Support of European Union for Lithuanian agriculture

The share of GDP accounted for by agriculture, forestry and fisheries has been steadily declining over the past decade. The high quality of land resources and the natural environment creates favourable conditions for increasing agricultural productivity (which is still low) and pursuing non-traditional agricultural activities such as eco-farming and alternative business activities such as rural tourism. The agricultural sector’s potential is limited by the small average farm size (measured according to land area or the number of animals or the farm, etc). There is therefore an urgent need for sectoral consolidation More positively, the consulting network in rural areas is relatively well-developed. Vocational training programmes have been developed to improve the efficiency of agricultural activities and to help diversify the rural economy into alternative economic activities. Rural communities are generally evolving and changing rapidly. Entrepreneurial initiative and creativity in rural areas at local level has the potential to accelerate the process of structural change. The Lithuanian food industry has been successful in establishing market niches in the EU Common Market (particularly in the meat and dairy sectors). However, consolidating on these strengths will depend in large part on the number of processing companies able to meet EU veterinary and sanitary requirements. While a number of large dairy companies already meet EU standards, most companies in the meat processing sector do not Most of Lithuania’s forests are State-owned (71%). The structure of the private forestry sector (29%) characterised by a large number of small forestry holders) is unfavourable to intensive development in the forestry sector. There is overcapacity in the fishing industry. The Lithuanian fishing fleet is too large particularly once EU quotas are introduced upon EU accession. Additionally, the fishing fleet does not have the necessary equipment for preserving fish quality and older vessels are responsible for polluting the environment. The fishing fleet therefore needs to be modernised in order to improve fishing techniques so that only those species allowed under fishing quotas are caught. Veterinary and sanitary requirements also need improving. Working safety requirements are currently inadequate and need improving