Dr. Lothar Hoevelmann DLG

2 to 15 November 2024 in Hanover – Guiding theme: ‘We innovate animal farming’ – More than 2,100 exhibitors from 52 countries – International study ‘DLG-Agrifuture Insights 2024’ indicates willingness to innovate in a challenging market environment – Digitalisation and automation are progressing apace – Climate change is necessitating investments in technical solutions for temperature regulation in barns – High willingness to invest amongst dairy farms

The market environment for professional livestock farmers in Germany, Europe and worldwide is challenging, but their willingness to invest is nevertheless robust: this is the message from “DLG-Agrifuture Insights Winter 2023/2024”, an international survey involving more than 3,000 participants, evaluated by the German Agricultural Society (DLG) with respect to livestock farming on the occasion of EuroTier 2024. The challenges faced by farmers in Germany, Europe and worldwide include the spread of viral infections such as bluetongue disease, African swine fever and avian influenza. Climate change is additionally impacting the supply and cost of animal feed: prices and availability are becoming increasingly volatile due to weather conditions. On the positive side, prices for milk and meat are relatively stable and are encouraging investment projects. In this turbulent market environment, it is important for farmers and agribusiness companies to become involved in actively shaping the future.

This is where EuroTier – the world’s leading trade fair for animal farming and livestock management – comes into play, offering innovations and potential solutions for adapting to changed framework conditions as an international platform under the guiding theme of ‘We innovate animal farming’. EuroTier will once again be presenting innovations and trends for farming at the trade fair grounds in Hanover from 12 to 15 November 2024. Over approximately 220,000 m2 of hall space, more than 2,100 exhibitors from 52 countries will be presenting a complete range of products for modern animal farming and solutions for meeting the challenges of the future.

Turbulent times in the industry

The agricultural market is dynamic. The economic framework conditions for the agricultural sector and the upstream and downstream agribusiness remain turbulent. Besides the ongoing war in Ukraine, bluetongue disease, African swine fever (ASF) and avian influenza are posing major challenges for livestock farmers. Continuing extreme weather events are additionally leading to severe fluctuations in the availability and cost of animal feed.

In October 2023, the first outbreaks of bluetongue disease of serotype 3 (BTV-3) were discovered in Germany, the Netherlands and Belgium (source: Friedrich-Loeffler-Institute). Since then, outbreaks have occurred in large parts of these three countries. Since July 2024, the number of cases of BTV-3 in Germany has increased significantly (more than 3,500 infections; status: 16.08.2024). Sheep, cattle, goats, New World camelids and wild ruminants are susceptible to the virus. No vaccine has been approved as yet, but an emergency regulation permits the administration of three vaccines in affected areas (status: 12.9.2024). Its use so far shows that vaccination is an effective measure for protecting animals. ASF is also continuing to spread. As of 10 September 2024, 596 cases of ASF in domestic pigs had been reported in Europe. In view of the situation on the global poultry market, the FAO published a report on 29 July 2024 in which it acknowledged the zoonotic potential of avian influenza. Zoonoses are infectious diseases that can be transmitted from animal to human and from human to animal and which occur in vertebrates.

Meanwhile, the prices of grain and oilseeds have fluctuated significantly around the globe in recent years due to various geopolitical crises and climate change. While Germany’s wheat harvest was below average in 2024, for example, global production has once again increased significantly. Prices on the commodity futures exchanges have remained at a moderate to low level on average in recent years.

Conversely, the EU milk market has been seeing a general trend towards higher milk prices since 2021. Peak prices were registered on the EU milk market in 2022 due to the war in Ukraine and the resulting energy crisis. Since then, prices have levelled off at a consistently high level. The milk supply has also remained constant in 2023/2024. Hog prices are relatively stable in the EU. However, the export value is declining due to ASF and lower production. At the same time, the decline in the export volume is higher than the decline in the export value. This can be explained firstly by a shift in market shares between the export countries (less to China, more to the UK) and higher product prices.

Worldwide demand for meat is increasing along with growing prosperity. Poultry remains the most in-demand meat product. Accordingly, poultry meat production has increased by more than 30 percent worldwide over the past 20 years.

Survey: farmers’ willingness to invest

DLG surveyed more than 3,300 farmers from across the globe for the ‘DLG-Agrifuture Insights Winter 2023/2024′ survey, and again conducted a lightning survey amongst around 600 respondents in the summer of 2024 (DLG-Agrifuture Insights Summer 2024). This was focused on farmers’ current willingness to invest and the increasing digitalisation of farms, also in order to tackle the current challenges posed by climate change.

Distributed evenly across the market, poultry producers, pig farmers and milk producers assessed their farms’ financial situation as being better in the winter of 2023/24 than in the summer of 2024. Reasons for this may include the ongoing war in Ukraine as well as the new conflict that has flared up in the Middle East. However, it is important not to read too much into the figures, as significantly fewer farmers took part in the study in the summer of 2024 than in the winter of 2023/24. A general trend is nevertheless evident. In order to improve and stabilise the financial situation of farms in the long term, costs need to be reduced through an improved feed conversion rate as well as the digitalisation and automation of farms, amongst other aspects.

