Organic farming in Portugal: the impact of public measures

O ganic Fa ming in Po ugal The Impac o Public Measu es May 22nd 2016 Ma ia Den inho, no. 614 P o esso Cla a Cos a Dua e 1 Abs ac This wo k aims a s udying o ganic sec o in Po ugal and, mo e speci ically, he impac o public suppo measu es in he o ganic sec o de elopmen , p oduc ion and ma ke . The s udy is based on bo h a quan i a i e and quali a i e analyze o o ganic his o ical da a om 2000 o 2014, namely he e olu ion o o ganic a ea and o ganic holdings. The quan i a i e analysis uses Ru al De elopmen P og ams and ag icul u al da abases o e alua e he impac o subsidies alloca ed and he inancial pe o mance o holdings. The quali a i e analyze elies on Po uguese expe ’s opinion in ecognizing wha ac o s b ing mo e con ibu ion o o ganic sec o ’s de elopmen . The s udy concludes ha policy suppo measu es ha e had some impac on he o ganic sec o de elopmen . Howe e , some doub s abou hei e ec i eness s and ou . Keywo ds: o ganic a ming; o ganic ma ke s; a ea paymen s; public suppo measu es; a me s. 2 In oduc ion Be ween he wo Wo ld Wa s chemical-in ensi e a ming (bo n in he beginning o he cen u y) aced a c isis in he o m o soil deg ada ion, poo ood quali y and he decay o u al adi ions. So, in Ge many 1927/28 he i s o ganic mo emen was c ea ed Na u al Fa ming and Back- o- he-Land Associa ion, wi h mon hly published in Bebaue die E de (Cul i a e he Soil). By he ime o ganic p oduc s we e sold in Biological P emium P oduc ma ke , i speci ic s anda ds we e e i ied. Bu i was no un il he 1970s, wi h g owing awa eness o an en i onmen al c isis and g ea social and poli ical u bulence du ing he 1960s, ha o ganic a ming gain s engh . In a join e o o i e coun ies, in 1972 he In e na ional Fede a ion o O ganic Ag icul u e Mo emen s (IFOAM) was c ea ed. In e na ional Fede a ion o O ganic Ag icul u e Mo emen s (IFOAM) de ines o ganic ag icul u e as “a p oduc ion sys em ha sus ains he heal h o soils, ecosys ems and people. I elies on ecological p ocesses, biodi e si y and cycles adap ed o local condi ions, a he han he use o inpu s wi h ad e se e ec s. O ganic Ag icul u e combines adi ion, inno a ion and science o bene i sha ed en i onmen and p omo e ai ela ionships and a good quali y o li e o all in ol ed.” Se e al epo s desc ibe o ganic a ming as posi i e o biodi e si y conse a ion, wi h impo an con ibu ions o wa e quali y, imp o e o ganic ma e in a able soils and o in e soil e osion (En i onmen al epo 2007 and En i onmen al epo 2012), wi h i s own sys em o con olling pes s and diseases, sus ains ecosys ems, p omo es animal wel a e and p oduce quali y ood (Eu opean Commission, 2002). A gilés, e al. (2010) ound no signi ican di e ences be ween o ganic and con en ional a ms conce ning inancial pe o mance, bu o ganic ones p esen ed a signi ican ly lowe en i onmen al impac and c ea ed mo e employmen oppo uni ies. Ne e heless, o ganic a ming is conside economically disad an ageous because o he lowe p oduc i i y le els (Gil e al. 2000) and he s ill insu icien numbe o consume s willing o pay a p emium p ice o ood quali y (Rigby e al.2001). O ganic a ming has been de eloped by social mo emen s, (Michelsen, 2001) h ough a con inuous se ies o ini ia i es o igina ing in di e en pa s o socie y, no by poli ical suppo o pu e ma ke o ces. Fo many decades, he Eu opean o ganic sec o was cha ac e ized by a sys em o olun a y p i a e s anda ds, wi h hi d pa y inspec ion and con ol. This changed when some Eu opean coun ies in oduced some legal amewo k o p o ec consume s om misleading p oduc s and gi ing p oduce s he same le el o compliance. F ance was he i s coun y o in oduce such a legal amewo k in 1980, ollowed by Aus ia in 1983 and Denma k in 1987. 3 In Eu ope, Eu opean Commission gi es he i s EU-wide legal de ini ion o o ganic a ming in 1991 (EC Reg. 2092/91). In 1992 and 1999 a ea paymen s a e included in ag i-en i onmen al measu e unde he EU u al de elopmen p og am. A e wo decades in eg a ing o ganic a ming suppo measu es in Common Ag icul u al Policy (CAP), he Eu opean Commission concluded ha he expansion o o ganic holdings is linked o public suppo measu es, ma ke de elopmen s and a “ acili a ing” en i onmen . In o de o couple wi h p essu e on na u al esou ces, ag icul u e needs o imp o e i s en i onmen al pe o mance h ough mo e sus ainable me hods (e.g. in eg a ed p oduc ion and o ganic a ming). As o ganic a ming con ibu es o wa e esou ces, soil, ai and biodi e si y, as well as helping o accomplish he Qui o p o ocol and inc ease he le els o ca bon in he ege al co e . Pilla 2 o Common Ag icul u al Policy (CAP) 2014-2020 includes a G een Di ec Paymen . This new policy ins umen de ines ha 30% o each Ru al De elopmen P og am’s (RDPs) budge mus be ese ed o: ag i-en i onmen al-clima e measu es, o ganic a ming, A eas o Na u al Cons ains (ANC), Na u a 2000 a eas, o es y measu es