The European Union needs to be more conscious of the diversity of the rural situations that exist in the different member states so as to increase the flexibility of the support mechanisms that support farmers living in different realities.
Speaking recently during an informal council meeting for agriculture ministers in Oporto, Portugal, which debated a paper entitled "The Future European Agricultural Model", Rural Affairs and Environment Minister George Pullicino said that the support of rural economies is closely linked to the long term sustainability of rural areas.
"Specifically, agri-food chains are necessary to improve quality and reduce costs by reducing delivery time from the holdings to the packaging/processing plants, thereby helping to preserve freshness of agricultural products. Such activities help to generate economic activity in the rural areas, thus preserving the rural fabric of the territory and encouraging innovation in marketing and distribution," Mr Pullicino said.
The Minister stressed that due to Malta's space restrictions and the mosaic of agriculture and natural areas which characterise rural areas in the Maltese Islands, the sustainability of rural territories is completely dependent on the contribution of the agri-food chains.
"Given the limited agricultural land in the Maltese Islands, the future of local agriculture lies in the ability to further add value to typical products. This can be done through research and development, diversification, and the education of consumers about the benefits of typical and organic produce.
The emphasis, however, should be on diversity of produce, its distinct characteristics and features that can be promoted through a marketing strategy which truly respects the traditions and rural specifications of the territory in question," he said.
Mr Pullicino added however that the EU should differentiate and render more flexible the corresponding support mechanisms, particularly the instruments that enable small member states like Malta to create their own niche within the Euro-pean community market.
"Malta faces a formidable challenge in view of CAP requirements and the limited average size of holdings, and this can only be surmounted by means of innovation and emphasis on quality products. Without financial and technical support, I am afraid that our farmers will not be able to make this critical step," he said.
The Minister said that to satisfy the different and complex rural situations of individual member states, the EU should implement a more flexible balance between the first pillar funding - which is aimed at assisting production - and second pillar funding so that each member state can achieve maximum benefit according to its particular needs.
"Without minimising in any way the positive effects of second pillar funding, Maltese farmers have yet to make the transition from subsidy-based agriculture to a market-based system. In this context, measures such as Less-Favoured Areas recognises the permanent disadvantages of Maltese agriculture and the progressing shifting of funds from the first to the second pillar, can only be welcomed once the transition to a market-based economy is complete. I must also stress that this shift must be complemented by targeted convergence and cohesion mechanisms where necessary," he concluded.