GRANADA WORKSHOP REPORT 10.

Opportunities for Future Interdisciplinary Research : The Role of livestock in Rural Development

Professor P. J. Mannion & Dr J. F. Phelan,

Department of Agribusiness, Extension and Rural Development, University College Dublin

Introduction

Rural areas are the home of more than a quarter of the EU's population and account for over 80 percent of the territory of the European Union (EU Cork Conference on Rural Development, 1996). In 1992 agriculture accounted for 2.1 percent of the European Union's GDP. However there are substantial differences between Member States. In Ireland for example it accounts for 6.7 percent, in Greece 10.4 percent, while in Germany and the United Kingdom it is approximately 1 percent (EUROSTAT 1995). In the EU as a whole just over 5.5 percent work directly in agriculture. Employment in agriculture ranges from just over 2 percent in the UK to over 20 percent in Greece. The economies of peripheral regions are still characterised by a strong dependence on agriculture. Approximately half of the European Unions 123 million hectares is used for livestock farming. In addition over half of the cereal output is eaten by livestock, which in 1992 totalled over 80 million head. In only three out of the 15 Member States of the EU does crop production exceed animal production. For example in Ireland animal production accounts for 90 percent of the total agricultural production (EUROSTAT 1995).

Livestock Production and Rural Development

Livestock production is characterised for the most part by small scale producers, with almost half of the cattle farms in the EU having less than 20 animals per farm. Nevertheless, in terms of its contribution to the rural economy animal production is one of the most significant sectors. This is particularly the situation in the more peripheral and more vulnerable rural areas of the EU.

The significance of animal production in a peripheral rural area is highlighted from a study of dairy producers in Co. Clare Ireland. (Clare Milk Study, 1993). The study showed that in many rural areas of the county income from milk sales accounted for 80 percent of all income in such areas.

Small scale milk production is a core enterprise in many rural areas in Ireland with over 50 percent of farmers having milk quotas of less than 90,000 litres. It has been shown that under current policy trends, the emphasis on competitiveness and enlargement of both production and processing units as many as 7 farmers per day are ceasing milk production. Over the last 20 years the numbers of farms involved in milk production in Ireland has declined by almost 60 percent; and the overwhelming proportion of these were small scale producers. Given that dairying is 3 to 4 times more profitable than other grassland based livestock production systems, the economic social and rural community impact of this exodus has alarming consequences for rural regions. The results are increased dependency on state welfare payments, increased unemployment and the accelerated migration of young people from such rural areas.

Recent studies ( Moss et. al. 1991; Kearney et al. 1996; Phelan et al.. 1994) show that the situation for cattle and sheep farmers is even more serious. The majority of the very low farm incomes on such farms arises almost totally from EU/Member State Direct Payments.

The challenges for rural development policy and in particular the place of livestock farming in contributing to the balanced development of such areas is a critical issue. It poses particular questions for the shape of a further reformed CAP with a territorial or regional emphasis and for focused livestock farming systems research and extension.

Interdisciplinary Research - A Requirement

Over many centuries farming and the production of food has been the core resource which rural areas have relied on, for their survival and development. In today's and tomorrow's world rural communities and rural areas cannot survive on farming alone. The problem of rural areas that are in decline is directly linked to their capacity to develop new functions (non-farming businesses and services) and to link them to real demands and markets.

Those rural areas that are in decline have little internal capacity to develop new functions, few recognised marketable assets (other than farming) and lack the supports necessary to develop competitive and marketable alternatives. In general such areas are remote from large population centres and their economies are predominantly based on small-scale farming activities. Recent research shows that such areas are least likely to have developed new enterprises or to have household members with outside employment. Clearly such areas represent a major challenge for rural development and a comprehensive and coherent set of interventions are required to reverse the decline. An essential requirement for research is to identify and quantify the intervention actions (technical and policy) that are within the capacity of these small scale producers.

To suggest that such rural areas can rapidly diversify their economic activities in response to price and income reductions for core farm related commodities would be extreme folly. A rural development policy that is based solely on such a strategy would catapult many rural areas onto an accelerated spiral of decline. The policy interventions must include measures that not only enable internal diversification of the rural economy but also those that support the development and retention of competitive farm businesses.

The challenge for rural policy and research is to create the support environment which enables the emergence of a diversified rural economy built on the unique assets of particular rural areas. This includes measures which allow for the continued development of farming coupled with the progressive emergence of a strong rural industry and service sector. Such a rural development policy is based on three principles:

• no rural development without agriculture;
• no agriculture and no farmers without other activities;
• no other activities without the development of villages, small and medium-sized towns.

It requires a multi-sectoral and multi-dimensional research approach, the very core of which is striking the proper balance in securing the long-term viability of our rural areas. This is implicit in the Cork Declaration (EU Cork Conference on Rural Development, 1996).

Conclusion

Any careful reflection on the principles which should underpin future rural development policy options, as set out in the Cork Declaration, indicates the huge challenge posed for multi-disciplinary research to respond with a set of well developed actions and policy options. Interdisciplinary research should focus on actions and measures which will stimulate enterprise and business expansion in farming, industry and services. Such research should attempt to identify the essential elements of a Farm Development Package suitable for the majority of farmers in vulnerable areas. In addition research is required to examine mechanisms for positive discrimination in favour of the location and dispersal of industry, commercial and other services and housing, in or within the hinterland of less favoured rural areas.

The overall aim of the set of rural development policy research actions should be to achieve the goal of balanced development of all rural areas. And this means the balanced development of all sectors based on the current situation in particular rural areas of Member States. Ultimately it is about halting and indeed reversing the current trend of decline in the rural population.

REFERENCES

1. EU Cork Conference on Rural Development, 1996. "The Cork Declaration - A Living Countryside", The European Conference on Rural Development, Cork, Ireland.
2. EUROSTAT, 1995 "Europe in Figures : The Importance of Agriculture for the Economy", European Commission Office Brussels.
3. Kearney S., J. Phelan and S. Crosse, 1997. "Capacity and Need for Investment in Farm Buildings on Irish Dairy Farms". Paper Presented to Irish Farm Buildings Association Conference, May 1997.
4. Mannion J., J. Phelan, J. Kinsella and M. Kenny, 1993. "A Strategy for Retaining the Maximum Number of Milk Suppliers in County Clare" (The Clare Milk Study), Department of Agribusiness, Extension and Rural development, University College Dublin.
5. J. Moss, J. Phelan, A. Markey, H. McHenry and D. P. Caskie, 1991 "Study of Farm Incomes in Northern Ireland and the Republic of Ireland", Co-operation North, Third Study Series, Report No.1.
6. Phelan J., M. Henchion and P. Bogue (eds) . "Constraints on Competitivenes in EC Agriculture : A Comparative Analysis", Department of Agribusiness, Extension and Rural Development, University College Dublin.