and in es men ha b ing en i onmen al con ibu ion. In Po ugal, o ganic a ming suppo measu es ha e been included in RDPs, i s RURIS (2000- 2006), hen PRODER (2007-2013) and now PDR 2020 (2014-2020), mainly h ough ag i- en i onmen al paymen s. Those e o s ha e been made o suppo ag icul u al and o es y p ac ices, which con ibu e o educe he ag icul u e en i onmen al impac and he p ese a ion o esou ces in coo dina ion wi h sus ainable and compe i i e ag icul u al p oduc ion. This e o has esul ed in he conside able inc ease in ag icul u al a ea unde o ganic a ming, which ose om 1,2% o abou 5,83% o he o al U ilized Ag icul u al A ea (UAA) be ween 2000 and 2014. Based on he o e iew o public suppo measu es add essing o ganic a ming, his wo k aims o explo e he ela ionship be ween policy measu es, policy s a egies and he de elopmen o he o ganic a ming in Po ugal. The s udy is based on bo h a quan i a i e and quali a i e analyze o o ganic his o ical da a om 2000 o 2014, namely he e olu ion o o ganic a ea and o ganic holdings. The quan i a i e analysis uses RDPs and ag icul u al da abases o e alua e he impac o subsidies alloca ed and he inancial pe o mance o holdings. The quali a i e analyze elies on Po uguese expe ’s opinion iden i ying wha ac o s b ing mo e con ibu ion o o ganic sec o ’s de elopmen . The me hodology used builds upon S olze e al. (2011) epo on he con ibu ion o he sec o de elopmen o public suppo measu es add essed o o ganic a ming and ma ke measu ing. The epo is di ided in wo pa s. Fi s , hey p o ide a comp ehensi e desc ip ion o he public suppo measu es in 27 membe s a es. Second, in six case s udies, hey explo e in dep h 4 ela ionships be ween he de elopmen o o ganic sec o and he policy suppo measu es o assess whe he hei suppo measu es con ibu ed o sec o g ow h. They conclude ha he a ia ions in he de elopmen in o ganic sec o in di e en Membe S a es besides a common Eu opean O ganic Ac ion Plan (EOAP) could be ela ed wi h many ac o s as he policy en i onmen , o ganic ma ke de elopmen s o geog aphical condi ions. In o de o unde s and how he Po uguese o ganic sec o e ol e since 2000 and wha a e he pe spec i es o nex yea s, his wo k was spli in ou sec ions: Sec ion 1 desc ibes b ie ly he cha ac e is ics and he e olu ion o o ganic sec o ; Sec ion 2 explains he policy en i onmen o o ganic a ming; Sec ion 3 p o ides he quan i a i e and quali a i e analysis and; Sec ion 4 concludes. Sec ion 1: Fac s and igu es on o ganic ag icul u e in Po ugal Since he mid-1980s, in he Eu opean Union (EU) alone he o al a ea o a mland unde o ganic p oduc ion has inc eased s eadily o 10,3 million hec a es in 2014, which co esponds o 5,7% o he o al u ilized ag icul u al a ea in EU. Bu he annual g ow h o o ganically managed land slowed down o 1,1% in 2014, wi h a numbe o p oduce s’ g ow h also decele a ing o 0,2% ise in 2014. O ganic ma ke on he o he hand ha e had an expansiona y g ow h wi h he o al alue o €24 billion in 2014. The EU ma ke o o ganic p oduc s is g owing cons an ly wi h an a e age annual g ow h a e in g oce y e ail ma ke s o a ound 2% o 3% om 2006 o 2012, and 7,4% jus in 2014. The g owing demand o ood quali y p oduc s by consume s and he s agna ion o o ganic p oduc ion, lea es oom o impo e s g ow h. O ganic a ming and sec o didn’ e ol e in he same way in all membe s a es. To unde s and he Po uguese o ganic eali y, i is impo an o comp ehend how he ag icul u al sec o in Po ugal beha es. The p ima y sec o accoun s o 2.4% o he coun y’s economy and 11% o o al employmen . The age s uc u e o a ming communi y is compa a i ely olde han in he EU-28, in Po ugal only 2,6 % o a me s a e unde 35 yea s old (7.5% in EU-28), while 46,5% a e olde han 64 (29,7% in EU-28). Po ugal’s 305 280 holdings a e p edominan ly small, 46,23% o holdings ha e less han 2 hec a es. Po uguese a mland is cha ac e ized by a e y di e si ied p oduc ion ou pu , being F ui s (21,3%) and Vege ables and Ho icul u e (19,1%) he main p oduc ions. 5 Fig 1 – Po uguese Ag icul u al by p oduc ion ype O e he las yea s, o ganic a ming in Po ugal has expanded con inuously, s abilizing i s g ow h since 2010. Be ween 2000 and 2009 he o ganic a ea in Po ugal g ew by 214%, bu only 8%, be ween 2010 and 2014 (based on INE da a o he yea s 2000-20091 and 2010-2014, espec i ely). In 2014 he o al o ganic a ea had an ex ension o 228 840 ha, which is oughly 6% o o al U ilized Ag icul u al A ea (UAA) (G aph 1). G aph 1 – Pe cen age o A ea Unde O ganic Fa ming Numbe o p oduce s jus boos ed pa icula ly a e he launch o he Eu opean O ganic Ac ion Plan (EOAP) in 2004 (G aph 2). O ganic p oduce s, in con as wi h he decele a ing and e en dec easing end in o ganic a mland, kep an upwa d end, 21% om 2010 onwa ds. In gene al, i would be expec ed ha ei he a ea and p oduce s had a simila pa h. Ne e heless, he bulk o o ganic ag icul u al holdings a e in la ge ex en o small size, in 