Measuring direct & indirect employment linked to Livestock Farming 150th EAAE seminar 23rd October 2015 – Edinburgh (UK) Agathe LANG, Pierre DUPRAZ (INRA), Yves TREGARO (FranceAgriMer), Christophe PERROT (IDELE), Pierre-Michel ROSNER (CIV) Objective : identification and quantification of the French jobs depending on French livestock farms Indirect jobs Accounting of direct and indirect jobs (induced jobs are outside the scope) Dependency level Livestock farms Direct jobs MATERIAL AND METHOD General procedure – step 1 Identification of ALL GROUPS OF OPERATORS in the livestock sphere UPSTREAM sectors PUBLIC & SEMI-PUBLIC ANIMAL FEED PROCESSING SECTOR RESEARCH & EDUCATION ANIMAL HEALTH GENETICS AND PERFORMANCE ADMINISTRATION Livestock operations LOGISTICS (TRANSPORT STORAGE) GENERAL SUPPLIERS DOWNSTREAM sectors (building, equipments) and SERVICES (accounting, banks…) FOOD INDUSTRY AND TRADE INDUSTRY SUPPLIERS RETAIL 185 categories of operators AND POLITICAL REPRESENTATION DISTRIBUTION BY-PRODUCTS MANAGEMENT AND INDUSTRY General procedure – step 2 Identification of ALL GROUPS OF OPERATORS in the livestock sphere Identification of operators that DEPEND on livestock operations Dependency evaluation • Livestock dependency = a change in livestock-related activities would affect the operator’s activity level, or even its existence and, thus, its jobs • No methodological frame available -> building our own dependency evaluation method • Theoretical framework : – « filière » définitions (Temple 2011, Fontan 2006), systemic aproaches (Donnadieu 2003), social LCA (Macombe 2013, Wu 2014) – Transaction costs theory (Williamson 1985 and 1996), incomplete contracts theory (Tirole 1999, Masten 2000) – Up or downstream regulation (Sekkat 1987) Dependency evaluation Livestock’s relative weight Grade from 0 to 15 Short-term effects Indicator Evaluation Share of sales related Adaptation capacitiesShare of the turnover or production to livestock farms Medium-term effects (clients: share of the activity related to its products) Indicator volume Evaluation Share of operators Evaluation on a Likert scale from 0 to Share of operators with exclusive or specialized in livestock 5 (basedlivestock-related on expert opinions) Asset specificity to majority activity Territorial constraints or its operations products Geographical effects livestock Dependency Grade from 0 to 15 High turnover share = high dependency Dependency Many specialized operators = Grade= from 0 to 15 High highspecificity dependency high dependency (0 : non specific assets, 5 : very specific Evaluation on a to Likert scale assets) from 0 to and impossible reconvert Diversity of outlets 5 (based expert opinions) Low diversity =5 Evaluation Likert scale 0 1to 2 on aon 3 from 0 to 4 Asset specificity (clients: share of animal (based on opinions) High = (0 :5turnover on expert all economic activities, Highspecificity dependency Great region Department Small agricultural one particular Maximal products in final product) 5 : onlyassets, livestock No impact of (0 : non specific 5 : farms) very specific high dependency level level territory level France level distance of a few livestock sector location and impossible to reconvert assets) kilometers (< 400 km) (<100 km) (<40 km) Evaluation on a Likert scale from 0 to Absence of relevant 5 (based on expert opinions) No relevant market = High market for reconversion (0 : high demand market (potentially for dependency and/or export the entire production), 5 : no relevant (suppliers)/import (clients) market) Different levels of dependency Agglomerative hierarchical clustering : 4 dependency levels Livestock’s relative weight Adaptation capacities Dependen cy level Territorial constraints Not significantly dependent Indirect employment Livesto ck farms Direct jobs General procedure – step 3 Identification of ALL GROUPS OF OPERATORS in the livestock sphere Identification of operators that DEPEND on livestock operations Quantify the NUMBER of JOBS for these dependent operators Measurement of employment level • Single method for each operator • Sources of information: – Official state statistics – Professional