The EU re-thinks the value of livestock farming with a much broader perspective, more attuned to the New Zealand approach

One of the advantages of working in agricultural media is the opportunity to look beyond New Zealand's borders. While our farming systems are unique, the challenges confronting agriculture are increasingly global. Whether it is climate policy, market volatility, animal health, labour shortages or rising production costs, farmers around the world are searching for the same outcome: profitable businesses that can withstand an uncertain future.

That is why the European Union's latest discussion around livestock farming is worth paying attention to.

Despite vastly different production systems and policy settings, many of the conclusions emerging from Europe have direct relevance for New Zealand's primary sector.

The discussion centers on the European Commission's new livestock strategy, but what makes it interesting is the way the conversation has shifted. Rather than asking whether livestock farming has a future, policymakers, industry leaders and farmers are asking how livestock systems can become more resilient, more efficient and less dependent on external inputs. That represents an important distinction.

For too long, livestock has often been discussed almost exclusively through the lens of emissions and environmental impact. Europe is beginning to recognise that livestock production cannot be viewed in isolation from food security, rural economies, biodiversity and strategic resilience.

European Commissioner for Agriculture and Food Christoph Hansen was quick to put the industry's contribution into perspective. Livestock farming, he noted, generates around €400 billion in annual turnover and provides employment for approximately seven million people across Europe. At the same time, he acknowledged the sector is under pressure from climate change, animal diseases and increasingly ambitious environmental objectives, contributing to a livestock population that has declined by around 10% over the past decade.

Those figures are significant, but the underlying message is even more important. Europe has recognised that reducing livestock numbers without considering the wider consequences creates a different set of challenges. Food production does not simply disappear. Rural employment does not magically replace itself. Processing plants, contractors, machinery dealers, transport companies and countless service industries all rely on productive farming businesses. It is a lesson New Zealand should keep firmly in mind as it continues to debate land use, emissions policy and the future of pastoral farming.

One of the most interesting conversations in the programme came from a mixed dairy farm in Belgium that fundamentally changed its business following the 2009 milk crisis. Rather than chasing greater scale, the family focused on becoming more self-reliant. Feed is grown on the farm, manure fertilises the soils, livestock harvest their own pasture and direct marketing reduces dependence on external processors. It is a farming system designed to reduce exposure to volatile input costs while improving business resilience.

Camille Cosmon captured the philosophy in one simple observation. "It simply doesn't make sense for our farming system to depend on soybeans grown on the other side of the world. In many ways, it's about getting back to basics. What does a cow eat? Grass."

That statement could almost have come from a New Zealand farmer. Our competitive advantage has always been built around efficient pasture utilisation. Yet like much of the developed world, we have gradually become more dependent on imported feed ingredients, fertiliser, fuel and other inputs. There is nothing wrong with adopting new technology or improving productivity, but Europe's renewed focus on self-sufficiency serves as a timely reminder that resilience often comes from reducing unnecessary dependence rather than continually adding complexity.

Technology also features prominently throughout the European discussion, although the emphasis is practical rather than aspirational. France's largest pig cooperative, Copperl, invests between €15 million and €20 million annually into research and development, including precision feeding systems that calculate the optimal ration for every individual animal. Feed represents around 70% of production costs, so improving feed efficiency delivers immediate economic benefits while also reducing nutrient losses and lowering reliance on imported protein crops.

New Zealand farmers are already travelling a similar path. Precision agriculture, variable-rate application, pasture measurement, genetics, automated drafting, animal monitoring and increasingly sophisticated farm management software are all focused on producing more from fewer resources. The technology itself is not the objective. Better profitability, stronger resilience and improved environmental performance are. That distinction is important because it shifts innovation away from being a compliance exercise and back towards being a business tool.

Perhaps the strongest message to emerge from the discussion was the recognition that livestock farming supports far more than the people who own the land. Bertrand Convert from Copperl described the effect livestock has on rural communities in simple terms. A handful of livestock farms in a rural village also supports banks, restaurants, building contractors, electricians, mechanics and countless other businesses. In his view, every livestock farm creates around 10 additional jobs beyond those directly employed on the farm itself.

That observation should resonate strongly with New Zealand readers. Rural contractors understand better than most that farming businesses underpin an entire economic ecosystem. Machinery dealerships, engineering workshops, transport operators, veterinarians, shearers, fencers, fertiliser companies and processing plants all depend on productive livestock systems. When livestock numbers decline or productive farmland changes to lower-employment land uses, the impact extends well beyond the farm gate. Schools lose students, local businesses lose customers and communities gradually lose the critical mass needed to remain vibrant.

Another aspect of the European strategy that deserves attention is the acknowledgement that there is no single model for successful farming. Hansen argued that Europe's diversity is one of its strengths and that different farming systems each have a role to play. Short supply chains, direct marketing, cooperative models and conventional commercial farming all contribute to the overall resilience of the agricultural sector.

That is equally true in New Zealand. Intensive dairy farms, hill country sheep and beef operations, mixed livestock enterprises and specialist finishing units all contribute differently to export earnings, environmental outcomes and regional economies. The strength of New Zealand agriculture has never been uniformity. It has been the ability of farmers to adapt their systems to local conditions while continually improving efficiency and productivity.

Perhaps the most encouraging aspect of the entire discussion was its tone.

Rather than treating livestock as a liability, Europe increasingly appears to be viewing the sector as an asset that must evolve rather than disappear. Hansen himself acknowledged that policymakers have made life unnecessarily difficult for livestock farmers in recent years before concluding with a statement that should resonate on this side of the world as well. "Farmers are entrepreneurs who deserve to make a decent living from what they produce."

That may ultimately be the biggest lesson New Zealand can take from Europe's latest thinking. The future of livestock farming is unlikely to be secured through ideology, nor through endless debate about choosing between production and sustainability. It will come from recognising that productive farming, environmental stewardship, technological innovation and strong rural communities are not competing objectives. They are all part of the same equation.

The countries that succeed over the coming decades will be those that understand livestock is not simply an agricultural industry. It is a strategic national asset that supports food security, regional economies and the prosperity of the communities built around it.

Angus Kebbell is a producer at The Weekly Hotwire. You can contact him here.