Authors Development Agency of Karditsa: Vasileios Bellis - Thomas Chalatsis Development Agency of Pelion: Georgios Agrigiannis KEKANEM S.A: Ilias Lambropoulos - Apostolos Tsaknakis University of Thessaly: Areti Spanouli
Design ICALPE - International Centre for ALPine Environments Casa Pastureccia 20250 RIVENTOSA [FRANCE]
Introduction The following text provides a general picture of the rural sector of the Northern Sporades and also describes a success story of non-technological innovation, in this area: the Women cooperative of Glossa, Glossiotissa in Greek, on the island of Skopelos. This undertaking is aiming to demonstrate the development prospects and the problems of the local rural sector and to describe how a non-technological innovative intervention led to the upgrade of an isolated community of the area. The methodological approach is based both on literature analysis and a field study, which were carried out for the purposes of the “AGRISLES� Project.
Chapter 1 Context of the Islands
The North Sporades Peathoura
Thessaly Piperi KyraPanagia
Alonnisos
Peristera Skiathos Skopelos
Skantzoura
The examined insular context consists of 3 island municipalities: Alonisos, Skiathos and Skopelos. The total size of the area is 274 km2 and the inhabitants in total are 13.740 (2011 Census), with average density 0,62 ha/km2. Concerning the transport, there exist sea connections, mainly with Harbors of Volos and Agios Konstantinos and airport connection, through Skiathos Airport. The climate is dry, with the average annual temperature amounts to 16,6 ºC and the average annual humidity to 71,6% and the local landscape is characterized by dense vegetation.
General context 6
The insular context of the Northern Sporades administratively belongs to the Region of Thessaly, with the exception of Skyros, an island that belongs to the Region of Sterea Ellada, i.e. Central Greece. The local economy is based on four activities: Agriculture, Livestock farming, Fishery and Tourism. In North Sporades, there are 3 Special Protection Areas (SPA) which were integrated in Natura-2000 Network, with the most important being the “National Marine Park of Alonnisos”. In general terms, we would identify as the main advantage of the area, the natural resources. The proper use of them, would result in the upgrade of tourism, rural sector and energy production (via renewable sources of energy). We consider as the primary weakness of the area, the unbalanced growth between the islands of the context, which creates disparities among the residents. As the basic threat, it was recognized the high youth unemployment rate, which leads the younger inhabitants to migration and the islands to depopulation. The constant improvement of the transport infrastructure and the declared political commitment of the Greek and EU governing bodies for environmental-friendly economies, are the essential future opportunities for this area.
North Sporades at a glance Area: 274 km² Average altitude: 47,33 m Population: 13 740 (2011 Census) Density: 62,93 hab/km² Population: (2001 Census, as 2011 Census data are not available yet)
in urban areas: 4068 individuals in rural areas: 9488 individuals
GDP Structure by sector Primary sector: 12%
Secondary sector: 29%
Tertiary sector: 59%
Agriculture and rural area In the Northern Sporades insular context, 9,41 % of the economically active population (18-65 years old) is engaged in rural sector: 68,37% of them are males and concerning the age structure 20,04% of them are young farmers, 51,12% are middle-aged and the rest (28,82%) are over 50 years old. The cultivated area occupies 26,16% of the examined area and the prevalent groups of crops are orchards and forage crops. According to a SWOT analysis, the basic advantage of the local rural sector is the existence of numerous local products and goods. Examples of these products include the cheese pie of Skopelos, the plums of Skopelos, the goat of Sporades and the local honey of Alonissos and Skiathos. As the main weakness, we spotted the increased costs for production and delivery of products, due to the sea transportation (a common problem for insular rural economies), which is resulting in lower income for the producers. We concluded that the future challenge for the Northern Sporades rural sector is to take full advantage of the local products. In this way, indeed the income of rural families will be satisfying and the youth will get motivated to stay in the rural sector and to develop additional similar activities. The identified obstacles to the development of the local rural sector include the lack of innovative approach, insufficient collective structures, gaps in the supply chain of local products, physical constraints (soil erosion, water scarcity) and increased costs for production and promotion.
