Towards biodiversity based diary farming by Felixx

TOWARDS BIODIVERSITY BASED DAIRY FARMING

ÂŠ 2016 Felixx Commissioned by: WWF The Netherlands Design & Illustrations: Felixx Text: WWF The Netherlands + Felixx www.felixx.nl 2

CONTENTS WHY

FROM CONTROL TO RESILIENCE MODEL

WHAT

BIODIVERSITY

HOW

STIMULATE BIODIVERSITY-BASED FARMING

Based on a Conceptual Framework by Louis Bolk Institute: Biodiversiteit in de melkveehouderij - Investeren in veerkracht en reduceren van risicoâ&#x20AC;&#x2122;s (2014) Prof. dr. ing. Jan Willem Erisman, Dr. ir. Nick van Eekeren, Ir. Willemijn Cuijpers, Ir. Jan de Wit Project Team Felixx: Michiel van Driessche Willemijn van Manen Jeroen de Ruijter Carlijn Klomp Kim Kool Marnix Vink Deborah Lambert Project Team WWF: Natasja Oerlemans Sarah Doornbos We would like to thank the following individuals for their contributions: Jan Willem Erisman, Nick van Eekeren, Marleen Zanen; Louis Bolk Institute Pablo Tittonell; Wageningen University Klaas Oevering, Sicco Hylkema, Sytse Terpstra; Skriezekrite Idzegea Evert Terpstra, Haije Valkema, Ysbrand Galama; State University of Groningen Egbert Jaap Mooiweer; Dutch Cultural Landscape Association Frank Verhoeven; Boerenverstand Johan Zijlstra; Water Authority Friesland

ABOUT THIS DOCUMENT Humanity’s enormous and increasing demand for the planet’s natural

Intensive unsustainable agriculture is one of the central global

resources has resulted in a dramatic loss of biodiversity. Many of the

challenges affecting ecosystem integrity and biodiversity. The

pressures and underlying causes affecting ecosystems interact at a

Netherlands is a hotspot intensive agricultural area and biodiversity

variety of scales from local to global. Trying to reverse or prevent

in agricultural areas has been steadily declining. With a 35% share

further detrimental effects on nature within such a complex web

in land use in the Netherlands, dairy farming poses one of the key

of interdependent processes is a formidable challenge. WWF-NL is

threats, but can also be part of the solution to restoring biodiversity.

committed to promoting science and innovative approaches that lead

At the request of WWF-NL the Louis Bolk Institute developed a

to new insights, tools and solutions for intractable problems affecting

conceptual framework for ‘biodiversity-based dairy farming to

nature conservation.

increase resilience and reduce risks’. Felixx Landscape Architects & Planners were commissioned by WWF-NL, to visualize the theoretical concept of the framework. This exercise served several purposes: •

Visualizing the process of landscape transformation

•

Using infographics, maps and photo art to translate complex

issues into easy to understand visuals

The views expressed in the document are those of Felixx and WWFNL, based on extensive consultation and expert input. They do not necessarily represent the views of all contributors.

READING GUIDE This document guides you through the transformation from the current predominant approach to dairy farming in the Netherlands which is based on maximizing production through intensification to a new model that builds on biodiversity to increase resilience and reduce risks. It sketches the urgency of transforming a system that has led to enormous biodiversity loss and a vulnerable sector. This document provides building blocks for an alternative biodiversity-based farming model.

WHY

FROM CONTROL TO RESILIENCE MODEL Maximizing dairy farming productivity has led to a decrease in biodiversity and a vulnerable system. A new model is needed that builds on biodiversity to increase resilience and reduce risks.

ÂŠ FELIXX/WWF NL

LOSS OF BIODIVERSITY In Europe, agriculture is a main driver of biodiversity loss; contributing both directly through loss of habitat as well as indirectly through other drivers such as nitrogen deposition. 10

Causes of biodiversity loss

LOSS OF BIODIVERSITY % biodiversity remaining (Mean Species Abundance as % of baseline) and loss due to different drivers

Drivers of Biodiversity Loss in Europe, 20101 Biodiversity Remaining population size Habitat loss Agriculture Forestry Urban and other Reduced quality Nitrogen deposition Fragmentation Disturbance

Source:

1. Globio, PBL (2015), Oorzaken van verlies aan biodiversiteit in Europa, 2010 - pbl.nl

Netherlands

Denmark

Ireland

Belgium

France

Germany

Italy

Spain

Climate change

ÂŠ FELIXX/WWF NL

BIODIVERSITY UNDER PRESSURE Through these direct and indirect pressures, agriculture has an impact in agricultural landscapes, but also on nature beyond the farm, both near and far. Nine of such agricultural pressures and relevant subjects have been identified that have an impact on biodiversity.

