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www.regione.lombardia.it
www.regione.lombardia.it LOMBARDY agriculture in figures - 2014 Fondo Europeo Agricolo per lo Sviluppo Rurale: l’Europa investe nelle zone rurali PSR 2007-2013 Direzione Generale Agricoltura Editing staff Sabrina Giuca, INEA (supervisor); Maria Silvia Giannini (coordination for DGA, Lombardy Region); Alessandro Nebuloni, DGA Regione Lombardia; Roberto Pretolani, DEMM; Renato Pieri, SMEA; Roberto Cagliero, INEA; Francesca Marras, INEA Topical consultants Daniele Bellomo, Danilo Bertoni, Lucia Briamonte, Roberto Cagliero, Maurizio Castelli, Stefano Dell’Acqua, Maria Silvia Giannini, Sabrina Giuca, Rita Iacono, Teresa Lettieri, Pietro Manzoni di Chiosca e Poggiolo, Sonia Marongiu, Renato Pieri, Roberto Pretolani, Maria Rosaria Pupo d’Andrea Editing revision Sabrina Giuca e Maria Silvia Giannini Processing Marco Amato, Alessia Fantini e Fabio Iacobini Translation Barbara Perna Editorial coordination Benedetto Venuto Layout plan and realisation Carlo Silva e Fabio Lapiana Photography Carlo Silva Internet edition Massimo Perinotto Secretarial staff Lara Abbondanza, Debora Pagani, Francesca Ribacchi, Novella Rossi We would like to thank for their collaboration: Maria Teresa Besana, Gabriele Boccasile, Roberta Capretti, Andrea Corapi, Gloria Corti, Ersilia Di Tullio, Stefano Foschini, Claudio Liberati, Andrea Massari, Giovanna Nicastro, Donatella Parma, Antonio Pepe, Andrea Povellato, Marina Ragni, Serena Tarangioli, Roberto Tonetti “Lombardy agriculture in figures” represents an easy-to-read tool, proposed by the Agricultural Department of the Lombardy Region with an annually periodicity, aimed at providing to the various operators of the sector, through figures and indicators, an updating of the main features and dynamics of the agri-food and forestry sector in Lombardy. The present edition will be particularly useful also in the occasion of the international event “Expo Milan 2015”, for all those who care nutrition, in terms both of food safety and of food security, seeking for a sustainable development, and for those who are willing to find a dimension and declination in the reality of the regional productive system. The continuing availability of this booklet is possible thanks to the collaboration agreement between Lombardy region, INEA, DEMM and SMEA, through the share and enhancement of the statistical data and the analysis on the agri-food system, carried on with the aim of fostering the wider regional programming activity. The Lombardy’s agri-food system is the most important at the Italian level, and one of the most remarkable in the European framework. Nonetheless, its components have suffered the difficult economic cycle following the worldwide economic crisis. Although the value of the agricultural output, equal to 7.4 billion euro (13.9% on the national total) exceeds the precrisis levels from already three years on, the value added , after having recovered the decrease suffered in 2009, doesn’t show positive signs (-1.5% in 2013), due both to the productive results of unfavourable agrarian years (2012 and 2013), and to disadvantaged terms of trade for the agricultural sector, despite a slight increase in 2013 (+0.2%). The value of the regional agri-industrial output, amounting to 13.3 billion euro (16.3% on the national total), is further increased by 1.1% over 2012, thanks to the role played by the food industry, compared to a domestic demand for foodstuffs which suffers a deadlock, and a continuous positive trend in the agri-food exports (+4.6%). The fluctuation of prices has led, over these latest years, to a great variability of the economic results of the agricultural sector in the various sectors, with differentiated dynamics and impacts even for the food industry. The number of the agricultural businesses suffers a progressive decrease (-3.2% between 2012 and 2013) with an increase of the mortality rate, which is, nevertheless, below the national level, thus highlighting the continuous higher resistance of the agricultural businesses in Lombardy. Although the livestock vocation and the tendency at the processing of typical products represent one of the main strength point, there are many complex elements, in the global context, which jeopardize the profitability of the business; that’s why the commitment of the regional policy aims at adopting strategic choices, capable to provide perspectives to the future of agriculture and of the agri-food sector. During 2014 have been detected some positive examples, such as: the recognition of the predominant role of the 3 livestock sector, to which it has been earmarked over 50% of the coupled aid established in the First Pillar of the new CAP; and, always in terms of sustain to the farmers’ income, the decision to keep, in a still difficult economic cycle, the allocation for the subsidies of the regional advance payment of the CAP funds, amounting to little more than 310.5 million euro, to the benefit of about 30,500 Lombardy farmers. There is no doubt that considering the next abolition of the regime for the milk shares, the unexpected crisis between Ukraine and Russia and the subsequent embargo to the export for some agri-food products, mostly of them produced in the agricultural macroregion of North, have pointed out how it is so important, in order to stabilize earnings of the businesses and to allow paths of growth, to adopt tools for regulating the market, at a level of overall system, as well as protecting prices from instability, even through forms of insurance; all parts should act in this way so as to achieve a sharing of all possible solutions. The rural development program represents an important financial source aimed at sustaining and developing the regional agricultural. As of 1st January 2015, it will be operative the new RDP for the seven-year period 2014-2020, which will provide 1.157 billion euro, with 133 million euro more than the previous programming period. Among the measures which characterize the strategic choices of the Region, are particularly important the interventions aimed at achieving innovation and competitiveness of businesses and of the agri-food supply chains, which will be characterized by a greater approach of the system. Therefore, Expo represents a big oppor- tunity to build and strengthen the competitive advantage of the businesses of the agri-food supply chain, mainly for the incentive towards innovation and new channels; but Expo aims at being also an occasion for fostering concrete answers to the problems; it will also represent a moment for sharing papers, with the EU Institutions and the EU countries, containing the measures for preventing and containing the counterfeiting in the agri-food sector. The so-called “Italian sounding”, besides producing a direct economic damage, decreases the perception of quality of the original product by the consumer. It is, therefore, necessary to intervene in order to better safeguarding our productions, and to increase the knowledge of traceability, origin and quality of the productions. Gianni Fava Councillor for Agriculture of the Lombardy Region 4 CONTENTS ECONOMY AND AGRICULTURE Land and population Protected areas Gross domestic product Value added Employment AGRICULTURE pg. 10 pg. 16 pg. 21 pg. 24 pg. 26 AGRI-INDUSTRIAL SYSTEM Components of the system Food industry and cooperation Distribution Foreign trade Food consumption 6 pg. 32 pg. 34 pg. 39 pg. 41 pg. 44 Agri-meteorological trend Production levels in agriculture Intermediate consumption Investments Prices Structures in agriculture Economic results of the fadn farms Mechanization Credit for agriculture Land market pg. 48 pg. 50 pg. 60 pg. 63 pg. 66 pg. 69 pg. 80 pg. 90 pg. 93 pg. 96 Sustainability and multi-functionality Water resource management Agricultural practices Forests Fishing and aquaculture Agri-energy Products of designated origin and traditional products Organic farming Integrated production Agritourism (farm stays) Direct sales Educational farms AGRICULTURAL POLICY pg. 100 pg. 104 pg. 108 pg. 112 pg. 114 pg. 117 pg. 126 pg. 130 pg. 132 pg. 136 pg. 141 Regional legislation on agriculture Regional agricultural spending Cap – First pillar Rural Development Program (Cap – Second pillar) pg. 144 pg. 147 pg. 151 pg. 154 GLOSSARy Glossary pg. 160 7 ECONOMY AND AGRICULTURE land and population The region, amounting to 23,862 square kilometers, represents about 7.9% of the national area, and it is characterized by lowlands (47%), hills (12.4%) and mountains (40.5%). In terms of population, Lombardy is the most populated of the Italian regions with nearly 10 million inhabitants (equal to 16.4% of the national popu- Land, inhabitants and population density in Lombardy, 2013 Land area % breakdown Inhabitants % breakdown Density % of foreign people (sq.km) of land as from 1st Jan 2013 of inhabitants (inhabitants/sq.km) compared to the inhabitants Lombardy 23,862.80 100.0 9,794,525 100.0 410.5 10.5 Mountains Hills Lowlands 9,672.81 2,963.62 11,226.37 40.5 12.4 47.0 1,044,529 2,036,605 6,713.391 10.7 20.8 68.5 108.0 687.2 598.0 7.5 9.8 11.2 2,722.86 4,784.36 1,288.07 1,770.57 816.17 782.36 2,338.84 1,576.59 405.49 2,964.70 3,211.90 1,198.71 11.4 20.0 5.4 7.4 3.4 3.3 9.8 6.6 1.7 12.4 13.5 5.0 1,094,062 1,247,192 592,504 361,812 338,425 225,798 411,335 3,075,083 850,684 539,569 181,101 876,960 11.2 12.7 6.0 3.7 3.5 2.3 4.2 31.4 8.7 5.5 1.8 9.0 401.8 260.7 460.0 204.3 414.7 288.6 175.9 1.950.5 2.097.9 182.0 56.4 731.6 10.9 13.1 7.9 11.3 8.0 10.8 12.9 11.7 7.7 9.5 4.6 8.0 Bergamo Brescia Como Cremona Lecco Lodi Mantua Milan Monza e Brianza Pavia Sondrio Varese Source: ISTAT. 10 lation), mostly concentrated in the lowlands and foothills. In these areas, the population density exceeds 600 inhab./square kilometers, compared to the regional average of 410 inhab./ square Kms, and the national average of 198 inhab./square kms. Over the last decade, the population of Lombardy has increased by 8% compared to the 4.5% experienced at a national level. This result is the consequence of the migration flows: Trend in the anthropised areas, in the agricultural and wooded areas (1955-2012) 1,400 1,322 1,262 1,200 (,000 ettari) 1,000 1,087 888 1,043 1,026 927 930 854 917 800 Agricultural lands 600 400 200 0 Anthropised areas 302 336 346 2007 2012 Woods and natural areas 194 100 1955 1980 1999 Source: ERSAF. 11 about 10.5% of the inhabitants is foreign, compared to the national share of 7.4%. The elderly people (aged over 65 years) represent 21.1% of the population, in line with the national average, whereas the ageing rate, which expresses the ratio between the number of inhabitants aged over 65 years and those who are aged less than 15 years, is equal to 1.5, and it is in line with the national average. The high population density, and the growing trend of the population, depicts a widespread rate of human interventions on the territory, which reaches about 14.5%; at a local level, particularly high are the values of Land coverage in Lombardy, anthropised areas, agricultural areas, and wooded territories Anthropised areas Wooded areas (%) (%) (%) (000 ha) Bergamo Brescia Como Cremona Lecco Lodi Mantua Milan Monza e Brianza Pavia Sondrio Varese Lombardy 14.4 11.7 16.6 11.1 15.3 13.1 12.6 40.5 55.1 9.4 2.7 29.4 14.5 Source: ERSAF-DUSAF, 2007, 2012. 12 56.5 48.4 60.0 2.7 60.7 5.0 2.7 6.9 10.4 16.1 88.7 46.3 39.0 27.5 34.4 14.7 84.7 14.9 79.6 81.4 51.1 34.3 72.9 7.4 14.6 43.0 75.7 164.4 18.8 150.0 12.1 62.2 190.8 80.6 13.9 216.3 23.7 17.6 1,026.0 Agricultural areas % of which % of which arable permanent crops 56.7 73.7 48.6 87.6 33.3 83.2 88.5 81.6 82.8 80.5 6.6 63.0 77.3 2.6 6.3 1.3 3.8 2.0 4.5 6.5 3.1 1.0 15.1 12.9 1.6 7.1 % of which meadows 40.8 19.9 50.1 8.7 64.8 12.3 5.0 15.3 16.2 4.4 80.6 35.4 15.6 % change 2012/07 -2.9 -1.7 -3.3 -0.9 -6.6 -0.9 -0.7 -2.2 -2.6 -1.6 -3.9 -3.6 -1.7 Monza and Milan, respectively of 55.1% and 40.5% (DUSAF data, 2012). The woody areas and the natural areas cover 39% of the regional territory, particularly in the mountainous areas, with a peak of 88% in the province of Sondrio. The agricultural land, amounting to little more than 1 million hectares, corresponds to 43% of the regional area, and it shows a peak Food’ self-sufficiency rate in Lombardy and in Italy (average 2009-2011) ItalyLombardy Global self-sufficiency rate (kcal) - of which vegetables - of which animals 65.5 64.1 76.7 64.5 56.6 139.1 Self-sufficiency rate in the human consumption (kcal) - of which vegetables - of which animals 67.2 64.1 76.8 60.1 34.4 139.0 Domestic production per hectare of UAA (Kcal) Domestic vegetable production per hectare of arable+woods (Kcal) Domestic animal production per hectare of fodder (Kcal) 8,974,192 10,570,450 2,849,295 22,040,000 20,664,002 10,317,746 Maintainable inhabitants/hectare Total maintainable inhabitants with domestic productions 3.3 39,999,900 5.9 5,816,856 91.3 74.1 Self-sufficiency rate, in value Source: DEMM processing on Faostat data. in the province of Cremona (84.7%) and a minimum in the province of Sondrio (7.4%). 