Austrian beef farming: small but linked to markets and eco-friendly

(c) Katja Seifert

(c) Johannes Minihuber

Austria’s agriculture is characterised by small sized farm units. An average cattle farmer keeps only 28 cattle. The cattle farms are predominantly managed as part time farms: more than two thirds of the farms have additional off-farm income. As a result of the structural disadvantages, it is difficult for Austrian cattle farmers to compete with the (many times) larger units in many beef-producing countries in the world, a situation which is expressed in higher labour input and costs, depreciation and feed costs.

The structural preconditions were the main reason why in the beef sector prime quality schemes have been implemented nation-wide some 15 years ago. The main purpose was and is to convince retailers and consumers of the high quality beef production in their country and to secure marketing of Austrian cattle. Independent of the farm size, every cattle farmer can participate in one of the 'beef quality schemes', provided that the farm complies with the program standards (e.g. compulsory participation in the national animal health services system).

The particularity of the Austrian beef schemes and their standards is the integration of all partners in the supply chain (vertical integration), starting with the animal-feed industry via the cattle farmers and producers, the abattoirs and beef processing plants up to the retailers and supermarkets. Farmers, respectively the Austrian wide coordinated farmer-associations, take the central position within these programs in terms of advisory services to farmer, collecting and transporting cattle and targeting the supply of markets. Consumers trust this beef-strategy including production-standards, programs and branding.

Another particularity is the importance of organic farming in Austria. In 2012, about 19.6 percent of the agricultural land was farmed organically. The highest density of organic farms is found in the alpine belt between Tirol and Salzburg, where between one third and half of the farms (predominantly cattle farms) are run biologically. Around 15,000 organic cattle farmers keep about 380,000 cattle in Austria, equivalent to approximately 20 percent of the total cattle population. Most of that beef is consumed in Austria but some is exported to Germany and other EU-countries.