Loss of biodiversity

BIODIVERSITY UNDER PRESSURE

Light & Noise

Emission to Air

Water Use

Land Use

BIODIVERSITY UNDER PRESSURE ON THE FARM Source:

Energy Use

Emission to Water

Biodiversiteit in de melkveehouderij - Investeren in veerkracht en reduceren van risico's. Erisman et. al., 2014.

Soil Use

Means Use

Landscape

BIODIVERSITY UNDER PRESSURE BEYOND THE FARM © FELIXX/WWF NL

LOSS OF BIODIVERSITY The Netherlands are among the worst performers in Europe when it comes to biodiversity. This is mainly due to the large share of land for agriculture and intensive production practices. The living Planet Index for the agricultural landscape in the Netherlands shows an average species population decline of 40% since 1990. This decline is preceded by an even larger historical decline before 1990. 14

Change in presence of target species, 1990-2005 compared to 1975-19891

Biodiversity loss in agricultural areas in the Netherlands

LOSS OF BIODIVERSITY Index value (1990 = 1)*

Nature areas > 100 ha

Agriculture areas > 100 ha

Butterflies

Breeding birds

Vascular plants

Living Planet Index Agricultural Landscape2 LPI agricultural landscape Confidence interval

* The index shows that populations in agricultural landscapes declined by 40 per cent since 1990. The index is based on 48 species of butterflies, mammals and breeding birds.

Source:

1. FLORON, SOVON, Van Swaay 2009 2. Wereld Natuur Fonds, 2015. Living Planet Report, Natuur in Nederland. WNF, Zeist.

ÂŠ FELIXX/WWF NL

MILK PRODUCTION Despite its limited territory, the Netherlands is one of the most important dairy production countries worldwide.

Top 10 milk exporters

MILK PRODUCTION

Top Global Dairy Exporters

Product (Tonnes)

New Zealand

United States

Belarus

Netherlands

Germany

France

Australia

Argentina

Iran

Uruguay

Poland

Source: Fonterra (2014), Global Dairy Update edition 19

ÂŠ FELIXX/WWF NL

LAND USE A long history of dairy production combined with the fertility of the land has made dairy farming the predominant land use in the Netherlands. With this position comes a responsibility; the way dairy farming is practiced determines how a large proportion of the land in the Netherlands is managed. 18

The Netherlands

LAND USE

Subdivision Agricultural Land 53% Pasture

% Land Use Netherlands 69% Agricultural land use 16% Built-up area 15% Forest and nature Source: Centraal Bureau voor de Statistiek (2010)

29% Arable land 13% Fodder fields 5% Horticulture 1% Greenhouse

ÂŠ FELIXX/WWF NL

Image source: Ten Apel et al., 2006

CONTROL MODEL A focus on short-term risk management and maximum profit drives intensive production. Production levels are boosted through the use of external inputs such as fertilizers, irrigation, antibiotics and pesticides. This model relies heavily on controlling externalities in the environment and the market and is characterized by a dependency on loans and bank investments. 20

High input for maximum production

CONTROL MODEL

HIGH INVESTMENTS/ LOW PROFIT Dutch dairy farmers compete in a global market. The cost of land, labour and external inputs in the Netherlands is high. Combined with the need for cost prize reduction, increased demands for sustainability and creditworthiness, this leaves farmers in a vulnerable position with small profit margins and little room to manoeuvre.

Economical risk

HIGH INVESTMENTS/LOW PROFIT An average dairy farm of sixty hectares in the Netherlands has a nominal value of an astonishing three million euro. The average income of a dairy farmer is thirty thousand euro each year. 1

Land Value2 Pasture, â&#x201A;Ź per hectare

Source:

Volatile Milk Prices2 The price recieved by the farmer, in eurocent received per liter

1. J. van de Gronden (2015), Wijsgeer in het wild, Amsterdam: Singel Uitgeverijen; 2. Kadaster, FrieslandCampina; 3. Van Eekeren, ongepubliceerd

Small Margins3 Profit margins are extremely low, especially in relation to invested capital. This leaves farmers highly vulnerable to fluctuations in weather, consumer behavior and economics

