paid. The farm audits are to begin in October 2014, and the first bonus payments will be made to farmers at the beginning of 2015. The founding principles of the Welfare Initiative The primary principle of the sectoral initiative for better animal welfare is to avoid forming a niche, to make the consumers happy “in spite of themselves”. When consumers have the choice, they always choose the cheapest product. For the project designers, this choice must be removed in the future (top agrar, 2013a). The products from farms that participate in the initiative will be no different from the others: no distinction (no specific labelling), and no price differences are planned (top agrar, 2013b). In addition, the distributors do not want a new label or any differentiation of meat because of the extra logistic costs this would generate for separating products. Lastly, the sector is agreed on the negative effects of splitting the market with labels, as animals not part of the initiative will end up with a lower value (top agrar, 2013c). The second principle of the initiative is that the extra cost generated by improved farming conditions will be made up by bonuses. These bonuses will be financed by an acrossthe-board increase in meat retail prices. Their amount will be itemised on the invoice sent by the slaughter-butchery operator to the distributor. The distributor will pay the slaughterbutchery operator, who in turn will send the amount to the initiative’s compensation fund for payment to the producer. The third founding principle is the free participation of every farmer and the free choice of the criteria applied in each farm. This initiative offers two major advantages. Firstly, the extra costs borne by the farmers are offset, as the distributors are committed to the bonus. Thus unlike a regulatory obligation, evolution towards production that is more respectful of animal welfare is neutral in terms of costs and does not undermine the competitiveness of German farmers. Secondly, the German pork industry hopes to take the lead on this issue. The end of meat produced to the initial standards (without the additional welfare criteria) is envisioned in the long term. Specifications: mandatory and optional criteria Farmers who wish to take part in the programme must fulfil two obligations: 1) meet one of two criteria in block B1 (greater surface area or straw), and 2) ensure that the total bonus, which depends on the measures taken by each farmer, exceeds a threshold (Table 8). Farmers are also free to apply further optional criteria (Block B2). Table 7: Participants à l’Initiative zum Tierwohl Abattage DBV (Deutscher Bauerverband)¹ BVDF (Bundesverband der deutschen Fleischwarenindustrie)⁵ ISN (Interessengemeinschaft der Schweinehalter Deutschlands e.V.)² VDF (Verband der Fleischwirtschaft)⁶ ZDS (Zentralverband der Deutschen Schweineproduktion e.V.)³ Tönnies Lebensmittel DRV (Deutscher Raiffeisenverband e.V.)⁴ Westfleisch VION Food Deutschland Distribution Aldi Nord Aldi Sud Edeka Zentrale / Netto Kaiser’s Tengelmann Kaufland Lidl METRO REWE ¹ German farmers’ union - ² Group for the defence of German pig farmer’s interests - ³ Central association for pork production, to which belong groups of producers, genetic organisations, etc. - ⁴ Association of farm cooperatives ⁵ National association of the German meat industry - ⁶ Meat industry association Source : IFIP from Initiativen zum Tierwohl, 2013. 8 Les Cahiers de l’IFIP - Vol 1- n° 1 - 2014 2014 -Ifip-Institut du porc - All rights reserved Production The German pork industry responds to societal demands: from private labels to sectoral initiative Table 8: Compulsory and optional criteria, and bonus amounts All pig farms taken together Participation in a quality control system (QS or similar) Annual farm audit Participation in an antibiotics record scheme Block A Participation in the programme for slaughterhouse data collection Compulsory Controlled ventilation entry criteria Controlled drinking water Daylight (1.5% of ground surface area) Overall entry bonus 500 € per physiological stage (i.e. 1500 € for farrowing plus fattening) Bonus according to activity Block B Farrowing Criterion Permanent access to straw Block B1 (dispenser, rack, etc.) At least one 10% extra surface area criterion is 20% extra surface area compulsory 40% extra surface area Extra manipulable natural object Extra watering trough (suckling) Extra watering trough (pregnant sows) Castration with efficient pain relief Post-weaning €/ piglet* 0.90 1.40 2.20 4.40 1.15 0.18 €/ piglet* Criterion Permanent access to straw (dispenser, rack, etc.) 10% extra surface area 20% extra surface area 40% extra surface area Extra manipulable natural object Extra watering trough 2014 -Ifip-Institut du porc - All rights reserved Block B2 Optional criteria Threshold amount 2 € per piglet 0.40 0.80 1.20 2.40 0.30 0.40 Criterion Permanent access to straw (dispenser, rack, etc.) 10% extra surface area ** 20% extra surface area 40% extra surface area Extra manipulable natural object €/ pig* 2.00 2.80 4.00 8.00 1.00 Extra watering trough 0.70 Raising of whole males 1.50 0.07 1.50 