HEALTH CHECK AND FARM EFFICIENCY: A COMPARATIVE ASSESSMENT OF FOUR EUROPEAN AGRICULTURAL REGIONS

The European Commission has always considered the Common Agricultural Policy (CAP) as a dynamic political tool that aims to link the agricultural sector with the evolving of the economic, financial, social and political dynamics that distinguish the Member States of the European Union. From this standpoint, the Health Check (HC) is much more than a simple assessment of the state of health of European agriculture; it is a drawing up of the “new rules” that are to manage the relations between farms and the market, on which the future efficiency and survival of the said farms and the production sectors that characterise entire European agricultural regions will depend. In this context, the aim of this paper is to present and analyse the "innovations" of the future CAP compared to the current subsidy management system. In particular, the impact of the modifications of the HC – relative to the methods for funding farms due to the transition to the regionalised Single (Farm) Payment Scheme (SPS) and to the new rates of modulation – on the competitiveness of farms specialised in certain production sectors of four European regions will be considered: Emilia- Romagna (IT), Kassel (DE), Anatoliki-Makedonia-Thraki (GR) and Ostra Mallansverige (SE). The assessment of the impact of the HC on the competitiveness of farms is made by taking the technical efficiency index, estimated by a DEA model, as a proxy for the capacity of farms to use factors of production to their best advantage with respect to the farming system adopted and hence to be able to be competitive with other enterprises in the same sector. At the same time, the analysis of the impact of the HC measures is carried out using the “generalised” Positive Mathematical Programming method in order to enable a comparison between European regions. The integration of the two methods applied to the data of the European FADN enables an in-depth assessment of the impacts and a critical evaluation of the goals that the Community reform proposal is expected to attain.Health Check, Single Farm Payments, Technical Efficiency Index, DEA model, Positive Mathematical Programming., Agricultural and Food Policy, Political Economy, Research Methods/ Statistical Methods, Q10, Q12, Q18,

The resilient character of PDO/PGI products in dynamic food markets

The European and Italian food system is experiencing a change in the relationship with the consumer and with the distribution. In fact, customers are increasingly demanding, and are attracted, by products that have high quality content and a strong link with the territory. The brands with the price are the two factors affecting the strategic policies of the food producer firms. At the same time, the retail system has proven to be very sensitive to consumer demands by providing quality products at competitive prices and using their brand as an element of loyalty. In the European context, the Italian agri-food system has the higher number of products with the Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) recognition. However, 90% of PDO products are represented by only 15 Designations. This figure shows how different types of products find a much diversified business position in relation to the firm’s characteristics, to the markets characteristics, to the reputation of the Designation and to the consortium strategies in relation to their commercialization. The objective of this research, based on observed data collected through the survey of QUALIVITA Association, is to provide an exhaustive picture of the economic characteristics of the Italian PDO, PGI Designations and define a typology of such Designation according different set of variables as production system, reputation level, role of the territory and distribution channel. The ultimate goal is to determine the strategic levers taken at the marketing stage and to identify which factors clarify their potentiality on the market. The methodology adopted for the quantitative analysis is based on non-hierarchical cluster analysis by the method of k-mean in order to identify clusters of similar designations which explain what variables act on the various strategies adopted and on the related development processes.PDO/PGI, quality, modern distribution, cluster analysis, marketing strategies, development processes, Agricultural and Food Policy, Marketing,

Innovation in Estimation of Revenue and Cost Functions in PMP Using FADN Information at Regional Level

The objective of this paper is to present an evolution of PMP model suitable to estimate the revenue function and to provide price elasticity due to the variation of subsidies at farm level, especially if they are decoupled. This problem arises when individual data of farm households in a given region, coming from FADN, are used for implement PMP models finalized to policy analysis. This paper presents the theoretical background of the proposed innovations and empirical evidence on the basis of a sample of farms included in FADN database in Italy.Positive mathematical programming, Demand function, Agricultural policies evaluation, Agricultural and Food Policy, Demand and Price Analysis,

DIETARY EVOLUTION OVER TIME IN EUROPE, BETWEEN CYCLOPS AND PHAECIANS . AN OUTLOOK ON THE ROLE OF SUPPLY-SIDE FACTORS IN DRIVING CHANGES IN THE FOOD PATTERNS

The present study intends to shed light, both from a descriptive and investigative point of view on the dietary evolution taking place in Europe during last 45 years, using secondary data from FAO FBS, which can cover the entire time span considered and allow for several extrapolation and timeseries analysis, differently than single survey data.. After a clustering of selected european national diets, using specific metrics with respect both to internal and external variety (as measured by appropriate indicators), we intended to check the actual distance that average, national diets have in front of the so called Food Pyramid, which consists in a balance of several food items in adequate proportions and in fact glorifies the healthy virtues of the Mediterranean Diet as a reference model among food patterns. Furthermore, if several studies focussed strictly on the evolution of diet per-se, from a nutritional perspective- our purpose was to put it in context with economic and materialistic factors which could have a part in the explanation. In particular, our intention was to provide a focus on trade factor as explaining the changing diets. We tested with causality tests the hypothesis behind, in order to find relationship between economic factors and nutritional aspects. Eventually, we propose a preliminary investigation about the role of GIs (Geographic Indication food products, such as PDO) in relation to globalised food patterns. The results are interesting, and let the doors open for interpretations and further research.diets, evolution, clustering, food pyramid, Europe, trade, GI, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Health Economics and Policy, E37, Q18,