surveys – Professional representative knowledge – Economic assessment • Measurement is in Full Time Equivalent (FTE) RESULTS 703 000 FTE are dependent on French livestock farming operations VERY DEPENDENT JOBS 178 000 FTE (207 000 people) LIVESTOCK OPERATIONS: DIRECT JOBS 312 000 FTE (~415 000 people) + 9 000 FTE producing the cereal consumed directly on the farms MODERATLY DEPENDENT JOBS 166 000 FTE (210 000 people) MILDLY DEPENDENT JOBS 47 000 FTE (52 000 people) ALL SECTORS AVG TERRITORIAL DEP : 6.7 Total DEP: 29.5 Results- by sector PUBLIC & SEMI PUBLIC AVG TERRITORIAL DEP : 5 Total DEP: 22.2 UPSTREAM SECTORS AVG TERRITORIAL DEP : 9.5 Total DEP: 28.8 DOWNSTREAM SECTORS AVG TERRITORIAL DEP : 7.1 TOTAL DEP: 32.4 1st process: 36.4 (8.8) Processed goods : 23.9 (3.2) DISTRIBUTION AVG TERRITORIAL DEP : 3 TOTAL DEP: 26.6 Results – by type of livestock Total number of jobs 250 000 DAIRY FARMS MEAT PRODUCTION FARMS EGGS Products : milk and meat 1,07 Products : meat Eggs & meat 200 000 0,76 150 000 6,06 100 000 50 000 Number of indirect job(s) per on-farm job 1,91 0,63 0,44 0,53 5,93 1,77 - CATTLE 238 000 FTE Direct jobs SHEEP 10 000 FTE Very dependent jobs GOAT 14 000 FTE CATTLE SHEEP 183 000 FTE 34 000 FTE Moderatly dependent jobs VEAL CALVES 12 000 FTE Mildy dependent jobs PIGS 99 000 FTE POULTRY and RABBITS 99 000 FTE EGGS 11 000 FTE Grand Ouest results A few references on the Grand Ouest region: 16 % 21 % of French population 16 % of agricultural surfaces in France of total of French jobs 72 % 50 % 21 % of French farms of French milk cows of French pigs 20 % 58 % of French meat cows of French poultry TOTAL INDIRECT JOBS– 151 800 FTE: (39 %of French t ot al ) VERY DEPENDENT JOBS 81 800 FTE (49 %of French t ot al ) MODERATLY DEPENDENT JOBS 42 700 FTE (29 %of French t ot al ) LIVESTOCKOPERATIONS : DIRECT JOBS 102 000 FTE [33 %of French tot al ] MILDLY DEPENDENT JOBS 4 900 FTE (25 %of French t ot al ) Non taken into account indirect jobs (estimation): 22 500 FTE (39 %of French t ot al ) Share of the Grand Ouest region in French total livestock related jobs and production Total français French total 71% 67% 66% 54% 55% 51% 46% 40% 45% 43% 43% 57% 35% 31% 19% 22% 16% 15% 10% 9% Dairy Bovin lait Cattle Caprin Goats Direct jobs Meat Cattle Bovin viande Emplois directs 14% Meat Ovin viande sheeps Emplois indirects Indirect jobs Porcin Pigs Production Volaille chair Poultry andet lapins rabbits Production Œuf Eggs Share of Part du the Grand Grand Ouest Ouest (%) region Conclusion • Detailed map (135 operators), precise (+/- 2 %) with an explicit method (dependency evaluation and all calculations will be published) • Dependency evaluation method is not specific to livestock nor agricultural sectors : application to other fields? • Limitations : – analytical rather than systemic approach – induced jobs and externalities jobs not taken into account – no results on territorial scale Direct jobs: 312 000 FTE LIVESTOCKRELATED JOBS OTHER ACTIVITIESRELATED JOBS ANNEXS Results – by production level Number of jobs (FTE) per Emplois dépendants de l'élevage (ETP) million liters of milk /million de litres de lait produits produced in France 40 36,8 37 30 21 20,6 20 10 9,8 10 0 Bovin Lait CATTLE Ovin Lait SHEEP Caprin GOAT Results – by production level Emplois dépendants l'élevage Number of jobsde (FTE) per(ETP) 100t of meat in France /1 00 tecproduced de viande produites 50 41,8 42 40 30 20 11,5 11.5 10 0 Bovin viande Ovin viande CATTLE SHEEP 8,9 9 VEAL Veau CALVES 4,5 4.5 5 5,3 Porc PIGS Volaille Chair and et Lapins POULTRY RABBITS Share of Grand Ouest region in livestockrelated jobs in France 100% 90% 80% 70% Other parts of France 60% 50% 40% 45 % 30% Grand Ouest 43 % 33 % 20% 22 % 10% 27 % 0% UPSTREAM LIVESTOCK OPERATIONS DOWNSTREAM High territorial constraints DISTRIBUTION PUBLIC & SEMI PUBLIC Low territorial constraints Exemples of dependency evaluation (1) Veterinaries (liberal workers) : 27,4/45 -> MODERATLY dependent Livestock’s relative weight Adaptation capacities Share of the turnover 29 % 1,5/5 1/5 Share of specialized operators Asset specificity to a livestock sector 57 % 2,9/5 Asset specificity to