2013 : French position on CAP

projectALVES Paulo Mateus FURTADO Caio CésarLABAQUE German LE BELLEGUY MaximeRAMBAUD MathisTHIBAULT Benoït

ERASMUS IP Gödöllo

Summer School

Introduction

I. The CAP in France • Aid distribution • Production cost: France vs Mercosur

II. Analysis of CAP impacts • Socioeconomic • Environmental • What we expect about CAP?• Why to reform the CAP?

III. Possibles scenarios post 2013A. Keeping the same level of CAP subsidiesB. Decreasing the level of CAP subsidies

IV. Conclusion

Introduction

General aspects:

Total area: 55 millions ha

Use land area: 32 millions ha

62 % for crops production 34 % for grassland 2 % of vineyard

Agro-food economy

3,5 % of the national GDP

66,8 billion of €

3,4 % of the employment

Half of the value come from cereals and wine production

Farms structures

348 000 farms

Average of 73,3 hectares/ farm

3 people for 100 ha

Different productions

• Crops • Vegetables• Wine • Livestock

•Dairy production•Beef •Pork •Poultry

I. The CAP in France

A. Aid distributionI Pillar (1000€) II Pillar (1000€)

France 8946,9 959,4

Germany 5704 1186,9

Hungary 513,6 537,5

Source: DG Agri

EU Budget & Used land

French CAP Subsidies

Source: Agreste

B. Production cost France vs Mercorsur

France MERCOSUR

WHEAT 1080€/Ha 330€/Ha

CORN 1207€/Ha 512€/Ha

PORK 1,53€/Kg 1,11€/Kg

POULTRY 1,44€/Kg 0,90€/Kg

MILK 0,29€/L 0,20€/LSource: Office-Elevage / EMBRAPA /

INTA

II. Analysis of CAP impacts

In which field can the CAP impact on?

A. Socioeconomic• 15,5 millions (25%) of French live in the countryside

• 770 000 employs (3,4% of active population)

• French culture (countryside without farmers is not countryside)

• Agriculture: 3,5% of GDP 66,8 billions Euros

• Cereals:

• 70,2 million tons

• Cattle:

• bovins: 19,9 millions

• Pork : 14,8 millions

• Poultry: 182,9 millions

• Tourism : Cheese, wine production, cattle, local products

Strengths Weaknesses

1st agriculture power in Europe Expensive labor forceStrong agro indstry companies Strict environmental legislationGood agriculture knowledges Expensive landGood mecanisation of farm Small average size of exploitationsGood management skills Low R&D investmentsDevelopped Agrotourism Increasing of unemployment rateDevelopment of local products with strong added value Rural exodStrong agriculture culture in the countryside Difficulties to innovateRural developementOpportunities Threats

Increasing of world food demand Increasing of agrofood product pricesIncreasing of EU food demand Increasing competitivness of Eastern European

countriesIncreasing of EU purchasing power Food security

SOCIAL / ECONOMICS

Environment

•Cereals: 94460 km2 (51% of arable land)

•Cattle in mountains

•Rural development:

• improving the competitiveness of agriculture and forestry;

• improving the environment and countryside;

• improving the quality of life in rural areas and encouraging diversification of the rural economy.

Strengths Weaknesses

Good environmental legislation Intensive agriculture and environment together?

Landscape management

Opportunities Threats

Environment supported by the EU Increasing of CO2 emmission

Aids moving from the I pillar to II pillar Degradation of biodiversity

Payment in Ecological services (carbon)

Environmental

•Food security (quantity)

•Food safety (quality)

•Preservation of biodiversity

•Landscape maintenance

•Food price stabilisation

•Profitable agriculture for farmers

C. What we expect about CAP?

•Take in account the environmental work of farmers

•Reduce market food fluctuation prices

•Favorise label and regional products

•Favorise the competitiveness of farmers

•Good relation between retailers/farmers

•Invest more in R&D

D. Why to reform the CAP?

III. Possibles scenarios post

2013

A. Keeping the same level of CAP subsidies B. Decreasing the level of CAP subsidies

•To decrease the first pillar: 88 to 48%

•To increase the 2nd pillar: 12% to 26%

•To create a third pillar: 26%• To remunerate maintenance of public goods from farmers

• To dynamise innovation

A. Keeping the same level of CAP subsidies

B. Decreasing the level of CAP subsidies

30%30%

104 400 farms104 400 farms

9,6 millions ha9,6 millions ha

4,65 millions of rural exod4,65 millions of rural exod

231 000 farmers go to unemployment231 000 farmers go to unemployment

20,04 billions € GDP20,04 billions € GDP

Catastrophic scenario 2013 - 2020

•Regarding the 2nd scenario we conclude that the socioeconomics and environmental problems generated by a possible reduction of CAP is too huge for France

•A consensus has to be taken in order to keep food safety and food security in Europe against the emergence of third countries like Brazil & Argentina

Conclusion

Thank you for your attention !!!

Did’u see what they Did’u see what they

want to do with our want to do with our

agriculture?!agriculture?!

Don’t worry man!!! Don’t worry man!!!

Good things will Good things will

never disappear!!! never disappear!!!