IPC Conference Dinner 2007 The Role of Sustainability in Europe s Common Agricultural Policy
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1 IPC Conference Dinner 2007 The Role of Sustainability in Europe s Common Agricultural Policy F. Fischler Stratford-upon-Avon, October 2007
2 Outline The European Economic Model A Sustainable CAP Market Orientation Environmental Protection Social Responsibility Sustainable Energy Production Agriculture versus Farming IPC Conference Dinner
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. ( Europe Article I-3 (3) first part (Treaty establishing a Constitution for
4 Market Economy Added value of the market Ecological Basis for life natural resources Social Maintenance of social freedom
5 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 IPC Conference Dinner
6 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 IPC Conference Dinner
7 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 IPC Conference Dinner
8 Sustainable Energy Production IPC Conference Dinner
9 Biofuel European Goals: 2010: 2020: 5.75 % 10.0 % of total consumption of total consumption IPC Conference Dinner
10 Bioethanol and Biodiesel Production Capacity 2007 (in mill. t): Bioethanol Biodiesel global 35 9 thereof: Brasil 14,5 0,7 USA 14,5 1,9 EU-27 3,0 6,1 thereof: GER 0,6 3,0 FRA 0,5 0,6 ITA - 0,5 (Source: Ch. Bickert, DLG-News) IPC Conference Dinner
11 Bioethanol and Biodiesel Land Resource for the Production of Biofuels: Brasil USA EU15 Share of Biofuels ,6 % 1,6 % 0,8 % Land needed in % of Cereals-, Oilseeds- & Sugararea Goals set for Biofuels 10 % 10 % 10 % Land needed in % of Cereals-, Oilseeds- & Sugararea (Source: St. Tangermann, M. Lampe) IPC Conference Dinner
12 Oilseeds: Production Costs 1) Rapeseed Soyabeans Palmoil (FFB) Conversion Costs Setup Costs Interests Fixed Costs Operating Costs CA-1214 CA-2430 CA-1214 CA-2024 DE-700 DE-1500 DE-560 DE-1300 CN-0.34 AR-250 AR-350 AR-1500 BR-500 BR-1000 USA-713 USA-1903 USA-1012 USA-1943 USA-405 USA-810 CN-4.3 CN-1.2 ID-2 ID-2500 MY-2300 MY-4300 / t Rapeseedequivalent 0 Direct Costs Canada Germany China South- USA China Amerika SEA 1) without land costs Source: Parkhomenko (2003). IPC Conference Dinner
13 Biofuels Land- and CO 2 -Efficiencyavoidance of Biofuels: Biofuels Biodiesel from Rapeseeds Rapeoil Ethanol from Cereals Biogas from Cereals Biogas from Silo Maize Liter Fuel per ha per tonne CO 2 Equivalent (Source: L. Langbehn; Y. Zimmer) IPC Conference Dinner
14 Consequences for the Biofuel Politics until % 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 IPC Conference Dinner
15 Agriculture vs. Farming A specific sector with a cultural dimension An industry like any other industry Pragmatism bridges the tensions Concentration on demand of food, services and renewables IPC Conference Dinner
16 Thank you for your attention! IPC Conference Dinner
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