livestock in general 3/5 Relevant market 4/5 Outlets diversity 3/5 Total : 7,4/15 Territorial constraints Small agricultural region level Total : 12/15 Total : 8/15 Slaughterhouses (cattle, sheep and pigs): 33/45 -> VERY dependent Livestock’s relative weight Adaptation capacities Part de l’activité liée à l’élevage 100 % 5/5 Asset specificity to a livestock sector 3/5 Part des acteurs spécialisés 100 % 5/5 Asset specificity to livestock in general 5/5 Part des produits animaux 100% 5/5 Relevant market 4/5 Total : 15/15 Total : 12/15 Territorial constraints Great region level Total : 6/15 Exemples of dependency evaluation (2) Animal drugs industry: 17/45 -> MIDLY dependent Livestock’s relative weight Adaptation capacities Share of the turnover 57 % 3/5 2/5 Share of specialized operators Asset specificity to a livestock sector 0% 0/5 Asset specificity to livestock in general 4/5 Relevant market 2/5 Outlets diversity 3/5 Total : 6/15 Territorial constraints France level Total : 3/15 Total : 8/15 Biscuits factories: 10/45 -> NOT dependent on French livestock operations Livestock’s relative weight Adaptation capacities Part de l’activité liée à l’élevage 80 % 4/5 Asset specificity to a livestock sector 2/5 Part des acteurs spécialisés 0% 0/5 Asset specificity to livestock in general 3/5 Part des produits animaux 20 % 1/5 Relevant market 0/5 Total : 5/15 Total : 5/15 Territorial constraints Almost no constraints Total : 0/15 Results – Animal Health ANSES 330 FTE MODERATE dependency Source : ANSES Animal drug industry 1 100 FTE MILD dependency 6 000 FTE in total sector from which 3 200 for pets and 1 800 for export Source : SIMV OIE 85 FTE MILD dependency Animal drugs trade : 625 FTE MODERATE dependency Source : OIE Veterinaries 7 300 FTE MODERATE dependency - 2 600 FTE veterinaries specialized in livestock animals - 2100 FTE veterinaries dedicated to livestock animals amongst mixt veterinaries - 3 200 FTE non veterinaries workers Source : CSOV Source : surveys and expert say Pharmacies Not dependent Livestock State veterinaries services : 2 700 FTE HIGH dependency - Santé et sécurité des animaux : 800 ETP - Sécurité sanitaire des aliments : 1 900 ETP dont 1 300 en abattoirs Source : DGAL Sanitary surveillance organizations 800 FTE HIGH dependency Source : FNGDS Food indutstry Results – Animal feed Addictive industry 2 200 FTE MODERATE dependency Source :surveys, estimation Machinery makers 50 FTE MILD dependency Feed services, mineral feed and pre-mix industry 4 400 FTE HIGH dependency Source : surveys, estimation Quality control laboratories Not dependent Grain production an trade Not dependent Agrofourniture, agromachinisme (cultures) Not dependent Hay production, trade, transportation and dehydration 2 100 FTE HIGH to MODERATE dependency Source : estimations Source : AFCA CIAL Animal feed compound industry 10 000 FTE HIGH dependency Sources:, Coop de France Nutrition animale By-products suppliers (tourteaux, sons, drèches…) 1 100 FTE MODERATE to MILD dependency Triturateurs, amidonniers, meuniers, sucreries, éthanoliers Livestock Mise aux normes d’écarts de fabrication 100 ETP MODERATE dependency Source : Valoria Results – Genetics and performances Genetic evaluation Milk analysis laboratories 450 FTE HIGH dependency Selection organizations 200 FTE HIGH dependency included in research field Source : race de France Source : CNIEL Information system (ARSOE) 350 FTE HIGH dependency Cattle, sheep, goat Source : FIEA Performances control 3 200 FTE HIGH dependency Cattle, sheep, goat, pig Sélection génétique 2 000 ETP HIGH dependency Bovins, caprins, porc, volaille Sources : IFIP, Alysse, SNA Semen sorting: 25 FTE HIGH dependency Source : estimation Sources : IFIP, IDELE, FCEL Source : estimation Artificial insemination 2 300 FTE HIGH dependency Sources : IFIP, SNA, Alysse Livestock Departmental livestock organizations (identification and Genetics analysis laboratories 45 FTE MODERATE dependency Buckles makers: 70 FTE MODERATE dependency Source : estimation ascendency certification) included in agricultural chambers Animal passports printers: Not dependent Results – Various goods and services (1) Fabrication of livestock equipement 2 300 FTE MODERATE dependency Fabrication of precision livestock equipement 160 FTE MODERATE dependency Sources : INSEE, Axema Source : estimations Distribution of livestock equipment: 4 900 FTE MODERATE dependency Sources: INSEE, Axema Suppliers for building construction Non dépendant Livestock building studies 670 FTE HIGH dependency Source : estimation Production and distribution of fertilisers, phytosanitary products, general crop quipment… Not dependent Cf chapitre Alimentation animale Seed production 760 FTE MODERATE dependency Source : GNIS Biocids production 380 FTE MODERATE dependency Source : estimation Building construction 15 000 FTE MODERATE dependency Source : estimation Environmental building studies 670 ETP MODERATE dependency Source : estimation Livestock Commission works 7 400 FTE MODERATE dependency Sources : FNCUMA, FNEDT Replacement services 2 250 FTE HIGH dependency Source : service de remplacement Results – Various goods and services (2) Hoof care 130 FTE HIGH dependency Anaerobic digestion studies 140 FTE HIGH dependency Agricultural newspapers 130 FTE MODERATE dependency Source : estimation Independant consultants 40 FTE MODERATE dependency Certification organization (organic products etc.) 240 FTE MILD dependency Accounting 2 300 FTE MODERATE dependency Sources : CER, Cogedis Insurance Not dependent Source : Etude emploi Biogaz Source : PCIA Source : estimation Source : CFPPA Le Rheu Livestock Banking services 970 FTE MILD dependency Source : estimation Production and distribution of computers devices Not dependent Production and distribution of electricity Not dependent Production and distribution of gas Not dependent Production and distribution of fuel Not dependent Results – Collection, processing and trade (1 – milk) Livestock Milk collection and dairy industries: 49 000 FTE HIGH dependency Sources : INSEE, CNIEL, ATLA Milk and dairy trade : 9 700 FTE HIGH dependency Source : INSEE Results – Collection, processing and trade (2 – cattle, sheep and pigs meat) Livestock Sources : enquête Live animals trade 4 720 FTE HIGH dependency Farmers associations: 4 800 FTE HIGH dependency 4600 cattle dealers 120 in cattle markets Sources : FFCB, FAM, INSEE, FMBV Sources : INSEE, Conventions collectives Slaughterhouses and meatpacking industry: 47 900 FTE HIGH dependency Food industry Veal-calves integration firms: 250 FTE HIGH dependency Sources : INSEE, Conventions collectives, FNICGV, COOP de France, FNEAP, Synafavia Meat and meat-based products trade : 4 400 FTE MODERATE dependency Sources : INSEE, Conventions collectives Results – Collection, processing and trade (3 – poultry, goats and rabbits) Livestock Eggs Meat Slaughterhouses and meat packing: 24 000 FTE HIGH dependency Egg packing centers: 1 600 FTE HIGH dependency Sources : Rapport de branche FIA-CNADEV, INSEE Source : SNIPO Poultry meat trade 1 400 FTE Eggs trade: 450 FTE HIGH dependency MODERATE dependency Source : INSEE Sources : INSEE DISTRIBUTION Egg based products industry : 800 FTE HIGH dependency Source : SNIPO Food industry Results – Collection, processing and trade (4 – processed products) Livestock Industrie de 1ère et seconde transformation (abattage découpe, ovoproduits, industrie laitière) Foies des canards gras Industrie foie gras : 900 ETP HIGH dependency Sources : INSEE, ADEPALE Cf aval viande, aval volaille, aval lait Viande Charcuterie : 23 700 ETP MODERATE dependency Sources : FICT, SSP, INSEE Viande, œufs, produits laitiers Industries plats préparés : 10 000 ETP MILD dependency Sources : INSEE, ADEPALE DISTRIBUTION Beurre, œufs, lait Chocolaterie non dépendant Biscuiterie non dépendant Boulangerie pâtisserie viennoiserie non dépendant Fabricants de crème glacée non dépendant Results – Industry suppliers Animal feed trucks fabrication 145 FTE dépendance MOYENNE Feed industry Livestock Livestock trucks fabrication 125 FTE HIGH dependency Software development Non dépendant Food industry Equipment fabrication 3 200 FTE dépendance MOYENNE Industrial cleaning 2 500 FTE MILD dependency Industrial maintenance 2 300 FTE MILD dependency Analysis laboratories 