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Extension Services for Quality Milk Production
Proceedings of an International Workshop in conjunction with the East-West-Forum
of the Federal Ministry for Food, Agriculture and Forestry
and the "Window of German Animal Breeding" at the International Green Week
24-25 January, 1999
Organizational Aspects in Extension Service for Quality Milk Production
in Estonia
T. Murulo - Agricultural Register’s and Information Centre
K. Jalak - Estonian Rural Advisors’ Association
T. Vares - FAO Subregional Office for Central and Eastern Europe
Background
Estonia has about 1,46 million inhabitants on 42 394 square kilometres
land area. The dairy cattle production has remained the most significant
part of the agricultural production. The total number of cattle was about
330 000, including 161 500 cows (October 1998). More than 70% cows are
in official Milk Recording (MR), whereas average herd size exceeds more
than 40 cows in MR. 2 900 herds, particularly larger size, use MR services
while there are more than 25 000 "milk producers" estimated, most of them
so-called small holders.
The average production of milk per cow was 4 210 kg per cow in 1997
(4 394 kg per cow in MR). Annual consumption of milk per capita as reconverted
to milk was about 276 kg in 1997. High competition with the import as well
as the export motivates the production of high quality of dairy products
in Estonia (Table 1).
Table 1. Production, export and import of milk products in Estonia
in 1997, (tons)
| Milk products |
Production
|
Export**
|
Import
|
| Butter and blends |
21,3* |
28,8 |
24,2* |
| Cheese |
10,3 |
9,0 |
2,6 |
| Fresh milk and cream |
|
|
9,9 |
| Fresh milk products converted to
milk |
329,6 |
47,1 |
10,3 |
| Ice cream |
3,9 |
|
|
| Powders |
16,7 |
28,4 |
9,4 |
* only butter included
** including re-export
1998 the price of milk dropped dramatically down to the level of year
1994 (Chart 1). This was mainly caused by changes in the Russian market
and monopoly in dairy processing industry. The average milk price in 1997
was about 32,5 pennies (DEM), what has dropped down to 25 pennies (DEM)
in 1998. The milk price is seasonal as well as is production.
Chart 1. Average milk price in Estonia
Milk Quality Requirements and Control
State Standard for quality of raw milk is valid from 01 January
1995 in Estonia and the quality control requirements are similar to the
ones in EU (Table 2). In 1997, there was about 72,6% (517,8 tons) milk
delivered to dairies from total milk production in Estonia. The bulk milk
samples are tested regularly in the laboratories of the dairy factories
or in the laboratory of Agricultural Registers’ and Information Centre
(ARIC) previously called Animal Recording Centre. The milk price is dependent
on the quality of the bulk milk and farmers are motivated to maintain and
improve the quality accordingly.
Central Milk Analysing Laboratory of ARIC got official
accreditation in 1998 and is to be the neutral laboratory for milk analyses
for payment as well as the milk recording (MR) lab for the whole country.
In 1997 however, mostly the individual cow milk samples for MR were analysed:
from 1,06 million samples about 3% were done for dairy factories for milk
payment. The laboratory is equipped for MR as well as quality control and
reference sampling. Analysis results are transmitted electronically to
the Data Processing Unit for merging with barn information and further
processing or directly to the dairy factories. Since 1998 the laboratory
is participating in ICAR inter-laboratory test. The international accreditation
for all the required reference methods is in process.
Table 2. Quality requirements for raw milk, Estonian State Standard
No 594-94 and data of milk delivered to dairies
|
High
|
I.
|
II.
|
| Somatic cell count, th./cm3 |
400
|
500
|
4000
|
| Total bacteria count, th./cm3 |
100
|
500
|
750
|
| Acid, T |
17
|
18
|
19
|
| Sediment test |
I.
|
I.
|
II.
|
| Taste and smell |
clean, without any
other taste or smell
|
can be delicate
taste of feed
|
| Milk delivered to dairies 1997,
(tons) |
347,9
|
138,3
|
31,6
|
| as % of milk delivered |
67,2
|
26,7
|
6,1
|
Agricultural Advisory Services in Estonia
The need for the establishment of the new advisory system in the
country was apparent, when the agricultural reform started in the early
nineties. All the reforms in Estonia have been characterised as being very
liberal and so is the idea of the advisory services. The general concepts
for the advisory services were ready in 1996 and the whole structure has
been developed further, which can be described as quite unique compared
to other countries.
