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Organic Farming in LiechtensteinOliver Kopp, Klaus Büchel
Overview In 1999, there were 35 certified organic farms in the Principality of Liechtenstein. Twenty-two organic farms are full-time farms (approximately 16% of all full-time farms), and 13 are part-time farms. Organic farms (area > 5 ha) account for about 22 percent of all farms. Approximately 660 hectares are cultivated organically in Liechtenstein. This is equivalent to 17 percent of all agricultural land.
Historical Development Until 1991, there was just one certified organic farm in the Principality of Liechtenstein (Table 1). It was not until the start of the "Öko-Bauer" ("Organic Farmer") project in 1991 (see chapter on marketing) and the set up of a professional conversion advisory service that new farms could be gained. In 1995 alone, 12 farms from one village (Triesenberg) converted to organic agriculture. Since the introduction of the "Agri-environment Program" ("Abgeltungsgesetz") in 1996, there has been additional incentive for conversion. A medium-range target of 40 to 50 organic farms in Liechtenstein appears to be realistic.
Table 1: Increase in the Number of Organic Farms in Liechtenstein
(Source: Klaus Büchel Anstalt, Ingenieurbüro für Agrar- und Umweltberatung, 2000)
Land Use and Animal Husbandry
Table 2 shows land use in organic agriculture in 1999.
Table 2: Land Use in Organic Agriculture in 1999
(Source: Klaus Büchel Anstalt, Ingenieurbüro für Agrar- und Umweltberatung, 2000)
Eighteen farms are dairy farms, and 8 farms raise sheep. For one farm each, cattle fattening and cattle breeding are the main sources of income, and six farms have no cattle. Two farms raise fattening pigs (a capacity of approximately 50 fattening pigs), one farm breeds pigs (with a capacity of approximately 15 breeding pigs), and one is a poultry farm with a capacity of approximately 250 animals.
Farm Structure and Regional Distribution of Farms Sixteen out of 35 farms are situated in the same village in the mountains at 900 to 1200 metres above sea level. They have grassland only. For 12 of these farms, dairy farming is the most important farm activity. The other four farms raise sheep. For 6 of the 19 farms in the valley, dairy farming is the most important farm activity as well. Arable farming (mainly cereals and corn) is typical, although it normally is of subordinate importance. Five farms have viticulture only, one farm only grows vegetables, and two farms only raise sheep. Two of the dairy farms in the valley cultivate small fruit orchards (approximately 1 ha and 0.5 ha). Mixed farms are an exception.
Inspection Bodies, Certification and Producer Organisations
All organic farms are inspected by bio.inspecta from Frick, Switzerland according to BioSuisse Knospe standards. Since 1999, bio.inspecta has also performed certification. This means that the same officially accredited organisation performs inspection and certification in Liechtenstein as well as for Knospe farms in Switzerland. The only milk processing factory (Milchhof Schaan) and the stone mill in Balzers are inspected by bio.inspecta. Other processing plants such as bakeries and butcher shops are inspected by the "Institut für Marktökologie (IMO)" from Sulgen, Switzerland. "BIO-Ländle" products standards apply for processing and trade. The "Association of Agricultural Organisations in the Principality of Liechtenstein" (Vereinigung Bäuerlicher Organisationen im Fürstentum Liechtenstein) is responsible for certification. It owns the "ÄHRE" label, which has been registered for organic products from Liechtenstein since 1993, as well as the "Bio-Ländle" label (also since 1993).
The producers, some processing plants and one trading company have been organised in the "Bio Liechtenstein" association since the beginning of 1999. The association numbered more than 30 members by the end of 1999. The association supports the production, processing, trade and consumption of organic products from Liechtenstein. In addition, its objective is to safeguard and support the interests of organic farmers from Liechtenstein and those who process and trade organic products.
Standards and Certification
Products with the ÄHREN label on the market in the Principality of Liechtenstein or with the Knospe label in Switzerland must comply with BioSuisse's Knospe standards. These have also been established by the government as the minimum standards for farmers receiving compensation payments.
The minimum standards for processing and trade are the Knospe standards. In certain areas (e.g. ingredients, slaughtering), even more stringent requirements have to be met by the processing plants. The standards are set by the "Association of Agricultural Organisations". State organisations currently have no direct influence on setting standards for processing and trading organic products.
State Regulations for Organic Farming
There is no state organisation directly responsible for inspection, certification and standard setting. Within the limits of the "Agri-environment Program", which was ratified in 1996, however, the Board of Agriculture of the Principality of Liechtenstein is responsible for signing contracts and allotting direct payments for organic farming. It is important to mention that the "Agri-environment Program" is very similar to the regulations in Switzerland.
State Support for Organic Farming
In the Principality of Liechtenstein, the state supports organic farmers with compensation payments as well as with financial aid for research and advice. State support for organic organisations and marketing does not exist.
Since Liechtenstein is not a member of the EU, organic farms in Liechtenstein do not receive EU subsidies. Organic farms are supported under the "Agri-environment Program" of Liechtenstein. The subsidies are paid according to the area under organic management, and the payments are currently about as high as those in Switzerland (Table 3).