77% of the agricultural lands is earmarked to the arable crops. The decrease of the agricultural lands seems to be an unstoppable phenomenon, both because of the human interventions, mainly in the lowlands, and of the phenomena of re-naturalization, mostly on the hills and mountains; compared to 1955, the loss of the agricultural areas has amounted to 22.4%, compared to an increase of about 250% of the areas modified through the human intervention. Between 2007 and 2012, the regional agricultural areas have decreased by 1.7%, with a peak of 6.6% in the province of Lecco. The issue of the food self-sufficiency is closely related to the phenomenon of the loss of UAA and of population. According to the estimates released by DEMM, and which refer to the period 2009-2011, the rate of total self-suffi- 13 ciency, ensured by the Lombardy agriculture, amounts to 64.5%, in terms of calories, whereas, at a national level, it represents 65.5%. By considering the human consumption, despite a greater average productivity, in terms of calories per hectare (5.9 inhabitants per hectare, compared to 3.3 at the Italian level), Lombardy manages to maintain, in terms of calories, only 60.1% of its inhabitants, compared to 67.2% of Italy. At the same way as for the population density, also the ratio between the inhabitants and the agricultural area shows a very high value, decisively higher than the corresponding national data and the community’s data. 60% of the annual tourist flow of Lombardy, generally equal to 13.6 millions of arrivals, involves touristic places and, in particular, the cities of historical and artistic interest (such as Milan, Bergamo, Como) and the places 14 located near the lakes (Garda’s lake, Como’s lake, Lecco’s lake, Maggiore lake), where the foreign people reach respectively 60.8% and 69.6% of the arrivals. 10.2% of the regional arrivals (compared to 20% of the national level) is oriented towards non-hotel accommodation, mainly represented by camping, touristic villages, and rental accommodation, which represent solutions with the higher foreign presence, and an average permanence of about one week. The arrivals, over the last years, are progressively increased, whereas the same thing didn’t occurred for the average permanence; between 2008 and 2012, the share of the foreign tourists has experienced an Ratio population/agricultural land (inhabitants/100 ha of UAA), 2010 Lombardy 1,005 Italy - North 608 Italy EU-27 Source: EUROSTAT, ISTAT, 2010. 472 292 increase, growing from 46.4% to 50.6% of the total, thus remaining higher than the national average (47%). Over time, the rental accommodation has increased its share on the total of the arrivals, in 2012 it amounted to 2.4%, as well as the farm holidays (0.9%), and the bed and breakfast (1%). Trends of the arrivals in the accomodation facilities in Lombardy, 2012 Total % arrivals % foreign arrivals arrivals* stay** /total Type of place Country town and municipalities 5,434,480 10,040,495 40.0 36.9 Place of touristic interest 8,161,493 23,326,141 60.0 59.7 - cities of historical and artistic interest 5,341,832 11,301,948 39.3 60.8 - mountains 755,115 3,073,169 5.6 32.8 - lakes 1,927,016 8,545,662 14.2 69.6 - thermal places 69,425 259,945 0.5 23.5 - hilly places of various interest 68,105 145,417 0.5 35.1 Type of accomodation Hotels 12,214,834 26,417,628 89.8 50.4 extra-hotel accomodations 1,381,139 6,949,008 10.2 53.1 - camping and touristic villages 615,186 3,666,493 4.5 57.5 - housing for rent 327,475 1,907,668 2.4 62.5 - farm stays 123,172 399,497 0.9 33.8 - bed and breakfast 131,323 285,443 1.0 39.0 - other types of accomodation 183,983 689,907 1.4 44.3 Lombardy 13,595,973 33,366,636 100.0 50.6 Italy 103,733,157 380,711,483 47.0 average stay/ n. of nigts/client 1.8 2.9 2.1 4.1 4.4 3.7 2.1 2.2 5.0 6.0 5.8 3.2 2.2 3.7 2.5 3.7 * number of tourists, both Italian and foreign, hosted in the period considered. ** number of nights, of both Italians and foreign people, in the accomodation facilities. Source: ISTAT data processing. 15 protected areas The sixth official list of protected areas (EUAP) has recorded 105 areas in Lombardy, with a surface of about 134,000 hectares, equal to 4.5% of the protected earth’s surface, at a national level, and to 5.5% of the territorial regional area. By considering the whole surface, it should be noticed that 44.6% is concentrated in the Stelvio National Park, 47.6% in the thirteen regional natural parks, and 7.1% in the 62 regional natural reserves. The two state’s natural reserves (Bosco Fontana and Bosco Siro Negri) cover 0.2% of the total, whereas the other 27 protected areas (natural monuments, oasis, natural areas of local interest) involve the 0.5%. Besides the ranking of the official list, the system of the protected areas in Lombardy (Regional Law 86/1983), which has calculated 615,953 hectares (25.8% of the regional surface), it also includes other types of pro- 16 tected areas, besides the natural regional Park of the Groane, recently established; among these areas there is a total of 24 regional parks, characterized by different levels of nature, perceived as fluvial areas, mountainous areas, city areas, agricultural and forestry areas; 14 of these areas can be found in the EUAP, for the part of sur- face characterized by highest levels of nature, and aimed at the preservation according to the discipline of the national law; 92 are the local parks with an interest which goes far beyond the city’s interest (PLIS) which represent, with an overall surface of little less than 80,000 hectares, an important element for the connection with the Distribution of the protected natural areas in Lombardy 44.6% National Park Statal Natural Reserve 0.2% 47.6% Regional natural Park Regional Natural Reserve Other regional protected areas 7.1% 0.5% Source: MATTM - Dept. For the Safeguarding of Nature, EUAP Official List of the protected natural areas, 6th updating of April 27th, 2010. regional protected areas. The system of the protected areas in Lombardy, besides aiming at the safeguard of the biodiversity, is characterized by the attention at the recovery of the traditional activities related to agriculture, forestry and pastoral activities of the rural territory. 62.3% of the regional park surface is represented by forestry surface, whereas 36% seems to be agricultural and it involves about 9,000 agricultural firms (2012 data); 47% of these farms seems to be represented by livestock firms (poultry, bovine, buffalo, pork, goats and sheep, horse, burrowing animals). The protected regional surface involves also other types of protected areas: the wet areas and the areas belonging to the network Natura 2000, made up of Sites of Community’s Importance (SCI), and of Special Protection Areas (SPAs). The SCI areas amount to 175, and they cover 204,430 hectares (8.6% The regional Parks in Lombardy Parco Adamello (*) Parco Adda Nord (*) Parco Adda Sud Parco Agricolo Sud Milano Parco Alto Garda Bresciano (*) Parco Campo dei Fiori (*) Parco Colli di Bergamo (*) Parco Grigna Settentrionale Parco Groane Parco Lombardo della Valle del Ticino (*) Parco Mincio Parco Monte Barro (*) Parco Monte Netto Parco Montevecchia e Valle del Curone (*) Parco Nord Milano (*) Parco Oglio Nord Parco Oglio Sud Parco Orobie Bergamasche Parco Orobie Valtellinesi Parco Pineta di Appiano Gentile e Tradate (*) Parco Serio Parco Spina Verde (*) Parco Bosco delle Querce (*) Parco Valle del Lambro (*) TOTAL Park (ha) Natural area to Park (%) 50,935 43 6,900 28 24,343 0 47,055 0 37,452 15 6,337 24 4,683 21 5,541 0 3,696 35 91,618 22 15,859 0 645 64 1,470 0 2,746 74 641 13 15,173 0 12,745 0 69,860 0 44,094 0 4,833 76 7,514 0 967 88 44 100 8,179 52 463,32914 (*) Regional parks listed in the EUAP 2010. Source: Lombardy Region. 17 Extension and number of the sites Natura 2000 by Region (ha)* 800,000 242 700,000 200 150 124 88 53 474,598 398,174 118,724 390,495 *The number and extension of the sites Natura 2000, by region, has been calculated by excluding the overlapping between the SCIs and the SPAs. Source: MATTM, 2014. 18 50 zzo Moli se Cam pani a Pugl ia Basi licat a Cala bria Abru 141,935 o 441,646 Lazi 130,092 390,842 269,812 149,093 149,764 418,019 176,181 149,898 372,154 Pied mon t Valle d'Ao s Lom ta bar dy Bolz ano Tren to Vene Friul to i-Ven ezia Giuli a Ligu ri Emil ia-Ro a mag na Tusc any Umb ria Mar che 396,899 30 98,968 58 40 Sard 61 200,000 100 83 328,078 96 y 638,759 102 300,000 122 Sicil 400,000 150 133 130 171,765 142 inia 573,194 158 500,000 141 0 200 185 600,000 100,000 250 238 0 of the regional territory), whereas the SPAs areas amount to 49 and they involve 277,656 hectares (11.6% of the territory). If considering the 18 overlapping of the SCI areas with the SPAs areas (the sites “C”), which amount to 18 on a territory of 19,769 hectares (0.8% of the territory), the network Natura 2000 includes, on the whole, 242 sites on a surface of 372,154 hectares (equal to 15.6% of the regional surface). 46 sites, with a surface of 108,773 hectares (4.6% of the territory), have been designated as special preserving areas (SPAs). The management plans of the sites “Natura 2000”, which are on the regional territory and which have been approved, are amounting to 136, of whom: 97 belong to entities who manage the SCI areas, 27 the SPAs areas, 12 the SCI/SPAs areas (data released by DG Ambiente). The agricultural firms which, to a different extent, hold some parts in these areas, are about 4,400 (2012 data), equal to 8% of the total agricultural farms in the region. By considering these farms, 54.4% is represented by livestock farms, equal to 11% of the regional breeding. In the specific, about 39.6% of the areas “Natura 2000” (in which about 1,700 firms are recorded) are only involved in the SPAs areas, 26.8% in the SCI areas, whereas 32% is concerning two out of the three types of areas (SCI, SPAs, SCI/SPAs). Furthermore, if considering that there could be an overlapping between the areas “Natura 2000” and some of the protected areas, the firms which have also areas with parks amount to about 2,500 (56.6% of the firms with areas “Natura 2000”, and 27% of the firms with park areas). The biogeographical region mostly Surface and number of the protected natural land areas by class Land protected National Statal Natural Regional Regional Other protected Total % total surface % surface of the areas (n.) Park Reserve Natural Natural regional areas of protected protected areas Park Reserve land areas compared to the territorial surface Italy Lombardy 22 1 146 2 105 335 144 752100 13 62 27 105 4.5 9.7 5.5 Source: MATTM - Dept. For the Safeguarding of Nature, EUAP Official List of the natural protected areas, 6th updating of April 27th, 2010. 19 Natura 2000 Network are supported by the specific elements of the regional ecological network, through which are carried out the necessary connections involving the eco-system, structures and functions in favor of the overall functionality of the system. represented in the SCI and in the SPAs areas, is located in the Alpine region (respectively 84.4% and 75.5% of the surface), whereas the remainder of the sites is located in the continental area; in particular, the SCIs of this bioregion involve lagoons, swamplands, moorlands, and sites where several species of herons nest collectively, which host more than 100 species of community interest. For the safeguarding of the natural heritage, and of the bio-diversity, the system of the protected areas and the Protected areas in Lombardy SCIs and SPAs on the Lombardy territory by bio-geographical region Source: Lombardy Region Geoportal. 