SOCIOECONOMIC IMPACT OF DECOUPLING AND FOOD-CHAIN PERSPECTIVE SOME INDICATIONS FROM ITALY
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1 :55 Pagina copertina STUDI E RICERCHE DEF:copertina STUDI E RICERCHE DEF g lin up co : de ive y of ect tal ct sp I pa per from Im n ic hai ons om -c ati on od ic ESI ec fo ind cio nd e So a som Questo volume, sprovvisto del talloncino a fronte, è da considerarsi copia saggio gratuito esente da I.V.A. (art. 2, c. 3, lett. d, D.P.R. 633/1972) 22,00 National Institute of Agricultural Economics SOCIOECONOMIC IMPACT OF DECOUPLING AND FOOD-CHAIN PERSPECTIVE: SOME INDICATIONS FROM ITALY After the implementation of the Mid Term Review (MTR) of the Common Agricultural Policy (CAP), European Union has started the process of understanding which possible impacts the introduction of the Single Farm Payment Scheme can generate on European agriculture. This book reports part of the results of the research activities carried out within GENEDEC project, financed by DG-AGRI in cooperation with DGResearch in the context of the Six Framework Programme, that have committed, in three years of research, fifteen Universities and Research Centres across Europe. The assessment of the proposed decoupling of direct payments, under consideration in the Mid-TermReview, was based on the analysis of their potential benefits and the likely costs including marketable and non-marketable goods, services, and the action of the economic decision-makers in the agricultural sector. The project has been designed to undertake socioeconomic and environmental assessments of such measures, by using a set of existing and modified models for various levels of analysis. The proposed methodological approach consists in extending the economic analysis using farm and sector level mathematical programming and other models incorporating technical inputs and sociological and qualitative methodology. The final objective of GENEDEC was to provide information on the possible impact and future implications of decoupling in order to enable policymakers to understand the main variables playing role in this new framework and the reaction of farm holders in term of supply of goods and services but also in term of strategies and, thus, adopt properly future agriculture policy action. SOCIOECONOMIC IMPACT OF DECOUPLING AND FOOD-CHAIN PERSPECTIVE SOME INDICATIONS FROM ITALY edited by Filippo Arfini, Giovanni Belletti, Francesca Giarè, Andrea Marescotti Edizioni Scientifiche Italiane
2 NATIONAL INSTITUTE OF AGRICULTURAL ECONOMICS SOCIOECONOMIC IMPACT OF DECOUPLING AND FOOD-CHAIN PERSPECTIVE SOME INDICATIONS FROM ITALY edited by FILIPPO ARFINI, GIOVANNI BELLETTI, FRANCESCA GIARÈ and ANDREA MARESCOTTI
3 This book presents part of the results achieved in the framework of the European research project GENEDEC, A quantitative and qualitative assessment of the socio-economic and environmental impact concerning the decoupling of direct payments on agricultural production, markets and land use in the EU, contract no. SSPE-CT This volume was edited by Filippo Arfini, Giovanni Belletti, Francesca Giarè and Andrea Marescotti The working group was coordinated by Filippo Arfini and consists of: Laura Aguglia, Francesca Giarè, Lucia Tudini (INEA), Filippo Arfini, Michele Donati, Roberto Solazzo (University of Parma), Giovanni Belletti, Andrea Marescotti, Tommaso Neri, Alessandro Pacciani (University of Florence), Gianluca Brunori, Raffaella Cerruti, Francesca Guidi, Massimo Rovai, Pierfrancesca Sanna (University of Pisa). Introduction Chapter 1: Chapter 2: Chapter 3: Chapter 4: Chapter 5: Chapter 6: F. Arfini 1.1 F. Arfini; 1.2 M. Donati; 1.3 F. Arfini; F. Giarè T. Neri; G. Brunori, M. Rovai; G. Belletti; A. Marescotti; A. Pacciani: 2.2 F. Arfini; 2.3 K. De-Roest 3.1 M. Donati; 3.2 M. Donati; 3.3 R. Solazzo A. Marescotti; T. Neri; L. Tudini; G. Belletti; R. Cerruti; A. Marescotti; T. Neri; L. Aguglia; F. Giarè; 4.3 C. Montanari 5.1 T. Neri; 5.2 F. Arfini; 5.3 R. Solazzo F. Arfini ARFINI, Filippo; BELLETTI, Giovanni; GIARÈ, Francesca; MARESCOTTI, Andrea (edited by) Socioeconomic impact of decoupling and food-chain perspective: some indications from Italy Collana: Studi & Ricerche INEA Napoli: Edizioni Scientifiche Italiane, 2008 pp. 224; 24 cm ISBN Copyright 2008 by Istituto Nazionale di Economia Agraria, Roma. È vietata la riproduzione, anche parziale, con qualsiasi mezzo effettuata, compresa la fotocopia, anche ad uso interno o didattico, non autorizzata.