1 800 FTE MILD dependency Refrigerated equipement maintenance Non dépendant Building construction Non dépendant Logistic platforms Non dépendant Linen and laundry services 720 FTE MILD dependency Packaging fabrication 200 FTE MILD dependency Computer devices Non dépendant Pest extermination Non dépendant Event management services Non dépendant Results – By products management Livestock Dead animals Knackery 800 FTE Anaerobic digestion units (outside of farms) Not dependent Cement production Not dependent HIGH dependency Slaughterhouses Cat1 & 2 products Skins 400 collecting dead animals 410 collecting industry waste Source : CNC Petfood : 4 750 FTE MODERATE dependency Collecting and managing 2 000 FTE HIGH dependency Source : SIFCO Tannery : 1600 FTE MODERATE dependency Source : CNC Leather industry: 6 400 FTE MILD dependency Fertilizer production Not dependent Source : SIFCO Cat.3 and human food approved products Skins trade: 340 FTE HIGH dependency Source : CNC Animal bone meal and fat Skins, bones (cattle and pigs) Gelatin producers 470 ETP MODERATE dependency Source : MAAF et enquête Source : FACCO, INSEE Animal protein and fat Aquaculture Not dependent Biofuel production: 25 FTE MODERATE dependency Source : enquête Soap production Not dependent Results – Distribution Livestock Food industry and trade Export services 25 FTE MILD dependency Central buying service Not dépendent Butchers deli shops 34 000 FTE MODERATE dependency Sources : INSEE, CFBCT Cheese shops 6 900 FTE MODERATE dependency Source : Fromagers de France Butcher counters in supermarkets 13 800 FTE MODERATE dependency Source : FCD Self-services sections Not dependent Restaurants Not dependent Institutional catering Not dependent Results – Education and research Under supervision of agriculture, food and forest ministry Technical agricultural education 5 900 FTE MODERATE dependency Vocational education 210 FTE MODERATE dependency Source : Programme budgétaire 143 Higher agricultural education and research 1 100 FTE MODERATE dependency Sources : FAFSEA, VIVEA Instituts techniques 490 FTE MODERATE dependency Source : Programme budgétaire 142 Sources : enquêtes Under supervision of Agriculture food anf forest ministry + research and education ministry INRA 2 900 FTE MODERATE dependency Source : INRA IRSTEA 525 FTE MODERATE dependency Source : IRSTEA Agricultural chambers 3 100 FTE HIGH dependency Source : APCA Livestock Results – Administration Agriculture, food and forest ministry Conduite et pilotage des politiques de l’agriculture 3 600 FTE HIGH dependency Under supervision of Agriculture, food and forest ministry FranceAgriMer 500 FTE HIGH dependency Agence de services et de paiements (ASP) 400 FTE HIGH dependency Autres (Agence Bio, INAO) 55 FTE MODERATE dependency Source : Programme budgétaire 154 Source : programme budgétaire 215 DGAL (central) 125 FTE MODERATE dependency Source : Programme budgétaire 206 Local governments 270 FTE MODERATE dependency Source : estimation Natural regional parks 30 FTE MODERATE dependency Source : estimation ADEME 40 FTE MILD dependency Source : estimation Mutualité sociale agricole (MSA) 4 750 FTE MODERATE dependency Source : MSA Livestock SAFER 480 FTE HIGH dependency Source : SAFER Water management agencies 330 FTE HIGH dependency Source : estimation DIREN Not dependent Results – Logistics Feed compounders Feed road transportation 5 400 FTE MODERATE dependency Cereal road transportation not dependent Train transportation not dependent River transportation not dependent Non refrigerated storage not dependent Refrigerated storage 3 700 FTE MODERATE dependency Hay, cattle cake, bran road transportation 2 900 FTE MODERATE dependency Port infrastructures (soy import) : 700 FTE MILD dependency Livestock Raw animal products road transportation : 1 600 FTE HIGH dependency Milk, eggs Live animals road transportation: 1 300 FTE HIGH dependency Food industry Finished animal products road transportation : 8 600 FTE MILD dependency Distribution Port infrastructures (animal products export) : 90 FTE MILD dependency Custom services: 330 FTE MODERATE dependency Sources : SoeS, INSEE, enquêtes