Climate zones Grouping of sows 6 days after insemination Grubbing possible (grouped sows) Natural ventilation during pregnancy Comfortable bedding surface Access to outdoor yard Free farrowing crate, minimum surface area 7.5 m² Suckling period 4 weeks Accessible area to piglets from different sows Nests for piglets Peat for piglets during suckling Fattening 0.20 1.40 Automatic air cooling system Compartmentation of stalls with partitions 0.20 0.20 0.05 Grubbing possible 0.40 Grubbing possible 0.60 0.30 Natural ventilation 0.30 Natural ventilation 1.00 0.80 0.60 Comfortable bedding surface Access to outdoor yard 0.50 0.30 Comfortable bedding surface Access to outdoor yard 2.50 1.00 2.00 1.00 0.05 0.10 0.33 1 € per piglet 3 € per pig * For flat-rate farms, 10.7% VAT must be added - ** Regulation surface area = 0.75 m² / pig Source: RaiffeisenMagazin 05/2013, page 5, translation C. Roguet Les Cahiers de l’IFIP - Vol 1- n° 1 - 2014 9 The German pork industry responds to societal demands: from private labels to sectoral initiative The bonus amount is fixed for a period of three years. There will then be a reassessment to allow for any changes in cost data and criteria. Extra cost paid by the consumer Retail distribution plays a central role in the financing of this initiative by offsetting the extra cost borne by the farmers. The main retail chains are committed to supporting the Tierwohl initiative up to a ceiling set at about a hundred million euros per year, i.e. a financial volume close to that at the disposal of the central marketing organisation of the agricultural industry (CMA) (SUS, 2013b). This ceiling will no doubt be reached only after a fairly long time because the evolution towards these products requires efforts to convince consumers. These will have to pay a probably long-term higher price for the meat to sustain the compensation fund. The question of whether they will tolerate this price increase remains open (top agrar, 2012). The basis for economic calculations in the pork sector is turnover in fresh meat sales. This is meant to prevent distributors undermining the system by importing cheap meat. In addition, small merchants and sausage makers are not yet part of the initiative. In the future any merchant who wants to sell QS meat will be integrated in the Tierwohl initiative. One financial problem is that only 30% of the meat is sold fresh on the domestic market; 40% is processed and 30% is exported. Thus the extra cost of welfare must be borne by 30% of the meat sales. In July 2014, the distributors fixed at 0.04 € / kg of commercialised meat their payment to finance bonuses for farmers taking part in the initiative (topagrar.com, 2014a). Commercial development The following workplan was drawn up by the programme initiators: (SUS, 2013b, top agrar, 2013c): •2015 (Year 1): 2000 fatteners taking part with 4 million welfare pigs. Sum in the compensation fund: 10–20 million euros. •2017 (Year 3): 10,000 farms taking part with 20 million welfare pigs. Sum in the compensation fund: 100 million euros/year. Other estimates are based on a higher average bonus (9 € per pig), with a total cost of nearly 200 million euros per year (top agrar, 2013b). The compensation fund should start up in summer 2014, but Edeka’s reluctance to finance the initiative is delaying its implementation. 10 Les Cahiers de l’IFIP - Vol 1- n° 1 - 2014 Risks for the pork base price A survey conducted at the beginning of 2014 by the professional journal top agrar, to which 360 pig farmers responded, gives some indication about how they perceive the Tierwohl Initiative, and their intentions (top agrar, 2014b). Of the respondents, 35% considered the initiative equitably conceived (voluntary participation, bonus and involvement of distributors), and useful in that it could improve the societal image and acceptability of pig farms; 28% were critical and 37% gave no view; 26% were considering taking part, 36% were undecided and 38% were not interested; 64% of the respondents thought that the initiative would not prevent new stricter regulatory standards in the long term; 87% thought the bonuses would not last longer than three years because the distributors would not want to go on paying. Many farmers feared that the bonuses would push down pork reference prices (Vereinigungspreis) even though the system was designed to prevent such an effect (amount and payment of bonuses independent of reference prices). Distrust and sharp criticism The association for animal protection DTB, while underlining the laudable objective of improving animals’ living conditions, has pointed out that the initiative in no way guarantees that this objective will be met, because the products are not differentiated from the retail standard (no specific labelling), and the criteria are left to the farmer to choose. The DTP states: “Transparency for the consumer is the big loser. The purchaser cannot know how much welfare value is added”. For Bioland, which is even more critical: “This sectoral solution is a mere public relations campaign designed to brighten the tarnished image of the pig farmers. It is a mis-judged