14-04-2008 17:55 Pagina 1 080814707 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 978-88-495-1556-5 Edizioni Scientifiche Italiane
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
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-2004-502184. 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; 1.3.1 F. Giarè 2.1.1 2.1.2 T. Neri; 2.1.3 G. Brunori, M. Rovai; 2.1.4 2.1.5 G. Belletti; 2.1.6 2.1.8. A. Marescotti; 2.1.9 A. Pacciani: 2.2 F. Arfini; 2.3 K. De-Roest 3.1 M. Donati; 3.2 M. Donati; 3.3 R. Solazzo 4.1.1 4.1.2 A. Marescotti; 4.1.3 T. Neri; 4.1.4 L. Tudini; 4.1.5 G. Belletti; 4.1.6 R. Cerruti; 4.1.7 A. Marescotti; 4.1.8 4.1.9 T. Neri; 4.2.1 L. Aguglia; 4.2.2 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 978-88-495-1556-5 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.
CONTENTS FOREWORD 13 INTRODUCTION 15 CHAPTER 1 - THE METHODOLOGY: AN INTEGRATED APPROACH 1.1. THE QUALI-QUANTITATIVE INTEGRATED APPROACH 21 1.1.1. Food chain analysis context 23 1.1.2. The quantitative analysis about the farm performances and the reform effects 24 1.1.3. Qualitative analysis of food chain firms strategies 24 1.1.4. The SWOT analysis 25 1.2. PMP 25 1.2.1. The estimation of marginal costs by activities 26 1.2.2. Deriving the cost function 27 1.2.3. An alternative to the traditional PMP model 30 1.3. THE QUALITATIVE ANALYSIS: THE FOOD SUPPLY CHAIN APPROACH 35 1.3.1. The qualitative analysis: the focus group 36 CHAPTER 2 - THE FOOD SUPPLY CHAINS 2.1. DURUM WHEAT IN TUSCANY 39 2.1.1. The evolution of the Common Market Organization in cereals 39 2.1.1.1. The McSharry Reform (1992) 39 2.1.1.2. The Fischler Reform (MTR) of 2003 41 2.1.2. The decoupling implementation for the durum wheat sector in Italy 42 2.1.2.1. Total decoupling 42 2.1.2.2. Durum wheat quality premium 42 2.1.2.3. Implementation of art. 69 43 2.1.2.4. The new CMO in cereals 43 2.1.3. Stakeholders positions towards the CAP reform implementation 44 2.1.3.1. Upstream phases 45 2.1.3.2. Cultivation phase 46 2.1.3.3. Storage and first trading phase 46 2.1.3.4. Processing phase 47 2.1.3.5. Regional associations (Tuscany) 47 2.1.4. The durum wheat case study in Tuscany: an overview 50 2.1.5. The agricultural phase 53 2.1.5.1. Surfaces and production: evolution and territorial distribution 53 2.1.5.2. Quality production 58 STUDI & RICERCHE INEA 5
2.1.5.3. Farms characteristics 59 2.1.5.4. The wheat profitability 64 2.1.5.5. Marketing 65 2.1.6. The farm trading phase 66 2.1.7. The first processing phase: the milling industry 67 2.1.8. The second processing phase: the pasta industry 69 2.1.9. Main issues 71 2.2. THE MILK FOOD CHAIN FOR THE PRODUCTION OF PARMIGIANO REGGIANO 72 2.2.1. The Institutional framework of the Milk CMO in Italy 72 2.2.1.1. EC Reg. 1782/2003 and Dairy Sector 72 2.2.1.2. The Italian choice for the dairy sector 75 2.2.1.3. Stakeholders position towards the implementation of the MTR 76 2.2.2. Origin of the Parmigiano Reggiano and overview of the chain 77 2.2.2.1. Historical aspects 77 2.2.2.2. Some basic data 78 2.2.2.3. Actors and stages from producer to consumer 79 2.2.3. The structure and the economics of milk production in the Parmigiano Reggiano area 85 2.2.3.1. The structure of the Parmigiano Reggiano milk producers 85 2.2.3.2. Production costs for milk producers 89 2.2.3.3. Farm gate milk prices 92 2.2.3.4. Profitability and value added 94 2.2.4. Milk processors 97 2.2.4.1. The