Role of farming in sustainable rural management

1

COPA-COGECA European farmers and their
cooperatives
The role of farming in sustainable rural
management beyond 2013 - Challenges and
Opportunities
Andy Robertson, Chairman of COPA-COGECA Working
Party on Rural Development FUTURE POLICIES FOR
RURAL EUROPE 2013 AND BEYOND 20 SEPTEMBER 2007
2
The future for rural areas
Farmers and their cooperatives - essential
players at heart of sustainable rural management

• They are the managers of more than half of
  EUs territory!
• Agriculture is an economic activity integrated
  with the ecosystem conversion of the suns
  energy into food, feed and fuel

3
The future for rural areas

• The future of rural areas and EU agriculture is
  closely interlinked
• ?
• Agriculture as part of Rural Development
• Individuals and their businesses
• High quality, local produce
• Integration of rural businesses
• Related industries
• Land management
• Food security
• Rural infrastructure

4
The future for EU agriculture
The Opportunities Challenges ahead
5
The Opportunities
World market outlook is promising
6
World population growth
7
Consumption forecasts by sector
8
Consumption OECD non-OECD
9
Rural urban balance
10
The Opportunities renewables

• Demand for agricultural commodities for non-food
  use increasing worldwide

• EU targets for renewables
• binding target for EU as a whole of 20 of all
  energy (fuel, heating electricity) to come from
  renewables by 2020

11
World market outlook

• Overall, three factors
• increased food demand in emerging economies,
  particularly meats
• increased use of land worldwide for bio-energy
• land is a finite resource is under increasing
  environmental constraints
• are leading to rising agricultural commodities
  prices could even lead to food shortages some
  time in the future

12
The Opportunities

• Strengths of EU agriculture
• Skills, experience and capital
• Quality produce
• High production standards
• Relatively favourable physical conditions

EU food security and contribute to world needs
13
The Challenge production and
sustainability
Optimise production potential, while ensuring
sustainable rural land management - in respect of
EU citizens concerns

• environmental safety
• animal welfare
• attractive countryside
• contribution to rural economy (basic services,
  prevent depopulation and land abandonment)

14
The Challenge
Threats to sustainable production

• Opening of markets
• Inadequate funding
• Imbalanced food chain

15
The Challenges - WTO
Potential impact of a WTO agreement
16
The Challenges - WTO

• Commissioner Fischer Boel on the impact of the
  G20 (led by Brazil) demands on EU agriculture
• meat production would simply collapse
• extensive beef production in Ireland and central
  France would be wiped out completely

17
The Challenges - WTO

• Commissioner Fischer Boel on the impact of the
  G20 (led by Brazil) demands on EU agriculture
• total market receipts would drop by 37 billion
  (more than twice the losses that would be caused
  by the EUs October 2005 WTO offer)
• farm incomes would drop by 20-25
• we would loose up to 500,000 jobs in the supply
  chain.

18
The Challenges - costs
Production with the highest standards in the
world means higher costs
19
The way forward

• COPA-COGECA the main priority
• Maximise farmers returns from the market
• Sustain and improve COMPETITIVENESS
• Level playing field and fair trade worldwide
• Rebalance the food chain

20
The way forward
COMPETITIVENESS

• Improving Price
• Adding value
• Processing marketing
• Development of new products
• Co-operation
• Improving quality of produce
• Diversification

21
The way forward
COMPETITIVENESS

• Reducing Costs
• LFA
• Co-operation
• Farm modernisation
• Training and information
• Farm advisory services

22
The way forward
Payments for public goods
? Renumeration via direct payments as
compensation for EUs multifunctional agriculture
with all production meeting sustainability
criteria
23
The way forward
Payments for public goods

• Environment
• Agri-environment
• Natura 2000
• Forestry

24
The way forward
Payments for public goods

• Socio-economic
• LFA
• Young farmers/Early retirement
• Diversification
• Basic rural services
• Training and skills

25
Conclusions

• Sustainable rural management
• Need to improve competitiveness and
• Deliver public goods
• CAP can do both

26
Defending and developing the European Model of
Agriculture European farmers and their
cooperatives are ready to produce food, feed,
fuel and fibre, create jobs, supply lifeblood to
rural areas, and manage the lands in line with
the consumers and societys demands!
27

Thank you for your attention!
www.copa-cogeca.be