Essential to the survival of agriculture in France's overseas territories, European funding is nevertheless struggling to address the sector's weaknesses. In a report published on Monday, the European Court of Auditors concluded that aid paid to these outermost regions compensates for major disadvantages – remoteness, insularity, and dependence on imports – without, however, bringing about a lasting transformation of agricultural models.
Each year, approximately €650 million is allocated through the POSEI program. This support helps maintain the competitiveness of certain traditional agricultural products, but unevenly. The banana and dairy sectors are faring well, while others, such as sugarcane, continue their decline despite the addition of European and national subsidies.
Bananas and sugar: two opposing trajectories
Banana cultivation alone absorbs over 40% of subsidies, concentrated among a few large producers, a mechanism that limits agricultural diversification. If Caribbean bananas remain present on international markets, it is primarily thanks to subsidies, as the margins are absorbed by intermediaries. Conversely, the sugar sector appears weakened: since the end of European quotas in 2017, increased competition has caused prices to plummet, to the point where subsidies sometimes exceed sales revenue.
Beyond the imbalances between sectors, the Court warns of fundamental weaknesses: aging farmers, environmental pressures, and outdated farming practices. Without a more ambitious reorientation of subsidies, the European institution questions the ability of overseas agriculture to remain viable in the long term, despite financial support deemed vital.
