PRESENTATION: PILOT AREA KOLYMVARI-CHANIA-CRETE

PRESENTATION: PILOT AREA KOLYMVARI-CHANIA-CRETE INTERNATIONAL CENTER FOR ADVANCED MEDITERRANEAN AGRONOMIC STUDIES MEDITERRANEAN AGRONOMIC INSTITUTE OF CHANIA-GREECE -

Characteristics of the local farming sector Exceptional agricultural products are produced in the area. The majority of the farmland (80.14%) is occupied by perennial cultivations like olive trees while the rest is cultivated by vegetables (2.40%) and vineyards (3.80%), while the rest is arable (8.75%) and set-aside (5.08%) land. In order for farmers to ensure a proper income they have to make their cropping and cultivating choices very carefully and cannot easily diversify their activities. Most of the households in the area are self-sufficient meaning that they “have everything”: vineyards, olive trees, a garden and a livestock of several kinds (sheep, goats, chickens, etc). Diversifying income sources or pluriactivity is definitely an important phenomenon given that a lot of inhabitants are either private or civil servants or are involved in activities such as provision of services, tourism, fishing. -

Part of Kolymvari Municipality as shown in a satellite image -

Characteristics of the local farming sector Three main zones can be defined in the area of Kolymvari: i) the coastal area where most of the households deal with activities such as fishing,tourism, commercial activities etc. ii) the “middle zone” that is dominated by olive groves and vineyards and iii) the northern and most hilly part where animal breeding is one of the main sources of income. -

Characteristics of the local farming sector Different types of farming methods could be found in the Municipality of Kolymvari. The majority or even all farmers in the area are owners of olive groves but not all of them consider oliveculture as their main source of income. Thus, a distinction could be made between the big intensive olive growers who are part-time farmers and who mainly use olive oil for personal family use and the ones that produce olive oil but are also engaged in complementary farming activities. -

Characteristics of the local farming sector It is important to note that according to the Council Regulation EEC No 2081/92 the olive oil that is produced exclusively from olives of the delimited geographical zone of the administrative district of Kolymvari, in which olives have been produced since 1204, is recognized as PDO under the name: Eleolado POP “Kolimvari Chanion Kritis”. -

Characteristics of the local farming sector According to the Council Regulation (EEC) No 2081/92 of 14 July 1992 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs: an agricultural product or foodstuff bearing such an indication must meet certain conditions set out in a specification. Only a group (meaning any association, irrespective of its legal form or composition, of producers and/or processors working with the same agricultural product or foodstuff) or a natural or legal person (subject to certain conditions) shall be entitled to apply for registration. -

Characteristics of the local farming sector Up to day the Greek authority responsible for the control and inspection of the production process and the processing of the PDO product was given by the Hellenic Ministry of Agriculture to the Local Directorate of Agriculture. This responsibility, however, is now undertaken by a newly established organisation, the so- called “Agriculture product inspection & certification scheme” (AGROCERT). However, despite the favorable climatic conditions prevailing in the area, agriculture presents a slow development and modernization rate mainly due to certain peculiarities which determine its progress. The small size of farming land, decreasing employment opportunities, unstable incomes, reduced subsidies, lack of alternative cropping solutions and a constantly changing, complex policy situation are the main drawbacks for the development of organic and multifunctional agriculture. -

The organic and/or multifunctional farming development in the territory Organic farming in the area under examination is still in its early stage. Nowadays there are thirteen organic producers in the area, cultivating an area of about 80.6 hectares. Most of them are involved in the olive oil industry (79.75% ha are occupied by olive trees, while the rest is cultivated by vegetables, citrus fruits and vineyards). Two of the organic farmers are definitely pioneers given that they converted to organic right after the enforcement of the EC Reg 2092/91. -

The organic and/or multifunctional farming development in the territory Moreover they package and export most of the quantity produced abroad and mainly in USA, Canada and Japan. The limitation of organic production to a small number of perennial cultivations can be explained by the national institutional and economic framework of organic agriculture as well as by the existing know-how for the practical applications of organic cultivation techniques. Thus, the promotion of olive cultivation as a basic organic cultivation in the area is directly related to: -

The organic and/or multifunctional farming development in the territory • The agricultural “geography” and the national soil and climate conditions. Olive cultivation has a long-standing tradition in the semi-mountainous regions of the Kolymvari area. This area has optimal local varieties and in many parts of the area, the traditional extensive way of olive cultivation is still surviving. On the other hand, organic olive cultivation does not differ in many aspects from traditional cultivation; it does not require complex intervention whereas the European subsidy per hectare based on Regulation E.E. 2078/92 offers a motivation for the exploitation of small, abandoned olive groves in mountainous areas. -

