2015-03-25

(english) Primary Production: Agricultural economy

By Γραφείο Τύπου

Primary Production: Agricultural economy

Over the last decades agriculture in Greece has been shrinked from 40% to the low 2,5%. And that is so because we cannot take into account the case of agricultural population with self-insurance compelled by necessity, who declare themselves farmers in order to receive agricultural pension and to provide for better living conditions, or even the case of other professionals.

At the same time, although there are those who are involved in agricultural activity as a second or extra occupation, for instance proprietors of olive groves or vineyards, the real farmers are a few. And they are unprotected and always counting on European or state subsidies, thus exposed to many dangers.

There are certain difficulties which arise from the prohibitions of the European Union regarding state subsidies. These prohibitions have been consciously made. The number of farmers in other E.U. countries exceeded 40%, 50% or even 60%. This is not the case any longer. The percentage of farmers in most European countries range from 2,5% to 5%, something consciously created.

This happened due to the dominant growth model of provision of services (for instance: advertising companies, banks, construction planning companies etc.), while it exports its industry to developing countries. Thus, what is attempted is a balance between development and expenses.

In this way, the developing countries are supported, while the production expense is maintained at lower prices, since the wages remain low. Instead of the typical perception concerning charity by offering money which could be subjected to mismanagement by corrupted leaders and dexterous people with consequences on the citizens’ life quality, the E.U. actively supports the developing countries setting up its industry there.

Until recently the former eastern block countries were included in those, while the E.U. from a position of power, reintroduced the products with their added value but in lower prices.

All this has never been discussed in Greece, that is what the European Union actually is, what its aim is and how it has rearranged the productive map of all the countries of the European continent. We do not know the extent of dissemination of this data to other countries. In Greece however, there was slight to no notification at all concerning growth and productivity matters.

In Enosi Kentroon (UoC), we believe that we entered in the euro currency without the support of an economy with the necessary infrastructure to meet the challenges. Greece’s entrance in the Eurozone was a simple geopolitics transaction, thus it could act as a bulwark against the continually increasing size of the Turkish economy. Greece has not only failed to deploy the prospects of the entrance to the Eurozone so that it would become a rationalized economy of services, but it maintained the economic malaise, a typical characteristic.

Greece satisfies the requirements for a substantial growth via the three sectors which make up our power: Primary production (agriculture, livestock farming, fishing, minerals), shipping and tourism.

What does the Enosi Kentroon (UoC) intend to do for the farmers?

Sharing the E.U. spirit, we believe that we ought to protect the few farmers left, but to encourage as well the new and the old farmers to get involved in the agricultural production on a purely business base.

That can be achieved through:

Land yield at lower rent so that the field of activities of the farmers can expand.
Increase of the creditworthiness of farmers for the purchase of fertilizers, equipment, machinery and other relevant to their activities items in a clearly business model of an agricultural company.
Creation of protective prices for products and payment from the processor to the producer with guarantee from the State.
Support towards the farmers for novelty in packaging so that the improve their products’ image.
Application of quality assurance systems.
Creation of simple and easily controlled national standards.

Enosi Kentroon (UoC) also suggests the possibility of funding Agricultural Companies (AG. CO.): The Agricultural Companies are a peculiar form of local cooperative – commercial company, its entrepreneurship being focused on the production, standardization and disposal of the agricultural products of a region, based on is geographical positioning*.

Agricultural Companies:

The aim of an AG. CO. is the production, standardization and development of a distribution network for the local products, both inside and outside Greece.

Creation and registered brand name of the region and trademark of the local products.
Voluntary participation option of all the producers of the specified region.
Potential to use as initial capital and property the tracts of land of all the producers.
Potential to incorporate producers of only neighbouring regions to its production cycle.
Potential to cooperate with other AG. CO. (regardless its geographical position) for the distribution of non-competitive products to the local or other markets.
An AG. CO. may establish and operate a subsidiary of purely commercial nature abiding with the laws which regulate their operation (GP,EE, LTD, SA, IKE) in other regions with the intention to:
-Create retail shops with the franchise method.
-Create a retail sales network with the shop-in-shop method.

Handling of the AG. CO. taxation as equal to any other business activity, according to the Enosi Kentroon’s suggestion for a radical reformation of the taxing framework in Greece and the improvement of the business environment.

The suggestion of Enosi Kentroon (UoC) for the development of primary food production aims at maximizing the use of available tracts of land for production, so that our country, Greece, acquires the biggest possible self-sufficiency in food production and may standardize and export.

The example of the beekeeping sector is mentioned as typical: Greece provides the ideal conditions for beekeeping. However, its growth in our country is not proportionate to what it should be according to its climatic conditions and thus promote the sector to an industrial production level, as other countries have previously done (USA, Canada, and Russia).

As a result the local production does not even cover the local consumption needs and the needs of the Greek market are supplemented by imports.

*As geographical positioning, we define the regional units of Greece.