2013, 46% o holdings we e smalle han 2 hec a es and simila end was isible in he yea s be o e. Thus, assuming ha a 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Biologic 1,2% 2,0% 2,1% 3,2% 5,6% 6,2% 7,2% 6,3% 5,7% 4,3% 5,8% 6,1% 5,5% 5,4% 5,8% 0% 1% 2% 3% 4% 5% 6% 7% 8% 6 1. Un il 2009, da a abou p oduce s, a ea and li es ock was based on a me s’ ac i i y no i ica ion. A e 2010, Di eção Ge al de Ag icul u a e Desen ol imen o (DGADR) s a ed o include o he adminis a i e epo s. 2. Da a abou o al ag icul u al a ea in 2006 was no a ailable. simila end will keep on going, u he inc eases in holdings would led o small inc eases in a ea. G aph 2 – E olu ion o A ea and P oduce s1 In p inciple, he o ganic a ea should ollow a simila pa h, as he sha e o o ganic a ea in o al u ilized ag icul u al a ea. Thus, when o ganic a ea inc ease, he sha e o i in o al a m s uc u e would ha e he same end. Howe e , in 2007, wo hings seem o happen, while he a ea unde o ganic a ming each i s pick, he sha e o o ganic a ea s a s o dec ease. This could be associa ed wi h an inc ease in he o al a mland. In ac , i we no ice in he g aph in (Annex A) om 2005 o 20072 he e is an inc ease in o al a mland. The sha e o o ganic a ea had simila alues in 2005 and 2007 (6,2% and 6,3%, espec i ely), jus in 2006 his alue hi s i s pick 7,2%. Acco ding o Rela ó io de Execução (2006), 2006 had a o able climac e ic condi ions o g azing and also o a oid sho ages, because o 2005 d ough pe iod, p oduce s inc eased in 30% o age cul u es p oduc ion. Wi h no da a a ailable e e ing he p oduc ion scheme, con en ional o o ganic, o his ime pe iod. One may a gue, ha o enjoy o ganic a ea paymen s o his ype o cul u e, a me s con e o o ganic, inc easing he sha e o o ganic a ea in o al a mland. The inc ease in o ganic a ea in 2007 could be associa ed wi h a change in RDPs. Th ough his ansi ion pe iod, acco ding o Rela ó io de Execução (2007), beyond echnical suppo and p e ious p og am measu es ha we en’ exe cised, only Less Fa o ed A ea (LFA) suppo and Ag i-en i omen al measu es we e add essed. So he inc eased in a ea unde o ganic a ming could be associa ed wi h new come s o a me s a ac ed by subsidies. Mo eo e , he e was a ma ke ing campaign associa ed wi h PRODER, inc easing he in e es in p ima y sec o . Thus, - 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 0 50 000 100 000 150 000 200 000 250 000 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 P oduce s (no) O ganic a ea (ha) Á ea P odu o es Sou ce: Minis é io da Ag icul u a e do Ma ; Di ecção-Ge al de Ag icul u a e Desen ol imen o Ru al (DGADR); Gabine e de Planeamen o e Polí icas 7 while he inc ease in he sha e o o ganic a ea in 2006 was associa ed wi h shi om con en ional o o ganic, om 2006 o 2007 in a ea unde o ganic a ming was linked wi h he en ance o new a me s. The pe manen pas u es (72,3%), oli es (8,7%) and o age cul u es (6,2%) we e he mos p edominan cul u es. Pas u es and o age a e used o animal p oduc ion. In 2014 he o ganic animal p oduc ion we e mainly composed by sheeps and bo ines, 32,8 % and 26,7%, espec i ely, o all o ganic li es ock. Howe e , in Po ugal, esh ui s and ege ables a e he mos sold o ganic p oduc s. This c ea es an imbalance be ween demand and supply, since mos demanded cul u es (ECOZEPT, 2008), F ui s and Vege ables, coun jus o 1% and 0,7% o he a ea unde o ganic a ming. Rega ding he Po uguese o ganic ma ke he s a is ical da a made a ailable is e en mo e limi ed, so i s analyze is based on a ECOZEPT’s 2008 epo . ECOZEPT i ’s a p i a e consul ing company specialized in he o ganic sec o . Acco ding o hem, Po uguese consume s spen EUR 70 million on o ganic p oduc s in 2008, which accoun s o EUR 5-7 pe capi a consume spending one o he lowes in EU-28. The Po uguese o ganic ma ke s a ed in he mid-1990s, bu i was spoiled by a audulen use o o ganic ce i ica ion. Howe e , he ma ke ha e been eco e ing in he las yea s. The a ailabili y o o ganic ood has imp o ed signi ican ly in ecen yea s, wi h a widesp ead o specialized o ganic shops (52%), like consume coope a i es and local ma ke s (G aph 3). Wi h an impo an ole in ma ke ing o o ganic ood. Likewise, la ge con en ional e ail chains ha e been showing a g owing in e es (45%). Ne e heless, he o ganic p oduc ion i ’s insu icien o couple wi h ma ke needs, du ing he cou se o he yea . In 2008, 50% o all o ganic sales we e impo ed, coming mos ly om F ance, Ge many and Ne he land. G aph 3 – O ganic Ma ke , 2008 Al hough, he s ill long way he ma ke has o ca ch up wi h Eu opean pee s in consump ion e ms, he in e es aken by he la ge con en ional supe and hype ma ke in o ganic p oduc s show a compe i i e ma ke . Fo 2010 hey p edic ed a EUR 10 o 14 spending in o ganic ood, his is equi alen o 0,4% and 0,5% o ma ke sha e o O ganic p oduc s. Acco ding o ECOZEPT, consume s a e p edominan ly u ban, educa ed and middle class ci