Slide1: 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


Slide2: 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 EU’s territory! Agriculture is an economic activity integrated with the ecosystem – conversion of the sun’s energy into food, feed and fuel


Slide3: 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


Slide4: The future for EU agriculture The Opportunities & Challenges ahead


Slide5: The Opportunities World market outlook is promising


Slide6: World population growth


Slide7: Consumption forecasts by sector


Slide8: Consumption OECD & non-OECD


Slide9: Rural – urban balance


Slide10: 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


Slide11: 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


Slide12: 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


Slide13: The Challenge – production and sustainability environmental safety animal welfare attractive countryside contribution to rural economy (basic services, prevent depopulation and land abandonment) Optimise production potential, while ensuring sustainable rural land management - in respect of EU citizens’ concerns:


Slide14: The Challenge Threats to sustainable production Opening of markets Inadequate funding Imbalanced food chain


Slide15: The Challenges - WTO Potential impact of a WTO agreement


The Challenges - WTO: 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


The Challenges - WTO: 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 EU’s October 2005 WTO offer) farm incomes would drop by 20-25% we would loose up to 500,000 jobs in the supply chain.


Slide18: The Challenges - costs Production with the highest standards in the world… … means higher costs


Slide19: 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


Slide20: The way forward COMPETITIVENESS Improving Price Adding value Processing & marketing Development of new products Co-operation Improving quality of produce Diversification


Slide21: The way forward COMPETITIVENESS Reducing Costs LFA Co-operation Farm modernisation Training and information Farm advisory services


Slide22: The way forward Payments for public goods  Renumeration via direct payments as compensation for EU’s multifunctional agriculture with all production meeting sustainability criteria


Slide23: The way forward Payments for public goods Environment Agri-environment Natura 2000 Forestry


Slide24: The way forward Payments for public goods Socio-economic LFA Young farmers/Early retirement Diversification Basic rural services Training and skills


Slide25: Conclusions Sustainable rural management Need to improve competitiveness; and Deliver public goods CAP can do both


Slide26: 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 society’s demands!


Slide27: Thank you for your attention! www.copa-cogeca.be