IENICA REPORT: GREECE

IENICA REPORT: GREECE

Since the early ’70s, the Greek agricultural sector has dramatically shrunk. Its contribution to total employment and GDP has significantly decreased: from 40.6% and 18.9% in 1972, to 21.6% and 13.9% in 1992, respectively.

The total agricultural land of Greece is about 9Mha, of which about 4Mha is arable land and 5Mha pastures. About 30% of the Greek arable land is irrigated, whereas approximately 50% are located in hilly areas.

The vast majority of Greek farmers are old and of limited educated: about 90% are older than 55 years of age, and only ca. 5% have graduated from secondary school. This is thought to be a critical factor for any land reallocation in favour of new industrial crops.

The main cultivated crops in terms of land use are wheat, cotton and maize corn. These three crops together occupy more than 40% of the total Greek arable land. However, wheat (21.5% of the arable land) has very low grain yields compared to those achieved in Middle European countries.

Among the new industrial crops examined in the last ten years, Sweet sorghum and Eucalyptus have shown very high yields. These yields, as achieved in experimental plantations, are among the highest throughout the European Union.

Several Greek research groups have been focusing their R&D&D activities towards the development of better varieties of traditional industrial crops (sugar beet, cotton, tobacco, cereals), as well as on achieving optimal yields with a few new industrial crops (sorghum, miscanthus, arundo, eucalyptus, cynara, kenaf, etc.). These efforts are funded by, both, the Greek government and the European Commission.

The cultivation of industrial crops in hilly agricultural areas could reduce endemic soil erosion and significantly limit other negative types of environmental impact generated from current agricultural practices.

A solid legislative framework concerning the production and use of industrial, particularly non-food crops is absent in Greece. The supply side is mostly regulated by the EU’s Common Agricultural Policy. On the demand side, a law entered into force in 1994 that offers the opportunity to local authorities, organisations, and private investors to exploit the renewable energy sources potential, including agricultural and forest biomass.

Agriculture in Greece

The term "agriculture" refers to every human activity, which is based on the deliberate and controlled use of mainly terrestrial plants and animals and aims primarily at the satisfaction of humans food and non-food needs. Thus it includes production system (i.e., cultivation of crops), the food processing industry and, finally, the distribution and trade system which secures that all these products reach the consumers. This report focuses only to the agricultural production sub-system.

During the period 1972-1992, there has been a dramatic decrease of the contribution of agriculture in the economy of Greece. More precisely, the contribution of the agricultural sector in total employment terms, has decreased from 40.6% in 1972 to 21.6% in 1992 and in GDP terms, has fallen from 18.9% in 1970 to 13.9% in 1992.

Moreover, during this period there was a gradual change in the trade balance of agricultural products, which resulted in the shift of Greece from net exporter to net importer o agricultural commodities.

Land resources

The total agricultural area of Greece is about 9Mha, of which about 4Mha is arable land and the remaining 5Mha is public and private pastures. About 50% of the arable land is located to hilly areas thus resulting in unfavourable farming conditions. The total irrigated land is about 1.2Mha and in the following years it is expected to reach 1.6Mha.

The total number of agricultural holdings is 820,000. The vast majority of these have a very small size. More precisely, 75% of them are less than 5ha, whereas the average size is 4.3ha. The small farm size and, subsequently, the low income are among the most important factors inhibiting the entrance of young farmers in the agricultural sector.

Labour resources

As already mentioned, during the period 1972-1992 there has been a dramatic decrease of the contribution of the agricultural sector in total employment. A quantitative and qualitative analysis of the people employed in agriculture has shown that the number of employees has been reduced from 61 to 23 persons per 100ha; however, this figure is still considered rather high; and the Greek agricultural sector is dominated by old and low educated farmers. More precisely, 57% of the farmers are older than 55 years of age, and 30% older than 65; more than 94% of employees and farmers have had a very limited (elementary or lower) education.