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This workshop aims to discuss the challenges and opportunities for agriculture in the EU's outermost regions. Topics include competitiveness, research and innovation, regional cooperation, diversification, and the importance of sustainable practices. The workshop also calls for continuous monitoring and consultation to address new challenges and constraints.
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WORKSHOP 3 AGRICULTURE IN THE OUTERMOST REGIONS
Introduction (1) • Agriculture is a critical sector in the economy of the EU's outermost regions. • Agricultural production (in particular bananas, sugar cane, but also livestock including dairy) and the supply of basic food commodities remain essential for their economic sustainability.
Introduction (2) • At the same time, agriculture has also important social, cultural, environmental/energy and heritage underpinnings (traditional products, rural population, environment, landscape and tourism/food linkages).
Aim of workshop • To discuss with representatives of outermost regions and identify the best lines of actions that could be developed in the medium to long term. • Discussion focused on actions needed to implement the 3 axes of Community Strategy for outermost regions on accessibility, competitiveness and regional integration, the latter with special emphasis on EPAs initialled at the end of December 2007 with the various African, Pacific and Caribbean regions.
Themes (1) • Competitiveness of the agri-food chain: farm to fork • New constraints compounded by high energy costs and high food costs; Energy Costs are impacting negatively inputs and hence feasibility of agricultura production in already difficult conditions characterising Outermost Regions’ agricultural production • Possibilities of diversification exist (production synergies, agri-tourism, bio-energy) but this requires an integrated approach
Themes (2) • Research and Innovation as applied to agriculture/processing of agricultural products • Need to move up the value added chain; potential of organics remains very limited. • Climate change and agriculture – although this was not sufficiently elaborated; clearly a major concern to enhance production potential
Regional Co-operation • Full EPA in the Caribbean area, for example, provides for the possibility of associating the outermost regions to cooperate with ACP countries • Need to follow closely EPA process, especially move towards full EPAs- only one full EPA to date.
Diversification • Diversification of activities becomes a necessity to answer to market uncertainties and evolutions and to be competitive on new markets • However, the weight of sugar, banana and dairy in the agricultural output of most regions remains high and the process of diversification will not be easy; adjustments need to be gradual. • An opportunity for maintaining activity in rural areas, increasing producers’ incomes. • Need to tap underexploited potential and to search for export opportunities but this requires funding.
Research and innovation • Developing research and innovation capacities and encouraging networking and exchange of best practices is a priority in order to develop a competitive and sustainable agriculture; • Pilot project in Guadaloupe-Pole of Excellence and Potential for Exchanges of Best Practices not only amongst Outermost Regions and with neighbouring countries but as well with the continent. This is especially due to climate change. • Innovation in agriculture must be seen as a permanent process and requires an attitude change by the stakeholders
Conclusions and Points to further reflect upon (1) • To develop eco-innovation systems taking into account research resources, diversification, respect of biodiversity • Assessment of POSEI reform by the Commission in 2009 will be a crucial point for development of agriculture in outermost regions in the long run. Identify what NEW concerns are; • Agriculture still has a very important role to play in the economies of the outermost regions • But, in the medium-long run agriculture needs to develop on the following axis: excellency, innovation, sustainibility, agricultural and non-agricultural diversification
Conclusions (2) • Case of bananas was discussed at length; concerns expressed about production and trade implications. Need to discuss and exchange methodologies and underlying assumptions- consumption and prices as well as import penetration • In the case of sugar, the main concerns relate to land availability, cost of inputs and renewables. • Finally, the case of the dairy sector was also highlighted in the context of the Health Check. The HC will be unveiled on 20 May.
Conclusion • Multifunctional and Integrated planning approach (agriculture, energy, social dimension) is necessary to operate in a globalised context • Focus on training • Emphasis on marketing outlets – need to have a level playing field in terms of standards and environmental conditions; • Food Security becomes more essential in context of high energy and food costs
Conclusion • Should one rethink current aid schemes? • Need for continuous consultation process with authorities to communicate new challenges and constraints • Need to continue monitoring closely the impact effects of fuel prices (which are key cost components on these regions – for internal supply and current/new export potential) as well as food prices. • Is food self-sufficiency possible and feasible in this context? This is a key decision to take given current concerns.