ÂŠ FELIXX/WWF NL

HIGH INTENSITY/ LOSS OF BIODIVERSITY Fine-tuning the control model has increased the yields per hectare to unprecedented levels. However, this intensification has contributed to a dramatic decrease of biodiversity in agricultural areas. The more biodiversity is lost, the higher the cost to keep the control model functioning through ever increasing external inputs. 24

Ecological risk

HIGH INTENSITY/ LOSS OF BIODIVERSITY

Na t

ura

l Ca

pita

Inp

Intensification © FELIXX/WWF NL

Image source: Ten Apel et al., 2006

RESILIENCE MODEL The resilience model provides an alternative approach where biodiversity and natural processes provide the foundation for increased resilience and reduced risks. Such a system combines optimalisation of production with nature and biodiversity protection. By doing so, it also reduces off-farm impacts on the natural environment. 26

Biodiversity-based dairy farming for increased resilience and reduced risks

RESILIENCE MODEL

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BALANCE INPUT & OUTPUT The control model targets high output (production), but requires substantial external input (resources). The resilience model aims to optimize production levels in relation to available resources. A better balance between input and output makes a system more resilient and therefore better able to cope with fluctuations and risk. 28

Increase resilience and reduce risk

BALANCE INPUT & OUTPUT External Input

Output

External Input

Output

Use of ecosystem services and fertilizers and feed preferably produced on own land

Export manure

Import of feed, antibiotics and agrochemicals Number of livestock in balance with the amount of land

Number of livestock and amount of land is not balanced

to the Resilience Model Larger margins1

From the Control Model Small margins1

Source: 1. Van Eekeren, unpublished

ÂŠ FELIXX/WWF NL

PARADIGM SHIFT The transformation from the control model to the resilience model requires a paradigm shift. Moving from maximum production to optimal production in relation to available resources results in larger profit margins and a more resilient system. 30

Resilience Model Control Model

Risk Management

From Control to Resilience

PARADIGM SHIFT

Possible loss due to external influences Net yields Year x

Year xx

Year xxx

Proceeds Proceeds

Small financial margin Costs

Farm Productivity

Larger financial margin Costs

Resources ÂŠ FELIXX/WWF NL

GUIDED TRANSFORMATION Although both biodiversity and agriculture benefit from an integrated biodiversity-based farming approach in the long-term, it takes time before the transformed system provides sufficient returns to balance investments. To bridge this transition period, alternative business models need to be developed and supported by conducive policies. 32

Develop alternative business models

GUIDED TRANSFORMATION

ive

li c

ie s

The involvement of key players including policy makers, financial institutions and companies is needed to create a conducive policy environment and alternative business models for system transformation. n Co

Resilience model

s i di e ub s

System redesign

New Business Model

Agricultural Nature Conservation

Control model

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INFLUENCE IN THE CHAIN Dairy farmers operate in a complex web of stakeholders. They depend on service providers such as financial institutions and agri-business for their loans and inputs, have to operate within a policy and regulatory framework and rely on market players to purchase their products. There is great concentration of power at several points in this chain, providing key leverage points for change. 34

Leverage points

INFLUENCE IN THE CHAIN Loans & credits

There are 17,800 dairy farmers

65%

of all produced dairy products are exported to other countries

They deliver goods to 22 processing companies

The goods are then distributed by 300 wholesalers..

35%

The remaining is consumed in the Netherlands

.. to 7000 stores who sell the products..

.. to 16,900,000 consumers

Agri-business

Policy & legislation Source: Zuivel NL (2014), Dutch dairy in figures 2013

Farmers markets

ÂŠ FELIXX/WWF NL

WHAT

BIODIVERSITY Biodiversity is the variety and variability among living organisms and the ecological complexes in which they occur. Biodiversity is necessary to sustain key functions of the agro-ecosystem.

