Luxembourg-based Bio-Bauere-Genossenschaft Lëtzebuerg (BioG), in collaboration with the Regionalwert Leistungen GmbH, recently organised a agricultural fair to discuss on the topics "Calculate the creation of value in agriculture correctly" and "How to design an agriculture of the future?".

Volker Manz, Director of BioG, said: "Organic farming is the essential lever for better environmental and climate protection. That is why, as a member of the Oikopolis Group, we are strongly committed to rapid development organic farming. Our project with Regionalwert Leistungen GmbH makes the contributions / added value of organic farmers for society visible and thus creates a basis for even fairer remuneration".

The concrete results of the project:

A special online tool, based on around 300 indicators, was used to financially assess the sustainability performance of organic farmers. To do this, an in-depth survey was conducted among organic farmers, in particular on the type of fertilisation and the origin of the feed used. Themes such as job quality and the regional network also played a role. The evaluations refer to data for the year 2020:

  • The eleven organic dairy farms generated sustainability services totaling €1.35 million per year. In relation to the agricultural area used, this corresponds to €1,167 per hectare.
  • The average sustainability benefits per BioG dairy farm amounted to €122,878. The average sustainability rate was 69.7%.
  • The average sustainability benefits per farm amounted to €86,282 in the field of ecology, €18,765 in the social field and €17,831 in the field of the regional economy.

The results serve as a reference for farmers to guide their operations. The analysis highlights, using five color levels, the areas where there is still a potential for improvement and key figures which already show a high degree of sustainability. At the same time, it demonstrates to value chain actors and policymakers that this method is appropriate for allocating performance-based Common Agricultural Policy (CAP) compensation payments. "The financial means already available could thus finance the transformation of European agriculture", said Christian Hiß, Director and Founder of Regionalwert Leistungen GmbH. He spoke about this on 2 July 2022 during the Salon Agricole with the Lëtzebuerger Landjugend in Jongbaueren and informed other interested persons on the BioG stand throughout the duration of the fair.

BioG financed the participation of organic farmers

At the initiative of BioG, eleven BioG milk producers took part in the study. Founded more than 30 years ago, BioG today has 35 member farms which distribute their organic products in close collaboration via the wholesaler Biogros and the Naturata Bio-Markets.

The transparent method of calculating the regional value of services determines the monetary value of the services provided each year by organic farmers in favour of ecological, social and economic sustainability in their region. The results show that the services of organic farmers go well beyond the simple production of food and that the remuneration of the services provided by organic farmers only through the price of the products is not sufficient. A society that sets itself the goal of sustainable organic farming should also empower farmers to achieve these goals. The service project BioG and Regionalwert creates a basis for discussion for a new valuation of the overall service of organic agriculture within society. The monetary evaluation of this contribution and its corresponding subsidisation by social institutions provide the necessary conditions to achieve the objectives set by the Luxembourg government (20% of agricultural land to utilise organic farming by 2025) with a view to sustainable agriculture in the Grand Duchy.