20 gross domestic product In 2012, the GDP achieved in Lombardy has reached a value of about 331 billion euros at current prices, equal to 21.1% of the national GDP, and to 2.6% of the GDP of the EU-28. The regional GDP exceeds, in absolute value, the GDP of 19 EU’s countries, thus being comparable to that of Belgium and Poland. The value of the per capita GDP, equal to 34,162 € at current prices, seems largely exceeding both the national average (+29%) and the community average (+33%). The national per capita GDP exceeds by 2.9% the German GDP, and by 9.7% the French one; in the Italian context it ranks 3rd place, only afterwards the GDPs of the autonomous province of Bolzano and Valle d’Aosta. Some similar considerations can be referred to the GDP per work unit, equal to about 75,000 € in current terms, which exceeds by 14% the na- tional GDP, and by 30% the community GDP; this value ranks Lombardy at first place among the Italian regions. As from 2009, the economic crisis has involved also Lombardy, although with dynamics less accentuated than the national context. After a slight recovery in the two-year period 20102011, the GDP, in 2012, has experienced again a new contraction of 0.9% over the previous year, a decrease that appears to be strictest if not considering the effects triggered by the prices (-2.1% in real terms, compared to the Trend in GDP per inhabitant in Lombardy (euro), from 2005 to 2012* GDP/Inhabitant LombardyItaly Years Current prices Chained values Current prices Chained values 2005 2006 2007 2008 2009 2010 2011 2012 Lombardy/Italy (2012) Lombardy/Northen Italy (2012) Lombardy/EU-27 (2012) 31,750 32,531 33,827 34,543 32,994 34,213 34,610 34,162 1.29 1.08 1.33 31,750 24,819 32,131 25,713 32,526 26,694 32,415 26,855 30,163 25,757 31,240 26,219 31,186 26,622 30,410 26,383 1.30 1.08 1.31 24,819 25,282 25,637 25,155 23,633 23,963 24,007 23,387 * Chained values - reference year 2005. Source: ISTAT, territorial economic accounts. 21 national value of -2.5%). The work productivity, measured at chained values, is decreased by 1.4%, compared to the national value of -1.5%). Despite the undeniable positive results achieved in the economic field by the region, it should be noticed nonetheless the arise of a share of population who could be jeopardized by poverty or social exclusion, who according to the EUROSTAT data should amount to about 19%, which is far below, in any Trend on GDP by work unit in Lombardy (euro) from 2005 to 2012* GDP/Inhabitant LombardyItaly Years Current prices Chained values Current prices Chained values 2005 2006 2007 2008 2009 2010 2011 2012 Lombardy/Italy (2012) Lombardy//Northen Italy (2012) Lombardy/EU-27 (2012) * Chained values - reference year 2005. Source: ISTAT, territorial economic accounts. 22 65,527 66,510 69,149 71,092 70,796 74,469 75,558 75,436 1.14 1.09 1.30 65,527 65,692 66,490 66,712 64,722 67,998 68,083 67,150 1.15 1.09 1.28 58,840 60,230 62,102 63,161 62,726 64,751 65,844 65,991 58,840 59,219 59,644 59,162 57,552 59,181 59,375 58,496 case, from the national and community averages (respectively of 30% and 25% of the population). Population at risk of poverty or social esclusion, 2012 (%) 50 46.6 40 30 29.9 24.8 24.8 20 20.1 19.1 16.4 10 0 Lombardy EU-28 Source: EUROSTAT. Italy Italy Italy Italy North West North East Centre Italy South Trend in GDP in Lombardy (mio. euro) from 2005 to 2012* 350,000 340,000 334,464 330,000 327,117 331,405 317,768 320,000 310,000 300,000 328,474 303,882 305,550 306,962 314,944 299,931 294,535 Current prices 301,375 295,004 300,147 Chained values 290,000 287,923 280,000 270,000 260,000 2005 2006 2007 2008 2009 2010 2011 2012 * Chained values - reference year 2005. Source: ISTAT, territorial economic accounts. 23 value added The value added of the economy, in Lombardy, depends mostly on services (68.7%) and industry (30.3%), whereas the contribution of the agricultural sector reaches only 1%, a value which is inferior both to the national average (2%) and to the community average (1.7%). Despite a modest incidence on the whole of the national economy, Lombardy contributes to the national agricultural value added with a share of 10.7%, which makes Lombardy the second Italian region in terms of value added produced, to a little distance from Sicily. The incidence of the agricultural value added of Lombardy, out of the total of the EU-28, amounts to 1.5%, and it is comparable, in absolute value, to what has been realized by Denmark, Portugal and Czech Republic, and well above to that one of the twelve EU countries. In the latest years, the value added of the primary sector has pointed out a certain pain, like the industrial sec- VA at basic prices1 by sector in Lombardy (mio. euro), 2012 1.0% 30.3% 68.7% 1 Values at current prices. Source: ISTAT, regional economic accounts. 24 Agriculture, Forestry and Fishing 3,010 Industry, including building 90,654 Services, including the public administration 205,805 Total 299,470 % incidence of the VA from agriculture1 to GDP, 2012 VA Lombardy1.0 Italy2.0 Italy - North 1.6 Italy - Centre 1.5 Italy - South and Islands 3.5 EU-271.7 Belgium0.7 Bulgaria5.4 Denmark1.4 France2.0 Germany0.8 Greece3.4 Netherlands1.7 Poland3.9 Portugal2.3 UK0.7 Romania5.6 Spain2.5 Sweden1.6 Hungary4.7 1 Agriculture, Forestry and Fishing. Source: ISTAT, regional economic accounts; EUROSTAT. tor, but unlike the services’ sector. Nonetheless, in 2011, it has been experienced a decisive recovery, which, however, has not been confirmed in 2012, when there has been a new sharp contraction, on annual basis, of 6.6% in real terms and of 4.2% at current prices. Trend of VA by sectors in Lombardy1 (2005=100) 125 120 115 Economy 110 Services 105 Agriculture, Forestry and Fishing 100 Index n. % share (agriculture on economy) 95 Industry 90 Index n. % share (industry on economy) 85 80 2005 2006 2007 2008 2009 2010 2011 2012 Values at current prices. Source: ISTAT, regional economic accounts. 1 25 employment Lombardy shows a very high rate of employment, equal to about 65% of the population aged between 15 and 64. This value, which places the region in line with the community context, appears to largely exceed the average national value, stuck at 55.6%. A similar trend has been pointed out in the female employment, which, nonetheless, is 15 percentage points below the male rate. Conversely, the rate of the youth employment (15-24 years), despite exceeding the national average, is far below the community average. In terms of unemployment rate, Lombardy holds relatively contained levels (8.1%), above all if they are compared with the national data (12.2%) and with the community data (10.8%). The female unemployment seems to be a little bit more evident, thus reaching 8.8%. Even less reassuring is the rate of the youth employment, which reaches even the share of 30%, 10% lower than the national Rate of employment 64.9 64.2 55.6 64.1 57.3 56.6 46.5 58.7 Source: ISTAT, Labour Force survey- average 2013; EUROSTAT. 26 2.4% 32.1% Rate of unemployment Total Women Young people Total Women Young people %%% %%% Lombardy Italy - North Italy EU-28 Work unit by sector in Lombardy (000 units), 2012 65.4% Rate of employment and unemployment, 2013 average, but 7 points higher than the community average. The agricultural sector absorbs a share of 2.4% of the work units of the region, 21.6 20.9 16.3 32.3 8.1 8.4 12.2 10.8 8.8 9.5 13.1 10.9 30.8 31.2 40.0 23.4 Agriculture, Forestry and Fishing 107.5 Industry, including building 1,410.5 Services, including public administration 2,875.2 Total 4,393.2 Source: ISTAT, regional economic accounts. compared to 32.1% of the manufacturing, and 65.4% of the services. The average productivity of an agricultural work unit is equal to 44.6% of an average work unit in the services, and it is equal to 49.1% of the same data referring to the industry. Despite the remarkable difference with the other sectors, there has been, in the latest years, a constant upward trend of the value added per employee, unlike the other sectors and which represents a reduction in the gap of productivity per worker. In 2012, according to the ISTAT data, the workers in the agricultural sector are about 64,000 units, corresponding to 1.5% of the total, and 7.9% of the Italian agricultural employees. In Lombardy, the incidence of the agricultural workers on the total is well below of the national average 83.6%) and of the EU-28’s average (5.1%). The percentage of the female employment in the Lombardy agriculture is of 17.4%, a share which is far below of the total economy, and also compared to the similar national data. The share Total employment, and agricultural employed, by gender and geographical area, 2013 Employed agricultural employed 000 units % women 000 units % women Lombardy 4,310.0 43.3 64.3 17.4 Italy - North 11,775.6 43.4 296.9 26.7 Italy 22,420.3 41.6 813.7 28.2 Source: ISTAT, Labour Force survey- average 2013; EUROSTAT. % incidence of employed in agricolture1 to total economy, 2013 % Lombardy1.5 Italy3.6 Italy - North 2.5 Italy - Centre 2.4 Italy - South and Islands 6.8 EU-275.1 Austria4.5 Belgium1.3 Bulgaria19.2 Denmark2.4 France*2.7 Germany1.5 Greece12.9 Netherlands2.6 Poland*12.5 Portugal10.5 UK1.2 Romania30.0 Spain4.3 Sweden2.2 Hungary7.1 Agriculture, Forestry and Fishing. * 2012 data. Source: ISTAT, Labour Force survey- average 2013; EUROSTAT. 1 27 VA at basic prices by worker and by sector (euro)*, 2012 80,000 70,000 60,000 50,000 40,000 Industry Services Agriculture 30,000 20,000 10,000 0 Lombardy Italy EU-28 * Current prices. Source: ISTAT, regional economic accounts; EUROSTAT Immigrants working in agriculture, 2011 non-EU new-EU Total immigrants units % to agricultural units % to agricultural units % to agricultural workersworkersworkers Lombardy Italy - North Italy 15,730 50,883 126,754 27.4 16.4 14.9 3,170 57,801 106,083 Source: Inea, Survey on the use of immigrants in the Italian agriculture, 2011. 28 5.5 18.6 12.5 18,900 108,684 232,837 32.9 35.0 27.4 of the employees out of the total of the employees in agriculture in Lombardy amounts to about 40.5%, compared to 50.1% on a national basis. The value added per agricultural employee in Lombardy exceeds by 46% the national data, and by 166% the EU-28 data, nonetheless, if it is compared with the other economic sectors, it shows negative differences of 26.2% compared to the industrial sector, and of 33.7% compared to the services’ sector. The presence of foreign workers in the regional agriculture is very remarkable. According to the survey carried out by INEA, it seems there are about 16,000 non-EU agricultural workers, and more than 3,000 workers coming from new-EU countries, amounting respectively to 27.4% and 5.5% of the regional agricultural employees. By a comparison with the national data, it can be noticed that, at an Italian lev- el, the share of the non-EU workers is more contained (14.9%), whereas the share of the new-EU is much more remarkable (12.5%). On the whole, the incidence of the foreign workers is much more remarkable in Lombardy (32.9%) than the national 27.4%. The sector which involves the most the foreign workers is the livestock sector (33% of the employees), followed by the floriculture sector (24.6%). VA at basic prices by work unit and by sector (euro)*, 2005-2012 70,000 60,000 50,000 40,000 30,000 Industry 20,000 Services 10,000 Agriculture 0 2005 2006 2007 20088 2009 2010 2011 2012 * Chained values - reference year 2005. Source: ISTAT, regional economic accounts. 29 AGRI-INDUSTRIAL SYSTEM components of the system the national level. In 2013, the value of the Lombardy agri-food system, in current terms, has an incidence of 11.6% on the regional GDP (it was 11.7% during the previous year), whereas its incidence In 2013, the economic size of the Lombardy agri-food system has been assessed at 38.2 billion, equal to 16.5% of the value of the national agri-food system, down by 1% over 2012, versus a -0.6% experienced at on the GDP, at a national level, reaches 14.8%. The most remarkable contribution to the value of the Lombardy agri-food system is represented by the marketing and catering services, whose Main components of the agro-industrial system at basic prices in Lombardy (million euro), 2013 8.2% 11.4% Intermediate consumption in agriculture, forestry and fishing 8.2% Value added from agriculture, forestry and fishing Value added from the food industry 15.4% Marketing and distribution 38.8% 18.1% Source: estimates on ISTAT data. 32 Value added from catering services Agro-industrial indirect taxes values have an incidence of respectively 38.8% and 18.1% on the total. In 2013, the importance of the food industry has been strengthened , thus reaching an incidence of 15.4% on the entire system (11.5% at a national level). In terms of production, the agricultural value added contributes only by 8.2% at the development of the system’s value (versus 13% recorded by the national data), whereas the agricultural intermediate consumption exceeds 11%. Changes of the main components of the agro-industrial system at basic prices in Lombardy, 2012-2013 Million % change euro2013/2012 Intermediate consumption in agriculture, forestry and fishing 4,344 Value added from agriculture, forestry and fishing 3,129 Value added from the food industry 5,874 Value added from catering services 6,933 Marketing and distribution 14,837 Agro-industrial indirect taxes 3,122 Value of the agro-industrial system 38,240 1.3% -1.4% 2.4% 0.4% -2.3% -6.3% -1.0% Source: estimates on ISTAT data. 33 food industry and cooperation The value added (VA) of the Lombardy food industry, in 2013, has amounted to 5.9 billion euro, or 19.6% of the value added of the National food industry and 15.4% of the value of the regional agrifood system, thus exceeding by 88% the agricultural value, whereas at a National level the second one prevails by 13%. In Lombardy, the food industry has an incidence of 44% on the value of the agri-industrial production, compared to 32.6% at the national level. In the Lombardy food industry, the active firms amount to 6,021, or 5.6% of the regional manufacturing firms and 10% of the Italian food companies (Infocamere data, 2013). 