investments in agricultural holdings & improvements in processing and marketing measures in...

Ministry For Rural Affairs and the Environment

Investments in Agricultural Holdings & Improvements in Processing and

Marketing Measures in Malta

Rural Development Department


Map of Malta


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


Map of Development Zones & Natural Habitats


Rural and Peri-Urban Landscape


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


Countryside Views


Typical Holdings


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


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%


Terraced Fields Showing Parcel Usage


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 trainingDecreasing full-time farmersIncreasing land fragmentationHigh opportunity cost of landInsularity & high transport costsOver reliance on imports of agricultural inputsHigher production costs due to economies of scaleRemoval of all protective levies & increased competition from importsIncreased obligations & standards requiring investments


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 Areas6) 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


1st and 2nd Pillar Aid (Euros) – 2004

Rural Development

5,452,86485%

Arable Aid137,141

2%

Livestock Premia

812,78213%


Number of Beneficiaries - 2004

Arable Aid4,31234%

Rural Development7,51160%

Livestock Premia7016%


Average Aid Perceived per Beneficiary in Euros for 2004 campaign

Livestock Premia1,15960%

Arable Aid322%

Rural Development

72638%


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


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


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


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


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€


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


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

SECTOR % of Projects % of GrantsVegetables 30 27.9

Olive Oil 10 10.6

Wine 10 12.6

Meat 50 49.0


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.

investments in agricultural holdings & improvements in processing and marketing measures in...

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