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Challenges facing the evolution of agriculture The general conclusion is that the “elevation point� of local rural economy, is the local products. We could divide the obstacles to the further development of these products, into technological and non-technological. The first category consists in factors like limited financial sources, physical constraints and obsolete infrastructure. The second category is connected with organizational, educational and collaborative factors. This category is the most challenging because the included interventions consist in low-cost actions, such as formation of collective structures, technical support on promotion techniques and certification of local goods.
Importance of agriculture in terms of land use, landscape, biodiversity In the examined case, the influence of agriculture over the biodiversity and the protection of local environment is evaluated as positive. The reasons justifying this conclusion, are connected with the “soar” of touristic activities in the area. Cases like sprawl, construction on forests and beaches, contamination of aquifer and in general environmentally burdensome facts (increase of garbage, atmosphere pollution) are often noted to the islands of North Sporades. Naturally, agriculture could also be a polluting activity, on account of the wide use of machines and pesticides. However, rural activities related with local goods could be characterized as environmentalfriendly, because of the traditional methods of production, which are used for this kind of products. These methods demand limited use of technological infrastructure and moreover chemical substances (such as pesticides, enhancers) are prohibited. Additionally, some non-technological innovative interventions, like agrotourism, environmental certifications or revival of traditional production techniques, can really contribute to mitigate the pollution of the local environment.
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Importance of agriculture in the regional economy The recent financial crisis highlighted the need for the “restart” of the Greek rural sector. During the last decade, this sector underwent remarkable decline. According to the Hellenic Statistic Authority (EL.STAT), the added value of the sector, decreased by 16,5% during the period 2001-2010 and the employment also decreased by 22,7%, meanwhile corresponding indicators relating to the other financial sectors, were upwards traded in. This trend began to change, at the onset of financial crisis in Greece (2009). Thereby, the employment at the rural sector increased by 3,1% during the period 2008-2010 (after 8 years of constant decrease) whilst the same indicator at the financial services, decreased by 3,8%. In addition, a further development of the rural sector would be an important factor for the regeneration of the regional Greece, achieving the objective of decentralization. Taking into consideration that 35,3 % of the Greek population (Census 2011) is living in the capital, we can understand that this objective is a high priority of the Greek public administration. Regarding insular context, the above-mentioned data indicate the significance of the development of rural financial activity. The majority of Greek islands based their economies on tourism, a development model, which is in doubt during the last two years. According to ELSTAT, for the period 2008-2010, the decrease of the General
turnover of tourism in Greece, amounted to 16,6% and the global financial instability do not let margins for immediate significant recovery. So, the population of Greek islands (and mainly the youth) has to look for additional sources of income and the agriculture is an appropriate one. The creation of a framework for innovation is considered as a requisite condition for the rural development of islands. The funding tool for this process is the Rural Development Programme (RDP) for the period 2007-2013. The Greek RDP amounts to ca. 5 billion Euros and the responsible authority for its implementation is the “Ministry of Rural Development and Food”. Table 1: General structure of the Greek RDP
AXES Modernization
Total financing
Financing number of farms
Financing (ha)
Financing inhabitants
2.254.921,209
31.259,30
12.318,2
19.939,79
1.714.908.870,00
23.773,27
9368,19
8.319,91
Rural development
709.898.244,00
9.841,11
3.878,03
3.444,08
«LEADER»
295.266.850,00
4.093,20
1.612,98
1.432,49
4.974.995.173,00
68.966,88
27.177
24.136,28
Agri-environment
TOTAL
Graph 2: Evolution of added value in basic sectors (2000-2010)
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Wholesale and retail trade, repair of motor vehicles and household goods, hotels and restaurants; transport and communication
Construction Agriculture, hunting and forestry; fishing and operation of fish hatcheries and fish farms
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Graph 3: Evolution of employment at basic sectors (2000-2010)
Wholesale and retail trade, repair of motor vehicles and household goods, hotels and restaurants; transport and communication
Construction Agriculture, hunting and forestry; fishing and operation of fish hatcheries and fish farms
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Chapter 2 Women’s agricultural cooperative of Glossa
Summary A successful example of non-technological innovation in rural sector of North Sporades is the “Women Cooperative of Glossa”. This is a case, where the female population of a small community of Skopelos, established a collective structure, in order to extend the supply of local agricultural products, which they already produced. The whole undertaking was supported by the Development Agency of Pelion and the initial stage was financed by the “Programme for Sustainable Development of Rural Areas: LEADER”, which corresponds to the 4th Axis of the Greek RDP. The following good practice renders comprehensible, how a small island community with low touristic development, succeeded in changing “growth path”, by using nontechnological innovative interventions and specifically the human-networking and the proper use of funding tools. The final achievements of the whole attempt are summarized as follows: Via the Cooperative, the women of Glossa achieved to: • rise their incomes, • improve their social life, • encourage the cooperation inside the community, • take full advantage of the local agricultural products.
