1.PRIMARY SECTOR: ANALYSIS OF THE EXISTING SITUATION
1.1 BASIC ECONOMIC AGGREGATES
1.1.1 Gross Agricultural Product
The gross agricultural product participates by 8% in the overall GDP of the country
in 1998 while throughout the years the course of its participation rate in the overall
GDP appears to be declining.
1.1.2 The Gross Production Value/ Gross Added Value
The participation of the Gross Production Value of farming during the period 1988 –
1997 in the Greek economy overall presents a considerable decrease; from 9.3% in
1988, it reaches 6.72% in 1997. This decrease is mainly due to the growth in the
Service sector, at much higher rates than in farming.
The picture of the participation rate of the Gross Added Value of farming in the
overall economy of the country is similar (from 11.66% in 1988 it reaches 7.92% in
1997), due mainly to the growth in the tertiary sector.
1.1.3 Competitiveness
The competitiveness of the sector is generally law, which is reflected on the trade
balance of farming products (deficit).
1.1.4 Investments
The primary sector after 1980 is characterized by disinvestment in particular private
investments which present a long-time declining tendency at a rate of 2.5% - 3%.
1.1.5 FARMING HOLDINGS
The average farming holding in Greece is 4.3 hectares, compared to 18.2 hectares
which is the respective EU average, indicating the structural weaknesses of farming
sector in Greece.
1.1.6 Employment
The declining number in people employed at a rate of 8% approximately, where the
decline rate is higher in women (15%), is expected to lead to a unfavorable
development in the age structure of the employment. Nevertheless favorable
conditions are emerging that are able to reverse the abovementioned tendencies.
1.1.7 Farming Income
Since the beginning of the 90’s, a progressive decline in the increase rate of farming
income has been registered, which from 1995 and on leads to a slight decline in the
increase rate of farming income (in firm values).
1.1.8 Environment
The relation of the Greek farming with the environment and the natural resources
supporting it, presents problems that in most cases are of local nature and are
reversible to a great extend provided the appropriate interventions are made.
1.1.9 Innovation – Research and Technology
The degree of innovation importation in the Greek farming is particularly low. The
causes must be sought not only in the absence of big farming enterprises but also in
the low educational level of those working in the primary sector.