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