95.5% is involved in the food production, while 4.5% in the drink sector. More than 66% of the active firms is characterized by an handcrafted dimension; except for the beverage sector, where the artisans represent only 24.7% of 34 the total. In 2013, the number of the food firms is increased by 1.4% over the previous year, versus +1.1% on national basis. The food sector high- lights a better situation compared to the regional handcraft sector on the whole, which experiences a decrease of the firms of 2.3% on annual basis. Provincial distribution of the food and manufacturing industries in Lombardy1, 2013 Food Tot. % share Bergamo Brescia Como Cremona Lecco Lodi Monza Milan Mantua Pavia Sondrio Varese Total 1 Active firms. Source: Infocamere. 668 909 304 357 226 122 342 1,621 441 401 208 422 6,021 11.1 15.1 5.0 5.9 3.8 2.0 5.7 26.9 7.3 6.7 3.5 7.0 100.0 Artisan food Tot. % share 522 668 234 234 160 78 230 903 289 263 136 310 4,027 13.0 16.6 5.8 5.8 4.0 1.9 5.7 22.4 7.2 6.5 3.4 7.7 100.0 Manufacturing Tot. % share 11,289 15,062 6,672 3,118 4,036 1,602 9,439 30,060 4,454 4,659 1,329 9,557 101,277 11.1 14.9 6.6 3.1 4.0 1.6 9.3 29.7 4.4 4.6 1.3 9.4 100.0 Food industries in Lombardy, 2013 8,000 7,000 322 6,000 6,496 Incidence of the type of juridical form in the food and manufacturing industries, in Lombardy1, 2013 100 6.1% 23.3% 271 4,000 3,000 37.9% 80 56.5% 5,750 5,000 67 67 3,987 3,960 60 8.7% 11.9% 33.2% 44.6% Partnerships 56.7% 36.2% Sole proprietorships 24.4% 40 2,000 27.7% 1,000 20 36.9% 0 Registered firms Active firms TOTAL FIRMS Beverage Source: Infocamere. Registered firms Active firms 0 Food 58.1% 49.1% Other 37.0% 31.3% 11.1% Beverage Food Beverage ARTISAN FIRMS Foodstuffs Capital companies TOTAL FOOD INDUSTRIES ARTISANAL FOOD FIRMS Total firms Artisanal firms MANUFACTURING FIRMS 1 Active firms. Source: Infocamere. 35 Breakdown of the workers in the Lombardy food industries by type of production, 2011 Processing and conservation of meat and production of meat-based products 12.7% 14.8% 2.2% Processing and conservation of fish, crustaceans and molluscs 1% 3.6% Processing and conservation of fruit and vegetables Production of vegetable and animal oils and fats 1% Dairy industry 12.4% 20.1% Processing of grains, production of starch and starch products Production of bakery and flour products 2.1% Production of other foodstuff products Production of animal feeding Beverage industry 30.1% Source: 9° General Census of industry and services. The provincial ranking of the firms places Milan at first place (26.9%), followed by Brescia (15.1%) and Bergamo (11.1%). The handcraft firms, 36 although having the same dynamic, are homogeneously distributed along all the territory. The annual trend has pointed out remarkable increases of the food firms in Milan (+3.8%) and Monza (+3.6%). In terms of their legal forms, among the food firms the most widespread type is represented by sole proprietorships and by partnerships. Moderate is the share of the capital companies (23.3%), which seem to prevail in the beverage sector (56.5%). The proportions of the sole proprietor- ships change if considering just the handcraft firms. According to the data of the general 2011 Census on industry and services, the food processing ensures employment to about 70,000 local work- ers, or 16.8% of the national total and 7.4% of the regional employees of the manufacturing sector. By taking into account the firms which are located in Lombardy, the number of the employees in the food industry increases Provincial distribution of the local units and their workers in Lombardy, 2011 Firms Tot. % share % artisan Bergamo Brescia Como Cremona Lecco Lodi Mantua Milan Monza e Brianza Pavia Sondrio Varese Lombardy Italy Lombardy/Italy (%) Tot. Workers in the firms % share % artisan Local units Tot. % share Workers in the local units Tot. % share 70211.379.1 5,9557.943.7 818 11.4 7,0089.9 972 15.7 74.3 8,55111.4 38.6 1,09015.2 8,45112.0 323 5.280.2 3,3424.534.8 3735.2 3,1144.4 341 5.568.9 5,6337.519.6 4235.9 6,9869.9 226 3.673.9 2,4923.330.9 2583.6 2,5763.7 134 2.264.2 1,2931.728.5 1572.2 1,4942.1 449 7.261.7 6,8569.121.5 5217.37,08610.1 1,650 26.6 55.1 28,39737.8 13.6 1,86526.0 19,15427.2 394 6.4 64.7 3,146 4.2 30.3 457 6.4 3,309 4.7 406 6.568.0 2,8393.838.6 4756.6 4,1545.9 203 3.373.9 2,7513.732.8 2593.6 3,1354.4 399 6.4 77.4 3,808 5.1 35.3 486 6.8 4,029 5.7 6,199 100.0 67.8 75,063 100.0 25.2 7,182 100.0 70,496 100.0 57,805 69.5 420,312 38.7 64,560 420,430 10.72 17.86 11,12 16.77 Source: 9° General Census of industry and services. 37 to 75,000, of whom 25% is working in handcraft firms. In terms of localization, 27% of the employees of the local units is concentrated in the province of Milan, where are located the bigsized companies, followed by Brescia (12%) and Mantua (10%). In the field of the food processing, the phenomenon of cooperation plays an important role, being supported by more than 300 productive realities spread on the regional territory, equal to 5.2% of the national total. The average economic size of the Lombardy food cooperatives is about double 38 than the national panorama, that is why its incidence on the national turnover exceeds 10% (3.6 billion euro in absolute value). In Lombardy are located the registered offices of four out of the first thirty realities of the Italian agrifood sector for their turnovers: Consorzio Virgilio, Latteria Soresina, Produttori Suini Pro Sus and Consorzio Casalasco del Pomodoro. Furthermore, many cooperatives hold in the region their own supply basins or, in some cases, even productive plants. Distribution of the agro-food cooperatives in Italy and Lombardy, 2011 Firms Turnover (million euro) Lombardy Italy 309 5,901 3,611.5 35,051.8 Italy - North Italy - Centre Italy- South and Islands 2,479 826 2,596 28,256.0 2,491.0 4,305.0 5.2 12.5 10.3 12.8 Lombardy/Italy (%) Lombardy/Italy North (%) Source: Observatory on the Italian Agricultural Cooperation. distribution Lombardy is confirmed as one of the leaders of the national and European distribution: in 2013, the density of the current sales points (hypermarkets, supermarkets, mini-supermarkets and discount stores) has amounted to about 300 square meters per 1,000 inhabitants. It is an extremely relevant figure, similar or superior to the one referring at the most densely inhabited European areas. In the region there are 2,497 sales points of the modern food distribution, with an overall surface of over 2.9 million square meters, down compared to 2012 (-0.1% versus +0.2% of the national average). This trend is not uniform along all the territory with some provinces (Brescia, Como and Cremona) which show an increase in the surfaces. All of the main types of distribution have experienced a setback (-1.2% the supermarkets, and -0.2% the hy- Sales points of the modern distribution in Lombardy, 2013 N. sales points Superettes 591 Supermarkets 1,069 Hypermarkets 240 Discount 597 Total 2,497 Area sqm % change 2013/12 165,712-2.0 1,080,797-1.2 1,267,288-0.2 387,2224.2 2,901,019-0.1 Source: SMEA processing on the Nielsen data, and Observatory on Commerce of the Lombardy Region. Area per 1,000 inhabitants in modern distribution sales points in Lombardy (sqm), 2013 Superettes Supermarkets Hypermarkets Discount Total Super+Hyper Bergamo 18.4118.6109.8 52.1 228.4 Brescia 18.7168.9149.1 58.4 318.1 Como 15.3 89.4139.8 45.6 229.2 Cremona 9.9124.8122.9 40.6 247.8 Lecco 14.4 89.7143.5 36.9 233.2 Lodi 13.1 94.5222.4 41.3 316.9 Mantua 19.6169.8117.2 72.1 287.0 Milan 16.7 84.9124.1 25.9 209.0 Monza e Brianza 15.7 80.7 145.0 32.0 225.7 Pavia 17.5118.8144.0 47.8 262.8 Sondrio 59.6111.8140.4 43.4 252.1 Varese 12.6143.4113.3 35.5 256.7 Regional Total 17.2112.1131.4 40.2 243.5 Total 298.9 395.2 290.1 298.3 284.4 371.3 378.7 251.6 273.5 328.0 355.1 304.8 300.9 Source: SMEA processing on the Nielsen data, and Observatory on Commerce of the Lombardy Region. 39 permarkets), except for the discount stores (+4.2%). It is mainly the decrease of the hypermarkets, with the closure of three structures at regional level, which highlights the difficulties that the distribution sector has had to cope with, although the hypermarkets continue in being the main tool through which the Lombardy chains are controlling the territory. In the region there is a prevalence of the private chains of the large-scale distribution. The important restructuring of the purchasing centers has continued also in 2013, with the dissolution of Cieffea, which had gathered two leading firms such as Carrefour and Finiper. Centrale Italiana holds the leadership (Coop, Despar, Sigma and il Gigante) thus representing almost 15% of the surface of the regional selling, followed by Esd Italia (13.6%) and by Auchan-CRAI (10.9%). 40 Breakdown of the selling area in the modern distribution in Lombardy, 2013 14.7% 16.5% 3.0% 13.6% 3.4% 3.6% 6.3% 10.9% 8.9% 9.3% 9.8% Centrale Italiana 427,409 Esd Italia 394,563 Centrale Auchan-Crai 315,256 Centrale Finiper 284,845 Esselunga 268,696 Carrefour 257,993 Bennet 181,429 Standa/Rewe 105,884 Conad 98,669 Centrale Aucube 87,005 Others 479,270 Total (smq) 2,901,019 Source: SMEA processing on the Nielsen data, and Observatory on Commerce of the Lombardy Region. foreign trade In Lombardy, during 2013, the deficit in the foreign trade of agrifood products, equal to 4,068 million euro, doesn’t change, at current prices, over the previous year; conversely, at a national level, it drops down to 5,855 million euros, with a decrease of 7.5%, besides the contraction of 29.2% registered in 2011. Lombardy contributes for almost seven tenths to the formation of the national agrifood deficit. The growth in the exports during 2013, both in Lombardy and in Italy, is almost twice the imports. The increase in the Lombardy exports (+4.6%) depends more on the growth in terms of quantities (+3.5%), rather than of prices (+1.0%), whereas the modest growth in the imports (+2.6%) is the result of a similar growth in terms of both quantities (+1.3%) and price (+1.2%). The agrifood imports, in Lombardy, Foreign trade of the Lombardy’s agro-food products at current prices (million euro) % contribution of the agro-food products in the Lombardy’s trade balance Import ExportBalance 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* % change 2013/2012 % change 2013/1999 5,6902,425-3,265 6,1202,608-3,512 6,2732,811-3,462 6,2833,025-3,258 6,5423,152-3,390 6,8443,278-3,566 7,1193,559-3,560 7,9023,742-4,160 8,3094,122-4,187 8,5594,571-3,988 7,9294,214-3,715 8,6914,579-4,112 9,6374,856-4,781 9,1865,121-4,065 9,4215,354-4,068 2.6 4.6 65.57 120.78 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* ImportExport 7.173.84 6.363.55 6.363.59 6.514.00 6.664.15 6.474.14 6.44.17 6.634.01 6.244.07 7.064.41 8.175.12 7.494.88 7.824.66 7.914.74 8.484.95 * Provisional data. Source: SMEA processing on the ISTAT data, according to SH6 ranking. * Provisional data. Source: SMEA processing on the ISTAT data, according to SH6 ranking. 