Transcript Diversification

WORKSHOP 3
AGRICULTURE IN THE
OUTERMOST REGIONS
Introduction (1)
• Agriculture is a critical sector in the
economy of the EU's outermost regions.
• Agricultural production (in particular
bananas, sugar cane, but also livestock
including dairy) and the supply of basic
food commodities remain essential for their
economic sustainability.
Introduction (2)
• At the same time, agriculture has also
important social, cultural,
environmental/energy and heritage
underpinnings (traditional products, rural
population, environment, landscape and
tourism/food linkages).
Aim of workshop
• To discuss with representatives of outermost regions
and identify the best lines of actions that could be
developed in the medium to long term.
• Discussion focused on actions needed to implement
the 3 axes of Community Strategy for outermost
regions on accessibility, competitiveness and
regional integration, the latter with special emphasis
on EPAs initialled at the end of December 2007 with
the various African, Pacific and Caribbean regions.
Themes (1)
• Competitiveness of the agri-food chain: farm to fork
• New constraints compounded by high energy costs and
high food costs; Energy Costs are impacting negatively
inputs and hence feasibility of agricultura production in
already difficult conditions characterising Outermost
Regions’ agricultural production
• Possibilities of diversification exist (production synergies,
agri-tourism, bio-energy) but this requires an integrated
approach
Themes (2)
• Research and Innovation as applied to
agriculture/processing of agricultural products
• Need to move up the value added chain;
potential of organics remains very limited.
• Climate change and agriculture – although this
was not sufficiently elaborated; clearly a major
concern to enhance production potential
Regional Co-operation
• Full EPA in the Caribbean area, for
example, provides for the possibility of
associating the outermost regions to
cooperate with ACP countries
• Need to follow closely EPA process,
especially move towards full EPAs- only
one full EPA to date.
Diversification
• Diversification of activities becomes a necessity to
answer to market uncertainties and evolutions and to be
competitive on new markets
• However, the weight of sugar, banana and dairy in the
agricultural output of most regions remains high and the
process of diversification will not be easy; adjustments
need to be gradual.
• An opportunity for maintaining activity in rural areas,
increasing producers’ incomes.
• Need to tap underexploited potential and to search for
export opportunities but this requires funding.
Research and innovation
• Developing research and innovation capacities and
encouraging networking and exchange of best practices
is a priority in order to develop a competitive and
sustainable agriculture;
• Pilot project in Guadaloupe-Pole of Excellence and
Potential for Exchanges of Best Practices not only
amongst Outermost Regions and with neighbouring
countries but as well with the continent. This is especially
due to climate change.
• Innovation in agriculture must be seen as a permanent
process and requires an attitude change by the
stakeholders
Conclusions and Points to further
reflect upon (1)
• To develop eco-innovation systems taking into account
research resources, diversification, respect of
biodiversity
• Assessment of POSEI reform by the Commission in
2009 will be a crucial point for development of agriculture
in outermost regions in the long run. Identify what NEW
concerns are;
• Agriculture still has a very important role to play in the
economies of the outermost regions
• But, in the medium-long run agriculture needs to develop
on the following axis: excellency, innovation,
sustainibility, agricultural and non-agricultural
diversification
Conclusions (2)
• Case of bananas was discussed at length;
concerns expressed about production and trade
implications. Need to discuss and exchange
methodologies and underlying assumptionsconsumption and prices as well as import
penetration
• In the case of sugar, the main concerns relate to
land availability, cost of inputs and renewables.
• Finally, the case of the dairy sector was also
highlighted in the context of the Health Check.
The HC will be unveiled on 20 May.
Conclusion
• Multifunctional and Integrated planning
approach (agriculture, energy, social dimension)
is necessary to operate in a globalised context
• Focus on training
• Emphasis on marketing outlets – need to have a
level playing field in terms of standards and
environmental conditions;
• Food Security becomes more essential in
context of high energy and food costs
Conclusion
• Should one rethink current aid schemes?
• Need for continuous consultation process with
authorities to communicate new challenges and
constraints
• Need to continue monitoring closely the impact
effects of fuel prices (which are key cost
components on these regions – for internal
supply and current/new export potential) as well
as food prices.
• Is food self-sufficiency possible and feasible in
this context? This is a key decision to take given
current concerns.