izens, engaged in dealing wi h 45% 52% Ma ke Sha e Con en ional Supe ma ke Specialised o ganic shops Online sales Box schemes (subsc ip ion) 8 clima e change and en i onmen al issues and also conce ned and ood quali y and heal h. Though, esh ood was he mos demanded p oduc in 2010, he impo ance o na u al cosme ics in he ma ke place ha e been g owing, bu a big deal o hem is impo ed, lea ing oom o na ional p oduce s’ in es men . Sec ion 2: Public policy measu es add essing o ganic a ming unde Ru al De elopmen P og ams The de elopmen o he sec o could be a ibu ed among o he ac o s o a a o able con ex o deep es uc u ing and e o m o he ag icul u al sec o . Since he beginning o he 1990s, Common Ag icul u al Policy (CAP) encompassed he enewal o a ming s uc u es, ins i u ions and ag icul u al policy. The inclusion o mo e en i onmen al policies in CAP, p essu e Membe S a es o include in hei Ru al De elopmen P og ams measu es ha p omo e he change in ag icul u e p oduc ion me hods, like in eg a ed p oduc ion and o ganic a ming. O e 2000 o 2006, he suppo o o ganic a ming and p oduc s was inse ed in “G oup I – En i onmen , Soils and Wa e Resou ces p o ec ion”, included in he Na ional Ru al De elopmen P og am, RURIS. PRODER 2007-2013 main ained measu es di ec ed o o ganic a ming, by Axis 1 – “The Imp o e o Compe i i eness”, and by Axis 2 – “Sus ainable Managemen o Ru al A eas”. P og am’s mid- e m e olu ion (2003) epo s on RURIS 2000-2006 posi i e s imulus o o ganic a ming g ow h. RURIS ag i-en i onmen al measu es b ough posi i e e u ns on biodi e si y, landscape, soil and wa e esou ces. The S a egic En i onmen al E alua ion o 2012 de e mined ha he Ru al De elopmen P og am 2007-2013 (PRODER) accomplished a posi i e en i onmen al balance h ough ag o- en i onmen al measu es aken. Ne e heless, he epo poin s also he need o complemen a y be ween Economic and Social de elopmen measu es and en i onmen al ones, hus, he need o c ea e en i onmen al measu e mo e owa d economic and social de elopmen , as well as including na u al esou ces conce ns in economic and social measu es aken. PDR 2020 is he Ru al De elopmen P og am in place since 2014 un il 2020, h ough measu e M7 - “Ag icul u al and Na u al Resou ces” wi h a ea paymen s o con e ed a ea (Ac ion 7.1.1) and main enance paymen s in a eas unde o ganic a ming (Ac ion 7.1.2). I is expec ed o b ing impo an biodi e si y con ibu ions, inc ease he soils ca bon le el and in educing g eenhouse gas. 15 Table 2 - Es ima ed con ibu ions o con ex policy ac o s o he de elopmen o o ganic ma ke Acco ding o he in o ma ion collec ed in he in e iews, in Po ugal, a ea paymen s a e he only policy s ic ly owa ds o ganic, o he measu es a e also open o u he schemes o p oduc ion. I is conside ed he mos ele an suppo o a me s in eg a ed in o ganic schemes in he i s yea s and a e also he main a ac i e o new come s. Wi h he di e en na ional u al de elopmen p og ams, a ea paymen s o each hec a e ha e been inc easing, encou aging o he a me s o con e . Howe e , hese a ea paymen s a e mainly alloca ed o pas u e and o age cul u es which a e la ge in size, so e en i he paymen s a e lowe o his p oduc ions hey ha e mo e hec a es o co e . Inc ease he ac o "numbe o o ganic a ms and o ganic a ea" Inc ease he ac o "O ganic ma ke " Suppo measu es implemen ed O ganic a ea paymen s Suppo o ganic a ming associa ions n.i. n.i. O ganic Ac ion plan n.i. n.i. O ganic Fa ming ex ension suppo (measu e 111) O ganic Fa ming educa ion and aining suppo Suppo o O ganic a ming esea ch O ganic a ming compe ence cen e suppo Mode nisa ion o holdings and buildings (measu e 121) Suppo o imp o e quali y o oli e oil (A .68) O ganic Fa ming ma ke ing suppo (measu e 124, 133) Adding alue o ag icul u al and o es y p oduc s (measu e 123) Reimbu semen o o ganic ce i ica ion cos s (measu e 132) n.i. Tax ounda ion o suppo ing de elopmen o O ganic Fa ming n.i. n.i. O ganic Con e sion In o ma ion Se ice Se ing up young a me s (RDP measu e 112) Suppo o enewable ene gy sou ces n.i. n.i. Policy ele an ac o s De e ences be ween non-o ganic and o ganic suppo paymen s Reliabili y & con inui y o go e nmen al suppo o o ganic a ming Commi men o go e nmen owa ds o ganic a ming Collabo a ion be ween o ganic ac o s and go e nmen Con ex ac o s P ecei ed p o i bili y o o ganic a ms P ecei ed p o i abili y o o ganic p ocessing and e ailing P essu e on con en ional a me s o change Feasibili y o comply wi h o ganic egula ion Fa me s' a i ude owa ds o ganic a ming Fa me s' access o o ganic ma ke channels Func ioning o he o ganic supply chain A ailabili y o o ganic p oduc s o consume s Cla i y o o ganic labelling Role o la ge con en ional e ail chains in he o ganic ma ke Domes ic consume demand o o ganic p oduc s Public a en ion owa ds o ganic a ming Ac i i ies o o ganic a ming in e es g oups A ailabili y o knowledge abou o ganic a ming S ong posi i e impac Medium