V. Gounaris: Greek cotton has an impact on premium markets

Vassilis Gounaris, president of the Federation of Greek Chemical Industries and CEO of BASF in Greece, believes that the Recovery Fund can enhance the competitiveness of the agri-food sector. He underlines, in powergame.gr, that the EU's objective to limit the use of chemical pesticides is unrealistic as it reduces the ability of farmers to protect their production.

What will be the benefits for Greek agriculture of the Recovery Fund? With the expansion of digitalization, can there be an increase in production and a boost in farm incomes?

The National Recovery and Resilience Plan foresees investments that promote the sustainable development of agriculture and ecotourism. It proposes actions to support agricultural production, such as actions to protect water resources, the installation of water meters and telemetry and a plan to upgrade and modernize the national irrigation network. These digital solutions and, in general, smart systems of natural resources management, can lead to sustainability, increasing the competitiveness of the agri – food sector and boosting agricultural income, through savings.

Is the EU's "Farm to Folk" policy to limit medicines in agriculture practically feasible? Can biomedicines fill the gap without harming agricultural production in Europe, with Member States ensuring their autonomy?

The European Commission’s “Farm to Fork” strategy sets targets for 50% reduction of pesticides’ use. As a sector that produces crop protection products, we are on the side of European Union for a sustainable agriculture, and open to discuss these objectives, always aiming to defend climate change and food safety. Nevertheless, we believe that 50% is not a realistic target. We have expressed our concerns regarding the impact this reduction may have on the farmer being able to effectively protect his crops from diseases and other pests.

Especially in a country like Greece, crops of the highest national importance, such as the olive trees, are threatened by the reduction of crop protection solutions. The inclusion of farmlands in organic farming is one of the approaches to sustainable agriculture, yet it cannot be the only one. I, myself, am a producer of olives and olive oil, and I understand the difficulties that conventional farmers will have to face, when soon, they will be left without any crop protection solutions, as far as pests like gloeosporium, olive fruit fly, and others, are concerned.

We are in the south, facing a lot of entomological problems. We do not want to even think about the nightmarish possibility of the emergence of Xylella fastidiosa bacterium in Greece, which may lead to the extinction of entire provinces from the olive map.

Similarly, how realistic are the targets for reducing emissions for a chemical group as large as BASF?

Climate change is the biggest challenge of the 21st century and we need to adapt the processes and our product range.

Recently, BASF announced that it is setting even more ambitious targets on its path towards climate neutrality. We want to achieve net zero emissions by 2050. But, also, in the middle – term our goal is to reduce global greenhouse gas emissions by 25% compared to 2018. This means halving the CO2 emissions of current business activity by the end of this decade. We consider these objectives to be realistic.

BASF is already planning to invest 1 billion euros by 2025, to achieve the new climate target, and an additional 2 to 3 billion euros by 2030. We invest to continuously improve the production processes of our factories and turn to renewable sources to cover our reductions on electricity. For this purpose, BASF intends to invest in wind farms.

In a more general turn of consumers towards sustainability, BASF has started in Greece the Certified Sustainable FiberMax^®, a certification program of cotton production with sustainable agricultural practices, known as CSF. Do you think that Greek cotton and the textile industry will be able to enter a higher – standards market in clothing, compared to mass production in other countries?

Greek cotton has always been well received in international markets. But in recent years there has been a shift in qualitative Greek cotton produced with sustainable agricultural practices. The threefold environment, society, and economic viability are important parameters that are now of interest to buyers of the Greek product.

CSF program satisfies the modern requirements of the final buyer and that is why our partners in the program – Thrakika Ginning SA, K. B. MARKOU and VIOLAR SA – have created a separate category of cotton market aiming at premium markets.

Strong brands have expressed their interest in supplying qualitative Greek cotton, produced according to a certain farming protocol, such as Certified Sustainable FiberMax®, as it combines quality, traceability, and sustainable farming practices from the field to the production of yarn and fabric.

Solutions such as recyclable plastics, sustainable cotton or organic products come at an additional cost. Will this increase the cost for the consumers?

We are facing major changes in the production process in all sectors, aiming to achieve the 17 goals for sustainable development agreed within the United Nations. Especially, the 12^th goal which refers to the responsible consumption and production concerns us all. Additionally, the new environmental – friendly trend of consumers in all markets has already been recorded in many surveys. The criteria of selecting and purchasing products differ in each age group, with younger ages showing a preference towards products that protect natural resources. In terms of cost, the more technologies evolve and are widely applied, the cheaper and more competitive they become.

And something equally important: regarding the three market criteria, and especially in the food market, the criterion of quality and safety, precede the one of the prices, as a criterion of goods purchase. So, for the modern consumer the price is not always what matters the most.

How did the chemical and agricultural industries cope with the pandemic?

The first quarter of 2020, the chemical industry started with good growth prospects. The pandemic, though, changed the situation, as the priority was to ensure the health of employees, as well as, to meet the needs of COVID – 19 protection materials, such as antiseptics, masks, etc.

There have also been significant barriers regarding the movement of raw materials and products, along with global uncertainty. Nevertheless, the European chemical industry and consequently the Greek one, adapted quickly and the decline in activity was mitigated.

Of course, there were sectors that were affected. Sectors related to the material we supply for tourism, textiles, and leather, whereas the sectors that developed were the ones of cleaning, disinfectants, and pharmaceuticals.

Especially, the Greek chemical industry maintained the positive sign in exports and 2020 ended with a slight improvement for the industrial production index. Greek agriculture was not affected as much as other sectors, such as tourism, transport, and health. Certainly, the pandemic highlighted aspects of the industry, such as the importance of supply and food security in times of crisis. Fortunately, the entire food production and supply chain has shown great resilience and adaptability to new conditions.