ÂŠ FELIXX/WWF NL

THE 4 PILLARS OF BIODIVERSITY A resilient and biodiverse dairy farming system builds on four interconnected pillars of biodiversity: Functional agrobiodiversity, landscape diversity on the farm, specific species and corridors and source areas. To improve resilience and reduce risk, it is important to enhance functional agrobiodiversity. Functional agrobiodiversity should be supported by landscape diversity and connections of biodiversity source areas in the wider landscape. Maintaining and increasing specific target species often requires additional management. 38

Conceptual framework

THE 4 PILLARS OF BIODIVERSITY Specific Species

Corridors and Source Areas

Landscape Diversity

Functional Agrobiodiversity

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FUNCTIONAL AGROBIODIVERSITY Functional agrobiodiversity is the above and below ground biodiversity that supports the functioning of the dairy ecosystem through services such as disease control, nutrient cycling, pollination and water regulation. Measures to enhance functional agrobiodiversity focus on improving soil health and closing the cycles of nutrients, water and energy on the farm (soil, crop, cow, business). 40

Measures to support:

FUNCTIONAL AGROBIODIVERSITY

Outdoor grazing

Permanent pasture

Protein rich crops

Herb-rich grassland

No pesticides

Green manure

Healthy soil Source:

J.W. Erisman, N. van Eekeren, W. Cuijpers, J. de Wit, Louis Bolk Instituut (2015) Biodiversiteit in de melkveehouderij

Manure produced by own cattle

Closed cycle ÂŠ FELIXX/WWF NL

LANDSCAPE DIVERSITY Landscape diversity is in itself a part of biodiversity. In addition, landscape elements are essential to support functional agrobiodiversity on the farm. Without landscape diversity such as hedges, ditches, trees and flowering field margins, overall biodiversity remains low. Measures to enhance landscape diversity consist of introduction and protection of landscape elements. 42

Measures to support:

LANDSCAPE DIVERSITY

Hedgerows

Hedges and ditches

Source:

Trees and shrubs

Mix trees and crops

J.W. Erisman, N. van Eekeren, W. Cuijpers, J. de Wit, Louis Bolk Instituut (2015) Biodiversiteit in de melkveehouderij

Drinking pool

Flowering field margins

Plot edge planting

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SPECIFIC SPECIES Not all biodiversity actively contributes to the functioning of the dairy farm. However, these plants and animals are all part of overall biodiversity and may warrant protection from a conservation or cultural perspective. Effective management needs to be species and context specific, and often requires a landscape scale or regional approach. 44

Measures to support:

SPECIFIC SPECIES Flowering fields margins

Trees and shrubs

Wetland Areas Mowing regime

Dikes and reed

Source:

J.W. Erisman, N. van Eekeren, W. Cuijpers, J. de Wit, Louis Bolk Instituut (2015) Biodiversiteit in de melkveehouderij

Hedgerows

Cropland

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CORRIDORS & SOURCE AREAS Species populations and biological processes donâ&#x20AC;&#x2122;t adhere to farm boundaries. At a landscape or regional scale, biodiversity can be enhanced by connecting biodiversity source areas through corridors and regional land and water management. Such management includes the spatial alignment of the measures for functional biodiversity, landscape diversity and specific species at a landscape scale. 46

Measures to create:

CORRIDORS & SOURCE AREAS

Shelter areas

Grasslands

Cropfields

Wet & humid areas

Woodlands Lakes and watersides

Collaboration on the lands Source:

J.W. Erisman, N. van Eekeren, W. Cuijpers, J. de Wit, Louis Bolk Instituut (2015) Biodiversiteit in de melkveehouderij

Collaboration in the region ÂŠ FELIXX/WWF NL

HOW

STIMULATE BIODIVERSITY-BASED FARMING The physical manifestation of the resilience model is adapted to the ecological and cultural context.

ÂŠ FELIXX/WWF NL

BUILDING BLOCKS The resilience model moves away from a â&#x20AC;&#x2DC;one size fits allâ&#x20AC;&#x2122; model for dairy farming. Instead, it provides principles and building blocks whose physical implementation depend on the local ecological and cultural context. 50

Resilience Model

BUILDING BLOCKS

APPLICATION IN A CULTURAL AND ECOLOGICAL CONTEXT The ecological context is determined by biophysical factors such as climate, topography, landscape type, local flora and fauna and soil composition. The cultural context derives from societal factors such as the history, values and belief systems in an area. The resilience model provides a framework for locally adapted biodiversity-based dairy farming. 52

Building Blocks

APPLICATION IN A CULTURAL AND ECOLOGICAL CONTEXT

CONCLUSION This document illustrates the vision, the conceptual framework and potential building blocks to enhance biodiversity in dairy farming landscapes in The Netherlands. The analysis and proposed building blocks are based on scientific research. The specification of the building blocks is strongly dependent on the cultural and ecological features in an area. For the actual development and implementation of a dairy farming area that enhances biodiversity, a participative process is needed in which farmers, suppliers, buyers, financial institutions and other stakeholders work together on the basis of a joint analysis of the area.