Agriculture in decline

The final output of the agricultural industry at basic prices for 2003 amounted to Lm56.3 million, according to the National Statistics Office's Economic Accounts for Agriculture.

The total agriculture production at producer prices declined from Lm59 million in 1998-1999 to Lm52.5 million in 2003, while subsidies increased from Lm135,000 in 1998 to Lm4 million in 2003.

Last year, animal output - the most important sub-sector in agriculture - amounted to Lm32.8 million, or 58.4 per cent of the final agricultural production at basic prices, while crop output amounted to Lm18.6 million, with vegetables and horticultural products contributing 57.8 per cent of crop output.

The statistics show that intermediate consumption, which represents the value of all goods and services used as inputs in the production process, amounted to Lm26.8 million (47.7 per cent of the output of the agricultural industry) in 2003.

The figures were highlighted during an NSO seminar on The Contribution of the Agricultural Sector to the Economy, which also pointed out that agriculture contributed to under two per cent of the GDP and employed under 1,700 full-time farmers, who took care of 30 per cent of the land area.

Addressing the seminar on the economic relevance of agriculture, Prof. Lino Delia said that, despite protection, agriculture has been a declining economic activity in Malta and survived only because of a distortion of input pricing, notably the price of water and personal taxation, as well as tariff/quota protection.

Prof. Delia said the "evolving world agro-trade scenario, as well as a revamped EU agricultural policy demand a dynamic farming community and investment with a purpose".

In the relative dearth of leadership, willingness to invest and availability of land for agricultural use, the contribution of local agriculture to the domestic economy would continue to fall, he said.

The sector lacked qualified people, capital investment and knowhow to diversify output competitively. Moreover, there was no insurance scheme against natural risks.

Prof. Delia highlighted as one of the advantages the fact that full-time farmers were relatively younger than they used to be, the mean age being 46.3 in 2000.

"While the number of farmers has declined drastically, a relatively younger generation of farmers has prevailed. They are the ones who have to implement the restructuring of the agricultural sector."

The focus was no longer on price, but on restructuring, Prof. Delia said, stressing the need to think dynamically and long term.

Association of Farmers general secretary Peter Axisa, on the contrary, maintained that farmers were an aging population and that younger generations needed to be encouraged to take up a career in agriculture.

He announced the setting up of a Producers' Organisation that would give farmers the opportunity to market and control their own products and suggested the establishment of a professional organisation, headed by farmers themselves.

Among the many expectations of farmers, Mr Axisa insisted that the safeguard clause, obtained through negotiations, be implemented, as well as crop insurance coverage as had been promised.

The seminar was addressed by the parliamentary secretary in the Agriculture and Fisheries Ministry, Francis Agius, and the parliamentary secretary in the Finance Ministry, Tonio Fenech, who stressed the need to focus on quality, organic products and the development of agro-tourism, turning farms into tourist attractions.