41 represent 8.5% of the regional imports, whereas the exports reach only 5%; the same percentage shares calculated for Italy are, instead, respectively 11.1% and 8.7%. The main foreign market for the provision of the region is represented by France with a share of 19.7%, followed by Germany (14.1%), Netherlands (11.1%) and Spain (11.0%). In terms of exports, France and Germany are respectively placed at the first two places (14.9% and 12.6%), followed by two non-EU markets: US (8.3%) and Switzerland (7.5%). Therefore, the sources of procurement seem to be more concentrated than the export markets. The dairy products are the main commodity-exchange both in the imports (15.3%) and in the exports (18.7%). Also the cereal derivatives cover an important share of the exports (18.7%). The prepared meat and the 42 Main countries of origin and destination of Lombardy’s agro-food import and export, 2013* IMPORT 19.7% 32.0% France Germany Netherlands Spain 14.1% 2.5% 2.6% 2.7% 4.4% Belgium Hungary UK Austria 11.1% Others 11.0% EXPORT 14.9% France Germany 36.5% 12.6% USA Switzerland UK 8.3% 3.8% 3.9% 5.4% 7.2% 7.5% * Provisional data. Source: SMEA processing on the ISTAT data, according to SH6 ranking. Netherlands Belgium Spain Others 8.2% 6.2% 5.9% 4.2% 5.8% Shares of import and export of Lombardy’s agro-food products, 2013* IMPORT EXPORT 15.3% 32.6% 42.5% 18.7% Dairy products Fresh and frozen meats Processed and preserved fish 11.9% Feedingstuffs wine represent respectively 6.1% and 5.3% of the export, with a similar incidence respectively to the category of the sugar and confectionary, and oils and fats. 18.5% Oils and fats 8.2% 6.2% 4.2% 5.8% 5.9% EXPORT Cereal derivatives Soft drinks Processed and preserved fish Feedingstuffs Sugar and sweet products 18.5% Oils and fats Cereal derivatives 4.9% 5.3% Cereal derivatives Sugar and sweet products 5.3% 7.2% 6.1% 6.7%Other products Dairy products 18.7% Dairy products Fresh and frozen meats 32.6% 4.9% Sugar and sweet products 7.2% 6.1% 6.7%Other products Prepared meats Wine Oils and fats Other products * Provisional data. Source: SMEA processing on the ISTAT data, according to SH6 ranking. Dairy products Cereal derivatives Soft drinks 43 food consumption In 2013, the average monthly household consumption, in Italy, has amounted to 2,359 euro, down (-2.5% on annual basis) in current terms for the second year in a row. If considering the trend in the inflation (+1.2%), the household consumption shows an even sharpest drop in real terms. Lombardy is no longer the first region with the highest average monthly expenditure (2,774 euro, down by 3.2% on annual basis): now, it is preceded by Trentino Alto Adige (2,968 euro, in an upward trend of 2.2%, on annual basis), and followed by Emilia Romagna (2,762 euro) and Veneto (2,706 euro). Also in 2013, Sicily highlights the lowest monthly expenditure average. These differences become even more significant if considering also the different numbers of the components of the family which characterizes each single region. At the national level, the average 44 Average montly household expenditure at current prices (euro), 2005-2013 3,500 3,033 3,000 2,872 2,886 2,896 2,930 2,918 2,896 2,866 2,774 2,689 2,500 2,000 2,398 2005 2,786 2,796 2,810 2,461 2,480 2,485 2006 Lombardy 2007 Italy 2008 2,768 2,796 2,843 2,442 2,453 2,488 2009 Italy-North Source: SMEA processing on the ISTAT data, sample survey on the household consumption. 2010 2011 2,761 2,419 2012 2,694 2,359 2013 household consumption, for the purchasing of food and drinks, is decreased from 468 to 461 euro (-1.5%), with a remarkable drop for the purchasing of meat (-3.2%). In 2013, it is increased the percentage of families who has reduced the quantity and/or quality of the food purchased (from 53.6% in 2011, to 62.3% of the following year and, then, to 65% in 2013), and the percentage of people purchasing at the hard discount (from 12.5% to 14.4%). Lombardy points out an average monthly expenditure of 461 euro for food and drinks; it is preceded by Campania, Lazio, Abruzzo, Tuscany, Marche, Umbria and Molise, all regions with a highest number of the components per family, and with a distribution market less efficient. For the second year in a row, the expenditure is in a downward trend with higher variations compared to the national data. Average montly household expenditure, at current prices, for foodstuffs and beverage (euro), 2005-2013* 500 490 486 491 486 483 480 467 470 460 450 456 461 466 475 463 464 470 461 475 467 477 473 473 468 463 461 455 454 461 461 458 449 440 430 420 410 400 2005 2006 Lombardy 2007 Italy 2008 2009 2010 2011 2012 2013 Italy-North * The figure for Lombardy is estimated on the basis of the information provided by ISTAT. Source: SMEA processing on the ISTAT data, sample survey on the household consumption. 45 Average monthly household expenditure (euro) and % share for foodstuffs and drinks, by region in Italy, in 2013 3,500 30 3,000 25 2,500 20 2,000 15 1,500 10 1,000 5 500 0 Pied m Valle ont d'Ao Lom sta bar dy L Tren tino-A iguria lto A dige Friuli V -Ven eneto ezia Giu Emil ia-Ro lia mag na Tusc any Umb ria Mar che Lazio Abru zzo Moli s Cam e pania Pugli a Basil icata Cala bria Sicil y Sard inia Ital y 0 average monthly expenditure (=100%) Source: ISTAT, household consumption. 46 % share for foodstuffs and drinks % share for foodsftuffs and drinks average montly household expenditure The share of expenditure for the purchasing of foodstuffs and drinks is experiencing an upward trend, compared to 2012: from 19.4% to19.5%; the most sizeable increase is registered, as in 2012, in the central regions (from 19.3% to 19.6%), but it is just the South which is experiencing the highest values (25.3%). Lombardy, with a share of 16.6%, is preceded by Trentino Alto Adige (14.9%), Veneto (16.1%) and Emilia Romagna (16.3%). The lowest values of the share of expenditure for foodstuffs and drinks have been registered in Sicily (26.9%), Calabria (26.7%) and Campania (25.8%). agriculture agri-meteorological trend During 2013, the weather conditions in Lombardy were characterized by a trend of rains which has quite always exceeded the reference average of 1972-2000, by showing widespread critical situations in all the regional territory. The winter season has been affected by a surplus in rains, which has led to a sudden increase in the streams’ levels, exacerbated by the thawing of the snow in the Apennines, as a consequence of the increase in the temperatures which caused floods (in particular of the Secchia river). The rainfalls didn’t allow the access to the fields, thus impeding the usual fertilization of the crops, whereas the seeding has suffered strong delays. The spring season didn’t improve the situation and the long-lasting rains, besides disadvantaging some products such as the tomato, have increased the levels of many rivers 48 which have required the use of water pumps. Furthermore, there have occurred some exceptional events, such as the tornado that affected Modena, thus reaching even some southern areas of Mantua, with hailstorms that have damaged the vineyards of Lambrusco, and the groves of pears. The sowing of rice has been obstructed in the area between Pavia-VercelliNovara, where there is 90% of the Italian production. In the southern Bergamo, there occurred subsidence of fields, which led to the collapse of some agricultural structures and to the consequent evacuation of the houses located close to the mountain. The spring’s weather conditions have led to percentages of loss amounting to 40/50% for maize, followed by fodder (30/40%) and by honey (40%), to which it should be added a productive deficit of about 50% for the grapevine, which has suffered a delay in the har- vesting of 3-4 weeks, because of the postponement of the flowering, the spread of cryptogams and the growth of weeds remained in the fields, since the technical means didn’t manage to get the access to the fields. In the summer, the heat waves and a certain dry condition have been interrupted by some patchy storms, responsible for the damage to the crops. In particular, in the southern Brescia, and in Cremona, there have occurred floods and damage to the stables and to the fields cultivated at maize and soya. In July, in the areas of Mantua, Pavia, Bergamo and Milan, the bad weather conditions have damaged the crops of maize, vineyards, fruit trees, watermelons and melons. The concurrence of strong rains and high temperatures has caused delays in the seeding of maize, with a consequent reduction in the yields, both cut and in grains, estimated at around 40-50%, by damaging the availability of the animal feed in the livestock breeding. In the Autumn, the waves of bad weather have increased the risk of productive losses for the maize, mainly for the selected qualities of Arborio rice and Carnaroli rice; some critical situations have been also detected for vineyards and fruit trees, in particular for the apple trees. 49 production levels in agriculture In 2013, the surface under cereals amounted to little less than 390,000 hectares (11.2% of the national total), down by 4% over the previous year. Among the cereals it stands out the maize (200,000 hectares and 23% of the national production), which experiences a reduction in quantities of 20% over 2012. It is followed by the rice, cultivated on more than 87,000 hectares, for a productive volume amounting to 39% of the national one, down by 18% in the last year. Conversely, the cereals cultivated in Autumn, Winter highlight an increase of the surfaces equal to 10% in the 20122013 period. Even more pronounced (+44% on an annual basis) is the in- crease of the surfaces cultivated with oily seeds. Among the fodder crops, it should be pointed out the grasslands, which occupy about 245,000 hectares (172,000 just the waxy maize), with surfaces increasing by 8.8% on annual basis. The production of waxy maize, representing 63% of the national one, Areas and productions of the main crops in Lombardy and in Italy, 2013 Crops Cereals - soft wheat - barley - rice - grain maize Oilseeds - rape - soya Dried legumes Tuber plants Total area (ha) 389,440 65,198 19,713 87,393 199,685 36,739 2,868 32,862 1,431 897 Lombardy Yield Harvested Total area (t/ha) production (000 t) (ha) 7.2 4.9 4.4 6.3 9.0 3.3 2.6 3.4 2.8 28.3 2,813 319 86 551 1,807 123 7 113 4 25 3,462,078 632,372 237,268 216,019 908,114 295,022 12,186 174,934 68,256 58,652 ItalyLombardy/Italy Yield Harvested % % (t/ha) production (000 t) area production 5.2 5.3 3.7 6.6 8.7 3.0 2.2 3.5 1.8 25.4 18,090 3,342 873 1,417 7,897 888 26 621 125 1,491 11.2 10.3 8.3 40.5 22 12.5 23.5 18.8 2.1 1.5 15.5 9.6 9.9 38.9 22.9 13.8 27.8 18.2 3.2 1.7 >>>>> continued 50 Areas and productions of the main crops in Lombardy and in Italy, 2013 >>>>> continued Crops Total area (ha) Vegetables in plein air* - watermelon* - industry tomatoes* - melon Greenhouse vegetables* Temporary forage* - grasslands* - waxy maize* - ryegrass* Alternated meadows* - alfalfa* - mixed meadows* Permanent fodder* Permanent meadows* Pastures* Fresh and dried fruit - apple tree - pear tree Wine grapes Olive tree 12,672 1,012 5,588 2,343 2,348 329,171 245,910 172,829 34,237 83,261 59,965 22,515 238,642 126,701 111,941 3,806 1,687 773 21,542 2,315 Lombardy Yield Harvested Total area (t/ha) production (000 t) (ha) 39.7 47.6 57.3 27.0 42.4 42.1 41.4 46.2 32.4 44.1 46.1 39.2 16.1 27.9 2.6 21.1 27.5 17.8 10.2 2.5 503 48 320 63 100 13,858 10,186 7,986 1,110 3,672 2,764 882 3,835 3,539 295 80 46 14 219 6 n.a. n.a. n.a. 20,228 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 225,370 53,006 31,526 656,172 1,117,913 ItalyLombardy/Italy Yield Harvested % % (t/ha) production (000 t) area production n.a. n.a. n.a. 22.9 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 23.7 41.8 23.6 10.5 2.6 n.a. n.a. n.a. 463 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5,350 2,217 743 6,899 2,946 3.4 11.5 8.6 11.6 6.9 15.6 23.8 56 60 8 10.6 10.6 10.5 18.3 7.2 1.7 3.2 2.5 3.3 0.2 5.3 13.8 9.2 13.7 7 30 44.6 63.1 70.2 15.3 20.3 22 29.2 36.3 9 1.5 2.1 1.9 3.2 0.2 * Figures at 2012. Source: ISTAT and Ente Nazionale Risi. 51 has experienced a decrease of 16.5%, despite the increase of 4.3% of the surfaces. The alternated meadows appear to be stable, with the prevalence of the alfalfa which is a crop covering about 60,000 hectares, equal to 20.3% of the national production. In terms of fodder crops, the areas devoted to meadows and pastures are decreasing, which on the whole cover a surface of 238,000 hectares. Compared to the national context, the area devoted to the permanent crops and to the horticulture in Lombardy is quite contained. Among the permanent crops it prevails the grapevine, cultivated on about 21,500 hectares. It is then followed by the fruit crops, mainly the apple tree and the pear tree, as well as the olive tree. Horticulture is practiced on about 13,000 hectares in the open field, mainly industrial tomato and melon, and 2,000 hectares in the nursery. The livestock sector stands first place in the Lombardy agriculture, so much as to represent 40% of the national pork production, and 37% of the dairy production. Nonetheless, the year 2013 has recorded a decrease of 3.5% of the animals raised, with peaks of 4.2% for dairy cows and buffaloes. Conversely, the pork breeding is remained stable, compared to a decrease of the animals raised amounting to 1.2% at a national level. Consistencies and productions of the breeding farms in Lombardy, 2013 Lombardy ItalyLombardy/Italy Number of heads Production (t) Number of heads Production (t) % heads % production Beef 1,361,092 Pigmeat 4,055,217 Sheepmeat and goatmeat 216,527 Poultry meat n.a. Cows and buffalo -cow’s and buffalo’s milk (000 hl) 458,327 Sheep - sheep milk and goat milk (000 hl) 183,604 Eggs (million units) n.a. Honey (n. of hives) n.a. Source: ISTAT. 