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Address by the President of the Republic at the Conference ''140 Days in the European Union'' at Paide on 17 September 2004
17.09.2004


Distinguished Ministers and Members of the Riigikogu,
Ladies and Gentlemen,

Our common concern for the fate of rural life and farming in Estonia today has brought together a most prominent assembly of experts. I believe that when leaving this hall here you will take with you new ideas and optimism about the future.

My belief is based, in the first place, on the fact that our agricultural production, which after the restoration of independence fell steeply, has stabilized by now. Yet, from 2004 on, under the conditions of the EU single market and various support schemes a new production growth is to be expected.

My belief is reinforced by farmers' openness to innovations, their willingness to learn and adapt. Already now, we have a lot of examples of excellent production results achieved in complicated conditions of the transition period. Many farmers and co-operatives have been able to invest and, owing to the modernization of production, to reap steadily good harvests.

In the future it becomes increasingly important to develop knowledge-based economy - to update production processes, to seriously tackle product innovation. In doing this, we should not concentrate on a few high-tech products only but take a broader approach to economy. I am sure that innovation and knowledge-based methods will not be confined to industry but inevitably reach agriculture, too.

On the one hand, it means that there is a need to promote agricultural vocational and higher education. On the other hand, Estonia needs a strong system of applied agricultural research and collaboration between our producers, researchers and state apparatus. A good example of such an approach is our national programme for applied agricultural research, which will hopefully soon be approved, by that expressing the priorities of the present government. The programme will enable the state to better than so far meet the needs and pursue the interests of our society.

This can be applied also to the necessity to enhance the human environment and infrastructure in rural areas. That is not only our debt of honour to rural population but also an issue of developing our country as a balanced whole. In addition, development of tourism and increase of possibilities for recreation of our own people are directly linked to that. According to an opinion poll carried out this spring, more than a half of Estonia's urban population deemed it necessary that just the infrastructure in the countryside be improved.

It also would help increase employment and income in rural areas. In my view, it is a most important task since due to the developments of the last decade the low proportion of rural population in workforce has become more than just an economic problem.

In Estonia agriculture is and will be a strategic production branch that must provide our population with quality food and local industry with raw material. Agriculture also has a vital role in preserving the traditional rural life, man-made landscapes and natural communities. In Estonia we regard these aspects as an essential part of our national cultural heritage. Also the common agricultural policy of the European Union values highly both rural life in its entirety and this kind of agricultural production, which preserves and improves the environment.

In Estonia no intensification of farming to such an extent, which would jeopardize environment is to be envisaged. Quite the opposite, the relatively environment-friendly farming witnessed over the last decade can become our long-term advantage. The market demand for organic food is growing, so that producing them is profitable. At the same time, an expansion of this kind of production would enable us to better use our land resource and to take into account growing demands concerning the quality of food.

Furthermore, organic farming offers a good prospect for small producers who inevitably will increasingly concentrate on niche products. One of the main reasons for it is the circumstance that small producers can hardly compete in global markets where big producers have a competitive advantage. At this point, I would like to express appreciation to the initiators of the project ''Estonian Food'' because the named project helps Estonian food gain popularity and offers new opportunities to our producers as well.

In order to achieve success in the new competition situation an old experience beginning to fall into oblivion is worth remembering. What I mean by that, is cooperation based on good-neighbourly relations and collaboration in these fields, where partnership is more important than competition. In this respect, farmers in last years have gained good experience, for instance, in raising pedigree cattle and producing milk in the County of Tartumaa. I am sure that this kind of cooperation for the sake of optimum use of opportunities given by the EU will expand in future.

I am confident that Estonian people will be successful in their doings also on a new, international scale. I wish you strength and success in translating your goals into reality!


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