RDP project database
Investing Agri-Environment Funds for Converting to Short-Supply Chain Organic Veal
A family farm which has converted to and developed an organic, indigenous breeds young beef unit in an innovative way by making clever use of Axis 2 funds to add value to the investments that supported succession from father to son.
Mr Kosec senior wanted to stop dairying and hand over the farm to his son Bostjan. Funds for setting up were available and sourced through M112 (€ 29,600), M121 (€ 29,600 for purchase of machinery and pasture land) and M132 (€836 for being part of a quality food scheme). But the farm would not be viable for Bostjan and his young family. The clinching factor was being eligible for agri-environment (M214) and LFA payments (M212) to convert the 35 ha farm to organic and raising indigenous breeds. Most of the land was designated LFA, 80% easily complying with organic farm requirements.
Main objective of the project was to secure at least one full-time work position (AWU) and sufficient and stable income for a young rural family. Additionally, general objective was to explore the possibility of further income generated through diversified activities – processing and direct marketing of farm products and possibly rural tourism – with the emphasis on higher sales prices rather than increased output.
Achieving the goal required changes in farm infrastructure (adapting farm buildings and adding new equipment), modifying the production system to organic, and changing the business focus to direct marketing of organic veal in an integrated farming system also producing organic grapes. Good pasture management has reduced the cost of production and increased meat growth rates and quality from a low intensity animal production system.
Results & Benefits
The farm has successfully converted from an extensive dairy farm to an integrated, organic, veal production unit selling at premium prices through short-supply food chains (including to schools and nurseries) and by exploiting a locally developed quality food brand “EKOMESO” (Organic Meat) in cooperation with other producers. Bostjan notes: “The conversion process tested our resolve, but we are glad we persevered. Our farm generates solid revenue and has prospects for further development.
Bostjan says young farmers should know what resource features & competitive advantages their farm has. “Then decide on a 10-year vision and 3-year action plan. For this we had a great help from planning experts.” First focus was, in his experience, on raising farm profitability with existing resources, which then provides funds for further development. Second step was to invest wisely in farm assets and cost reduction, which enabled to save enough to build a new barn & to improve animal welfare.
Project location and other information
Ivanjkovci, settlement in the Municipality of Ormož in northeastern Slovenia. The budget indicated below referes only to M211 'Natural handicap payments to farmers in mountain areas'.
Total project cost (€)
EAFRD contribution (€)
National contribution (€)
+386 41 462 777
Languages for contact
English, German, Slovene, Croatian
At a glance
Final beneficiary type
€20 000 - €99 999
Theme / Measure:
Environment and Sustainable Resource Management
Sustainable use of agricultural land
211. Natural handicap payments to farmers in mountain areas
Organic farming, Cattle, Less Favoured Area, Mountain area, Environmental management