52 345,900 828,200 900 327,300 41,278 29 2,284 1,400 5,846,672 8,561,683 8,157,686 n.a. 2,103,291 7,119,586 n.a. n.a. 1,332,183.0 2,063,218.6 59,358.2 1,735,524.2 111,280.9 5,369.1 13,011.8 9,620.7 23.3 47.4 2.7 n.a. 21.8 2.6 n.a. n.a. 26.0 40.1 1.5 18.9 37.1 0.5 17.6 14.6 For the Lombardy region, worthy of note is the production of beef (26%), poultry (18.9%), eggs (17.6%) and honey (14.6%). Clearly more contained is the incidence of the sheep and goat production (1.5% meat and 0.5% milk). In terms of value, the regional agricultural output at basis prices (OBP), including the connected services and the secondary activities, has exceeded 7.3 billion euro in 2013, by confirming the regional record related to the share of the value of the national agricultural production detained (14%). If considering only the livestock sector, this incidence on the national framework arises to 26.2%. If compared to the EU, the Lombardy agriculture has an incidence of 1.9% on the OBP of the agricultural sector in the EU-28, or 2.6% if considering only the livestock productions (EUROSTAT 2012 data). At the OBP of the agricultural sector it should also be added the value of the output of the forestry sector (76 million euro, or 11.7% of the national total), and the values of the fishing sector and aquaculture (31 million euro, corresponding to 1.7% of the comparable national data). The value of the goods and of the agricultural services remains almost unchanged over the previous year, since the decrease in the total quantities (-2.2%) has been offset by an average increase of the prices equal to 2.3%. In the same period the national agricultural OBP is increased by 3.6%. The productions which suffer the most are the vegetables, with an annual decrease of 3.4%, triggered by a contraction in the quantities not offset by the increase in prices, whereas the livestock products are increasing by 1.3% in value, on annual basis, mainly ascribable to an increase in prices equal to 1.9%. It has been also detected an increase in value for the connected services (+3.8%) and the secondary activities (+3.1%). The agricultural OBP is mostly represented by the livestock sector: the breeding contributes, in fact, for 62.5% to its development, followed by the vegetable productions (27.7%), by the connected services and by the secondary activities. Conversely, at the national level, it prevails the vegetable OBP compared to the livestock one (respectively of 52.8% and 33.4%). As far as each single sector is involved, in terms of incidence on the OBP of the goods and agricultural services, there is a prevalence of milk (24.2%), followed by pork meats (16.7%), cow meats (10.9%), and cereals (9.2%). Remarkable shares are also represented by other types of meat (8.5%), mostly represented by poultry meat, and the fodder-culture (8.1%). Less importance is represented by the horticul- 53 Agricultural production at basic prices, intermediate consumption and VA in Lombardy (million euro), 2013 Lombardy ItalyLombardy/Italy million euro % tot. OBP % on the sector million euro % tot. OBP % on the sector % Agricultural crops 2,039 Herbaceous crops 1,043 Fodder 587 Trees 409 Breeding 4,605 Meat 2,598 Milk 1,748 Other livestock 260 Related services 577 Total OBP and agricultural services 7,221 (+) secondary activities* 215 (-) secondary activities* 71 Total OBP in the agricultural sector 7,365 (-) Intermediate consumption 4,313 Value added of the agricultural sector 3,052 Total OBP of the forestry sector 76 (-) Intermediate consumption 18 Value added of the forestry sector 59 Total OBP of the fishing and aquaculture sectors 31 (-) Intermediate consumption 13 Value added of the fishing and aquaculture sectors 18 27.7 100.0 14.2 51.1 8.0 28.8 5.6 20.1 62.5 100.0 35.3 56.4 23.7 38.0 3.5 5.6 7.8 98.0 2.9 1.0 100.0 58.6 41.4 100.0 23.2 76.8 100.0 43.2 56.8 27,730 14,193 1,710 11,827 17,557 10,741 5,271 1,544 6,665 51,952 1,583 995 52,540 24,089 28,451 654 91 563 1,880 850 1,030 52.8 100.0 27.0 51.2 3.3 6.2 22.5 42.7 33.4 100.0 20.4 61.2 10.0 30.0 2.9 8.8 12.7 98.9 3.0 1.9 100.0 45.8 54.2 100.0 13.8 86.1 100.0 45.2 54.8 7.4 7.3 34.3 3.5 26.2 24.2 33.2 16.8 8.7 13.9 13.6 7.2 14.0 17.9 10.7 11.7 19.6 10.4 1.7 1.6 1.7 *Secondary activities involve both the activity carried out in the agricultural sector and which can not be set apart, such as farm stays, processing of milk, fruit and meat, highlighetd with the sign (+), and also the activity carried out by other economic sectors, within the crops and breeding which are highlighted with the sign (-). Source: ISTAT, Value added at agricultural basic prices by region. 54 ture (3.5%), viticulture (3.3%), and the other tree crops (2.4%). In terms of value, the connected services have an incidence equal to 8%. In 2013, the increase in the value of the livestock productions seems mostly supported by the poultry meats (+4.8%) and by the pork meats (+3.7%), as well as milk (+2.2%), whereas the cow meat has experienced a strong contraction of 5.7%. In terms of vegetable OBP, the cereals have experienced a loss in value of over 18%, compared to 2012, mainly triggered by quantitative changes caused by unfavorable weather conditions. Conversely, on annual basis, it is increased the value of the industrial crops (+11%) and of fodder (+4.9%), whereas the floriculture has experienced a decrease of 8.4%. The tree crops have gained in value 18.7%, supported by the viticulture and olive growing, which have experienced increases as much as 35% on annual basis, due to a combined effect of quantities and prices, whereas more contained has been the increase in Value of the agricultural output at basic prices by main sectors in Lombardy, 2013 Cereals and dried legumes Vegetables 3.6% 8% 9.2% 3.5% Industrial crops 0.7% 1.1% 3.3% 0.6% 1.8% 24.2% 8.1% Flower and plants Grapevine Fruit Other woody crops Fodder Cow meat Pork meat 10.9% 8.5% 16.7% Other meat Milk Eggs and other Related services Source: ISTAT, Value added at agricultural basic prices by region. 55 the fruit production (+1.9%). Among the single crops, the cereals have undergone a widespread decrease in value, on annual basis; rice, representing 41.2% of the national OBP of rice, has experienced a contraction of 5%, ascribable to an analogous decrease in prices. Conversely, what has most affected the OBP of maize (-24.2%), and the autumn-winter cereals, have been the quantitative decreases. In a clear countertrend is Main vegetable crops in Lombardy, 2013 OBP1 at current prices Milion euro % Lombardy/Italy Soft wheat Durum wheat Barley Rice Hybrid maize Soya Sugar beet Potatoes Tomatoes Melons Sold table wine Wine Oil Peaches Apples Pears Kiwis 69.9 12.1 17.4 125.9 390.7 40.7 5.8 10.5 43.4 45.9 21.3 213.4 2.2 2.0 21.3 9.7 5.5 9.3 0.9 10.6 41.2 24.4 17.2 5.9 1.4 4.1 20.7 2.3 7.5 0.1 0.5 2.1 1.8 1.8 OBP1 at chained values 2005 Million euro 35.7 6.7 10.9 157.5 228.1 19.0 5.8 5.7 42.7 47.0 19.4 128.1 3.0 1.7 14.5 6.7 5.3 % change 2013/2012 Quantity Price OBP -11.8 -4.9 -16.1 -34.1 3.1 -32.1 -10.2 -4.5-14.3 -0.4-4.7-5.0 -20.2 -5.0 -24.2 37.8 5.445.2 -60.7 5.4 -58.6 -25.637.0 1.9 -25.1 17.1-12.2 0.1-2.1-1.9 6.1 -10.7 -5.2 20.317.741.6 28.6 7.237.8 -19.425.9 1.5 1.512.914.6 -18.8 0.9-18.1 1.132.634.1 1 Production value at basic prices. Source: ISTAT, Value added at agricultural basic prices by region. 56 the soya, which is the main industrial crop of Lombardy. In terms of tree crops, the grapevine has experienced a strong contraction of price, only partially offset by quantitative variations, phenomena that on the whole have led to a decrease of 5.2% in value. The same positive variations of price have increased the OBP of some fruit trees, such as apples and kiwis. With regard to the processed products, the OBP of wine has registered an annual variation of 41.6%, 37.8% for the oil. Concerning the livestock sector, the region boasts of many records at a national level with an output of 39.1% in value of the pork meats, of 23.2% of the cow meat, and 36.3% of the cow milk compared to the respective national shares. In 2013, worthy of note have been also the percentages, on the national total, of the poultry meats (17.1%), of eggs (17%) and of honey (14.7%). The increase in value of the livestock OBP has been detected, at the level of each single product, in the pork meats (+3.7% in value and +2.4% in quantity), in the poultry meats (+4.8% in value and -1.1% in quantity), and in the cow milk (respectively of +2.2% and -1.1%). The OBP of the cow meats Main livestock productions in Lombardy, 2013 OBP1 at current prices Million euro % Lombardy/Italy Cow meat Pork meat Goat and sheep meat Poultry meat Eggs Cow milk Goat and sheep milk Honey 784.0 1,202.4 2.7 515.0 253.9 1,745.2 2.7 5.5 23.2 39.1 1.5 17.1 17.0 36.3 0.6 14.7 OBP1 at chained values 2005 Million euro 717.3 940.2 3.2 378.8 148.7 1,545.9 2.0 3.1 % change 2013/2012 Quantity Price OBP -4.3 2.4 0.0 -1.1 1.7 -1.1 3.6 -6.7 -1.4 1.3 -0.6 6.0 -2.7 3.3 7.3 8.5 -5.7 3.7 -0.6 4.8 -1.1 2.2 11.1 1.3 1 Production value at basic prices. Source: ISTAT, Value added at agricultural basic prices by region. 57 has instead registered a strong decrease (-5.7%). The deadlock of the production value, along with the increase in the intermediate consumption, during 2013, it has led to an erosion of 1.5% of the regional agricultural value added, thus leading to a decrease of the incidence of the value added on the value of the agricultural output down to 41.4%. In the same period the value added of the Italian agriculture is increased by 6.2%. The distribution of the agricultural OBP has not been uniform at the provincial level. Over a fourth of the regional agricultural value has been registered in the province of Brescia (26.3%), followed by the provinces of Mantua (21.7%), Cremona (14.7%), Bergamo (9.2%) and Pavia (9%). Estimate of the OBP at basic prices by Lombardy’s provinces (million euro), 2012 LombardyBergamoBresciaComoCremona Lecco Lodi Mantua Milan Monza Pavia SondrioVarese Agricultural crops Herbaceous crops Fodder Woody crops Breeding Meat Milk Other livestock Related services Total production of goods and agricultural services (+) secondary activities (farm stay, processing) (-) secondary activities (firms) Total production of the agricultural sector (-) intermediate consumption Value added at basic prices Source: estimates on ISTAT figures. 58 2,110 1,206 560 345 4,548 2,575 1,711 262 556 7,214 209 70 7,353 4,255 3,097 197 141 43 13 398 232 135 31 65 660 25 6 679 425 254 374 29 173 15 142 4 59 9 1,436 31 882 16 459 14 95 1 87 78 1,897 137 55 13 18 1 1,934 149 1,124 50 809 100 293 141 132 20 765 322 431 13 26 1,085 9 11 1,083 757 325 21 9 4 7 24 15 8 1 44 89 15 1 103 31 72 129 81 45 2 320 146 161 13 12 461 3 4 460 287 173 461 280 100 81 1,081 670 321 91 47 1,590 24 15 1,598 811 786 145 106 31 7 172 62 104 6 44 361 13 4 370 242 128 29 18 4 8 15 8 5 2 33 77 2 1 79 66 13 378 225 39 114 218 176 41 1 53 649 19 6 662 368 294 27 2 7 19 49 30 17 2 14 90 20 1 110 41 69 29 15 9 6 38 16 16 6 54 121 10 1 130 54 76 Even in terms of percentage composition of the agricultural OBP, the situation seems to be quite variegated. The meat sector has been decisively dominant in the provinces of Brescia (45.6% of the OBP) and Mantua (41.9%). In the provinces of Cremona (39.8%) and Lodi (35%) has prevailed the milk, in relative terms, although the province with the highest production has been Brescia. The sector of the herbaceous crops is mainly located in Pavia (34%) and Milan (28.8%). In the provinces characterized to a lesser extent by an agricultural vocation, important shares of the OBP have been represented by the connected services, first of all in the province of Como with 60.2% of the provincial agricultural OBP, followed by the provinces of Lecco (56%), Varese (48.3%) and Monza (44.3%). % distribution of the OBP in the Lombardy’s provinces, 2012 Varese Sondrio Pavia Monza Milan Mantua Lodi Lecco Cremona Como Brescia Bergamo Lombardy 0% Herbaceous crops 10% 20% Fodder 30% Woody crops 40% Meat 50% Milk 60% 70% Other livestock 80% 90% 100% Related services±secondary activities Source: estimates on ISTAT figures. 