attempt to keep the politicians quiet for longer and delay their intervention” (topagrar.com, 2014b). In addition, for Bioland, an initiative of such scope holds back the development of other more demanding labels. Conclusion In Germany, in the face of rising societal demands for farming methods that are more respectful of animal welfare, the actors of the pork sector have organised themselves to respond credibly without impairing their competitiveness. The challenge is daunting. The objectives are both strategic and commercial. The task is to reconcile farming and society against a background of blocked projects for farms and slaughterhouses and the risk of consumers shunning pork. In a survey conducted in 2013 by the Universities of Hohenheim and Göttingen, 3.5% of those polled claimed to be vegetarian and 11.6 % flexitarian (moderate reasoned consumption of meat); 9.5% wanted to reduce their meat consumption (Cordts et al., 2013). Their choices were 2014 -Ifip-Institut du porc - All rights reserved Otherwise, it may additionally eschew tail docking of piglets (Block C). They must then take part in one of the experimental programmes and receive technical support. Given the difficulty in implementing this practice, the bonus is raised to 6 euros per pig. The German pork industry responds to societal demands: from private labels to sectoral initiative motivated by a negative perception of the impact of animal production on the environment and on the living conditions of farm animals. According to annual studies conducted by the polling institute Allensbach, the German Vegetarian Union (VEBU) estimates the number of vegetarians in Germany to nearly 7 million in 2014 (8-9% of the population) and that of the vegans to 1.2 million (1.5%). In 2014 Aldi Süd announced the launch of the V-label in partnership with VEBU. In this context, the DTB emphasises that “the label [Für Mehr Tierschutz] is not intended to encourage greater consumption of meat, which must fall in the long term”. The pork industry, by showing itself to be proactive, thus hopes to postpone the imposition of stricter regulations, which by becoming the common standard, will abolish any possibility of drawing added value from the efforts made. However, for the DTB and Ministers for Agriculture, the labels are just one step towards a stiffening of regulatory standards for all farms. Finally, the sectoral initiative for better animal welfare also aims to secure the domestic market and conquer other markets by taking a lead in the animal welfare issue. In this context, France is currently at the stage of individual initiatives by groups of producers, in partnership with distributors, and according to the case, with animal protection associations: “welfare pork”, “antibiotic-free pork”, “new agriculture pork”, etc. North-European experience brings out four factors conducive to the success of these initiatives that France could usefully consider: 1) maintenance of political dialogue to forestall tightening of regulations that could displace the approach, 2) associating distributors in the financing of extra costs, and NGOs for credible communication, 3) motivation of farmers who are doubtful about the longterm future of compensation for extra costs, and 4) fostering awareness among consumers that animal welfare has its price. Acknowledgements This work was supported by CASDAR funding. 2014 -Ifip-Institut du porc - All rights reserved In the wake of the Netherlands and Germany, a common initiative for a pig welfare label was launched in Denmark in 2013 by the country’s two slaughterers, Danish Crown and Tican. The concept also aims to fill the gap between standard pork and organic pork. Its principle is to support the transition towards better farm animal welfare with compensation for extra costs (+0.27 €/kg of carcass). The specifications for the label Velfærdsgrisen (“welfare pigs”), signalled by the statement “anerkendt af Dyrenes Venner” (“recommended by Animals’ Friends”), are drawn up in partnership with the association for the protection of animals Dyrenes Venner (Animals’ Friends) and the pork research centre Videncenter for Svineproduktion. The obligations include no tail docking, supply of straw, and lifelong grouping of sows. However, this label had barely come into being before it came under fire from another animal protection association Dyrenes Beskyttelse, which has accused it of deceiving consumers... and above all of competing with organic production, which it supports. Further to this label, a declaration in favour of “Danish pork production combining animal welfare and growth” was signed on 13 March 2014 by a broad governmental coalition, consumer and animal protection associations, scientists and practitioners. The action plan presented by the Ministry for Agriculture includes the banning of castration of male piglets without anaesthesia from 2018, a significant reduction in tail docking, an end to the tethering of sows as far as is possible, and a significant increase in the rate of piglet survival (20% reduction in their mortality by 2020). 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