The organic and/or multifunctional farming development in the territory • The important know-how which has been developed regarding organic fertilizing and pest control in olive cultivation. The confrontation of these problems in olive cultivation is a research objective in many national research teams, whereas organic cultivation techniques have been applied for nearly twenty years, which means that organic farmers have precious experience. -

The organic and/or multifunctional farming development in the territory • The increased international demand for high- quality olive oil in combination with the existence of some trading institutions for organic olive oil (private or unions). Due to this background, a high percentage or organic olive oil goes to the export market, and in most cases the prices paid to the producer are substantially higher than the prices for conventional olive oil. -

The organic and/or multifunctional farming development in the territory Undoubtedly the optimal soil and climatic conditions prevailing in the region, the knowledge concerning olive cultivation, the assistance provided by the agronomist favored the attempt of those organic farmers that set the example for the promotion of organic agriculture in the area. Obviously, the organic farmers to be found in the area are big olive –growers that share characteristics such as knowledge, experience and willingness to change. Moreover, they take risks and learn; they enforce professionalism and foster feelings of sensitization to environmental issues -

The role of the farms in the production, accumulating and innovating activities According to what a stakeholder interviewed said: “farmers of the Municipality of Kolymvari can act very well as such, but they are very bad entrepreneurs mainly due to their low educational level and their inability to understand the entrepreneurial and market environment”. Moreover, most of the stakeholders that were interviewed emphasised that the small size of the farms, the lack of infrastructure (limited irrigation and road networks, lack of an Organisation / Advisory body) are the main difficulties to be encountered. -

The role of the farms in the production, accumulating and innovating activities The contribution of education and training to farming practices is becoming more important in cases where environmental issues are considered. The education level is a critical indicator of the quality of human capital and affects the farmers’ ability to co-ordinate the operation of various enterprises in order to search for alternatives and avoid excessive losses. The age of the farmer composes an important indicator in explaining the adoption of new practices and technologies at the farm level. Younger farmers have been found to be more knowledgeable about new practices and may be more willing to bear risk. -

The role of the farms in the production, accumulating and innovating activities The majority of the plantations that are found in the area of Kolymvari can be characterised as “Intensified traditional plantations”. They follow traditional patterns but are under intensive management making systematic use of fertilisers. There is a tendency to intensify further by means of irrigation, increased tree density, use of chemicals and mechanical harvesting. -

The role of the farms in the production, accumulating and innovating activities Most of the farmers are “kept in captivity” by the production process, given that they are “obliged” to sell their product under certain conditions. They sell their product in bulk quantities and they don’t act as entrepreneurs. Only a small quantity of the olive oil produced is packaged, while the rest is exported in bulk quantities to Italy or to some multinationals in Greece. Moreover, very few of them are involved in the whole distribution chain. -

The role of the farms in the production, accumulating and innovating activities However, some efforts have been made to encourage producers to collaborate in order to allow them to promote their product together, thereby imposing better prices. Undoubtedly there is a need to replace private actions with more organized ones. In this region, there are neither auction centres, like the ones existing in Kountoura and Ierapetra (Eastern Crete), that could help farmers enhance their entrepreneurial skills, nor a Consultant organization to support the farmers. -

Agronomic and environmental aspects of the production activities Oliveculture has both positive and negative environmental effects. These effects depend on several factors including prevailing environmental conditions in and around the plantation (soil type, slope, rainfall, presence of water supply bodies and farm management practices). The main categories of actual and potential environmental effects are associated with the management of the olive plantations such as soil, water, air, landscape, biodiversity. -

Agronomic and environmental aspects of the production activities Soil erosion is one of the principal environmental problems associated with olive farming. Traditionally, terraces were created with supporting stonewalls to allow the cultivation of the hillsides. Their maintenance however, is labour intensive and abandonment is quite common. The over-exploitation of the water resources for irrigation is an enormous environmental problem in the area. Irrigation is expanding rapidly although ground water resources are already severely depleted. -

Agronomic and environmental aspects of the production activities From an agronomic point of view the main issues related to the oliveculture are the maintenance of soil fertility and pest control. The existence of the Dacus Olea in large population in the area consists one of the main problems of the oliveculture. Moreover, the organic alternative proposes the application of animal manure and green manure rather than the use of chemical fertilisers and the use of biological methods (e.g traps) instead of the conventional treatment of Dacus Olea, are used. -