59 intermediate consumption In 2013, the intermediate consumption (IC) of the agriculture in Lombardy have reached a value of 4.3 billion euro, or 17.9% of the national total, with an increase in value of 1.4% over the previous year. At this amount it should be added 17.7 million euro of the intermediate consumption of forestry, and 13.4 million euro of fishing and aquaculture. The regional intermediate consumption has an incidence of 57.9% on the value of the production at basic prices, a value which is much more Value at % % to % change % change % change current prices category Italy value quantity price (million euro), 2013/12 2013/12 2013/12 2013 Source: ISTAT. 60 163.2 3.8 11.8 -5.9 -6.9 % incidence of intermediate consumption to the value of agricultural production, 2012 % Intermediate consumption (IC) in agriculture in Lombardy, 2013 Seeds and shots Feedingstuffs and various expenses for the livestock Fertilizers Crop protection products Motive energy Re-uses Other goods and services Agricultural IC Forestry IC Fishing and aquaculture IC in line with the levels of the EU-28, but of over 10 points higher than the national level. 1.0 1,768.5 41.0 25.3 3.5 -1.0 4.5 274.6 6.4 17.5 -4.4-2.5-1.9 56.71.3 6.7 10.14.85.1 495.211.5 14.9 -5.7-1.5-4.3 740.317.2 29.7 6.60.95.6 814.5 18.9 10.9 0.1 0.5 -0.4 4,313.1 100.0 17.9 1.4 -0.7 2.1 17.7 100.0 19.6 -1.5 -1.2 -0.3 13.4 100.0 1.6 3.5 -6.0 10.1 Lombardy57.9 Italy47.1 Italy - North 53.4 Italy - Centre 42.4 Italy - South and Islands 39.9 EU-2760.5 France58.8 Germany70.1 Netherlands67.9 Poland61.1 UK64.7 Romania57.0 Spain49.0 Source: ISTAT, Value added at agricultural basic prices by region; EUROSTAT. The increase of the spending for the intermediate consumption has been caused, on the one side, by the in- crease of the prices of the factors, equal to 2.1%, and on the side, by a decrease in the quantities of 0.7%. The agricultural output at basic prices (OBP), which has remained constant in value (+0.2%), led to a decrease of Terms of trade and productivity of the Lombardy agriculture, 2002-2013 120 100 80 60 40 20 0 2002 2003 2004 2005 OBP/CI 2006 2007 2008 OBP/CI (chained values) 2009 2010 2011 2012 2013 Terms of trade for OBP/CI prices Source: ISTAT, Value added at agricultural basic prices by region. 61 the agricultural value added, both in relative terms and in absolute terms. The productivity of the factors has decreased, both at current prices and at constant prices (respectively -1.2% and -1.4%), whereas the terms of trade between the production costs and the factors’ costs is improved by 0.2%, although remaining far from the values of the last decade. The animal feeding, with 41% of the 62 total value of the intermediate consumption in the Lombardy agriculture, represents the main category of technical means; in a scale of values, they can be pointed out the following items “other goods and services” (18.9%), the re-uses (17.2%), and the motive power (11.5%). In 2013, the increase in the intermediate consumption has been mainly boosted by pesticides (+10%), the re-uses (+6.6%) and the animal feed (+3.5%). The value of the energy is decreased, mainly due to the decrease in prices, whereas the animal feeds, the re-uses and the pesticides have experienced an increase in prices of about 5%. The intermediate consumption of the forestry sector is decreased by 1.5% on annual basis, while those for fishing and aquaculture are increased by 3.5%. investments In 2011, according to the latest available ISTAT data, the volume of the regional agricultural gross fixed investments has amounted to a value of over 2.2 billion euro, thus showing an increase of 9.6% over the previous year, so as to confirm and strengthen the sizeable increase detected in 2010. The regional agricultural gross fixed investments represent a share of 19.5% of the national agricultural investments, whereas their incidence on the total of the regional gross fixed investments amounts to 3.7%. Both figures exceed the average of the last decade. The incidence of the investments on the regional agricultural value added amounts to 70.5% at current prices. The degree of intensity of the regional agricultural activity, detectable by an- Trend in agricultural fixed gross investments* in Lombardy Current value (million euro) % to tot. Investments in Lombardy1 % to tot. agricultural Investments in Italy1 % to agricultural VA in Lombardy1 1,337.2 1,393.2 1,579.8 1,656.5 1,869.1 1,773.2 1,924.3 1,527.5 2,037.6 2,234.2 2.5 2.7 2.9 2.8 3.0 2.6 2.8 2.5 3.4 3.7 13.1 13.0 13.7 14.1 15.5 14.9 16.3 14.8 18.4 19.5 37.4 39.8 44.9 55.5 60.2 56.8 59.7 54.0 71.7 70.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 * Agriculture, forestry and fishing. 1 Values at current prices. Source: ISTAT, regional economic accounts. 63 alyzing the entity of the investments by agricultural work unit (AWU), is twice the national index. This indicator can be compared to the per capita investments in the sectors of the industry and services, which have been overtaken respectively by 35% and 61% in 2011. Incidence of agricultural gross fixed investments* in Lombardy to the total regional investments and national agricultural investments1 20 18.4 15.5 15 13.1 13.7 13.0 14.1 19.5 16.3 14.8 14.9 10 5 2.5 2.7 2.9 2.8 2002 2003 2004 2005 3.0 2.6 2.8 2.5 2007 2008 2009 3.4 3.7 0 2006 % to total investments in Lombardy * Agriculture, forestry and fishing. 1 Values at current prices. Source: ISTAT, regional economic accounts. 64 2010 2011 % to total agricultural investments in Italy Gross fixed investments1 by work unit and by sector in Lombardy and Italy, 2011 25.000 20,783 20,000 15,313 15,000 12,626 12,900 12,765 9,330 10,000 Agriculture Industry 5,000 Services 0 Lombardy Italy Lombardy Italy Lombardy Italy 1 Values at current prices. Source: ISTAT, regional economic accounts. 65 prices In 2013, the prices of the agricultural products have continued an upward trend, which had characterized the previous years, thus marking a +3.1% in the region and a +5.7% at the National level. This increase has been confirmed in the wood crops (+8.6%) and in the breeding (+2.1%), whereas the shares of the herbaceous crops are decreased by 1.8% on annual basis. In terms of vegetable productions, are decreased the shares of cereals (-4.5%), mainly rice (-5%); conversely, are increased the prices for the industrial crops (+5.1%) and vegetables (+6.5%). Remarkable increases in prices have been detected also for fodder (+8%), whereas the prices of the horticultural products are decreased by 6.1%. The wine products and fruits have pointed out the highest increases in price, respectively of 14.4% and 13.3%. Wine, in particular, has regis- 66 Change in implicit prices of agricultural products in Lombardy and Italy, 2013 Sector % change 2013/12 Lombardy % change 2013/12 Italy Agricultural crops 3.1 5.7 Herbaceous crops -1.8 3.0 Cereals -4.5-2.5 Dried legumes -2.3 -2.0 Potatoes and vegetables 6.5 8.0 Industrial plants 5.1 3.3 Flowers and ornamentals -6.1 -4.6 Fodder crops 8.0 9.0 Woody crops 10.1 8.6 Wine products 14.4 7.8 Olive products 7.1 7.0 Fruit 13.314.6 Other woody crops 2.3 1.8 Breeding 1.92.1 Meat 1.52.0 Milk 3.33.6 Eggs -2.7-2.7 Honey 8.58.5 Non-food livestock 3.8 1.7 Related services 2.5 2.2 Total production of goods and agricultural services 2.3 4.0 (+) secondary activities* 2.7 1.6 (-) secondary activities* 4.4 3.9 Total agricultural output b.p. 2.3 3.9 Intermediate consumption 2.1 2.0 * Secondary activities involve both the activity carried out in the agricultural sector and which can not be set apart, such as farm stays, processing of milk, fruit and meat, highlighetd with the sign (+), and also the activity carried out by other economic sectors, within the crops and breeding which are highlighted with the sign (-). Source: ISTAT, Value added at agricultural basic prices by region. Trend in the price index of the products from the origin to the final consumption (2010=100) ISTAT price index for agricultural products 140 Price index for the domestic market of the food industries, beverage and tobacco 135 Price index for the consumption of foodstuff and soft drinks in Lombardy 130 Price index for the consumption of foodstuff and soft drinks in Italy 125 120 115 110 105 100 January-10 90 June-14 95 2010 2011 2012 2013 2014 Source: ISTAT. 67 tered an annual change of prices of 17.7%, down by 10.7% are, instead, the grapevines. Also the shares of the olive oil are on the increase ( +7.2%). Among fruits, have been detected sizeable increases in the prices of apples, peaches and mainly kiwis, while the prices for pears have remained unchanged. All of the livestock sectors have experienced increases in prices, except for eggs (-2.7%). Are increased, in fact, the prices of milk (+3.3%), meat (+1.5%) and honey (+8.5%). Among the various types of meat, they have been 68 mainly strengthened the prices of the poultry meats (+6%) and, to a lesser extent, of the pork meats (+1.3%). On the contrary, the prices of the cow meats are decreased (-1.4%). The comparison of the price indices of the agricultural products, at the industrial production and at the consumption, calculated on the basis of the year 2010, has highlighted a widespread tendency of increase in prices at all the levels, mainly starting from the second half of 2010. Are, nonetheless, the prices at the agricultural output, despite their characteristic and sudden fluctuations, and the prices at the industrial production, those with a more decisive upward trend, by determining, at least during the last period, a modest erosion of the margins at the distribution. In any case, as from the beginning of 2013, there has been a general stabilization of the industrial prices, and of the prices at consumption, as a consequence of the contraction in demand. Similarly, the upward trend of the agricultural prices, despite the usual fluctuations, seems to be softened. structures in agriculture According to the results of the 6th general Agricultural Census, in 2010, are located in Lombardy 54,333 agricultural farms, amounting to 3.3% of the national total. The total agricultural area (TAA) amounts to about 1.2 million hectares, while the utilised area (UAA) has been estimated in 986,826 hectares, or 7.7% of the national UAA. The UAA of the Lombardy farms has undergone a reduction of 5.1%, over 2000. This decrease, being inferior in absolute value compared to that of the number of farms (-23.5%), has led to an increase of the average farm UAA from 14.6 to 18.2 hectares, which is double the national average. Sole proprietorship and direct management remain the prevailing legal form and management method; undoubtedly the legal form of partnership has grown in importance in Lombardy over 2000. On the whole, it is on the increase the availability of Structural features of the agriculture in Lombardy and Italy, 2010 Lombardy ItalyLombardy/Italy (%) Farms (n.) 54,333 1,620,884 3.35 Total livestock farms (n,) 22,064 217,449 10.15 Cattle farms (n,) 14,718 124,210 11.85 - of which dairy cows 8,463 50,337 16.81 Agricultural and forestry area (AFA) (ha) 1,229,561 17,081,099 7.20 Utilised agricultural area (UAA) (ha) 986,826 12,856,048 7.68 Livestock units (LSU) 2,739,158 9,957,399 27.51 Workers at the farms (n,) 137,447 3,870,754 3.55 - of which family (n,) 98,157 2,932,651 3.35 Total working days (thousand) 19,261 250,806 7.68 -of which family (thousand) 15,067 200,905 7.50 Average TAA per farm (ha) Average UAA per farm (ha) Breeding/farms (%) LSU/UAA (n.) LSU/breeding (n.) Workers per farm (n.) Working days per farm (n.) Working days/UAA (n.) Family working days (%) Standard output (million euro) Standard output/firm (euro) 22.63 18.16 40.61 2.78 124.15 2.53 354.5 19.52 78.2 10.54 7.93 13.42 0.77 45.79 2.39 154.7 19.51 80.1 214.74 229.0 302.7 358.4 271.1 105.9 229.1 100.1 97.7 7,388 135,979 49,460 30,514 14.94 445.62 Source: ISTAT - 6° General Agricultural Census. 