posi i e impac Ze o o weak impac medium nega i e impac s ong nega i e impac n.i. no implemen ed 16 3. This animal eed in he end o animal’s li e o in sca ci y g azing pe iods 4. Li es ock is eed wi h con en ional animal eed, unable o he o ganic comme cializa ion. Indeed, i we look a da a abou a ea co e ed by o ganic a ming we ha e 72,3% and 6,2% o all o ganic a ea unde pas u e and o age, espec i ely. Pas u e and o age cul u es a e used o animal p oduc ion. Ne e heless, expe s a gue ha he majo i y o hese animal headcoun s doesn’ a i e o he inal consume due o he cos s in biologic animal eed3. Thus, animal p oduce s ge he majo i y o he unds o ag icul u al p oduc ion bu headcoun s a e canalized o con en ional channels4. Rega ding his unds alloca ion o pas u es, i was a gued ha o ganic paymen s a e in la ge ex en an en i onmen al suppo measu e. The e o e, e en hough ha unds alloca ed o pas u es ha e a low exp ession in he o ganic ma ke , o ganic animal p oduc ion b ings impo an con ibu ion o soils biodi e si y, inc easing ca bon soil le els h ough manu e con ibu ions. Abou he O ganic Ac ion Plan, jus be o e he EOAP in 2004 was launched, a Po uguese o ganic ac ion plan was c ea ed, by a join con ibu ion o go e nmen and o ganic agen s. Bu , i was ne e pu in p ac ices. Ne e heless, O ganic ac ion plan con ibu ions a e ecognized by expe s, like s a egic planning, a de ini ion o ele an a ge s, policy mix. A wo k o ce, wi h o ganic o ganiza ions and go e nmen s a was c ea ed o d aw a u u e na ional o ganic ac ion plan. O he suppo measu es also a ec he o ganic sec o and b ing impo an con ibu ions o sec o ’s de elopmen . “O ganic Con e sion In o ma ion Se ice” and “Se ing up young a me s” b ough impo an con ibu ions. Fa me s could access o in o ma ion se ices h ough DGARD se ices o o mo e speci ic knowledge going o o ganic o ganiza ions. “Se ing up young a me s” (includes a aining p og am and a special line o c edi o ame s un il hei 40 yea s old) is mo e an indi ec measu e, youngs e s a e in gene al mo e educa ed, willing o change, ma ke o ien ed, ha e mo e ideas and di e en pe spec i es abou he wo ld and he en i onmen . Howe e , acco ding o some, in his is aining p og am he e is a lack o cou ses associa ed wi h o ganic a ming. The e a e no much consensus be ween expe s abou “O ganic Fa ming Educa ion and T aining suppo ”. O ganic o ganism a gue ha educa ion and aining a e insu icien , ne e heless he e a e al eady some Uni e si y deg ees o p o essional cou ses o echnicians and a me s. O ganic a ming equi es e y speci ic echnical knowledge, no only o ge he mos p oduc i i y esul s, bu also o ha e access o a ea paymen s suppo measu e. “Reimbu semen o o ganic ce i ica ion cos s” is included in PRODER 2007-2013, Ac ion 1.4.1 – “Suppo o quali y schemes” bu i was jus exe cised in one yea . This measu e is one o CAP 2007-2013 impo an measu es o o ganic a ming, and in Po ugal i was supposed o eimbu se a me s in 100% o ce i ica ion cos s. This c ea e ba ie s o new come s because a me s ha e he misma ch pe cep ion ha ce i ica ion cos s a e s ill high. 17 The e a e some policy ele an ac o s ha play an impo an ole in he o ganic sec o expansion. “Reliabili y & con inui y o go e nmen al suppo o o ganic a ming”, “Commi men o go e nmen owa ds o ganic” and “Collabo a ion be ween o ganic ac o s and go e nmen ” a e conside o ha e a posi i e e ec in a ea a med and ma ke . The e a e doub s abou go e nmen consis ency, in he side o o ganic agen s and a me s, howe e o ganic a ming is including in PDR 2020 and in go e nmen ’s p og am. The e a e also he unde going p ocess o elabo a e an o ganic ac ion plan and he Eu opean Commission suppo o o ganic a ming. “Pe cei ed p o i abili y o o ganic a ms” is ela ed wi h wo o he ac o s acco ding o expe s, “Fa me s’ access o o ganic ma ke channels” and “Func ioning o he o ganic supply chain” his wo ac o s a e as seen in he ma ix as ha ing a nega i e impac in he o ganic’s a ea and p oduce s. In ac ma gins a e low o a me s in all ag icul u al sec o in Po ugal. Jus e e ing o he o ganic sec o , a ms a e in la ge ex en small (>2ha) and canno couple wi h e aile s demanded p oduc ion le els, his si ua ion impai ma ke en ance and educe a me s ba gaining powe , lowe ing hei ma gins. The e is also a need o a me s being mo e ma ke o ien ed Ma gins on he o ganic e aile s’ side a e high, hey can ge o ganic p oduc s a a low p ice, because he e a e a lo o small a me s and in Eu ope he e a e se e al coun ies expo ing o ganic p oduc s, and on he o he side he e a e consume s willing o pay a p emium p ice o ood quali y – “Public a en ion owa ds o ganic”. This “Pe cei ed P o i abili y o o ganic p ocessing and e ailing” b ings new playe s, la ge con en ional e aile s like Auchan, Pingo Doce and Con inen e. The “Role o la ge con en ional e ail chains” is impo an in a i ing o mo e emo e places, because hose e ail