The main difference is that in Estonia there is no state extension
service at all, which does not mean, that state is not supporting the advisory
services. In June 1996 the Ministry of Agriculture introduced the idea
of developing "free advisory market", where all advisers and advisory organizations,
no matter if state or private, are competing with each other. State is
supporting development of advisory service through Advisory Fund, which
is managed by the Advisory Committee. The Advisory Fund pays direct subsidies
to the farmers enabling them to hire the most efficient and suitable advisers
upon their own choice. Payment of subsidies is based on contracts between
farmers and advisers. There are certain rules set, however. For example,
the limitation for subsidy per farmer was for the 6 000 EEK in 1998. In
case of a contract up to 3 000 EEK, a farmer should pay 15% of the total
sum of the contract and the rest 85% is paid by state straight to the adviser
in accordance of the contract between the farmer and the advisor. Farmers
could make additional contracts for another 3 000 EEK but in this case
he will be responsible of paying 40% and the remaining 60% is subsidy.
All the subsequent contracts, exceeding the 6 000 EEK limit are not entitled
for the subsidy and are paid by the farmer.
The whole scheme is quite simple: a farmer, seeking advice, contacts
the most suitable adviser. They make a contract, where services, dates
and payments are agreed. Adviser takes a copy of the contract to a county
government where officer approves (or not) the contract. The reasons for
possible neglecting of the contract: if farmer or adviser is not eligible
for the scheme or if farmer has already spent his amount of the subsidy.
Lists of eligible farmers and advisers are available in each county
office and special registration program is used to check the subsidy payments
each farmer has received. Officials do not interfere in regard of advice
or payment rates; this matter should stay only between a farmer and an
adviser. Approval of the contract means accordingly, that state subsidy
on this contract is guaranteed. Not all farmers and advisers are eligible
for the scheme. The farmer, being entitled for the advisory subsidy, must
be officially registered; market at least 50% of farm production and his
farm should provide a full time job for at least one person (farmer himself,
family member or somebody else), being a production unit and not a hobby
farm consequently. The adviser must be qualified by an endorsement procedure,
where the levels of professional knowledge and communication skills are
tested. Only so-called "independent" advisers can qualify. This means an
adviser cannot be employed by a firm selling farm inputs or purchasing
farm products or not be employed by organizations carrying out state control
or any inspection activities. Qualified adviser is expected to serve farmer’s
best interest.
After the approval of the contract by a county government, the adviser
carries out agreed services, reports the actual time spent and services
offered. The farmer approves the report and pays his share of the contract
(15 or 40%). The copy of the report and receipt is sent to the county government,
where the advisor is paid the outstanding share of the contract (85 or
60%).
The farmers’ judgement is essential for advisers’ work quality. If
a farmer is not satisfied, the report does not get approval and the adviser
cannot get state subsidy neither farmers’ payment. Such a quality control
method is really effectual and those advisers not meeting farmers’ needs
are out of business quite soon.
The subsidy funds allocated from state budget and World Bank agricultural
loan amounted in total to 6 million EEK in 1998 and almost 3 000 farmers
used advisory services through the subsidy scheme. The plan is to increase
farmers’ share step by step. In 10 years of time the farmers should carry
most of the costs of the advisory service. Advisory Fund is financing so-called
group advice, training and extension activities - field days, farmers’
study groups, printing handbooks and booklets and so on. In 1998, 3,1 million
EEK were allocated for that purpose. Financing of this kind of activities
is project-based - state and private organizations and self-employed advisers
submit their project proposals, where amongst Advisory Committee selects
the best ones to be financed.
