Post-2027 CAP Negotiations, Malta Budget 2027 and Strengthening Farmers’ Position in Food Supply Chains
The Gozo Confederation for Agriculture and Fisheries (GCAF) presents its weekly policy briefing, highlighting key European and national developments affecting agriculture, livestock farming and fisheries in Gozo.
This week’s developments include the Council of the European Union’s negotiating position on the future Common Agricultural Policy (CAP), concerns raised by the European Council of Young Farmers (CEJA), Malta’s Budget 2027 allocations for agriculture and fisheries, and a new European research initiative aimed at improving farmers’ bargaining power.
Together, these developments underline the importance of ensuring that European and national policies translate into practical, accessible and adequately funded support for Gozo’s farming and fishing communities.
1. Council Advances Negotiations on the Post-2027 CAP
On 26 October, the Council of the European Union adopted its partial negotiating position on the CAP framework for 2028–2034, marking an important step towards shaping the future of European agricultural policy.
The proposed framework retains common European agricultural objectives while placing greater responsibility for implementation on Member States through National and Regional Partnership Plans.
The Council’s position also addresses support for young farmers, smaller agricultural holdings and producers operating in areas facing structural disadvantages.
Relevance to Gozo
For Gozo, the increased flexibility available to Member States presents both opportunities and challenges.
The definition of an active farmer, eligibility conditions and the design of financial assistance will be particularly important for small-scale and part-time producers, whose operations may differ considerably from larger agricultural enterprises elsewhere in Europe.
GCAF considers it essential that Malta’s future implementation framework recognises the specific circumstances of island agriculture, including fragmented landholdings, limited economies of scale, higher operating costs and difficulties accessing agricultural land.
The Confederation also stresses the importance of clearly identifiable measures for Gozo within Malta’s future National and Regional Partnership Plan.
Source: Council of the European Union – CAP Negotiating Position
2. CEJA Calls for Stronger Generational Renewal Measures
On 27 October, the European Council of Young Farmers (CEJA) published its assessment of the Council’s partial agreement, warning that the proposed framework does not yet provide sufficient ambition to address Europe’s generational renewal challenge.
While welcoming the retention of installation assistance and the introduction of mandatory provisions supporting young farmers, CEJA expressed concern that excessive national flexibility could create inequalities between Member States.
The organisation is advocating a dedicated financial envelope equivalent to 10% of CAP funding for generational renewal.
CEJA also emphasised that financial assistance alone cannot resolve the barriers facing new agricultural entrants.
Relevance to Gozo
Young and prospective Gozitan farmers face particular difficulties, including restricted access to agricultural land, high initial investment requirements, limited financing opportunities and challenges achieving commercially viable production.
GCAF supports a comprehensive approach to generational renewal that combines financial assistance with practical measures addressing land access, succession planning, advisory services, training and investment.
The Confederation believes that any future young-farmer starter package must be accessible to small and fragmented agricultural holdings rather than designed primarily around larger farming structures.
Source: CEJA – Council Leaves Generational Renewal Short on Ambition
3. Malta Budget 2027: Increased Agricultural and Fisheries Allocations
Malta’s Budget 2027, presented on 26 October, provides for increased expenditure across several areas relevant to agriculture, livestock farming and fisheries.
According to the published financial estimates, the Ministry’s recurrent expenditure is projected to increase from approximately €70.3 million in 2026 to €84.6 million in 2027, while capital expenditure is expected to rise from €46.7 million to €53.4 million.
Among the allocations of particular relevance are:
- Farm-waste management: Increased from €5 million to €8 million.
- Agriculture Support Scheme: Increased from €500,000 to €900,000.
- Fishing Bait Scheme: A new allocation of €700,000.
- Fisheries and aquaculture capital expenditure: Increased from €1.72 million to approximately €3.32 million, including investment in a fisheries control hub.
- General Fisheries Support Scheme: Maintained at €98,000.
Relevance to Gozo
GCAF welcomes increased attention to agricultural and fisheries expenditure, particularly measures addressing farm-waste management and assistance to primary producers.
However, higher national budget allocations do not automatically translate into additional direct assistance for Gozitan farmers and fishers.
Of particular importance is the implementation of the €8 million farm-waste allocation, given the longstanding challenges associated with livestock waste and slurry management.
Similarly, the increased Agriculture Support Scheme and new Fishing Bait Scheme should be accompanied by transparent eligibility criteria, accessible application procedures and clear information on their intended beneficiaries.
GCAF considers it necessary for the relevant authorities to clarify how these allocations will be implemented in Gozo, including whether specific funding or delivery arrangements are envisaged for the island.
Sources:
4. New European Initiative to Strengthen Farmers’ Position in Food Supply Chains
On 29 October, the EU CAP Network announced the launch of Strength2Farm, a four-year Horizon Europe research initiative examining how farmers can improve their economic position within European food supply chains.
The project will investigate bargaining power, unfair trading practices and different forms of producer cooperation across sectors including dairy, meat, cereals, fruit and vegetables.
It will also develop practical analytical tools, including a Farm Margin Checker, to support greater understanding of costs, margins and value distribution.
Relevance to Gozo
Small agricultural producers frequently operate with limited bargaining power, particularly when purchasing inputs or negotiating with larger buyers and intermediaries.
These challenges are especially relevant to Gozo’s livestock, dairy and fresh-produce sectors, where small production volumes and geographic constraints can further weaken commercial competitiveness.
GCAF believes that initiatives examining producer organisations, cooperative structures, contractual arrangements and fairer value distribution deserve close attention.
Participation in European research and stakeholder consultations could also provide opportunities to present the realities faced by Gozitan producers and ensure that island-specific challenges are reflected in future policy recommendations.
Source: EU CAP Network – Strength2Farm
GCAF Policy Perspective: Turning Commitments into Tangible Support
The developments reported this week demonstrate that the future of agriculture and fisheries will increasingly depend not only on decisions taken at European level, but also on how national authorities translate those decisions into practical measures.
For Gozo, this distinction is particularly significant.
The Confederation identifies four priorities requiring continued attention:
- A CAP framework adapted to Gozo: Malta’s future agricultural implementation arrangements should recognise the island’s structural disadvantages, fragmented holdings and small-scale production models.
- Meaningful generational renewal: Support for young farmers should extend beyond establishment grants to address access to land, finance, training and long-term farm viability.
- Transparent delivery of Budget 2027 measures: Increased allocations should be accompanied by clear implementation arrangements and identifiable benefits for Gozitan agricultural and fisheries operators.
- A stronger economic position for primary producers: Greater cooperation, fairer contractual relationships and improved market transparency are essential to maintaining viable agricultural production.
GCAF will also continue monitoring developments arising from the General Fisheries Commission for the Mediterranean’s annual session, particularly any decisions affecting small-scale fishing fleets and fishing activity in the central Mediterranean.
Conclusion
The latest European and national policy developments offer opportunities to strengthen the resilience of agriculture and fisheries. Nevertheless, the effectiveness of these measures will ultimately be determined by their accessibility, implementation and capacity to address the realities faced by producers.
GCAF reiterates that Gozo’s agricultural and fisheries sectors require more than general policy commitments. They require targeted, measurable and adequately resourced measures that reflect the island’s distinct economic and geographic circumstances.
The Confederation will continue following these developments and advocating policies that support sustainable agricultural production, viable fishing livelihoods and the long-term future of Gozo’s rural communities.