Agriculture and Rural Development EU Agriculture: Global Challenges and Policy Responses Nikiforos SIVENAS DG AGRICULTURE AND RURAL DEVELOPMENT European Commission Scientific Support to Agriculture, Athens, 23 April 2014
Agriculture and Rural Development
EU Agriculture: Global Challenges and Policy Responses
Nikiforos SIVENAS
DG AGRICULTURE AND RURAL DEVELOPMENT
European Commission
Scientific Support to Agriculture, Athens, 23 April 2014
Outline
# Global Challenges
# Policy Responses
- CAP Reform
- HORIZON 2020
- EIP Agricultural productivity and sustainability
2
Global Challenges
Population growth, changing patterns of
food demand, alternative uses of biomass Demand side
World annual growth in food demand (%)
* provisional/estimation for 2012-2013. Size of bubbles represents total average consumption over the period. Sources: FAO, OECD, USDA
Demand side
World Soymeal and Rapemeal Feed Use
5
Demand side
Source: Gafta, USDA
Evolution of global ethanol production by feedstock
6
Demand side
Source: OECD , FAO
Evolution of global biodiesel production by feedstock
7
Demand side
Source: OECD , FAO
Global Challenges
Population growth, changing patterns of
food demand, alternative uses of biomass
Land and water availability, mineral
inputs, climate change
Demand side
Supply side
Water needs in m3 World Bank, 2008
9
Agriculture
Industry
Domestic use
Supply side
Water stress World Bank, 2008
10
Water stress in fluvial basins
Supply side
Wheat yield growth slowdown
11
Supply side
Crop yields growth slowdown (SCEES, France)
12
Supply side
Global Challenges
Food and nutritional security, population
growth, changing patterns of demand,
alternative uses of biomass
Land and water availability, mineral
inputs, climate change
Demand side
Supply side
World markets Excessive price volatility, food and
nutritional security
14
Annual real commodity price indexes
Source: World Bank
0
50
100
150
200
250
300
1948
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
(2005 = 100)
Agriculture Fertilizers Energy Metals & minerals
World markets
World natural gas prices and cost gaps
Source: World Bank.
15
0
5
10
15
20
Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12
US
Europe
Japan (LNG)
( $ per mmbtu )
World markets
Food price index
16
World markets
Policy Responses
CAP reform
Market weaknesses, especially those linked to economic and environmental sustainability
Policy weaknesses in areas linked to the fairer distribution and "green" targeting of support
The objectives of CAP reform
18
Challenges
Environmental
Economic
Territorial
Policy objectives
Sustainable management of natural resources and climate
action
Balanced territorial development
Viable food production
Reform objectives
Improved sustainability
Enhanced competitiveness
Greater effectiveness
Fairer
Greener
Simpler
CAP reform
Policy Responses
CAP reform
Market weaknesses, especially those linked to economic and environmental sustainability
Policy weaknesses in areas linked to the fairer distribution and "green" targeting of support
HORIZON 2020
Challenge-driven approach Close to the end-user (market) Research & INNOVATION
H2020 Three Pillars
Excellent science
Industrial leadership
Societal challenges
1. Health, demographic change and
wellbeing
2. Food security, sustainable
agriculture, marine and maritime
research and the bioeconomy
3. Secure, clean and efficient energy
4. Smart, green and integrated
transport
5. Climate action, resource efficiency
and raw materials
6. Inclusive, innovative and reflective
societies
7. Secure societies
HORIZON 2020
Societal Challenge 2: the sub-challenges
21
Unlocking the potential of aquatic living resources
Sustainable and competitive bio-based industries
Sustainable agriculture and forestry (Increasing production efficiency,
coping with climate change, ensuring sustainability and resilience; Providing
ecosystem services and public goods; Empowerment of rural areas, support to policies
and rural innovation; sustainable forestry)
Sustainable and competitive agri-food sector for a safe and healthy
diet (Healthy and safe foods and diets for all; Sustainable and competitive agri-food
industry)
HORIZON 2020
Policy Responses
CAP reform
Market weaknesses, especially those linked to economic and environmental sustainability
Policy weaknesses in areas linked to the fairer distribution and "green" targeting of support
HORIZON 2020
Challenge-driven approach Close to the end-user (market) Research & INNOVATION
CAP + H2020 EIP: Agricultural productivity and sustainability
23
Thank You for Your Attention