2024-05-12 03:25:50
During the last 20 years that Lithuania lived after becoming a member of the European Union, the agriculture of our country reached the world level. And it stays high.
Yes, there were and will be grumbling about the fact that there are almost no small farms with a few dairy cows left. But the door to the market has opened for family farms that have turned to the path of modernization and equipped themselves with technology.
There will always be people complaining about the unfavorable purchase prices of raw materials – milk, grains or vegetables. And that is understandable. Because rural people feel pain because of what is destroyed by nature, it hurts when they suffer losses due to unfavorable sales conditions.
Farmers were and still are offended by the fact that the payments received for the declared areas are still much lower than those received by Germans, French or other old European farmers. “What was agreed upon, that’s what we have”, – these are the arguments that agricultural politicians have to defend against accusations.
However, despite the adversity, during these twenty years, Lithuanian agriculture shot up. And it is impossible to ignore the fact that this was influenced by the support of European funds for the village that appeared in 2004.
Now, with the new financial phase of EU support in full swing, the attention in agriculture is inevitably turning to sustainability and greening.
Global market
“Agriculture is a unique and very complex sector, as it operates both in the local market and is a participant in global markets.
Agriculture is influenced by the economy of our country and the world economy, as well as geopolitical events that affect the prices of fertilizers, grains, and energy,” said economist Marius Dubnikovas.
According to him, during the last 20 years, the export of the agricultural sector has increased ten times, the total added value created in the land and forestry sector has almost tripled.
In terms of gross domestic product (GDP) per capita, Lithuanians surpassed Latvians, Estonians, Poles, Spaniards, Greeks, and Portuguese.
“I am waiting for the moment when we surpass the Italians in terms of GDP, it is likely that this will happen in 2028-2030.
And this means that it will not be easy for the agricultural sector to attract people to work – it will be necessary to establish value-added jobs related to high technologies.
Despite the fact that since joining the EU, Lithuania’s population has decreased by about 500 thousand, the number of people working in our country is about the same as it was 20 years ago.
And this means that the competition for qualified workers in agriculture will be more and more difficult. Therefore, it is necessary and necessary to invest in technologies that will change people”, said M. Dubnikovas.
This is evidenced by other figures: in 20 years, the number of farms in Lithuania has halved, but the area of land per farm has increased significantly.
For example, from 2003 to 2020, the number of farms in Lithuania decreased by 51.5 percent, to 132 thousand, but their average area increased by about 140 percent, to 22 hectares.
According to the economist, the expansion of farms is inevitable, but small farmers also have opportunities to find their niche.
“There was no shortage of roller coasters in agriculture during those 20 years. This includes the high prices of wheat in 2007, the economic crisis of 2009, the challenges of the pandemic in 2020, the economic war of Russia against the EU in 2022, which caused energy and fertilizer prices to jump.
Now this war is already won – we have new technologies that are being used and will be used in the future.
What’s next? The same thing, only different: the need to increase agricultural productivity, because the world’s food demand is constantly increasing with the increase in the number of people.
And greening must remain in sight. This is inevitable, and only technology and productivity will help to overcome the challenges of food supply”, assured M. Dubnikovas.
The language of arguments is needed
According to Minister of Agriculture Kęstučis Navickos, it is impossible to imagine what would have happened if Lithuania had not become a member of the EU: Lithuania, having joined the EU, experienced a success story, but it was created by people.
Lithuania’s economic leap is also a success story – in 20 years, Lithuanian agriculture reached 18 billion. euros.
“The 2023-2027 strategic plan of Lithuanian agriculture and rural development provides opportunities for all farms to use support.
It is increased for young farmers. Better conditions have been created for small and medium-sized farms – higher payments are paid for the first 50 hectares, and separate instruments for investments have been created for smaller farms to compete with farms of the same “weight category”.
We encourage farmers to cooperate and develop short supply chains. LEADER and “Smart Villages” support is intended for community initiatives, businesses, and rural startups.
The modernization of farms is supported, while hoping for growth in the value chain – raw material processing, sustainable investment projects”, – said K. Navickas during the conference organized by the Ministry of Agriculture to commemorate the 20th anniversary of Lithuania’s membership in the EU.
However, according to him, 80 percent Lithuanian agricultural policy is still determined by EU Common Agricultural Policy decisions.