Only certified advisers are eligible for the subsidy scheme and if
the farmer uses the services from non-certified advisor, he has to pay
100% of the contract. The numbers of certified adviser is 160, about 60
of them are specialised on animal husbandry including milk quality. Not
all of them are self-employed, 60% work in farmers’ or producers' unions,
advisory centres, local municipalities, state or private firms. The self-employed
advisor has lower costs, while overhead costs of the advisor from the company
are higher. The statistics based on the subsidy-schemes’ advisory contracts
shows, that advice on animal husbandry is mainly given by farmers' unions,
advisers or self-employed advisers. Additionally, advice on animal husbandry
is also given by employees of the commercial firms selling feed, fertilisers,
veterinary supplies, machinery and other farm inputs, also advisers employed
by dairy factories, meat industries or grain mills. They offer so-called
"free advice" where price of the advice is hidden into the product price.
Institutions and Organisations Involved in Agricultural Advisory Services
Agricultural Estonian Ministry of Agriculture (MOA) is responsible
of the regulation, policy and supervision of the Advisory Fund. Advisory
Committee (AC) of the MOA, however, represents the entire agricultural
industry: producers’ unions, service organizations, agricultural schools,
universities, processing industry, Estonian Advisors’ Union and so on.
Estonian University of Agriculture has included the advisors’ training
in the curriculum and is involved in the extension and certification (technical
skills) of the advisors as well as preparation of the publications, and
handbooks. The research institutes are providing advice directly to the
farmers to some extent, but these contracts are usually not reflected in
the subsidy scheme. Agricultural Registers’ and Information Centre (ARIC)
is responsible for the milk recording, central milk laboratory, genetic
evaluation of cattle and data processing for performance recording (cattle,
pigs) and agricultural registers. Advice is one of the services provided
to the farmers. ARIC special advisory products are competing in the "free
advisory market" and ARIC advisors have to complete the certification procedure.
Producers’ Unions are providing training, publications and specialised
advice. There are several local self-help organizations as well as western-owned
private companies providing advice. Estonian Advisors’ Union (EAU) is a
National NGO, which members are rural and agricultural advisors. EAU carries
out the co-ordination and representing role for the members and organizations
involved in advisory services. EAU has a newsletter and Internet homepage.
Infrastructure for Advisory Services
Together with the development of the advisory services the need
to develop the support structure for advisors appeared. Several support
systems and information services are available both for farmers and advisers,
mostly provided by state–owned institutions. All the laboratories of the
Ministry of Agriculture, State Veterinary Service and the Agricultural
University are providing services for advisors and farmers. For instance,
milk quality can be tested in ARIC Central Milk Laboratory and in the Agricultural
University. Feed and water analyses can be done in several feed laboratories
of research institutes and in veterinary laboratories, which offers also
blood analyses for metabolic disease detection. ARIC certified advisers,
the Agricultural University or commercial suppliers are arranged for testing
of milking equipment upon the farmers and/or advisors request.
Milk Quality Related Advice
Farmers can get advice on milk quality from different sources: first
information about the bulk milk quality is arriving from the dairy plant
2-3 times per month. Dairy plant advisers often visit the farm to check
the problems and give advice. Dairy plants are very much interested to
maintain the milk supply and high quality. Though, they often take care
of the larger farms only. Agricultural Registers’ and Information Centre
(ARIC) is sending monthly herd management reports to all the farms in milk
recording. The individual cow records-somatic cell count (SCC) and milk
urea are default part of the regular MR service for all the farms and cows
and can be used for the improvement of the udder health situation as well
as feeding. Farmers can sign up for an extra report: so-called "Udder Health
Report", where SCC of 5 last months is shown and too high scores highlighted.