4 CONTENTS FOREWORD 13 INTRODUCTION 15 CHAPTER 1 - THE METHODOLOGY: AN INTEGRATED APPROACH 1.1. THE QUALI-QUANTITATIVE INTEGRATED APPROACH Food chain analysis context The quantitative analysis about the farm performances and the reform effects Qualitative analysis of food chain firms strategies The SWOT analysis PMP The estimation of marginal costs by activities Deriving the cost function An alternative to the traditional PMP model THE QUALITATIVE ANALYSIS: THE FOOD SUPPLY CHAIN APPROACH The qualitative analysis: the focus group 36 CHAPTER 2 - THE FOOD SUPPLY CHAINS 2.1. DURUM WHEAT IN TUSCANY The evolution of the Common Market Organization in cereals The McSharry Reform (1992) The Fischler Reform (MTR) of The decoupling implementation for the durum wheat sector in Italy Total decoupling Durum wheat quality premium Implementation of art The new CMO in cereals Stakeholders positions towards the CAP reform implementation Upstream phases Cultivation phase Storage and first trading phase Processing phase Regional associations (Tuscany) The durum wheat case study in Tuscany: an overview The agricultural phase Surfaces and production: evolution and territorial distribution Quality production 58 STUDI & RICERCHE INEA 5
5 Farms characteristics The wheat profitability Marketing The farm trading phase The first processing phase: the milling industry The second processing phase: the pasta industry Main issues THE MILK FOOD CHAIN FOR THE PRODUCTION OF PARMIGIANO REGGIANO The Institutional framework of the Milk CMO in Italy EC Reg. 1782/2003 and Dairy Sector The Italian choice for the dairy sector Stakeholders position towards the implementation of the MTR Origin of the Parmigiano Reggiano and overview of the chain Historical aspects Some basic data Actors and stages from producer to consumer The structure and the economics of milk production in the Parmigiano Reggiano area The structure of the Parmigiano Reggiano milk producers Production costs for milk producers Farm gate milk prices Profitability and value added Milk processors The structure and localization of milk processing plants in Italy The structure of the Parmigiano Reggiano industry in Emilia Romagna THE BEEF SECTOR IN VENETO The Common Market Organization and the MTR The common beef market organization under Agenda The Fischler Reform (MTR) The MTR seen by the different stakeholders of beef supply chain Stakeholders position towards the implementation of the MTR The structure of beef supply chain: beef farms Beef production in Italy Beef farms system in North Italy and in Veneto The structure of beef supply chain: beef industry The structure of beef slaughtering and processing industry in Italy The main operators Supply strategies Quality trademarks The voluntary beef labelling systems 131 CHAPTER 3 - THE EFFECTS OF THE CAP REFORM ON ITALIAN 6 STUDI & RICERCHE INEA
6 AGRICULTURAL CASE STUDIES 3.1. THE HYPOTHESIS OF THE EVALUATION IMPACT ANALYSIS ON FARMS PRODUCING DURUM WHEAT IN TUSCANY Sample description The land use The economic results The labour IMPACT ANALYSIS ON DAIRY FARMS IN PARMIGIANO REGGIANO AREA IN ITALY Sample description The land use The animal production The economic results The labour IMPACT ANALYSIS ON BEEF BREEDING IN VENETO Sample description The land use The animal production The economic results The labour 153 CHAPTER 4 - QUALITATIVE ANALYSIS OF FISHLER S REFORM ON ITALIAN CASE STUDIES 4.1. THE DURUM WHEAT CASE Objectives of the survey The durum wheat qualitative analysis Trends of durum wheat production and market prices in the case study areas Selection of respondents Results Decisional factors Main changes at farm level Main changes at supply chain level Checking the results: the final focus group Aims Some relevant outcomes of the discussion FOCUS GROUPS ON MILK SECTOR FOR PARMIGIANO REGGIANO First focus group and interviews Methodology Main characteristics of the farms interviewed Main results CAP reform impact evaluation from farmers point of view Second focus group and interviews 193 STUDI & RICERCHE INEA 7
7 4.3. INTERVIEWS ON BEEF SECTOR IN VENETO Main characteristics of the farms interviewed Main results Farmers choices and changes in farm management and their motivations 198 CHAPTER 5 - SWOT ANALYSIS ON ITALIAN SUPPLY CHAIN CASE STUDIES 5.1. THE SWOT ANALYSIS OF THE DURUM WHEAT SUPPLY CHAIN IN TUSCANY Strengths and Weaknesses Opportunities and Threats THE SWOT ANALYSIS OF THE PARMIGIANO REGGIANO SUPPLY CHAIN Strengths and Weaknesses Opportunities and Threats THE SWOT ANALYSIS OF THE BEEF SUPPLY CHAIN IN VENETO Strengths and Weaknesses Opportunities and Threats 210 CHAPTER 6 - POLICY INDICATIONS, RECOMMENDATIONS AND CONCLUSIONS 6.1. GENERAL POLICY INDICATIONS Farm level Food chain level SPECIFIC POLICY INDICATIONS Cereal food chain Milk food chain Beef food chain 218 REFERENCES STUDI & RICERCHE INEA
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