Agriculture plays a wide multi-functional role in Malta and contributes to the maintenance and enhancement of Malta's fragile rural landscape with substantial impact on both tourism and the quality of life. It provides the basis of local environment and a range of local foods, which constitutes an integral part of the identity of the local population. Though small, Malta's agricultural sector constitutes an important component of Malta's social structure. Maltese agriculture is a small size economic activity accounting for 2.6% of Malta's Gross Domestic Product (GDP) and 1.8% of total employment. In 2000, agriculture provided approximately for only 27% net of Malta's food requirements. Natural conditions, especially water shortage, water salinity and land fragmentation arising from a high population density are not conducive to higher rates of development. The intensive production of Maltese agriculture, resulting from the special geographical characteristics of the islands, the natural, semi-arid climatic conditions and limited natural resources, limit the production capacity of agriculture and the range of products produced. Malta is self-sufficient in fresh vegetables, processed tomatoes, eggs and poultry, pork and fresh milk and fresh milk products. It has a low self-sufficiency in wine grapes, fresh fruits, mutton, lamb and beef. It is not a producer of cereals (except for fodder), sugar, hops, rice, butter and milk powder. The only significant export in agriculture is spring crop potatoes. Malta's current policies for agriculture and the food industry have two objectives: preventing the disappearance of Maltese primary production by securing an acceptable level of income for farmers; and promoting agriculture's multi-functional role. The objectives of the current policies need, however, to remain in place after accession. These objectives are in line with the present approach of the Common Agricultural Policy (CAP), which acknowledges the importance of European agriculture as a whole, and the need to preserve the positive externalities of agricultural production for the benefit of future generations.