The cows are ranked according to the SCC rate and their share in (%) bulk
milk is shown. This kind of report is very popular especially for large
herds. ARIC advisers are partly giving special advice in subsidy scheme
(feed plan, milk quality improvement). Milk recording technicians are employees
of the farmers in Estonia, where 100% B-recording is performed. MR technicians
have the service contract with the farmers for the basic services and advice
can be provided as an extra service. Similar to the MR technicians some
private veterinarians have a certificate as advisors. For instance, herd-feeding
plan can be done by any of the above-mentioned advisors. Herd health advice
is mainly given by the veterinarians, which often is not reflected in the
official statistics. Sales firms (milk equipment, feeds, washing chemicals
etc.) are regularly active in the field of advisory especially, when the
sales of their product is concerned. The high professional advice from
the research institutes and the Agricultural University professors is not
used frequently but particularly the most innovative farmers apply for
such advice.
Our experience
Several questionnaires carried out among farmers during the last
2 years indicate, that most frequent source of milk quality advice are
milk recording technicians and veterinarians. This is natural as these
specialists visit farms on regular basis. Farmers generally appreciate
that these specialists do not charge them for advice, as consultation is
often part of the service. Commercial sales persons offering farm input
products are also quite common source of information, as contacts with
them are frequent. Though the questionnaire results show that the majority
of farmers are aware that advice given by sales persons may be biased and
solutions offered are not always optimal from the economical point of view,
their detailed technical knowledge about their products attracts farmers.
Other advisers: from dairy plants, ARIC and private advisers are highly
valued by more advanced producers. Those advisors are able to carry out
farm situation study (technical and economical) and they are trained for
problem tracking. Farmers consider solutions offered reliable and based
on the farmers' best interests.
Researchers and the Agricultural University scientists come into view
as a source of information mainly for large-scale producers with good production
level. General farm analysis is not expected from scientists. Farmers expect
rather answers to very specific technical problems.
All the advisors have to pass special advisory skills courses. They
are trained to follow certain procedures from general farm situation analysis
to problem tracking and sales advice as a package. Packages are developed
by advisers themselves and are varying. Depending on the situation, several
packages may be required to achieve expected results. It is obligatory,
that all advisers working under state subsidy scheme, should present their
advice to farmer in written report containing the following parts:
-
Description of present situation and possible reasons for problems,
-
Expected situation in future - target,
-
Different options for solutions,
-
Comparison of different options with economical analysis of each option.
Advisers are trained not to take responsibility and make decisions for
a farmer but rather guide them and make farmers to decide themselves. The
reason for implementing such procedures is to increase efficiency of advisers
and create better understanding for farmers about what is happening on
their farm.
Conclusions
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Demand for advice, especially milk quality advice, is increasing very rapidly.
Dairy farmers get more and more aware about the importance of producing
high quality milk as major factor influencing their income. As for future,
meeting EU standards is vital for producers who want to stay in business.
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The milk quality information as well as advice has to be available for
farmers at all levels, including small holders, otherwise the improvement
is not possible. Milk recording technicians in Estonia are highly qualified
(university degree or technical school) and very important persons for
disseminating milk quality improvement information, especially in small
herds.
-
The advisory and extension services can be efficient only, where the infrastructure
is present. The state support for the infrastructure is relevant. Estonian
Ministry of Agriculture puts a lot of emphasis on supporting and promoting
extension and developing information systems as well as the infrastructure
for the benefit of advice.
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Estonian advisory system has proved to be efficient. Low overhead cost
of the system reduces the price of advice. The county governments provide
the scheme the additional "public control", which is always needed where
subsidy is involved.
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More and more farmers seek advice from the qualified advisors although
the services are not free of charge. The fact, that private advisors as
well as other companies are competing in the market keeps the prices for
the services low and this also results as a kind of (advice) quality assurance
system.
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Farmers have freedom to choose the best advisors and state role is to take
care of the level of the qualification of the advisors available.
-
State can benefit from such an advisory scheme via improved production
level and quality. But it is also important, that recording the advisory
contracts is reliable documentation for the monitoring and evaluation of
the advisory situation in the country.
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