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Ministry For Rural Affairs and the Environment Investments in Agricultural Holdings & Improvements in Processing and Marketing Measures in Malta Rural.

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Presentation on theme: "Ministry For Rural Affairs and the Environment Investments in Agricultural Holdings & Improvements in Processing and Marketing Measures in Malta Rural."— Presentation transcript:

1 Ministry For Rural Affairs and the Environment Investments in Agricultural Holdings & Improvements in Processing and Marketing Measures in Malta Rural Development Department

2 Ministry For Rural Affairs and the Environment

3 Map of Malta

4 Ministry For Rural Affairs and the Environment General Data  Total population – 402,000  Population density – 1,274 /Km 2  Area: 316 Km 2  Contribution of Agriculture to GDP: 2.4%  % of Employment in Agriculture: 1.1%  Self sufficient in Vegetable, Pig, Poultry & Dairy production

5 Ministry For Rural Affairs and the Environment Map of Development Zones & Natural Habitats

6 Ministry For Rural Affairs and the Environment Rural and Peri-Urban Landscape

7 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

8 Ministry For Rural Affairs and the Environment Countryside Views

9 Ministry For Rural Affairs and the Environment

10 Typical Holdings

11 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% 55 years old - 10% Full-timers

12 Ministry For Rural Affairs and the Environment Comparison of Agricultural Sectors (Final Agricultural output at producer prices - 117M€)

13 Ministry For Rural Affairs and the Environment Terraced Fields Showing Parcel Usage

14 Ministry For Rural Affairs and the Environment

15 Agricultural Constraints & Challenges PHYSICALSOCIO-ECONOMIC  Semi-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

16 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 (6 M€: 35%EU / 15%GoM / 50%Private ) 1) Investments in Agricultural Holdings - IAH 2) Improvements in Marketing & Processing - IMP

17 Ministry For Rural Affairs and the Environment 1st and 2nd Pillar Aid (Euros) – 2004

18 Ministry For Rural Affairs and the Environment Number of Beneficiaries - 2004

19 Ministry For Rural Affairs and the Environment Average Aid Perceived per Beneficiary in Euros for 2004 campaign

20 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

21 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

22 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

23 Ministry For Rural Affairs and the Environment Analysis of Proposed Projects

24 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€

25 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

26 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 Vegetables3027.9 Olive Oil1010.6 Wine1012.6 Meat5049.0

27 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.


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