Starting point Glossa is a village of Skopelos, located in the nortwest side of the island. The local population numbers in 1.195 individuals and the settlement is built at an altitude of 300m. Generally, the financial and social activity of the island is assembled in the Capital. Consequently, the village of “Glossa” is “marginalized”. Moreover, the village is not seaside, so the area displays limited touristic development. Male population of Glossa is exercising, mainly, maritime professions. Feminine population of the village had to face unemployment and social isolation. Hence, arose the need both to upgrade their social life and to obtain revenues by the delivery of local goods. The idea, the motivation and the technical support for the formation of a Women’s Cooperative, was provided by the Development Agency of Pelion, during the information campaign for the LEADER Programme.
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Historical development of the experience As seen before, Glossa was isolated from tourist flows (so residents had to find alternative financial sources) and there were a sufficient number of active women, who desired to take up development initiatives. Therefore, we can say that there were the conditions, for the formation of a collective structure. In 1999, the Women’s Agricultural Cooperative “I Glossiotisa” (which means in Greek “The woman of Glossa”) was established. The initial capital was provided by the Greek RDP (Axis IV - LEADER Programme) in combination with membership fees, which were paid by each initial member of the structure. Some key elements, proving the success of the examined case, are: Members: 13 active members initially, 15 today Products: Remarkable expansion of their range and of the produced quantity. Services: Provision of new services such as catering and cake for the holidays and for family parties and celebrations (weddings, birthdays). Development: • Participation in local and national trade fairs (editing promotion material • Collaboration with local organizations for the Skopelitis festival (annual festival, concerning the promotion of the local products and heritage of the island). • Exchange of experiences and products with other women’s cooperative in Greece • Participation in cross-national projects. Training: Members were able to follow training seminars, in order to improve their effectiveness (administrative and financial management, promotion techniques). Current threat: Difficulties of installation of new members and competition by private companies, which are providing similar services and products.