Milk-producing farms demonstrate a high willingness to invest in the future, closely followed by poultry farms and pig farmers. The good prices achieved over the past year are providing dairy farmers, in particular, with a financial basis for investments. Conversely, arable farms are more reluctant to invest. Farmers are primarily planning to invest in three areas of livestock farming: animal welfare, reduction of heat stress, and buildings and digitalisation. Innovative and improved barn concepts can benefit animal welfare and animal health. Increasing automation of farms can also prove helpful in this regard. Automation is also gaining in importance due to the lack of skilled workers in Europe.

Digitalisation and automation in agriculture

In the meantime, farms are already becoming more digital and digital tools are gaining in importance in all areas of agriculture. According to a study published by Bitkom Research in June 2024, the numbers have increased once again compared to 2022. Around 68 percent (2022: 63 percent) of the farmers surveyed are already using a digital field catalogue, cow or sow planner on their farm. One reason for this frequent use is their ease of integration into existing operations and the reduction in working time. Farm and herd management systems are used considerably less frequently. However, a sharp increase can be seen here. While only one in three (32 percent) were using digital tools in 2022, this figure has already increased to one in two (46 percent) in 2024. Milking and barn robots are used by 22 percent of the livestock farmers surveyed (2022: 19 percent). Demand for digital support has also increased compared to 2022.

According to the DLG-Agrifuture Insights Winter 2023/2024 survey, dairy farmers are hoping to see new innovations in labour organisation in the future, enabling them to increase their work efficiency. Improvements in herd management and monitoring systems as well as digital innovations for reducing the use of antibiotics are similarly important to milk producers. For instance, sensor systems can be used to recognise problems in good time, and anti-inflammatory drugs can be administered so that the use of antibiotics is not necessary. This not only enables losses to be reduced but also prevents resistances from developing in humans and animals.

Pig farmers are hoping for innovations in the area of climate control in livestock barns. This topic is becoming increasingly important particularly due to climate change and the related periods of high temperatures. The farmers who were surveyed rated innovations for needs-based feeding to improve animal health and animal welfare as equally important. Improvements in herd management and monitoring as well as in husbandry systems can lead to improved animal health and increased animal welfare and therefore also to the better integration of pigs with intact tails, for instance. This is a topic that many livestock owners in Germany are currently thinking about and will be one of the technical programme’s focuses at EuroTier 2024.

Focus on needs-based feeding

Poultry farmers also regard needs-based feeding to reduce nutrients in farm manure and ensure the performance and health of poultry as important. The need for innovations for improved labour organisation follows in second place. Artificial intelligence and progressive digitalisation can help to achieve this objective and also improve animal health. The farmers who took part in the survey assessed the need for improved climate systems as equally relevant.

With regard to the use of energy-efficient measures to protect the climate and the environment, around 50 percent of the dairy and pig farmers surveyed are planning to implement corresponding measures on their farms. Over 50 percent of poultry farmers have already implemented measures and a further 30 percent are planning to do so in the future. Measures for increasing energy efficiency result in a reduction in costs and increase the sustainability of the farm. Investments in PV systems on farms are also on the rise. An increasing number of farms are producing their own electricity, which is why technical solutions are being sought to be able to use as much of this self-produced electricity as possible. Intelligent technologies for storing electricity are also required to achieve this.

Summary

Progressing climate change necessitates the integration of energy-efficient technologies for avoiding heat stress and optimising animal health into barn concepts. Needs-based feeding is also increasingly gaining in importance. This can help to reduce greenhouse gas and nutrient emissions, promote animal health and reduce costs. Digital tools have already become firmly established on farms. They improve the efficiency of farm processes and help to alleviate the lack of skilled workers. They also help to improve working conditions and increase animal health and animal welfare. Further innovations will be required in the future in order to achieve these objectives.

With their unique product and information offers, EuroTier and EnergyDecentral 2024 will once again be providing pioneering stimuli for both industries live at the trade fair grounds in Hanover. We are looking forward to it and to your visit.

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DLG. Progress and sustainability in the agricultural sector and the food industry

Founded in 1885 by the German engineer Max Eyth, DLG (Deutsche Landwirtschafts-Gesellschaft – German Agricultural Society) stands for productivity and resource protection in a sustainable and innovative agricultural and food value chain. DLG’s mission is to promote progress through the transfer of knowledge, quality standards and technology. DLG has over 31,000 members, and is non-profit, politically independent and internationally networked.

As one of the leading organisations in its sector, DLG organises trade fairs and events in the fields of agriculture and food technology and tests food, agricultural machinery and farm inputs. With its Competence Centers for Agriculture and Food and the DLG-Verlag’s media, DLG stands for the independent transfer of know-how. DLG additionally develops solutions to the challenges of the agricultural, agribusiness and food sectors in numerous national and international expert committees.

www.dlg.org