chains ha e he di e si y and complemen a y needed o incu in lowe isks. Though, con ex ac o s and public measu es we e mo e di ec ed o he p oduc ion side, hey b ough mo e posi i e con ibu ions o he inc ease in o ganic ma ke . Acco ding o expe s’ opinions he p oblem is in he supply chain due o he no associa ion be ween a me s’ wo k. The e is also a s igma be ween a me s, ha o ganic p oduc ion has no place in he u u e, yields a e low and he p oduc ion cos s inc ease. Some o ganic playe s a gue ha o ganic a me s a e mo e mo ed by hei own con ic ion abou en i onmen al conce ns, animal wel a e and ood quali y han o economic pu pose, so i subsidies a e no ha high and ma gins a e low, hey may p e e in es in small a eas o educe hei own isk. Abou p ospec s how o ganic policy in Po ugal should be add essed in he u u e, some a gue abou he impo ance o op-up paymen s o o ganic a ms, like in in es men in machine y. Mode niza ion o Ag icul u al holdings (Measu e 121 o PRODER) in he case o Mainland should expended o o ganic a ming machine y. By he ime (2007-2013) i was jus in place in 18 Azo es and Madei a o o ganic holding, in Mainland he o ganic machine y needed didn’ ul ill he equi emen s o apply o his suppo measu e Sec ion 4: Concluding ema ks and p ospec s abou CAP 2014-2020 In he end o his wo k we may conclude ha policy suppo measu es ha e had some impac on he o ganic sec o de elopmen . Howe e , some doub s abou hei e ec i eness s and ou . O ganic a ming measu es we e included in wo Ru al De elopmen P og ams and in he one ha is in o ce, PDR 2020, bu he co ela ion be ween a ea paymen s and he a ea unde o ganic a ming lea es unce ain ies. O ganic a ea paymen s a e conside ed by many au ho s as an impo an d i e o o ganic a ming de elopmen because, i compensa es a me s o income o gone and con e sion addi ional cos s. Ye , p e ious 2004, when he e a e egis e s o he i s a ea paymen s, o ganic a ming was g owing a a highe pace han in yea s a e . F om 2004 o 2008, a ea paymen s di ec ed o o ganic a ming seem o ha e an in e se ela ionship wi h he sha e o u ilized o ganic a ea. Bu his lea es he ques ion o why he e was an upwa d end in he i s yea s a e EOAP 2004. I may be a gued ha a i s wi h his s a egic plan de ined and wi h an o ganic sec o g owing in Eu ope (Aus ia, Ge many and Ne he land), big playe s ook an in e es in his niche ma ke and in es in la ge a eas o p oduce, bu he lack o ma ke channels o canalized hei p oduc s, consume s in o med o pay he p emium o o ganic ood and unco e ed audulen schemes o ce i ica ion, led some in es o s o lea e he sec o (a e 2007 a ea p oduced and p oduce s dec eased). The delay in deli e ing he subsidies o he oo slow and bu eauc a ic p ocess could unde mine a me s access o suppo measu es. O ganic paymen s may no ully compensa e a me s o all he applica ion p ocess and, also o he inc ease in wo kload, since o ganic a ming is mo e demanding in e ms o wo k o ce and managemen p ac ices, lea ing o ganic a ming o he mo e en i onmen al conce n a me s. The p oblem abou hese en i onmen al conce n a me s is ha in gene al hey a e less ma ke o ien ed, wi h limi ed esou ces o in es and no isk ake s. Fu he mo e, o ganic a ming demands cul u es o a ion. Nowadays, big ag icul u al a eas jus ha e one ype o p oduc ion o ge mo e p oduc i i y e u ns h ough cos s mi iga ion (e.g. he same machine y used, he same managemen and wo k o ce needed). This unde mine he en ance o big playe s because hey need o ha e a leas wo c ops p oduc ion a he same ime o comply wi h o ganic egula ion and p ocesso s demand (supply chain has o wo k in he same way yea by yea ). 19 The la ge sha e o pas u es was a esul o he exploi a ion o go e nmen conce ns abou he soils biodi e si y and a way o a me s wi h la ge Less Fa o ed A eas (LFA) o ge mo e incen i es o p oduce. LFA in Po ugal co e s 66% o u ilized ag icul u al a ea. One o he main p oblems associa ed o o ganic sec o in Po ugal, ha was poin i ou h u his s udy, was he imbalance be ween supply and demand. Ma gins a e low o a me s and hey ha e mo e ad an ages in comme cialized jus o es au an s o in p oduce ’s ma ke , educing he in e media ies and ising hei p o i . The e is also he issue associa ed wi h a con inuous p oduc ion le el ha p ocesso s and e aile s demand. To mi iga e hese p oblems a me s should associa e. Wi h he es ablishmen o o ganic a ms’ coope a i es, hey would sha e he isks o p oduc ion and enjoy o an enla gemen o a mland – hey, o ins ance, could ag ee in a o a ion scheme, wi h each a me p oducing jus one cul u e in hei own a ea and hen o a ing in he nex yea . They would inc ease hei p oduc ion le els and gaining mo e chances o en e ing in he ma ke , because a ea a med would be bigge , hey could ge mo e machine y (imp o ing p oduc i i y le els) and sha e he cos s o wo k o ce (in p inciple i hey p oduce independen o each o he hey would need he same numbe o wo