Methodological approach used The foundation process of the examined collective structure was composed of the following steps: 1. The initial step of the whole attempt was the information campaign carried out by the Development Agency of Pelion about the LEADER Programme. During this campaign was detected the need of the female population of Glossa for a development initiative. 2. Thereafter, working briefings were organized by the development agency, in order to introduce the idea, of the establishment of a women’s agricultural cooperative, which would aimed at the structured, organized and professional production and sale of local agricultural products. 3. The next step was the detection of a satisfying number of local women for the establishment and the daily operation of the cooperative. 4. It was followed by the definition of the strategic objectives of the new structure. 5. Afterwards, and followed by relative research, an appropriate building was rented for the accommodation of the workshop / collective shop, which is used as sales point and shop floors. 6. Then, it was held the selection of the basic range of goods, which would be produced and delivered by the Cooperative. 7. Afterwards, was carried out the assessment of the potential market and consumers of the new organization. 8. Subsequently, was obtained the necessary equipment, like machinery, furniture and electronic devices. 9. The next step was the administrative and financial structure design (such as, organization chart, governance procedures, governing bodies and their election) 10. Thereafter, were designed the internal operational rules of the Cooperative 11. Next, were defined the production rules of production (recipes, cooking materials etc) 12. Subsequently, were described the procurement rules. 13. Finally, was recorded the activity schedule of the newestablished Cooperative
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The whole undertaking confronted many difficulties. The essential were: • The utter lack of experience of the local feminine population about the requirements for the establishment and operation of an agricultural cooperative (accounting, taxation, bureaucracy). • The numerous parallel activities, which were carried out by local women, like tourism, agriculture or farming. This problem led some of the initial members to the abandonment. • The natural reluctance that is expressed by the people against innovative changes and initiatives. • The insufficient financial resources The above-mentioned obstacles were overcome because of two key-factors: • First, the technical support provided by the Development Agency of Pelion, an organization with abundant experience in organizational formation and in the rural development financing tools. • And the strong commitment and determination that were exhibited, by the women of Glossa.
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Graph 4: The process of the establishment of Women’s Cooperative of Glossa
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Results obtained The evolution of the above-described attempt was satisfying so far, as the structure fulfilled its initial goals. The Women’s Cooperative of Glossa is a local social structure with noticeable activity and outstanding awards and honours, such as the certification as “collaborative social enterprise” provided by Centre of Support and Certification of Social Enterprises. The Cooperative participates in national and international trade fairs, connected with local and traditional products, like “the routes of the bread” and the annual “Skopelitis” festival and furthermore in social initiatives, like “Green Forests-Clean forests” organized by the Greek Ministry of Climate Change. Moreover, local and national media (for example the newspaper “Ta Nea”), presented the activities of the organization, as a good practice. In quantitative terms, the organisation succeeded in gradually developing. Some indicative data are the tripling of the annual turnover, during the period 1999-2010 and the increase by about 60% of the annual income of every member, during the same period. If we take under consideration, the competition and the restricted market, in which the organisation is activated, these results could be regarded as exceptional. Apart from financial results, the Cooperative was also successful for the improvement of the social life of the local female population. The spirit of cooperation, the elimination of isolation and the boosting of the self-confidence of local women are achievements that cannot get calculated in financial terms, but have considerable value.
16 Table 2: Quantitative results of Women’s Cooperative of Glossa
Indicators
Initial situation
Current situation
Active members
13
15
Annual turnover
30.000 €
90.000 €
Average production quantity*
1.250 kg
3.100 kg
Average individual annual income
2.000 €
5.000 €
* The sum of production quantity of all products, which are produced annually by the organization.
Graph 5: The evolution of basic indicators of the examined Women’s Cooperative INITIAL Active members Annual turnover Average production quantity Average individual income
CURRENT
Conclusions
17
Conclusion
