The financial implications on the local pig breeding industry of the implementation of the European Union provisions on agriculture

Abstract

Agriculture was one of the hottest subjects negotiated between Malta and the EU creating a Jot of debates locally. Since Malta is a very small state, there was the fear that the Maltese agricultural sector could not compete with the EU-based farms. Therefore, the adherence by Malta of certain provisions would create an ambiguous environment for local farmers. The fact that the levies protecting the local produce from foreign competition had to be abolished as soon as from 1 st May 2004 generated a completely new scenario for local farmers. The results of the negotiations between Malta and the EU can be found in the Treaty of Accession. The provisions relating to the agricultural sector describe well the new situation the Maltese farmer has found himself in. On one side there is the immediate threat of the dismantling of levies whilst on the other side there are various opportunities to be grasped such as the new financial aid available to local farmers. A whole year has passed since that historic landmark date of 1st May 2004 and it is time to assess the financial impact the EU provisions had on the Maltese agriculture. This study is specifically focused on just one industry embraced by the agricultural sector; the largest livestock industry in the Maltese Islands; the pig-breeding industry.