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Making fit for competition

, : Making fit for competition. Agrarwirtschaft 45(12): 421-422

Factors which have changed the competitive framework for the EU and German agricultural sectors include: changed agricultural policies in industrial countries; liberalization and globalization of agricultural trade; transformation of ex-CMEA and even Chinese planned economies; world population growth and urbanization; economic growth and increase in effective demand for food in developing countries; scarcity of natural resources, particularly land and water; and technical and scientific developments particularly in bio- and gene technology. Positive factors for Germany in meeting new competition include good natural conditions, modern technology and an educated labour force. Negative factors include public attitudes to agriculture which produce obstacles to efficiency, a poor production structure, unclear policies and over-bureaucracy. Ways to overcome these problems through niche production of ecological and other special products and by cost reduction for conventional systems are discussed.

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