ifcn r cooperation 2010 0[1]

8/8/2019 IFCN R Cooperation 2010 0[1]

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Project Proposal

International Competitivenessof Milk Production via the

IFCN Network

What is IFCN?

Who benefits?

Two levels of participation

Consortium benefits

Dr. Torsten Hemme

[email protected]

March 2010

IFCN Dairy Research Center

Project ProposalDairy Farm Economics in

Shuangcheng, China

Introduction

Proposal 1: Fast start + first results

Proposal 2: IFCN farm comparisonProposal 3: Future farm types

Annex: What is IFCN?

Dr. Torsten [email protected]

11th October 2007


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For a better understanding of milk production

What is IFCN ?IFCN stands for International Farm Comparison Network and is a scientific associationbetween farm economists and the related advisors and farmers. The IFCN network conceptis so far globally implemented and established for the product milk.

The IFCN Dairy Report is produced annually since the year 2000. It gives an overview aboutthe milk production world-wide and summarises the results of the IFCN research activities.

In 2009 dairy researcher from over 70 countries have participated. (www.ifcndairy.org).

Why is the IFCN dairy network useful?Milk production world-wide ischaracterised by three key issues whichwill lead to rapid changes in the future:- Very diverse farming systems- High dependency on politics- Scope for substantial change in policy

and increasing volatility in dairy prices.Know-how becomes an importantproduction factor for successfulbusiness decisions for farmers and therelated agribusiness. Moreover policy

discussions can become more fact-basedwhich makes solutions easier to find.

What is the mission of the IFCN Dairy?To create a better understanding of milkproduction world-wide.

What are the annual activities?

Create a harmonised database of farms.

Analyse the farms using one method. Validate results at the Dairy Conference.

Publish the results in the Dairy Report. Improve the IFCN methods continuously.

Exchange ideas on current dairy issuesand research projects.

What are the values of the IFCN?IFCN is an open scientific system for theexchange of ideas and the creation ofknowledge and information. IFCN isindependent from third parties (policymakers, lobby groups, industry) andcommitted to truth, science and reliableresults.

What are the priorities?1. Sustainability of the network2. Reliability of data & quality of results.

3. Inclusion of more countries and farms.4. In-depth analysis on special issues.5. Special studies (policy analysis, etc.).

How is the IFCN Dairy organised?The IFCN Dairy Research Centercoordinates the scientific work. Moreover itprovides a professional management for thenetwork.

How are the IFCN Dairy activities funded?The network co-ordination is mainly funded

by the consortium fee from the participatingcountries, partnerships with agribusinessand global agriculture-related institutions. All
http://www.ifcndairy.org/http://www.ifcndairy.org/


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partners have agreed on the prioritiesand values of IFCN.

Who benefits from a IFCN participation?

1. Benefits for the dairy sector of the country in generalThe dairy sector of each country is facing competition from two sides: a) from the dairysectors of other countries and b) from other agricultural sectors within the country. Tohave a prospering dairy sector a clear strategy of all stakeholders is required.

The participation in IFCN provides information about the global developments of thedairy sector and the competitive position of your country in it. Moreover it identifiespotential points for improvement and the helps in setting priorities in allocation researchbudgets.

2. Benefits for dairy farmers/ producer organisationsDairy farmers benefit from knowingtheir competitiveness in a globaliseddairy world. Moreover strengths andweaknesses of the own countrybecome visible. Finally they getaccess to knowledge about productionsystems and methods that mightimprove their farming systems.

3. Benefits for milk

processorsFor milk processors the milk pricepaid to the dairy farm counts for about70% of the cost component toproduce a dairy product. Theknowledge about the production costsof the milk district in relation to othermilk regions is a key element of thecompetitiveness of the milk processor.

4. Benefits for policy

makers - The governmentThe government is influencing thedairy sector with various policies. Theparticipation in the IFCN consortiumprovides the policy makers with factsand figures for political discussions.Moreover the researcher gets via hisparticipation in IFCN a wide set ofmethods and models to analyse theimpact of policy changes on the dairyfarm or the dairy sector.


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Example: Cost of milk production

