Kiwi knowhow helps EU farmers

Mariann Fischer Boel, who holds one of the most powerful positions in the world, is looking at the farming scene and enjoying the views. Picture / Kenny Rodger

Mariann Fischer Boel has a firm hand shake, a farmer's handshake. She doesn't like wishy-washy greetings.

She does like people who speak their mind, something the rural community here hasn't been afraid to do.

As a former farmer she understands the industry's concerns.

"I feel a huge advantage because I speak the same language no matter where I go in the world," Boel, a Dane, says. "I have it under my skin."

Her first visit to New Zealand for 10 years has given her a chance to discuss international developments with political leaders, learn more about the success of Kiwi agriculture, try to debunk myths about European reform and enjoy the scenery along the way.

Her husband, a farmer, has been on camera duties, "because you cannot run around as a commissioner and look like a tourist", she says.

Boel, 62, has the confident air of a chief executive and the patience of a school teacher.

Her calm, deliberate approach, striking white hair and glasses add to the effect.

Farmers a world away have the same concerns about bureaucracy and red tape, she says, but Europe must learn from New Zealand how to adapt better to market demands.

"I feel that farmers here are still more entrepreneur-like, but I hope we will see in Europe what I have experienced here, that farmers are very much aware of the importance of adapting to the market."

Europe and New Zealand cannot win against bulk-producing nations like Brazil, she says, but can compete with high-quality, high-value, environmentally sound products targeted at the growing middle classes of countries such as India and China.

"They [Brazil] have lots of land, they take in new land if necessary, they have low labour costs and up till now they have not had very much attention to the environment."

The future of rural agricultural communities can also be sown beyond the field. On a visit to Queenstown, she was impressed by the possibilities of incorporating rural areas into the tourism industry, such as farm-based bed-and-breakfasts.

A conference in Germany next year will bring together young farmers to discuss ideas on the industry's future in Europe and young consumers to identify what people want to buy.

"It's quite clear to me that the young farmers are much more prepared to change their habits than might be those of my age," Boel says.

But life on European farms is changing, thanks to reform of the Common Agricultural Policy last year.

"We have seen already a decreasing production immediately, specifically within the beef sector ... I'm quite sure we'll see changes also in the cereal sector."

Reform has "decoupled" subsidy from production - a relationship that has fuelled over-production and depressed world prices.

Farmers now receive a "single farm payment" for maintaining the land, environment, public and animal health.

No more than 10 per cent of payments remain coupled to production, Boel says, and the proportion of subsidy Europe's 11 million farmers receive is also dropping.

Two million more farmers will be looking to Brussels next year as the EU continues to expand.

In 1995 direct payments and "market measures" under the CAP accounted for 0.51 per cent of the EU's gross domestic product. In 2005 this was 0.43 per cent and Boel estimates it will be about 0.3 per cent by 2013.

Another concern levelled at the EU has been its import tariff protection, which Boel says will be reduced from an average of 23 per cent to 12 per cent.

These developments will lower European farmers' export competitiveness and open the market to more imports. This means a change for Europe's farmers but opportunities if they learn to adapt.

A visit to the Villa Maria Estate in South Auckland reminded Boel of the need to reform the European wine industry to ensure it could compete against imports.

Despite the reforms, the opinion that Europe wraps its farmers in cotton wool persists.

The publicity about the changes might have been better, Boel says, but she is happy to have met farmers in New Zealand who understand the European reforms.

"This reform is the most far-reaching we have ever made and when I meet my farmers in Europe, they have never experienced such huge changes within so short a time."