Subsidies for farmers to 'assist production'

Malta became the first new member state to distribute European Union agricultural funds as the Rural Affairs Ministry announced that farmers and herdsmen have received almost Lm4 million in cash subsidies.

During a visit to a group of farmers in Girgenti yesterday afternoon, Environment Minister George Pullicino and Parliamentary Secretary Frans Agius said 1,000 full-time farmers and 12,000 part-timers were benefiting from funds made available by the EU and the government.

Dr Agius said farmers received Lm1 million in subsidies for fruit and vegetables that were traded at the Pitkali, the fruit and vegetable market in Ta' Qali.

Another Lm60,000 was given to farmers harvesting potatoes.

Dr Agius said funds for vineyards amounted to Lm740,000, covering both newly planted crop and existing vineyards. He said Malta had more than 900 hectares of vineyards, an equivalent of 9,000 tumoli, when compared with the 350 hectares of land used to harvest grapes up till 2002.

Subsidies to farmers who grow tomatoes for processing amounted to Lm700,000, he said.

The government gave about Lm1.1 million to full-time farmers as an income support measure. Herdsmen also received about Lm350,000 to subsidise beef and sheep slaughtering.

The subsidies given to the agricultural community are meant to assist farmers and herdsmen upgrade their products and also to help them survive in an open market.

The subsidies announced yesterday, however, were given to "assist production". Funds for restructuring would be passed on to farmers later on, Mr Pullicino and Dr Agius said.

Mr Pullicino said Maltese agricultural produce could gain a competitive edge on three main counts.

"Malta is the southernmost country of the EU and this should enable us to harvest ripe produce before other EU countries. This will give us an advantage when it comes to exports."

Secondly, farmers should shift to organic farming, using natural methods of pest control reducing the use of chemical pesticides. "Though this kind of farming reaps a lower quantity, farmers get better price for their produce," Mr Pullicino said.

Thirdly, the local agricultural industry had to focus more on quality so as to be a cut above its competitors, the minister said.

Another subsidy scheme to assist production will open on February 14.