Table 3: Direct Payments for Organic Farms per Hectare and Year
*The conversion payments amount to a maximum of 25’000 Swiss Franks (15,625 EUR) per farm. (Source: Klaus Büchel Anstalt, Ingenieurbüro für Agrar- und Umweltberatung, 2000)
The Principality of Liechtenstein does not have an agricultural research institute of its own. For this reason, the government pays a yearly contribution to the Swiss Research Institute of Organic Agriculture (Forschungsinstitut für biologischen Landbau FiBL) in Frick, Switzerland. As a result, organic farms in Liechtenstein may make use of certain services of FiBL.
Since 1996, there has been a well-developed advisory service. Every approved organic farm has the right to consultation services through a private consulting office – "Klaus Büchel Anstalt" - to the extent of 1.5 days per year. The government finances 90 percent of the fees for this advisory service. The remaining 10 percent must be paid for by the organic farmers themselves.
Advisory Service The whole advisory service is organised on a private basis and is only partially financed by the government. The contact partner for this service in the Principality of Liechtenstein is a private office with special knowledge in the area of organic farming, the "Klaus Büchel Anstalt". In some areas there is also co-operation with the Swiss advisory service FiBL.
Research and Training As part of the advisory service in Liechtenstein, field trials are carried out periodically and agricultural excursions are organised for further training. In the areas of research and apprenticeship in organic farming, the Principality of Liechtenstein mainly relies on such activities in Switzerland. The Research Institute of Organic Agriculture, Frick, Switzerland plays a leading role in research. FiBL co-operates in various areas with other Swiss research stations. In Switzerland, the possibilities for education and further training for organic farmers have much improved in the past years. These opportunities may also be used by farmers from Liechtenstein. However, there is no specific program at the university level in Switzerland, either. In various fields of study, organic farming can be chosen as minor subject. In the future, more and more emphasis will be given to organic farming.
Marketing
Important tasks in the area of marketing are covered by the"Öko-Bauer" ("Organic Farmer") project mentioned above. Since this project is very important for organic farming in Liechtenstein, it will be described in the following. The production and marketing of organic products from Liechtenstein is the most important aim of the "Öko-Bauer" project. In this way, farmers from Liechtenstein are given the opportunity to change to environmentally beneficial and sustainable agricultural production. Also, local demand can be covered with organic products from local farming. This regional aspect is pivotal for the whole project. The "Öko-Bauer" project is financed by the LGT Innovation Foundation of the Bank of Liechtenstein AG in Vaduz. The budget is about 60,000.- Swiss franks (37,5000 EUR) per year. Without this support, decisive steps in the direction of ecological farming could not have been taken. The explicit promotion of organic farming is a main reason for the high increase in the number of organic farms in Liechtenstein. The vision of the "Öko-Bauer" project can be circumscribed as follows: u Environmentally friendly organic farms in the Principality of Liechtenstein produce high-quality food. u Processing firms from Liechtenstein guarantee careful processing using the highest possible amount of local organic products. u Retail trade anchored in the region helps ensure the good distribution and availability of BIO-Ländle products. u The inhabitants of the region attach great importance to healthy, animal-friendly and ecologically produced foods with an indication of origin. They therefore consume an increasing amount of BIO-Ländle products and are willing to pay a reasonably higher price for above-average quality. The most important aims of the project can be circumscribed in short as follows: A. Ecological development of agriculture in Liechtenstein. B. Healthy nutrition for the inhabitants of Liechtenstein. C. Strengthening the food industry in Liechtenstein. D. Stabilisation and further development of the Bio-Ländle label.
Figure 1: Bio-Ländle-Trademark
(Source: Klaus Büchel Anstalt, Ingenieurbüro für Agrar- und Umweltberatung, 2000)
The importation of foreign organic products is negligible in terms of quantity. The purchase of Swiss organic products in Switzerland by people from Liechtenstein, however, can be considered as very significant. Since there are open borders between Switzerland and the Principality of Liechtenstein (free trade agreement), this cannot really be considered as importation.
Organic products from Liechtenstein are only ‘exported’ to Switzerland so far. This mainly involves unprocessed products such as milk, meat and corn.
The most important regional trading partners are bakeries and butcher shops, the Milchhof Schaan, the Hilcona Schaan and the stone mill Balzers.
There are also Swiss partners who are very important, especially for milk, corn and fruit. The Säntis Holding in Gossau imports milk, Biofarm in Kleindietwil (CH) imports corn, and the Geiser AG in Langenthal (CH) imports fruit. So far, meat can only be traded nationally/internationally at a premium price in small amounts only. The main customers in this case are the Linus Silvestri AG in Lüchingen (CH) and the Bio-Freiland AG in Aarau (CH). All other products are traded wholesale and retail, but can not be sold at a premium price.
Challenges and Outlook Among the most important challenges for the future are: a) Increasing the share of organic products marketed in the region. b) Increasing the share of products marketed with a premium. c) Expanding the range of products in all areas. d) Re-creating new processing and trade companies extending and intensifying consulting
Authors Oliver Kopp and Klaus Büchel
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The setting up of this internet site was co-funded by the
Forschungsinstitut
fuer biologischen Landbau (FiBL) , Research Institute of Organic
Agriculture