Ministry For Rural Affairs and the Environment Investments in Agricultural Holdings &...

Ministry For Rural Affairs and the Environment

Investments in Agricultural Holdings & Improvements in Processing and

Marketing Measures in Malta

Rural Development Department

Ministry For Rural Affairs and the Environment

Ministry For Rural Affairs and the Environment

Map of Malta

Ministry For Rural Affairs and the Environment

General Data

Total population – 402,000 Population density – 1,274 /Km2

Area: 316 Km2

Contribution of Agriculture to GDP: 2.4% % of Employment in Agriculture: 1.1% Self sufficient in Vegetable, Pig, Poultry &

Dairy production

Ministry For Rural Affairs and the Environment

Map of Development Zones & Natural Habitats

Ministry For Rural Affairs and the Environment

Rural and Peri-Urban Landscape

Ministry For Rural Affairs and the Environment

Importance of Agriculture Significant Land User - 37% of territory Practically constitutes our Countryside Many Archaeological/cultural heritage sites Shaped our Rural Landscape Part of our Cultural Identity Important Element of Relaxation Green Lung Source of Fresh Food

Ministry For Rural Affairs and the Environment

Countryside Views

Ministry For Rural Affairs and the Environment

Ministry For Rural Affairs and the Environment

Typical Holdings

Ministry For Rural Affairs and the Environment

Summary of Agricultural Data

Total Agricultural Area: 11,619 ha Total Irrigated land: 1,509ha No. of Holdings: 11,959 Average size of Holding: 0.875 ha 74% of Holdings less than 1ha Total No. of Farmers: 15,168 - Only 20% < 40years/ 38% > 55 years old - 10% Full-timers

Ministry For Rural Affairs and the Environment

Comparison of Agricultural Sectors(Final Agricultural output at producer prices - 117M€)

Percentage distribution of gross output of the agricultural industry at producer prices

Animal Slaughtering

39.9%

Crop Output 32.9%

Non-Agricultural Secondary activities

9.0%

Animal Products

18.0%

Ministry For Rural Affairs and the Environment

Terraced Fields Showing Parcel Usage

Ministry For Rural Affairs and the Environment

Ministry For Rural Affairs and the Environment

Agricultural Constraints & ChallengesPHYSICAL SOCIO-ECONOMICSemi-arid Climate with irregular rainfall

Limited Water Resources

Increasing salinity of aquifer water

Shallow soils low in organic content

Small, terraced parcels – difficult access & mechanization

Ageing farmers with limited training

Decreasing full-time farmers

Increasing land fragmentation

High opportunity cost of land

Insularity & high transport costs

Over reliance on imports of agricultural inputs

Higher production costs due to economies of scale

Removal of all protective levies & increased competition from imports

Increased obligations & standards requiring investments

Ministry For Rural Affairs and the Environment

Rural Development Measures 04 -0 6 (39.6M€)

Rural Development Plan for Malta 2004-2006 (33.6M€: 80%EU / 20%GoM)

1) Producer Groups 2) Meeting Standards for Breeders 3) AdHoc for Full-Time Farmers 4) Agro-Environment Measure: - Soil Retaining Walls; - Organic Farming; - Conservation of Maltese Oak & Maltese Ox Species.

5) Less Favoured Areas

6) Complement to State Aid for Agriculture

Single Programming Document (6M€: 35%EU / 15%GoM / 50%Private)

1) Investments in Agricultural Holdings - IAH

2) Improvements in Marketing & Processing - IMP

Ministry For Rural Affairs and the Environment

1st and 2nd Pillar Aid (Euros) – 2004

Rural Development

5,452,86485%

Arable Aid137,141

2%

Livestock Premia

812,78213%

Ministry For Rural Affairs and the Environment

Number of Beneficiaries - 2004

Arable Aid4,31234%

Rural Development7,51160%

Livestock Premia7016%

Ministry For Rural Affairs and the Environment

Average Aid Perceived per Beneficiary in Euros for 2004 campaign

Livestock Premia1,15960%

Arable Aid322%

Rural Development

72638%

Ministry For Rural Affairs and the Environment

Objective: Improve the productivity, efficiency and competitiveness of farms and the quality of produce including the promotion of higher standards of animal welfare and hygiene, and environmental performance.

Beneficiaries: Farmers & their Associations, Agric. Companies.

Available Budget for 2004-2006: 3.7 M€

Investment in Agricultural Holdings Measure

Ministry For Rural Affairs and the Environment

IAH First Results (Call for Proposals August – October 2004)

368 Applications received 268 Eligible Applications requesting grants

of 4.41M€ 70 Applications chosen after ranking Total Investment: 4.95M€ Total Grant Requested: 2.32M€ - 47% of

total investment costs

Ministry For Rural Affairs and the Environment

Analysis of Successful Applicants for IAH Measure

70% Full time farmers 10% Agriculture companies 3% Females 29% Livestock breeders Ξ 53% of grants

requested 21% Under 40 years of age

Ministry For Rural Affairs and the Environment

Analysis of Proposed Projects

Types of Proposed Investments

21% Tractors & accessories

6% Rotary Cultivators & equipment

1% Construction of Stores/cold stores 1% Irrigation Systems

50% Farm Related Investments

10% Green Houses

11% Water Reservoirs

Ministry For Rural Affairs and the Environment

Improving Marketing & Processing of Agricultural Products

Objective: To enhance the situation of the agricultural sector by improving the economic performance of the marketing and processing chain, through gains in both productivity and competitiveness.

Beneficiaries: Agro-processors, Producer Groups and Farmers Cooperatives or Associations.

Available Budget for 2004-2006: 2.3M€

Ministry For Rural Affairs and the Environment

IMP First Results (Call for Proposals August – October 2004)

22 Applications from Agro-processors 17 Eligible Applications requesting grants of

4.41M€ 10 Applications chosen after ranking Total Investment: 1.91M€ Total Grant Requested: 0.92M€ - 48% of

total investment costs

Ministry For Rural Affairs and the Environment

Analysis of Successful Applications for IMP Measure 70% of applications – New Equipment ; 30% -Construction/ refurbishment

SECTOR % of Projects % of Grants

Vegetables 30 27.9

Olive Oil 10 10.6

Wine 10 12.6

Meat 50 49.0

Ministry For Rural Affairs and the Environment

Some Conclusions

Huge Interest in Investment Schemes shown by farmers & processors

over other RD schemes,

Significant needs of sector to restructure,

Limited Innovation in types of projects applied for,

Limited cooperation amongst beneficiaries for partnerships & absence of

proposals for integrated projects,

No Farmers Cooperatives / Associations applied for aid,

Need for increased awareness, training and advisory services for

farmers,

Steep learning curve for administration, administrative burden & costs of

RD schemes.