ke s, i hey wo k oge he , on he o he hand, he same wo ke may pe o m he same esul s wo king in he wo a ms). The p oblem wi h a me s’ join en u e is ha i lies in he p inciple o loyal y. Fa m cul u es luc ua e mo e wi h he commodi y p ices han wi h he subsidies paid, so i hey ag ee in a p oduc ion scheme, one would ha e lowe e u ns o each uni he sells hese may unde mine hei associa ion. A ea paymen s may no be he solu ion o he o ganic sec o de elopmen . The solu ion could lie in c ea ing mechanisms o sol e he supply chain s angula ion. Being go e nmen o a special uni c ea ed, esponsible o manage coope a i es. O ganic a mland has a la ge sha e o li es ock p oduc ion a eas (pas u e and o age) and a lack o ui s and ege ables a eas. Pas u es ecei e a big deal o suppo a ea paymen s because o he en i onmen al con ibu ion ha i b ings, o he animal wel a e and he soils biodi e si y. Howe e , his lea es o he p oduc ion ypes, ha ha e in ac mo e p oduc ion cos s associa ed, wi h no inancial suppo . So wi h a ea paymen s, go e nmen in many cases is compensa ing a me s o he en i onmen al con ibu ion ha hey b ing. CAP’s and by consequence Membe S a es’s, o ganic a ming policy seem o ocus in en i onmen al con ibu ions, no in he sec o economic iabili y. In ac , Ac ion 7.1 – “O ganic Fa ming” is included in P io i y 4 o PDR 2020, “Res o ing, p ese ing and imp o ing a ming ecosys em” 20 The e is a lo o be done in o ganic sec o in Po ugal. Acco ding o expe s i is essen ial o c ea e mechanisms and legisla ion in he supply chain side. School meals should include o ganic p oduc s like i happens in Spain and he mi iga ion o bu eauc a ic ba ie s ha s ill exis s. The elabo a ion o an Ac ion Plan is in p og ess. Ac ion Plans exis in se e al Eu opean coun ies and con ibu e o a de ini ion o s a egic ole o o ganic a ming wi hin he gene al o ganic a ming policy mo e isible and o design he bes possible policy mixes and policy links o u he de elop o ganic a ming. This ac ions could be impo an o de ine he sec o no as an en i onmen al sec o bu as an au onomous sec o , economic iable and capable o a ac new playe s. 21 Re e ences Ana C is ina Fe nandes, Miguel Déjean Gue a, Ri a Ribei o, So ia Rod igues, 2015, Rela ó io do Es ado do Ambien e 2015; 95-96 A gilés J. M. and B own N Duch, 2010, “A compa ison o he economic and en i onmen al pe o mances o con en ional and o ganic a ming: e idence om inancial s a emen s”; Ag icul u al Economics Re iew; Vol 11, No 1; 69-86 Ba e, M.T., Hooke , N.H., Haab, T.C. and Bea e son, J., 2007, “Pu ing hei money whe e hei mou hs a e: consume willingness o pay o mul i-ing edien , p ocessed o ganic ood p oduc s”. Food Policy 32(2): 145-159. Cen o de Es udos e Fo mação A ançada em Ges ão (CEFAG), ERENA, Cen o In e disciplina de Es udos Económicos (CIDEC), 2003, Es udo de A aliação In e cala do Plano de Desen ol imen o Ru al de Po ugal Con inen al; Rela ó io Final; ol I Council Regula ion (EEC) No 2092/91, 24 h June 1992, On O ganic p oduc ion o ag icul u al and indica ions e e ing he e o on ag icul u al p oduc s and oods u s Daugbje g C, T an e R, Ha am C, Holloway G, 2011, “Modelling he impac s o policy on en y in o o ganic a ming: E idence om Danish-UK compa isons, 1989-2007”, Land Use Policy, 413-422 Eu opean Commission, 2002, Analysis o he possibili ies o a Eu opean Ac ion plan o o ganic ood and a ming Eu opean Commission (EC), 2014, Po ugal Common Ag icul u al Policy Gil, J.M, G acia, A. and Sánchez, M, 2000; “Ma ke segmen a ion and willingness o pay o o ganic p oduc s in Spain”, In e na ional Food and Ag ibusiness Managemen Re iew 3: 207- 226 Ins i u o Supe io Técnico, A aliação Ex-An e do P og ama de Desen ol imen o Ru al 2007- 2013 do Con inen e, Rela ó io Final Jü n Sande s, S e anie Me ze and Ge al Schwa z, 2011, “Public policy measu es add essing o ganic a ming unde he cu en u al de elopmen p og ammes”, Use and e iciency o public suppo measu es add essing o ganic a ming; Pa A; 5-32 Lesjak HA 2008, Explaining o ganic a ming h ough pas policies: compa ing suppo policies o he EU, Aus ia and Finland. Jou nal o Cleane P oduc ion, 16(1), 1-11 22 Ma hias S olze and Ing id Jah l, 2011, “Con ibu ion o public suppo measu es add essing o ganic a ming o he de elopmen o he o ganic sec o ”, Use and e iciency o public suppo measu es add essing o ganic a ming; Pa B; 67-92 Ma hias S olze, Ra aele Zanoli and S ephen Ma edi h, 2016, “O ganic in Eu ope: Expanding Beyond a Niche”, O ganic in Eu ope P ospec s and De elopmen s 2016; 12-19 Michelsen J., 2001, “Recen De elopmen and Poli ical Accep ance o O ganic Fa ming in Eu ope”; Sociologia Ru alis; Vol 41, Issue 1; 3-20 Rigby, D., Young, T., Bu oon, M., 2001, The de elopmen o and p ospec s o o ganic a ming in he UK, Food Policy 26: 599-613 To ben Rankine, 2008, “Po ugal”, The Specialised O ganic Re ail Repo Eu ope 2008 William Locke e z, 2007, “Wha Explains he Rise