The agricultural sector

Summary

The work on the roadmap for the agricultural sector has
involved industries in crop production, cereals, dairy,
horticulture and slaughter. The contents of this and a
number of other roadmaps overlap, because agricultural
companies are active in a wide range of production and
distribution chains.

• Maintain and strengthen its leading role in the
work of sustainability.
• Be a facilitator for other industries to become sustainably
fossil-free.
• In line with the food strategy and in the best interest
of the climate, production in the industry must
be increased throughout the period.

• 25 % fossil-free on motor fuel, drying and heating in 2020.
• 40 % fossil free in 2025.
• 100 % fossil free in 2030.
• We intend in the long term to phase out the use of mineral fertilisers produced with fossil fuels. The relationship between the competitiveness and production costs of the agricultural sector, as well as the national economic and consumer market
valuation of the sustainability benefits delivered, determines the pace of this transition.
• The transition is to be made on domestically produced fuels (solid fuels, biogas, biodiesel, ethanol, electricity etc). The extension of domestic production must take place in pace with the transition in order to keep to the timetable.

1. Swedish food production should be increased in line with the food strategy and increased climate benefit. The transition to become fossil free must be achieved by increasing competitiveness and strengthening the position of Swedish produce on the market.

2. For our industry’s continued high level of credibility in the areas of sustainability and the circular economy, the transition to become fossil free must take place on domestically produced fuels and non-fossil inputs. The timetable of our roadmap will therefore depend on the availability of new technologies, Swedish sustainably produced biofuels and fossil-free inputs.

1.Biofuel rebate — Transition to fossil-free fuels should not entail economic disadvantage.

2. Incentives for domestic production of sustainable renewable fuels.

3. Endeavour to achieve level conditions for production and consumption in the EU. Better production support in other EU countries must not eliminate Swedish production (e.g. biogas) and consumption support disadvantage domestically produced fuels (e.g. ethanol).

4. Energy efficiency throughout the whole chain.

5. Increased investment in research and development.

The national food strategy, adopted by the Riksdag (Swedish Parliament) in 2017, is important for the longterm investments in the industry needed to achieve the potential for Swedish food production. In recent years, food production in Sweden has found it more and more difficult to hold its own in the market with more and more food from countries where the cost of production is lower. In an international perspective, Swedish food production is more environmentally and climate efficient and has high standards of animal welfare and animal health.

The benefits of this production, beyond increased hood production, cannot be realised unless the trend is reversed so that more food is produced in the country.

In the roadmap, companies like Arla, HKScan and Lantmännen present their respective targets for reduced environmental and climate impact.

Swedish agriculture has advanced a long way in the transition to renewable energy in heating and electricity. What remains is to convert tractors and working machines to renewable fuels and electricity.

In 2018, the use of energy in agriculture was 5.9 TWh, of which 2.4 TWh came from diesel fuel and 1.3 TWh from biofuel.

The work of the agricultural sector in the field of renewable energy is divided into three areas: streamlining, producing/selling and transition to renewable energy. Energy efficiency on farms is a developing process that has been going on for many years. Technical adaptation, new equipment and major investments contribute to this development.

Renewable energy production is growing and the greatest increase just now at farm level is investment in solar cells. Interest in biogas is also strong and the potential is high but unfortunately there has been a slowdown in expansion of installations in recent years. As the production of biogas is stimulated, for example, in Denmark and the use of biogas is stimulated in Sweden — regardless of where the gas is produced — the use of biogas is increasing without any increase in the domestic production of biogas. Renewable
energy transition is well advanced in the area of heating of farm buildings and houses. In the case of fuel for tractors and drying of cereals, there is still much to be done.

Production of solar electricity is steadily increasing and in 2018 production amounted to 53 GWh and 2,500 agricultural companies have installed solar cells. In 2018 there were 44 on-farm plants producing biogas. In addition to the on-farm plants, more than 100 farms deliver manure to 21 of the 36 co-digestion plants in the country.

Biogas consumption is increasing in Sweden, but the increase consists of biogas from Denmark. The potential for a sustainable increase in the extraction of agri-based biomass is currently estimated at an average of 18 to 20 TWh per year. The potential is estimated to increase to about 35 to 40 TWh, but the uncertainty is due to ecological constraints as well as to increased competition for arable land for food production.c

A requirement for increased domestic production of renewable energy types from agriculture as well as increased transition to become fossil free within the industry is the improvement of conditions for Swedish food production in line with the food strategy, while at the same time contributing increased climate benefits.

The transition to become fossil free must be achieved by increasing competitiveness and strengthening the position of Swedish produce on the market.

In order to increase the use of biofuels in the agricultural sector, the incentives to run on renewables need to be reinforced. With the current policy instruments and tax systems it is more expensive for the farmer to use 100 per cent renewable fuels than to use fossil fuels.

The basic conditions for bio-based economic development here are good, and to accelerate progress, good policy conditions and synergies are needed in the development of new knowledge about the new markets.

The potential of the agricultural sector means its place in the bioeconomy is as self-evident as that of the forestry sector. The potential to deliver biomass from agriculture is almost as great as from forests in Sweden. Achieving this potential requires substantially improved competitiveness.

There are a number of laws and ordinances that are in conflict with the large-scale implementation of the bio-based economy. Consequently, harmonisation of laws and ordinances is required to remove obstacles to successful implementation of the bio-economy. With the support of the roadmap, ongoing work on the transition to fossil-freedom in the agricultural sector will continue.