1. IPC Conference Dinner 2007 The Role of Sustainability in Europe’s Common Agricultural Policy F. Fischler Stratford-upon-Avon, October 2007

2. IPC Conference Dinner 20072 Outline The European Economic Model A Sustainable CAP –Market Orientation –Environmental Protection –Social Responsibility Sustainable Energy Production Agriculture versus Farming

3. The Union shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment. It shall promote scientific and technological advance. Article I-3 (3) first part (Treaty establishing a Constitution for Europe) ‏

4. Added value of the market Maintenance of social freedom Basis for life natural resources Market Economy Market Economy Ecological Social

5. IPC Conference Dinner 20075 CAP-Market Orientation Intervention abolished or reduced to a minimum safety net Phasing out of export subsidies Phasing out dairy quotas Abolition of set a side and energy crop support programs Decoupling of farm support Farmers exposed to price volatility Growing market segmentation Modernizing and restructuring of farms Strict financial discipline

6. IPC Conference Dinner 20076 CAP-Environmental Protection Extensification of farming practices through reduced production incentives Direct support (SFP) conditioned with obligatory food standards, environmental and animal welfare rules Public private partnership to deal with public services Allowances to maintain the cultural landscapes in less favored areas and valuable biotopes

7. IPC Conference Dinner 20077 CAP-Social Responsibility Income support via decoupled aid Education and training programs Young farmer start up support Strengthening infrastructure on the countryside Dealing with the aging and migration problems of the rural population

8. IPC Conference Dinner 20078 Sustainable Energy Production

9. IPC Conference Dinner 20079 Biofuel European Goals: 2010:5.75 %of total consumption 2020:10.0 %of total consumption

10. IPC Conference Dinner 200710 Bioethanol and Biodiesel Production Capacity 2007 (in mill. t): (Source: Ch. Bickert, DLG-News) BioethanolBiodiesel global359 thereof:Brasil14,50,7 USA14,51,9 EU-273,06,1 thereof:GER0,63,0 FRA0,50,6 ITA-0,5

11. IPC Conference Dinner 200711 Bioethanol and Biodiesel Land Resource for the Production of Biofuels: (Source: St. Tangermann, M. Lampe) BrasilUSAEU15 Share of Biofuels 200421,6 %1,6 %0,8 % Land needed in % of Cereals-, Oilseeds- & Sugararea 2004 854 Goals set for Biofuels10 % Land needed in % of Cereals-, Oilseeds- & Sugararea 2004 33052

12. IPC Conference Dinner 200712 Oilseeds: Production Costs 1) 2002 Source: Parkhomenko (2003). 1) without land costs € / t Rapeseedequivalent Rapeseed Soyabeans CA-1214CA-2430CA-1214CA-2024 DE-700 DE-1500 DE-560 DE-1300 CN-0.34 AR-250AR-350 AR-1500 BR-500 BR-1000 USA-713 USA-1903USA-1012USA-1943 USA-405 USA-810 CN-4.3CN-1.2 ID-2 ID-2500 MY-2300MY-4300 SEA Germany CanadaSouth- Amerika ChinaUSAChina Direct Costs Operating Costs Fixed Costs Interests Setup Costs Conversion Costs Palmoil (FFB) 0 100 200 300 250 150 50

13. IPC Conference Dinner 200713 Biofuels Land- and CO 2 -Efficiencyavoidance of Biofuels: (Source: L. Langbehn; Y. Zimmer) BiofuelsLiter Fuel per ha € per tonne CO 2 Equivalent Biodiesel from Rapeseeds1.408150 Rapeoil1.42080 Ethanol from Cereals4.054290 Biogas from Cereals1.660250 Biogas from Silo Maize4.977-

14. IPC Conference Dinner 200714 Consequences for the Biofuel Politics until 2020 10 % Biofuels is very ambitious and can only be reached with the help of the 2nd generation and partly with imports Cereal- and Oilseeds Politics must be adjusted to the development of the Biofuel Production (Closedown, Subsidies, Intervention, Quality, GMOs, External Protection) Optimization of the Production should be based on the CO 2 -Avoidanceefficiency Sustainability-Standards for Production and Imports? Intensification of Research for the 2nd Generation of Biofuels Food Production must stay Priority

15. IPC Conference Dinner 200715 Agriculture vs. Farming A specific sector with An industry like a cultural dimension any other industry Pragmatism bridges the tensions Concentration on demand of food, services and renewables

16. IPC Conference Dinner 200716 Thank you for your attention!