The 18th and 19th March Agri Committee outcomes

The Green Hand followed carefully the Agri Committee Meetings that took place at the European Parliament on 18th and 19th March. Among the topics relevant for Malta, the following points grabbed our attention.

The first topic indirectly addressed is the comparable situation between Malta and the POSEI regions from France, Spain and Portugal. Malta and these regions are indeed all islands and suffer from similar constraints such as larger expositions to climatic conditions and climate change, structural imbalances, higher import costs or a lack of competitiveness. Similar to the POSEI regions, Malta needs specific stable and predictable support, especially for smaller holdings and young farmers, to be able to face challenges such as farmer generational renewal, fair value for their products and food sovereignty to protect its local economy pillar - its own farmers.

The EU dairy market is currently in a critical position as the conflict in the Middle East spikes not only energy and fertilizers prices but also reduces drastically EU exports to the region and Asia. A demand lower than the offer combined with increased production costs leads inevitably to the price collapse that we encounter today. Malta, being dependent on forage imports, will not be an exemption to the rules. In a context where market prices are below the production costs, a solution must be put on the table quickly if structural damage across the sector wants to be avoided.

Being an island, food sovereignty and security are an absolute priority for Malta. A strategic and looking-forward approach under the European Competitiveness Fund must be put in place in certain terms to be able to react quickly to market fluctuations caused by climate change or by geopolitics conflicts. Such an approach, backed by a stable and flexible framework, should focus its attention on notably water resilience and management, strategic stocks and storing facilities as well as competitivity. 

Support measures for farmers are needed more than ever in Malta as disadvantaged areas and small farms are more affected by inflation. A continued support in the form of an indexed risk insurance and fair competition are definitely needed to ensure Maltese farmers a fair price for their produce along with a stable income. 

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