“We would like Lithuania to have more influence. It is encouraging that we are already being looked at differently – we are being talked to as equal partners.
We are heard in the European Commission, so it is important not to shy away and present serious arguments when talking to the EC. After all, all kinds of instructions to farmers about when to sow or mow do not stand up to criticism,” said the minister.
Part of the green transition
According to Dalia Miniataitė, the chief advisor of the Ministry of Agriculture, at the current stage of EU financial support, the Lithuanian Strategic Plan is an integral part of the green transition.
“In the Lithuanian rural development programs of the previous financial periods, sufficient attention was already paid to environmental protection, so-called green architecture measures. In the current Strategic Plan of Lithuania, greater importance is given to the implementation of the Green Agreement.
Its provisions are implemented by all EU countries. From 2023, new and higher requirements for the Good Agricultural and Environmental Status of Agricultural Land (GAAB) apply to this.
Farmers can additionally choose and apply ecosystems, and for this they receive additional payments.
The Strategic Plan also focuses on mitigating climate change, increasing biodiversity and other environmentally friendly measures.
Since these are new requirements, additional bureaucratic burdens have arisen for everyone. Both farmers and those administering the support sometimes face challenges.
This is the beginning of the implementation of a new program, and in such cases unforeseen situations also arise, especially since we are talking about new requirements for environmental protection and greening”, said D. Miniataitė.
The goal is sustainable production
What benefits does it bring to Lithuanian agriculture itself?
“The aim of the support is sustainable production and, at the same time, responsible consumption.
According to the provided parameters, farmers receive not only the basic payment for the declared areas, but also an additional payment for selected ecosystems. Thus, they receive higher benefits if they apply innovative green technologies.
In the context of climate change, the purpose of such payments is good – they encourage the production of agricultural products more sustainably, reduce carbon dioxide emissions, protect biodiversity, and improve the soil,” said D. Miniataitė.
The strategic plan also includes investment support, which, according to the interlocutor, is focused on preventing climate change.
“Investments are targeted for technologies that help reduce greenhouse gas emissions, such as manure management on farms. In this case, the production of biomethane gas from manure and other farm waste is supported.
Investments are also made in the welfare of animals, because the way they are raised and what they are fed has an impact on the amount of emissions and the quality of production.
This is a useful support for farmers. Since these are not profit-generating investments, the intensity of support is higher than in other measures of the Strategic Plan,” said D. Miniataitė.
According to the interviewee, the Strategic Plan is useful for farmers – they have the opportunity to use support for the green transformation.
“It is not known how the geopolitical situation will develop, at what pace the EU will expand. In any case, after the end of the Strategic Plan period, after 2027, the principles of providing support and the scope of the support itself may change, Lithuania may receive less support, because in terms of GDP per capita we are already approaching the EU average.
And for now, we have to focus on a better, more efficient absorption of the support of the current financial period and actively participate in EU discussions regarding the support of the new financial period”, said D. Miniataitė.
Support increased crop production
“I myself am a participant in the transformation – I have been working in the grain trading sector for 16 years,” assured Karolis Šimas, president of the Lithuanian Grain Processors and Traders Association.
The added value created by agriculture in the last 15 years – the time of the greatest transformation – has increased from 800 million EUR up to 3 billion euros.
“The share of GDP generated by the agricultural sector has always been around 3.5-4 percent. – it managed to grow along with other sectors.
Compared to other EU countries, the share of GDP generated by Lithuanian agriculture is approximately the same”, K. Šimas pointed out.
The transformation in the crop production sector was huge – income increased 3 times and it was influenced by EU funds and the right investments in grain elevators and logistics.
“There was a breakthrough in yield, but for the last 7-8 years, the yield has not changed, so have the sown areas.
“If about 3 million was spent before EU membership. tons of grain, the 2020 harvest reached 8 million tons record. In the last few years, it has not been possible to repeat it, because nature has reduced it by 1 million. tons. We are now 7 million. at the level of tons”, K. Šimas added.
According to him, grain export possibilities are about 5 million. tons, and this amount is no longer changing.
About 1.7 million tons of grain are processed, of which about 0.8 million tons of products are exported. These are fodder, flour, pasta, malt and others.
According to the amount per capita (about 3 tons), Lithuania processes the most grain in the world.
2024-05-12 03:25:50