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The global financial crisis highlights the need for “smart” innovative interventions. Nontechnological innovative actions carry these features, because their implementation does not require large amount of capital. The above-described good practice is a typical example of non-technological innovative intervention with high productivity, fast return of invested capital and long-term impacts. The three “ingredients” of success here, were: • Proper use of EU grants: The allocation of the grants, which are provided by EU to every Member-State for financing development initiatives, is a controversial issue. In Greece, there are noticed many cases where the grants did not provide for developmental purposes, but to finance non-productive and inappropriate projects. The examined case is an example of proper use of this tool. Thus, both the provided grant was functioned as extra “motivation” for the interested women and the amount of the grants was reasonable (about 58.000 E). Furthermore, the impacts of the financed intervention have proved long-term (very important for the EU grants) and they were allocated in a disadvantaged and isolated geographical area, providing an outlet to a disadvantaged population group. • High productivity rate: The initial cost of the intervention amounted to 65.000 Euros. Considering the annual turnovers (90.000) but essentially the extra incomes of the members (average 5000 annually), we can easily conclude that the intervention was highly productive. • Long-term impacts: The lifetime of the Cooperative is reached at 2011 to 12 years and its evolution so far, is sustained upwards. Additionally, the spirit of cooperation between local people, which was “cultivated” by this intervention, assures the longevity of its effects. Key-lessons learned concerning methodology The description of a good practice is aimed to transfer acquired knowledge to future cases. In the present case, the key-lessons that could be used to other insular contexts are: • Necessity of technical support: The active participation of an experienced consultant who will provide continuous guidance to the stakeholders is indispensable to the successful formation of a collective structure. The reasons for this are connected with the inexperience of the rural population about critical issues, like legal demands, accounting, monitoring, and organizational forms. • Human networking: The innovative part of our example is the human networking. The financial outcomes delivered by the local products of the area would be unfeasible, without the collaboration of the women of Glossa. The individual action would lead to inadequate results. Combination to other good practices The innovation is a dynamic procedure, so innovative interventions have to seek further improvement on an ongoing base. In our case, some examples could be: • Further networking: The extension of partnerships of the Cooperative is “the critical point” for its further growth. The establishment of professional partnerships with other organizations, like chambers, professional associations, academic institutes, other female organizations, transport companies, trade fairs,
has to be the strategic guideline of the Cooperative. • Use of Information Technology: The rapid growth of Internet and the success stories of electronic commercial organizations underlined the potential, which are provided by the proper use of Information Technology (IT). Except commercial use, IT technology could be beneficial also for learning purposes (e-learning applications). • Common infrastructure: Production of local agricultural goods demands modern infrastructure (machinery, storage areas). The collaboration between the local producers for the construction and use of common infrastructure is the only way, in which this investment would be feasible and sustainable.
Bibliography RESEARCHES-STUDIES •Network for information and support of rural population, (2003). Diagnostic report for the promotion of innovation in agricultural products and goods of Thessaly. August 2003. •Prefectural Administration of Karditsa & Local Government Organizations Association (2010). Pilot programme for the rural development of Prefecture of Karditsa. May 2010. •AN.KA S.A, EAP S.A KEKANEM S.A & University of Thessaly, (2011). Diagnostic report for the rural sector of North Sporades. February 2011 •Masoura Dionysia, (2007).The problems of insular area. Eyploia magazine, vol 17, November 2007. •Tasiopoulou Stavroula (2007). Framework and prospects for the development of traditional products in European Union. Postgraduate thesis, Charokopeio University. Department of dietetics and nutritional science. •World Bank, (2006). Enhancing Agricultural Innovation: How to Go Beyond the Strengthening of Research Systems. The International Bank for Reconstruction and Development / The World Bank DATA-STATISTICS •Portal of Hellenic Statistic Authority (ELSTAT) online available at http://www.statistics.gr/portal/page/portal/ESYE •Katharakis Dimitrios (2006). FLORA SPORADUM: Recording of the flora of North Sporades and their plant-geographical connections. Postgraduate thesis, University of Patra, Faculty of Biology •Portal of Greek RDP, online available at http://www.agrotikianaptixi.gr •Portal of Women’s Cooperative of Glossa, online available at http://www.glossiotissa.gr/index.html
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THE AGRISLES SUCCESS STORIES BOOKLETS SERIES
The partners of the MED AGRISLES project, representing public authorities in charge of agriculture and rural development in the Balearic islands (Spain), Corsica (France, project lead partner), Sardinia and Sicily (Italy), Gozo (Malta), the Northern Sporades (Thessaly) and North-Aegean archipelagos (Greece), the Cyprus island (Cyprus) and the Azores (Portugal), altogether are exchanging experiences and developing a common method for non-technological innovation in agriculture and rural development. They publish a series of booklets to disseminate identified best practices on this issue. This story of the Glossa Women Cooperative in Thessaly is a successful example of non-technological innovation in rural sector of North Sporades. This is a case, where the female population of a small community of Skopelos, established a collective structure, in order to extend the disposal of the local agricultural products, which they already produced...
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