1. 2013 : French position on CAP project ALVES Paulo Mateus FURTADO Caio César LABAQUE German LE BELLEGUY Maxime RAMBAUD Mathis THIBAULT Benoït ERASMUS IP Gödöllo Summer School

2. Introduction I. The CAP in France Aid distribution Production cost: France vs Mercosur II. Analysis of CAP impacts Socioeconomic Environmental What we expect about CAP? Why to reform the CAP? III. Possibles scenarios post 2013 Keeping the same level of CAP subsidies Decreasing the level of CAP subsidies IV. Conclusion

3. Introduction General aspects: Total area: 55 millions ha Use land area: 32 millions ha  62 % for crops production  34 % for grassland  2 % of vineyard

4. Agro-food economy 3,5 % of the national GDP 66,8 billion of € 3,4 % of the employment Half of the value come from cereals and wine production

5. Farms structures 348 000 farms Average of 73,3 hectares/ farm 3 people for 100 ha

6. Different productions Crops Vegetables Wine Livestock Dairy production Beef Pork Poultry

7. I. The CAP in France

8. A. Aid distribution I Pillar (1000€)II Pillar (1000€) France8946,9959,4 Germany57041186,9 Hungary513,6537,5 Source: DG Agri

9. EU Budget & Used land

10. French CAP Subsidies Source: Agreste

11. B. Production cost France vs Mercorsur FranceMERCOSUR WHEAT1080€/Ha330€/Ha CORN1207€/Ha512€/Ha PORK1,53€/Kg1,11€/Kg POULTRY1,44€/Kg0,90€/Kg MILK0,29€/L0,20€/L Source: Office-Elevage / EMBRAPA / INTA

12. II. Analysis of CAP impacts In which field can the CAP impact on?

13. A. Socioeconomic 15,5 millions (25%) of French live in the countryside 770 000 employs (3,4% of active population) French culture (countryside without farmers is not countryside) Agriculture: 3,5% of GDP 66,8 billions Euros Cereals: 70,2 million tons Cattle: bovins: 19,9 millions Pork : 14,8 millions Poultry: 182,9 millions Tourism : Cheese, wine production, cattle, local products

14. StrengthsWeaknesses 1st agriculture power in EuropeExpensive labor force Strong agro indstry companiesStrict environmental legislation Good agriculture knowledgesExpensive land Good mecanisation of farmSmall average size of exploitations Good management skillsLow R&D investments Developped AgrotourismIncreasing of unemployment rate Development of local products with strong added valueRural exod Strong agriculture culture in the countrysideDifficulties to innovate Rural developement OpportunitiesThreats Increasing of world food demand Increasing of agrofood product prices Increasing of EU food demandIncreasing competitivness of Eastern European countries Increasing of EU purchasing powerFood security SOCIAL / ECONOMICS

15. Environment Cereals: 94460 km2 (51% of arable land) Cattle in mountains Rural development: improving the competitiveness of agriculture and forestry; improving the environment and countryside; improving the quality of life in rural areas and encouraging diversification of the rural economy.

16. StrengthsWeaknesses Good environmental legislationIntensive agriculture and environment together? Landscape management OpportunitiesThreats Environment supported by the EUIncreasing of CO2 emmission Aids moving from the I pillar to II pillarDegradation of biodiversity Payment in Ecological services (carbon) Environmental

17. Food security (quantity) Food safety (quality) Preservation of biodiversity Landscape maintenance Food price stabilisation Profitable agriculture for farmers C. What we expect about CAP?

18. Take in account the environmental work of farmers Reduce market food fluctuation prices Favorise label and regional products Favorise the competitiveness of farmers Good relation between retailers/farmers Invest more in R&D D. Why to reform the CAP?

19. III. Possibles scenarios post 2013 A. Keeping the same level of CAP subsidies B. Decreasing the level of CAP subsidies

20. To decrease the first pillar: 88 to 48% To increase the 2nd pillar: 12% to 26% To create a third pillar: 26% To remunerate maintenance of public goods from farmers To dynamise innovation A. Keeping the same level of CAP subsidies

21. B. Decreasing the level of CAP subsidies 30% 104 400 farms 9,6 millions ha 4,65 millions of rural exod 231 000 farmers go to unemployment 20,04 billions € GDP Catastrophic scenario 2013 - 2020

22. Regarding the 2nd scenario we conclude that the socioeconomics and environmental problems generated by a possible reduction of CAP is too huge for France A consensus has to be taken in order to keep food safety and food security in Europe against the emergence of third countries like Brazil & Argentina Conclusion

23. Thank you for your attention !!! Did’u see what they want to do with our agriculture?! Don’t worry man!!! Good things will never disappear!!!