The correlation between agricultural produce and territory suitability Olive farming provides an important source of employment in many areas of the Municipality of Kolymvari where it is either a principal employer or an important part-time employer combined with other activities such as tourism. Moreover, the morphology of the land creates difficulties in the application of cultivation techniques which doesn’t facilitate the production of other products. The favourable climatic conditions allow the production of high quality products. The production process from harvesting to processing and marketing faces economic problems. In the cultivation phase, the means for the fighting of insects and the fertilisers are very expensive. -

The correlation between agricultural produce and territory suitability The favourable climatic conditions allow the production of high quality products but the integration is very limited. This is so mainly due to the fact that the processing sector does not help create contacts with private enterprises in order to try to sell the product directly to the market without the middleman. In the last decade, the downgraded action of cooperatives and Unions halted standardization. So now, they do not have proper exports and trade. Producers comply with the suggested level of integration by supplying goods and services enterprises that, in most of cases, facilitate them by undertaking the delivery of the inputs. -

The correlation between agricultural produce and territory suitability As far as the marketing sector is concerned, farmers are content with selling the product. An attempt is made by some people to motivate farmers to concentrate on the brand named olive oil, quality assurance, and protected denomination of origin/ geographical indication approval But the oil industry does not certify the product with a label such as “product of origin” and “geographical indication product”, even if it is of high quality, because it is not written in the label therefore it does not differ from the conventional product. -

Intersectoral and intra-sectoral integration processes According to official data 54.2% of the population is employed in the Agricultural sector while 11.9% and 28.0% is employed in the secondary and tertiary economic sector, respectively. The secondary sector is rudimentary in its development. Only small individual businesses are mainly involved in handicraft or engaged in the processing of the products of the primary sector. The tertiary sector is the second most important in the area and it enjoys continuous growth because of tourism and its alternative forms. However most people employed in tourism do not rely on this exclusively, but are also involved in other activities to supplement their income. -

Intersectoral and intra-sectoral integration processes In fact, there aren’t any organised intersectoral network linkages besides the direct ones existing among the primary (farming and animal breeding), secondary (industry) and tertiary (tourism and other services) sectors. Relations are mainly developed at a personal level rather than through well structured channels. More specifically, agriculture provides products and supports the development of tourism and agritourism, while the shops provide inputs to the agricultural sector. -

Intersectoral and intra-sectoral integration processes Coherence between emerging sectors (tourism) and the existing ones (agriculture) is of crucial importance. When referring to the Municipality of Kolymvari, it is obvious that there is a continuous interrelation / interdependence between those two sectors. Farming supports tourism that seems to add value to local products and provides an alternative /additional source of income. Furthermore, the development of tourism as well as agro-tourism is based on the existence and the exploitation of the local resources. However, there is an increasing competition among the agricultural and tourism sector with regard to the use of the available natural, capital, human resources. -

Intersectoral and intra-sectoral integration processes Unfortunately there is very limited cooperation among the farmers. Moreover, the marketing / processing organisations are comprised of a close relation among the enterprises of the primary sector, the agricultural enterprises and the Unions of Agricultural Coops. There is direct dependence among them only as far as the production and distribution needs are concerned. -

Intersectoral and intra-sectoral integration processes There are also special programmes referring to Organic Farming but farmers don’t benefit from the “Improvement Plans” that are financed by the Directorate of Agriculture of the Prefecture of Chania. Also, someone must have land and some speciality, like mountainous land, to have a form of enterprise, age limits, to PDO and PGI products in order to be subsidized. -

Intersectoral and intra-sectoral integration processes There is an inter-Municipalities Developmental enterprise but it doesn’t help a lot. It is not very efficient. Moreover, all departments of the Prefecture and the Municipality related to the environment, training and culture should be motivated and involved. Some efforts were made to set up a group of producers. However, as there is neither the infrastructure nor the motivation to undertake this project, no suitable distribution was found by the producers. However, without infrastructure (Olive Oil Mills) this can not work. -

Intersectoral and intra-sectoral integration processes Finally there was a proposal initiated by an Organic Consumers’ and Producers’ Cooperation called GAIA, that could promote their production under a common name. This initiative was promoted by exhibitions, internet, and an organic certification sign. In general the key objective is the vertical integration of the production process. -