CH-2

6

CH-3

3

CH-7

0

AT-1

2

AT-2

2

AT-3

5

DE-3

5

DE-8

0

DE-6

50

NL-5

1

NL-9

0

BE-4

5

BE-8

0

FR-3

1

FR-7

0

ES-4

4

ES-1

99

IE-4

7

IE-9

3

DK-8

0

DK-1

50

SE-5

0

SE-1

60

FI-20

FI-40

NO-1

9

NO-3

0

EE-3

5

EE-4

00

PL-3

PL-2

0

PL-1

80

CZ-6

7

CZ-4

28

CZ-5

35

HU-1

00

HU-4

00

IL-5

6

IL-3

00

CA-5

6

CA-9

6

US-1

35WI

US-7

00WI

US-2

100ID

AR-1

50

AR-3

50

AR-1

400

BR-3

0

BR-8

0

IN-2

IN-4

IN-2

2

IN-3

7

PK-1

PK-3

PK-1

0R

PK-1

0U

BD-2

BD-1

0

BD-2

5

CN-1

08

CN-6

12

AU-2

07VI

AU-2

50VI

AU-9

15VI

- - -

- - -

02468

101214161820222426283032343638

40424446485052545658

US-$/100kgECM

Countries: Western Europe CEEC + IL America N+S Asia Oc

CH AT DE NL BEF R ES IE DK SE FI NO EE PL CZ HU IL CA US AR BR IN PK BD CN A

30$

18$

Cost from profit& loss account - non-milk returns Opportunity costs Quota

5. Benefits for research

organisation / theresearcherThe research organisation improvesits access to methods, models anddata which strengthen its capacity indairy research and teaching.Moreover the international linkagesprovide recognition and also thepossibility to attract additionalresearch funds. Finally the partnershipwith IFCN facilitates and strengthensthe links with the local dairy sector

and capacity to serve the needs in amore globalised world.


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IFCN Dairy offers two levels to participate

A. Associated partner (Country page partner)Foreseen for 2- 3 years.This status is seen as a starting level to help research organisations to join the network andget results quickly. Moreover it assists to become a consortium member of IFCN.

Input Output

Sending milk & feed price data (19962006) Being part of the IFCN Dairy Network

Sending data for the country page A publication in the IFCN Dairy Report

Validating the country page results Getting 2 copies of the IFCN Dairy Report

Time input: 1 day / yearTravel cost: not requiredMembership fee: no fee

B. Consortium membership - Long term partnershipThe consortium membership offers the participating researcher full access to the networkand its knowledge. This provides a country a perfect overview about its position in the globaldairy industry. Moreover the participating researcher has the capacity to support allstakeholders in the country in strategic discussions of the dairy business and dairy policydesign.

Additional input compare to A. Additional output compare to A.

Provide data of two typical dairy farms ofyour country in the IFCN format

Annualbenchmarking of your dairyfarms / your country world wide

Travel budget to the IFCN DairyConference (Flight + hotel costs)

Dairy Reports: 18 copies to distributewithin your country

IFCN membership fee which covers theorganisation of the network, the annualconference,. etc

International networking to theleadingnetwork in your research area.

Join the IFCN Dairy Conference, with 50researchers from 40-50 countries

Capacity building: Participate in theIFCN method training at the conference

Access to data: Get the IFCN resultdatabase for teaching & research

Access to Methods + Models: Get theIFCN model TIPI-CAL (open source version)

Recognition of your institute via Co-Authorship of the IFCN Dairy Report.

Time input: 10 day / yearTravel cost: local + internationalMembership fee: please ask for details

In the first year the input can be higher dueto learning the IFCN method and tools.

Others (for details see Annex 1)

Steering group

E-mail hotline

Marketing support

* Technical conditions: Delivering data in reasonable quality and in time. In case the dataavailability is limited, both parties can develop a modified solution for the country page.


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IFCN

Background information on the Consortium

Examples of funding the IFCN consortium participation:

a) Out of a research projectsb) Via government fundsc) Via funds from unions of dairy farmers or milk processors

d) The IFCN Dairy Research Center has a lot of experience how the stakeholdersof other countries have found solutions. Please discuss your ideas with us.

The Benefits form the IFCN Dairy Consortium membership

Participation in the IFCN steering group: Join this group to discuss the furtherdevelopments of IFCN during the IFCN conference.

Global benchmarking: Analysis of your dairy farms each year.

Dairy Report: Each IFCN Partner receives 20 copies of the annual Dairy Report for free.

Scientific publication: The IFCN Partner will be named as co-author of the DairyReport and author of the country pages.

Dairy Conference: The IFCN Partner has the right to participate in the annual exclusive

IFCN Dairy Conference to discuss the results of the annual farm comparison, onespecial topic chosen and new and up to date dairy studies/topics.The conference fee, all common meals and excursions are covered by IFCN DairyResearch Center for one person per institution. If an IFCN Partner intends to send morethan one person per institution, the IFCN Center should be contacted in advance forparticipation possibilities and the related costs.

Data base: Each IFCN Partner gets the result database for all IFCN countriesparticipating in the Dairy Report. As well he can get the full database for a selection ofcountries or regions that are interesting for him.

Model TIPI-CAL and support tools: Each IFCN Partner is granted the right to use thisfarm level benchmarking and 10 year simulation model. Before every the IFCNconference a model training / model workshop will take place. Moreover, in the trainingIFCN Center will provide each IFCN Partner with all other tools that are available (pptpresentations, excel tools, currency/language converter, etc)

Marketing support: Assistance from the IFCN Center in creating products for dairyrelated companies/institutions in your country.

E-mail hotline: Possibility to get answers to your specific questions.

Please note that some of the mentioned benefits depend on the IFCN Partners participation

in the annual working schedule and the annual IFCN dairy conference.

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