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Sheep and goat meat production in disadvantaged areas: socio-economic indicators for Greece
C. E. Stoforos and C. D. Apostolopoulos
Harokopion University, Kallithea, Athens, Greece.
Abstract
Sheep and goat meat is the most important sector of animal production in Greece, representing 43% of the gross value of animal production and 13% of the gross value of crop production. A large proportion of sheep and goat meat production takes place in disadvantaged areas. Disadvantaged areas are characterised by poor resources in comparison to other rural areas and remoteness from main centres of population. They are concentrated in hilly and mountainous areas. Livestock production, which is largely extensive, is one of the main economic
activities in such areas and is considered to be a potential option for rural development.
The study of the production and marketing of sheep and goat meat is of particular interest because of its relationship with the environment. The sheep and goat-rearing sector is a sector of animal production that is friendly to the environment. The common view that the goat is the "destroyer" of the forest is poorly substantiated and has its origins in the fact that farmers use semi-mountainous and mountainous regions for goat rearing. This view is also disproved by the long history of goat rearing in Greece and the co-existence of goats and the forest.
The purpose of this paper is to construct an econometric model for the sheep and goat meat sector, which can be used to evaluate agricultural policy options, the effects of reform of the Common Agricultural Policy (CAP) and the General Agreement on Tariffs and Trade (GATT) as well as their potential socio-economic effects. The model can be divided into two stages: the first stage comprising the estimation of supply and demand elasticities and the second stage comprising the use of these estimated elasticities to produce forecasts. As far as the effects of CAP reform and the GATT Agreement on the Greek sheep and goat meat sector are concerned the following trends emerge:
It can therefore be concluded that there will be no substantial effect on the trade balance. As regards the social consequences of CAP Reform on the sheep and goat sector as a whole, the CAP does not directly influence the production of sheep and goat milk (although it can exercise an indirect influence on the price of feed). It does, however, directly effect the production of sheep and goat meat. Given that production in Greece is mainly milk-orientated, no socio-economic effects are expected, other than those related to the shift in employment from the sheep and goat rearing sector to other sectors of the economy, for example into the primary sector or away from agriculture altogether. Given that a further decrease in agricultural population has been forecast it is anticipated that there will be some movement out of agriculture altogether.