Animal Welfare in the CAP and Large-Scale Distribution. Public Social Policy and Consumer Trust

This paper studies the role of animal welfare (AW) institutionally and for large scale retail and its value in consolidating trust between institutions-taxpayers and large scale retail-consumers. The first section analyses AW in the new CAP and current strategies of retail with regard to expectations of taxpayers and consumers respectively. The second section analyses interviews on AW carried out in large scale and traditional retailing on the Italian market, and puts forward short and medium term forecasts of the importance that AW could have in distribution strategies in trust building with consumers and in relationships with institutional and other interlocutors of the retail trade.CAP, animal welfare, modern retail, free-riders, pro-active and reactive strategies, Agricultural and Food Policy, Livestock Production/Industries,

Quality Markers and Consumer Communication Strategies: Empirical Evidence in the 'Very Fresh' Sector in Italy

Quality is a key factor when consumers choose agri-food products, but at the same time is difficult for them to assess. On the demand side, consumers require protection measures, and on the supply side, efficient communications need to be available to all operators, including those who cannot afford to supply their own. In this context, quality markers such as logos, brands and indications or denominations that distinguish a product from its competitors can be a strategic way of transmitting information, especially for firms which cannot afford resources for communications or their own brand name. This research analyses and assesses the role of brands and territorial markers (PDO, PGI) in enhancing and promoting “very fresh” food products, in particular fruit and vegetables. The first part of the work identifies the most widely used quality markers, and the legal and organisational aspects for some of them. The second part is empirical and includes case studies on PDO and PGI, two company brands (Melinda and Marlene) in the fruit and vegetable sector and, finally, one collective brand, “QC – Qualità Controllata” set up by a regional authority, Emilia Romagna Region. Our case studies lead to the conclusion that collective brands and indications or denominations alone are not a sufficient condition for commercial success. What is essential, on top of basic product requisites, is the organisation of supply and brand strategy.Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety,

The Coexistence of PDO and Brand Labels: The Case of the Ready-sliced Parma Ham

The general purpose of the paper is to investigate consumer's attitude towards high quality agri-food products. The research analyses PDO labelled products packaged by law in the production area. Within the same area, the Producers' Group imposes the use of the Consortium label as a quality sign. As consequence, collective labels as well are find on a product packaging, by virtue of the fact that not only they graphically and symbolically represent quality, but they also inform customers about the properties of a specific PDO good. Moreover, on the same package other labels (industrial and private ones) are displayed on the same package. At this purpose, the research analysis of the customers' perception of such particular labels combination focusing the case of the ready-sliced Parma ham. The analysis gives the opportunity of evaluating, from an economic perspective, aspects related to the use of multi-labelling strategy

Regulatory Framework and Private Innovation: The Case of Animal Welfare Friendly Beef Supply Chain in Italy

The paper examines innovation in the agrifood sector through an analysis of relationships between public institutions and the private sector. The first part is theoretical and analyses the roles played by public and private actors in innovation. The second part is a case study of the beef supply chain of COOP, the biggest retailer on the Italian market. It exemplifies product innovation driven by a regulatory framework and shows how organisation and structural renewal required by animal welfare legislation can lead to voluntary initiatives and additional innovation along the supply chain. The case study also features the role of institutions in communications and shows how market awareness drives improvement in organisation of production chains

AN IMPACT ASSESSMENT OF THE FUTURE CAP REFORM ON THE ITALIAN TOMATO SECTOR

The Health Check (HC) document traces the path for a new revision of the CAP. The communication content can be summarised in the following points: decoupling at regional and not at historical level, a more intensive modulation mechanism differentiated according to the total volume of subsidy received by the farm and a new implementation of the art. 69. The aim of this paper is to assess the effect of the HC on the farms producing fruits and vegetables in Italy, with a particular emphasis on the processed tomato production. The model based on the PMP approach simulates the regionalisation mechanism and the new modulation per brackets. The analysis carried out on a FADN sample of farms located in Emilia-Romagna region highlights as the HC new measures affect the farm economic performances but not the input allocation choice. The flat rate doesn’t produce perturbation in the relative convenience of the crops maintaining unchanged the degree of substitution among activities. Only when the CAP mechanism moves from a coupling scenario to a total decoupling one and in the case of a variation in price levels the modifications inside the production plan are evident.Future CAP reforms, Tomato sector, CAP assessment, Agricultural and Food Policy, Political Economy, Q10, Q18,

Impact assessment of greening and the issue of nitrogen-fixing crops: Evidence from northern Italy

In the CAP reform 2014–2020, the 'green' component of direct payments remunerates environmental services and includes three greening requirements: crop diversification, maintenance of permanent grassland and establishment of an ecological focus area (EFA). This paper evaluates the effect of 'greening' and payment redistribution on farm incomes and land use, considering two different hypotheses of the EFA weighting factor (Ewf) for nitrogen-fixing crops. The evaluation is developed at farm level by a positive mathematical programming (PMP) model and applied to more than 2,000 farms in northern Italy. The results show that crop diversification will mainly affect the cereal area, with significant reductions in maize and wheat, while the EFA requirement, especially with the lower Ewf, will boost the spread of protein crops. Nevertheless, 'greening' does not significantly affect farm income, while greater economic effects are mainly due to the redistribution of direct payments