o O ganic Fa ming?” O ganic Fa ming: An In e na ional His o y; I: O igins and P inciples;1; 1-8 23 Annex 3 100 000 3 200 000 3 300 000 3 400 000 3 500 000 3 600 000 3 700 000 3 800 000 2000 2003 2005 2007 2009 2013 Annex A - To al Fa mland Con en ional Fa mland (ha) O ganic land (ha) Annex B - To al Cos s and Co e age Le els Income o gone (EUR/ha) Addi ional speci ic cos s (EUR/ha) To al Cos s (EUR/ha) A ea paymen s (EUR/ha) Paymen 's co e age (1) (2) (3)=(1)+(2) (4) (5)=(4)/(3) I iga ed F esh F ui s 550 457 1008 900 0,9 Noni iga ed F esh F ui s 675 44 720 720 1,0 I iga ed Oli e and D ied F ui s 276 230 506 510 1,0 Noni iga ed Oli e and D ied F ui s 75 170 245 236 1,0 Vineya ds 382 161 543 490 0,9 Tempo a y I iga ed Cul u es 221 164 386 356 0,9 Tempo a y Noni iga ed Cul u es and Fo gage cul u es 42 56 99 76 0,8 Ou doo Vege ables 1357 159 1516 600 0,4 G eenhouse Vege ables 2549 297 2846 600 0,2 Pe manen Pas u es 85 85 170 172 1,0 Biodi e se Pe manen Pas u es 106 102 208 210 1,0 P oduc ion Type Annex D - IFADAP Paymen s Ag o-En i onmen al Paymen s O ganic Fa ming Ag o-En i onmen al Paymen s O ganic Fa ming Ag o-En i onmen al Paymen s O ganic Fa ming Ag o-En i onmen al Paymen s O ganic Fa ming Ag o-En i onmen al Paymen s O ganic Fa ming Ag o-En i onmen al Paymen s O ganic Fa ming Ag o-En i onmen al Paymen s O ganic Fa ming 2004 112 006 000,00 € 7 998 000,00 € 2005 112 942 000,00 € 8 321 000,00 € 2006 101 722 000,00 € 7 402 000,00 € 2007 67 899 000,00 € 5 754 715,17 € 2008 36 124 000,00 € 3 082 000,00 € 29 125 000,00 € 7 189 000,00 € 94 000,00 € 6 000,00 € 6 497 000,00 € 35 000,00 € 1 344 000,00 € - € 517 000,00 € 64 000,00 € 2009 47 574 990,00 € 11 415 290,00 € 463 500,00 € 30 110,00 € 40 380,00 € 7 179 110,00 € 934 290,00 € - € 238 250,00 € 14 810,00 € 2010 60 408 520,00 € 13 499 410,00 € 720 670,00 € 43 990,00 € 47 918,68 € 7 605 945,95 € 789 330,00 € - € 81 390,00 € 17 340,00 € 2011 68 165 916,36 € 14 459 564,87 € 861 458,74 € 84 553,79 € 8 640 033,24 € 55 653,65 € 63 757,20 € - € 2012 68 284 763,91 € 13 806 589,84 € 732 267,26 € 72 717,40 € 8 903 622,76 € 82 731,31 € 11 724,24 € - € 2013 67 560 574,25 € 12 942 390,87 € 743 084,24 € 73 805,67 € 8 690 865,15 € 78 984,24 € 11 724,24 € - € 2014 603 693,37 € 66 452,49 € 63 833 806,65 € 11 968 174,81 € 6 369 464,32 € 56 831,72 € To al 430 693 000,00 € 32 557 715,17 € 341 119 764,52 € 73 312 245,58 € 4 218 673,61 € 377 629,35 € 39 189 284,15 € 15 094 256,87 € 3 154 825,68 € - € 836 640,00 € 96 150,00 € PDRu-M PDR 2020 PDRu-A RURIS PRODER PRODERAM P o u al 24 Annex C – Measu es associa ed wi h o ganic a ming beyond A ea Paymen s  Measu e 111/114 – “Voca ional aining and in o ma ion ac ions” / “Use o ad iso y se ices” This measu e is no di ec ly ela ed wi h o ganic a ming because i hasn’ been exclusi ely used o suppo ing o ganic a ming. I also ains and ad ise non-o ganic a me s. This measu e is encompassed in young a me s’ p og am. Those ad iso y se ices and o ma ion p og ams a e p o ided by o ganic o ganiza ions and in Ru al De elopmen Di ec i e Cen e .  Measu e 121 – “Mode niza ion o ag icul u al holdings” In Madei a highe g an s a e gi en o o ganic a me s o in es in ag icul u al holdings. In RDPs o Azo es o ganic a ming is men ioned o de ined as one o a numbe o p io i ized a ge g oups, applica ions a e selec ed on he basis o a ange o c i e ia, as he con ibu ion o he in es men o he en i onmen , clima e biodi e si y, animal wel a e and quali y o ood p oduc s.  Measu e 132/133 – “Pa icipa ion o a me s in ood quali y schemes” / “In o ma ion and p omo ion” This measu e co e s up o 100% o he ce i ica ion and inspec ion cos incu ed by a me s, howe e his measu e, i was only exe cised in 2008 hough i is included in PRODER 2007- 2013. “In o ma ion and P omo ion” measu e suppo s ad e ising, as ing e en s o pa icipa ion in ai and exhibi ions o p oduc s o oods u s co e ed by app o ed quali y schemes, bu i was d opped, being ma ke ing ac ion jus launched by o ganic o ganiza ions and ma ke playe s. Annex E - B oad Ques ions 1. Which ac o s a e expec ed o ha e an impo an impac on he numbe o a ms, he o ganic a ea and he o ganic ma ke in he u u e? a. Wha a e he mu ual impac s be ween he mos ele an ac o s? 2. How could (e.g. h ough policy design, amewo k condi ions) he e ec i eness and e iciency o he cu en policy suppo measu es o he o ganic a ming be imp o ed? 3. Wha is he cohe ence o policy in suppo o he o ganic sec o in Po ugal? 4. Wha we e he easons ha suppo ing o ganic a ming is conside ed an impo an (no impo an ) ins umen in he na ional/ egional ag icul u al and u al de elopmen policies? 5. Wha could be done o imp o e he Pilla 2 o he CAP (Ru al De elopmen P og am) in he nex pe iod (2014-2020) o achie e be e suppo policies o he o ganic sec o ? 6. How could he co-o dina ion be ween he egional/na ional u al de elopmen p og ams and o ganic ac ion plans be imp o ed?