structure and localization of milk processing plants in Italy 97 2.2.4.2. The structure of the Parmigiano Reggiano industry in Emilia Romagna 98 2.3. THE BEEF SECTOR IN VENETO 107 2.3.1. The Common Market Organization and the MTR 107 2.3.1.1. The common beef market organization under Agenda 2000 107 2.3.1.2. The Fischler Reform (MTR) 110 2.3.2. The MTR seen by the different stakeholders of beef supply chain 113 2.3.2.1. Stakeholders position towards the implementation of the MTR 114 2.3.3. The structure of beef supply chain: beef farms 116 2.3.3.1. Beef production in Italy 116 2.3.3.2. Beef farms system in North Italy and in Veneto 120 2.3.4. The structure of beef supply chain: beef industry 127 2.3.4.1. The structure of beef slaughtering and processing industry in Italy 127 2.3.4.2. The main operators 129 2.3.4.3. Supply strategies 130 2.3.4.4. Quality trademarks 131 2.3.4.5. The voluntary beef labelling systems 131 CHAPTER 3 - THE EFFECTS OF THE CAP REFORM ON ITALIAN 6 STUDI & RICERCHE INEA
AGRICULTURAL CASE STUDIES 3.1. THE HYPOTHESIS OF THE EVALUATION 135 3.2. IMPACT ANALYSIS ON FARMS PRODUCING DURUM WHEAT IN TUSCANY 135 3.2.1. Sample description 135 3.2.2. The land use 137 3.2.3. The economic results 139 3.2.4. The labour 141 3.3. IMPACT ANALYSIS ON DAIRY FARMS IN PARMIGIANO REGGIANO AREA IN ITALY 142 3.3.1. Sample description 142 3.3.2. The land use 143 3.3.3. The animal production 146 3.3.4. The economic results 147 3.3.5. The labour 149 3.4. IMPACT ANALYSIS ON BEEF BREEDING IN VENETO 150 3.4.1. Sample description 150 3.4.2. The land use 151 3.4.3. The animal production 154 3.4.4. The economic results 155 3.4.5. The labour 153 CHAPTER 4 - QUALITATIVE ANALYSIS OF FISHLER S REFORM ON ITALIAN CASE STUDIES 4.1. THE DURUM WHEAT CASE 159 4.1.1. Objectives of the survey 159 4.1.2. The durum wheat qualitative analysis 161 4.1.3. Trends of durum wheat production and market prices in the case study areas 161 4.1.4. Selection of respondents 165 4.1.5. Results 167 4.1.5.1. Decisional factors 167 4.1.5.2. Main changes at farm level 170 4.1.5.3. Main changes at supply chain level 181 4.1.6. Checking the results: the final focus group 185 4.1.6.1. Aims 185 4.1.6.2. Some relevant outcomes of the discussion 185 4.2. FOCUS GROUPS ON MILK SECTOR FOR PARMIGIANO REGGIANO 186 4.2.1. First focus group and interviews 186 4.2.1.1. Methodology 187 4.2.1.2. Main characteristics of the farms interviewed 187 4.2.1.3. Main results 189 4.2.1.4. CAP reform impact evaluation from farmers point of view 192 4.2.2. Second focus group and interviews 193 STUDI & RICERCHE INEA 7
4.3. INTERVIEWS ON BEEF SECTOR IN VENETO 197 4.3.1. Main characteristics of the farms interviewed 197 4.3.2. Main results 197 4.3.2.2. 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 199 5.1.1. Strengths and Weaknesses 200 5.1.2. Opportunities and Threats 201 5.2. THE SWOT ANALYSIS OF THE PARMIGIANO REGGIANO SUPPLY CHAIN 201 5.2.1. Strengths and Weaknesses 203 5.2.2. Opportunities and Threats 205 5.3. THE SWOT ANALYSIS OF THE BEEF SUPPLY CHAIN IN VENETO 208 5.3.1. Strengths and Weaknesses 208 5.3.2. Opportunities and Threats 210 CHAPTER 6 - POLICY INDICATIONS, RECOMMENDATIONS AND CONCLUSIONS 6.1. GENERAL POLICY INDICATIONS 213 6.1.1. Farm level 213 6.1.2. Food chain level 214 6.2. SPECIFIC POLICY INDICATIONS 215 6.2.1. Cereal food chain 215 6.2.2. Milk food chain 216 6.2.3. Beef food chain 218 REFERENCES 221 8 STUDI & RICERCHE INEA