Interpersonal relationships and institutional aspects Institutional development is an aid through which local community members can empower themselves and generate the knowledge base and enthusiasm necessary for conservation and for involvement in community development. Such institutional forms in the area of Kolymvari are: Agricultural Coops, women’s organisations and youth organisations. The Union of the Agricultural Coops and the Agricultural Coops play an important role, provided that they assist the agricultural activity and undertake the processing, marketing and promotion of agricultural products. -

Interpersonal relationships and institutional aspects To a wider extent, the relationships of: • Farmer-Cultural associations are not so close. Those associations organize some events that promote agricultural products • Farmers – schools are only information related • Farmers – Agricultural Coops have close relations since all farmers are members of the Agricultural Coop. • Farmers- Other entrepreneurs have a very strict and professional relationship. All the Communities are mountainous so they can be incorporated into many Developmental Programs, the “Mountain communities” programs, is a Community program for the exploitation of mountainous areas. -

Strengths and weaknesses of organic and/or multifunctional farming in the territory The agroenvironmental conditions of the area under investigation are in favour of the production of high quality and organic agricultural products. The most crucial point however, is that there is no infrastructure. For example: for oil factories of organic olive oil, there is no legislation that would ensure proper production. Somebody can be certified in Greece, in every stage, but there is a gap as far as the extraction of olive oil is concerned. -

Strengths and weaknesses of organic and/or multifunctional farming in the territory There is no olive oil Mill that can provide the right conditions to ensure the producer about the production of organic olive oil. The product may come out with residues and thus will not be certified. The certification comes from the ‘DIO’, the ‘Biohellas’ (Soya). Finally, no olive oil Mill exists that would produce only organic olive oil. -

Strengths and weaknesses of organic and/or multifunctional farming in the territory During the last 10 years Organic Agriculture had an increase of 6%. There are 50 organic farmers in the prefecture of Chania. Big quantities are produced and sold in shops specializing in organic products as well as in super-market. The main factors to foster the development of Organic Agriculture in the area are: • There is a cell of farmers that submitted a project in the framework of Leader plus to establish an olive oil Mill specializing in the production of organic olive oil. • Organic farming was introduced through a Horizontal Policy Program of the Agricultural Department for standardisation -

Strengths and weaknesses of organic and/or multifunctional farming in the territory • The “Biologiki Georgia” (Organic Agriculture) programme is financed by the Department of Agriculture and subsidizes farmers of the region. However, the competition between small and big farmers is very high (some farmers have a lot of labour and stremmas (1/10 Ha) compared to others). Thus, small farmers can not enter the program. • Integrated Programmes related to the conditions of the area are more abundant and isolated (mountainous areas). -

Strengths and weaknesses of organic and/or multifunctional farming in the territory Community support to the organic producers is very limited. They receive 37 € per stremma for the first 5 years (1 stremma is 1000m2 or 1 stremma = 1/10 hectare). There are some pioneers in the area such as "Biolea", who organised vertical integration. But provided that technical-agronomic infrastructure does not exist, small farmers can not undertake the entire process. There is no olive oil Mill that can provide the right conditions to ensure the producer about the production of organic olive oil. The product may come out with residues and thus will not be certified. The certification comes from the ‘DIO’, the ‘Biohellas’ (Soya). Finally, no olive oil Mill exists that would produce only organic olive oil. -

Strengths and weaknesses of organic and/or multifunctional farming in the territory Most farming establishments are family owned. Therefore, to make a profit they have to reduce inputs. Most of them don’t actually believe that organic agriculture could be a source of additional income for them. There isn’t any Certification and Control Body to continuously secure organic production as far credibility/reliability is concerned. -

Strengths and weaknesses of organic and/or multifunctional farming in the territory Moreover most of the factors discourage the farmers to convert to organic: • Two problems are usually faced by farmers : the problem of nitrogen and the problem of limiting the production outputs because of the cultivation techniques. • There is neither information regarding the spread of organic agriculture, nor leadership. • There is a distribution problem in the market. Everybody is trying to find individual markets to be the sole sellers of their products. But as long as organic farming remains exclusively among 2-3 persons, the distribution channels will remain limited. • The production of organic products requires very expensive inputs and needs as well as intense labor. Concerning the certification, there are only some Institutes but they are very expensive too. -

Strengths and weaknesses of organic and/or multifunctional farming in the territory Last but not least, organic and multifunctional agriculture can only be developed if the vertical production mode is followed and many different products are produced to secure the viability of agriculture and local areas as well. -

Integrated evaluation of the pilot area (SWOT analysis) -

PRESENTATION: PILOT AREA KOLYMVARI-CHANIA-CRETE