1. Ministry For Rural Affairs and the Environment Investments in Agricultural Holdings & Improvements in Processing and Marketing Measures in Malta Rural Development Department

2. Ministry For Rural Affairs and the Environment

3. Map of Malta

4. Ministry For Rural Affairs and the Environment General Data  Total population – 402,000  Population density – 1,274 /Km 2  Area: 316 Km 2  Contribution of Agriculture to GDP: 2.4%  % of Employment in Agriculture: 1.1%  Self sufficient in Vegetable, Pig, Poultry & Dairy production

5. Ministry For Rural Affairs and the Environment Map of Development Zones & Natural Habitats

6. Ministry For Rural Affairs and the Environment Rural and Peri-Urban Landscape

7. Ministry For Rural Affairs and the Environment Importance of Agriculture  Significant Land User - 37% of territory  Practically constitutes our Countryside  Many Archaeological/cultural heritage sites  Shaped our Rural Landscape  Part of our Cultural Identity  Important Element of Relaxation  Green Lung  Source of Fresh Food

8. Ministry For Rural Affairs and the Environment Countryside Views

9. Ministry For Rural Affairs and the Environment

10. Typical Holdings

11. Ministry For Rural Affairs and the Environment Summary of Agricultural Data  Total Agricultural Area: 11,619 ha  Total Irrigated land: 1,509ha  No. of Holdings: 11,959  Average size of Holding: 0.875 ha  74% of Holdings less than 1ha  Total No. of Farmers: 15,168 - Only 20% 55 years old - 10% Full-timers

12. Ministry For Rural Affairs and the Environment Comparison of Agricultural Sectors (Final Agricultural output at producer prices - 117M€)

13. Ministry For Rural Affairs and the Environment Terraced Fields Showing Parcel Usage

14. Ministry For Rural Affairs and the Environment

15. Agricultural Constraints & Challenges PHYSICALSOCIO-ECONOMIC  Semi-arid Climate with irregular rainfall  Limited Water Resources  Increasing salinity of aquifer water  Shallow soils low in organic content  Small, terraced parcels – difficult access & mechanization  Ageing farmers with limited training  Decreasing full-time farmers  Increasing land fragmentation  High opportunity cost of land  Insularity & high transport costs  Over reliance on imports of agricultural inputs  Higher production costs due to economies of scale  Removal of all protective levies & increased competition from imports  Increased obligations & standards requiring investments

16. Ministry For Rural Affairs and the Environment Rural Development Measures 04 -0 6 (39.6M€) Rural Development Plan for Malta 2004-2006 (33.6M€: 80%EU / 20%GoM) 1) Producer Groups 2) Meeting Standards for Breeders 3) AdHoc for Full-Time Farmers 4) Agro-Environment Measure: - Soil Retaining Walls; - Organic Farming; - Conservation of Maltese Oak & Maltese Ox Species. 5) Less Favoured Areas 6) Complement to State Aid for Agriculture Single Programming Document (6 M€: 35%EU / 15%GoM / 50%Private ) 1) Investments in Agricultural Holdings - IAH 2) Improvements in Marketing & Processing - IMP

17. Ministry For Rural Affairs and the Environment 1st and 2nd Pillar Aid (Euros) – 2004

18. Ministry For Rural Affairs and the Environment Number of Beneficiaries - 2004

19. Ministry For Rural Affairs and the Environment Average Aid Perceived per Beneficiary in Euros for 2004 campaign

20. Ministry For Rural Affairs and the Environment Objective: Improve the productivity, efficiency and competitiveness of farms and the quality of produce including the promotion of higher standards of animal welfare and hygiene, and environmental performance. Beneficiaries: Farmers & their Associations, Agric. Companies. Available Budget for 2004-2006: 3.7 M€ Investment in Agricultural Holdings Measure

21. Ministry For Rural Affairs and the Environment IAH First Results (Call for Proposals August – October 2004)  368 Applications received  268 Eligible Applications requesting grants of 4.41M€  70 Applications chosen after ranking  Total Investment: 4.95M€  Total Grant Requested: 2.32M€ - 47% of total investment costs

22. Ministry For Rural Affairs and the Environment Analysis of Successful Applicants for IAH Measure  70% Full time farmers  10% Agriculture companies  3% Females  29% Livestock breeders Ξ 53% of grants requested  21% Under 40 years of age

23. Ministry For Rural Affairs and the Environment Analysis of Proposed Projects

24. Ministry For Rural Affairs and the Environment Improving Marketing & Processing of Agricultural Products Objective: To enhance the situation of the agricultural sector by improving the economic performance of the marketing and processing chain, through gains in both productivity and competitiveness. Beneficiaries: Agro-processors, Producer Groups and Farmers Cooperatives or Associations. Available Budget for 2004-2006: 2.3M€

25. Ministry For Rural Affairs and the Environment IMP First Results (Call for Proposals August – October 2004)  22 Applications from Agro-processors  17 Eligible Applications requesting grants of 4.41M€  10 Applications chosen after ranking  Total Investment: 1.91M€  Total Grant Requested: 0.92M€ - 48% of total investment costs

26. Ministry For Rural Affairs and the Environment Analysis of Successful Applications for IMP Measure 70% of applications – New Equipment ; 30% -Construction/ refurbishment SECTOR% of Projects% of Grants Vegetables3027.9 Olive Oil1010.6 Wine1012.6 Meat5049.0

27. Ministry For Rural Affairs and the Environment Some Conclusions  Huge Interest in Investment Schemes shown by farmers & processors over other RD schemes,  Significant needs of sector to restructure,  Limited Innovation in types of projects applied for,  Limited cooperation amongst beneficiaries for partnerships & absence of proposals for integrated projects,  No Farmers Cooperatives / Associations applied for aid,  Need for increased awareness, training and advisory services for farmers,  Steep learning curve for administration, administrative burden & costs of RD schemes.