69 rented UAA, thus representing a widespread land tenure form in the region (49.5%), in terms of hectares, compared to the ownership, unlike what happens at a national level (29.9%); at the same way, a greater incidence, in terms of farms and areas, is repre- sented by the farms holding a rented land (also the other forms of ownership) and the farms that holds surface only rented. In 2010, 40.6% of the Lombardy farms, or 22,064 units, has conducted a breeding activity, compared to the corresponding 13.4% at a national scale. The importance of the Lombardy livestock sector, in the national framework, is detected by the widespread breeding, which exceeds three times the corresponding national parameter, as well as by the number of Features of management of the farms in Lombardy and Italy Lombardy 2010 Italy 2010 Lombardy 2000 farms UAA % UAA % UAA n. % hectares % Legal form - individual farms 44,554 82.0 527,520 53.5 76.1 63.6 - companies 9,523 17.5 405,539 41.1 17.7 29.8 - other legal form 256 0.5 53,766 5.4 6.3 6.6 Type of management - run by the farmer 50,687 93.3 805,868 81.7 82.8 82.1 - run with employees 3,106 5.7 134,373 13.6 11.6 17.9 - other type of management 540 1.0 46,585 4.7 5.6 0.0 Title of possession - property 449,309 45.5 61.9 55.3 - rent 488,206 49.5 29.9 41.5 - for free 49,311 5.0 8.5 3.3 TOTAL 54,333 100 986,826 100.0 100.0 100.0 Source: ISTAT - 6° General Agricultural Census. 70 Italy 2000 % UAA 79.1 11.7 9.2 81.2 18.7 0.1 76.8 19.4 3.8 100.0 Farms by class of UAA in Lombardy and Italy, 2010 Class of UAA < 5 ha 5-10 ha 10-20 ha 20-30 ha 30-50 ha > 50 ha Total Lombardy farms UAA (ha) 27,076 47,655 7,726 55,154 7,341 103,794 3,635 88,434 3,730 142,681 4,825 549,108 54,333 986,826 Italy farms UAA (ha) 1,182,320 1,846,841 186,145 1,295,295 120,115 1,663,483 46,687 1,128,980 40,915 1,556,922 44,702 5,364,526 1,620,884 12,856,048 % Lombardy farms UAA (ha) 49.8 4.8 14.2 5.6 13.5 10.5 6.7 9.0 6.9 14.5 8.9 55.6 100 100 % Lombardy/Italy farms UAA (ha) 2.3 2.6 4.2 4.3 6.1 6.2 7.8 7.8 9.1 9.2 10.8 10.2 3.4 7.7 Source: ISTAT - 6° General Agricultural Census. Farms and UAA in Lombardy and Italy, 2010 Lombardy Italy farms*ha farms ha Arable crops 35,222 715,263 828,390 7,009,311 Agricultural woody crops 14,660 36,484 1,192,081 2,380,769 Permanent meadows and pastures21,822 234,591 274,486 3,434,073 Total UAA 53,680 986,826 1,615,590 12,856,048 Trees for wood 2,103 18,796 26,772 101,628 Woods 16,098 141,675 328,358 2,901,038 Non-used area 10,267 35,902 302,940 648,746 Other area 43,637 46,362 945,829 573,638 total agricultural area 54,189 1,229,561 1,619,228 17,081,099 average areas (ha) % Lombardy/Italy Lombardy Italyfarms area 20.3 8.5 4.3 10.2 2.5 2.0 1.2 1.5 10.8 12.5 8 6.8 18.4 8.0 3.3 7.7 8.9 3.8 7.9 18.5 8.8 8.8 4.9 4.9 3.5 2.1 3.4 5.5 1.1 0.6 4.6 8.1 22.7 10.5 3.3 7.2 * Each farm can cultivate different crops. Source: ISTAT - 6° General Agricultural Census. 71 Farms by economic size class in Lombardy and Italy, 2010 Economic size farms Very small (< 4,000 €) 12,853 Small (4,000 - 25,000 €) 19,574 Medium-small (25,000 - 50,000 €) 6,254 Medium (50,000 - 100,000 €) 4,827 Medium-large (100,000 - 500,000 €) 7,928 Large (≥ 500,000 €) 2,897 Total 54,333 Lombardy % Lombardy % Italy % Lombardy/Italy UAA standard output farms UAA standard farms UAA standard farms (ha) (million euro) output output 16,302 25.1 23.7 1.7 0.3 48.3 8.6 2.6 1.6 107,397 227.3 36.0 10.9 3.1 32.9 21.8 11.4 3.7 92,001 223.0 11.5 9.3 3.0 7.9 13.4 9.2 4.9 125,598 341.7 8.9 12.7 4.6 5.5 16.0 12.6 5.4 378,390 1,821.6 14.6 38.3 24.7 4.7 29.3 30.4 10.3 267,137 4,749.5 5.3 27.1 64.3 0.7 10.9 33.8 24.6 986,826 7,388.1 100.0 100.0 100.0 100.0 100.0 100.0 3.4 Source: ISTAT - 6° General Agricultural Census. animals per farm (2.7 times) and per hectare of UAA (3.6 times). Even the entity of the livestock heritage, which represents 27.5% of the livestock units (LSU) at the national level, marks out Lombardy in the Italian context. With the exception of the goats and sheep, the highest number of animals is concentrated in the farms located in the lowlands. According to the Census data, the standard regional production amounts 72 to about 7.4 billion euro, or 14.9% of the corresponding national value. The average standard production per farm is of about 135,000 euro, almost four and a half times the average of the Italian farms, which amounts to just 30,000 euro. Over the half of the Lombardy farms is located in the lowlands; in these areas is concentrated 65% of the TAA and 73% of the UAA, thus showing an average farm size of 24.4 hectares, which is superior than the regional average (18.4 hectares/farm). On the mountains is located 23.5% of the farms, which manage 25.7% of the TAA, and 17.6% of the UAA, with an average size of 13.8 hectares. 85% of the standard production of the Lombardy agriculture is produced in the lowlands. The distribution of farms by economic size class depicts a framework for the Lombardy agriculture which is deeply different from the national one. The small-sized farms and the very smallsized farms, with a standard production of less than 25,000 euro, are in the region less than 60%, compared to the national 81%. Conversely, the big-sized farms, more than 500,000 euro, represent 5.3% of the total, by involving 64.3% of the regional standard production (0.7% of the farms and 33.8% of the standard production in the national context). Worthy of note is, furthermore, the presence of medium-large-sized farms, equal to 14.6% of the total and to 24.7% of the standard production. The economic size represents the main parameter for determining the degree of entrepreneurship of the farms, but it is not the only one. On the basis of the type of management, Distribution of farms by type of business in Lombardy, 2010 Farms (%) Total area (%) Utilised area (%) Gross standard output (%) Total working days (%) AWU (%) Self-consumption 19.1 3.9 3.5 0.8 1.2 1.5 Deconstructed 14.3 16.9 14.3 5.2 3.7 4.6 Subsistence 39.5 14.7 13.5 5.2 33.4 34.9 Professional 27.0 64.4 68.7 88.8 61.7 59.0 Total 100.0 100.0 100.0 100.0 100.0 100.0 Average features Total area per farm (ha) Utilised area per farm (ha) Work units per farm (AWU) Working days per hectare Gross output per farm (euro) Gross output per hectare (euro) Gross output per work unit (euro) Gross output per day (euro) Self-consumption 4.65 3.29 0.10 6.8 5,524 1,677 56,228 248 Deconstructed 26.70 18.14 0.39 4.9 49,243 2,715 125,397 556 Subsistence 8.42 6.22 1.08 46.8 17,913 2,879 16,589 61 Professional 53.96 46.14 2.67 17.1 446,835 9,684 167,162 567 Total 22.63 18.16 1.22 19.0 135,979 7,487 111,037 394 Source: DEMM processing on ISTAT figures - 6° General Agricultural Census. 73 Farms by type of farming in Lombardy and Italy, 2010 Lombardy % Lombardy % Lombardy/Italy farms UAA standard output farms UAA standard farms UAA standard (ha) (million euro) output output Farms specialised in arable crops 22,308 466,511 963.0 41.1 47.3 13.0 5.8 9.5 10.7 - of which specialised in rice cultivation 1,455 96,229 200.0 2.7 9.8 2.7 42.3 42.1 41.0 Farms specialised in fruit and vegetables 2,640 14,875 374.3 4.9 1.5 5.1 7.0 10.0 8.8 Farms specialised in permanent crops 7,662 35,769 338.9 14.1 3.6 4.6 0.9 1.3 2.5 - of which specialised in viticulture 5,426 27,820 289.7 10.0 2.8 3.9 2.7 2.9 3.9 Farms specialised in herbivorous 15,265 334,085 2,164.3 28.1 33.9 29.3 11.8 9.8 23.2 - of which specialised in cattle farms - milk orientation 6,969 247,545 1,758.6 12.8 25.1 23.8 20.3 27.1 38.8 - of which specialised in cattle farms - breeding and fattening orientation 2,950 35,394 286.8 5.4 3.6 3.9 8.9 3.9 14.8 Farms specialised in granivores 1,747 65,534 3,126.3 3.2 6.6 42.3 18.7 36.6 34.8 - of whch specialised in pork breeding 1,176 59,718 2,562.7 2.2 6.1 34.7 24.5 45.8 52.3 - of which specialised in poultry breeding 511 5,404 554.9 0.9 0.5 7.5 13.8 12.4 14.1 Farms with poly-culture 1,689 16,576 89.0 3.1 1.7 1.2 1.6 2.1 3.9 Farms with mixed livestock 403 12,348 169.2 0.7 1.3 2.3 9.5 15.0 39.4 Mixed farms (crop - breeding) 2,393 40,274 163.1 4.4 4.1 2.2 6.7 7.4 11.4 Non-classified farms 226 855 0.4 0.1 - 0.9 0.9 Total 54,333 986,826 7,388.1 100.0 100.0 100.0 3.4 7.7 14.9 Source: ISTAT - 6° General Agricultural Census. use of work, income level, age of the workforce and diversification of income, it has been proposed (Pretolani, 2014), starting from the Census data, a classification of the agricultur- 74 al businesses into four categories: selfconsumption, deconstructed, subsistence and professional. At the regional level, the farms really ascribable to the category of the professional farms would be only 27% of the total, which, nonetheless, would concern 68.7% of the regional UAA, 59% of the work units and as much as 88.8% of the standard production. In terms of productive specialization, 41.8% of the Lombardy farms is specialized in the production of seeds, while 28.1% in the breeding of her- bivorous. The greatest average farm sizes, in economic terms, have been detected in the specialized pork farms (over 2 million euro), in the poultry farms and in the dairy cattle farms. Usually, in quite all of the classes of the type of farming, the Lombardy farms have highlighted physical and Farms by type of farming in Lombardy and Italy, 2010 - firms’ average Firm’s average in LombardyFirm’s average in Italy UAA (ha standard output UAA (ha standard output (euro) (euro) Farms specialised in arable crops 20.9 43,170 12.8 23,431 - of which specialised in rice cultivation 66.1 137,439 66.5 142,060 farms specialised in fruit and vegetables 5.6 141,796 3.9 112,917 Farms specialised in permanent crops 4.7 44,229 3.0 15,397 - of which specialised in viticulture 5.1 53,390 4.7 36,652 Farms specialised in herbivorous 21.9 141,783 26.3 72,137 - of which specialised in cattle farms - milk orientation 35.5 252,350 26.6 132,115 - of which specialised in cattle farms - breeding and fattening orientation 12.0 97,209 27.6 58,710 Farms specialised in granivores 37.5 1,789,497 19.1 959,536 - of whch specialised in pork breeding 50.8 2,179,200 27.2 1,021,630 - of which specialised in poultry breeding 10.6 1,085,907 11.8 1,064,456 Farms with poly-culture 9.8 52,667 7.5 21,782 Farms with mixed livestock 30.6 419,925 19.4 101,432 Mixed farms (crop - breeding) 16.8 68,166 15.3 40,146 Non-classified farms 3.8 - 4.0 Total 18.2 135,979 7.9 30,514 Source: ISTAT - 6° General Agricultural Census. 75 economic sizes which are double than the national ones. Furthermore, in Lombardy is concentrated 52.3% of the standard production of the Italian specialized pork-breeding, 41% of the rice-culture, and 38.8% of the dairy cattle breeding. The incidence of the agricultural work in Lombardy on the total of Italy amounts to 3.5%, expressed in number of workers, to 7.7% in terms of working days and to 6.7% in terms of work units, thus highlighting a greater relevance of the full-time job compared to the other Italian regions. 78.2% of the working days has been performed by the family of the owner, compared to 80% at a national scale. The incidence of the extra-family workforce is much more high in Lombardy (28.6% compared to 24.2% at the national level), and it highlights an higher foreign component (42% compared to 24.8%), mainly of non- 76 EU origin (54.8%). The incidence of family workforce is lower if expressed in work units (22.2% compared to the national 20.9%). In Lombardy, there are fewer women involved in the farm management compared to the national average (19.8% compared to 30.7%). By contrast, the number of young farm man- agers is higher (14.5& compared to 10%). By considering the whole workforce, 19% of the agricultural work units in Lombardy is represented by women, compared to the national 28.5%. Conversely, the incidence of the young people is higher than the national situation (27% of the work units compared to 20%). Management and agricultural labour in lombardy and Italy, 2010 Owner - with a school certificate - graduated - aged less than 40 years - woman Extra-family labour of whom - foreign labour - extra-EU - EU-27 foreigners of whom - permanent workers - temporary workers Source: ISTAT - 6° General Agricultural Census. Lombardy Italy n.% n. % 34,853 64.1 1,158,494 71.5 3,516 6.5 100,981 6.2 7,894 14,5 161,716 10.0 10,761 19.8 497,847 30.7 39,290 28.6 938,103 24.2 16,527 42.1 233,05524.8 9,065 54.8 98,581 42.3 7,462 45.2 134,47457.7 18,353 46.7 163,145 17.4 16,494 42.0 695,557 74.1 Structural features of the Lombardy farms by altitude, 2010 Mountain % on total Hill % on total Plain % on total Lombardy zones zones zones Total farms (n.) 12,768 23.5 11,561 21.3 30,004 55.2 54,333 UAA (ha) 173,578 17.6 91,962 9.3 721,286 73.1 986,826 -of which arable crops 7,123 1.0 49,666 6.9 658,47392.1 715,263 -of which agricultural woody crops4,471 12.3 22,54961.8 9,46425.9 36,484 -of which permanent fodder 160,766 69.2 19,541 8.4 52,061 22.4 232,368 Total agricultural area (ha) 316,238 25.7 115,982 9.4 797,341 64.8 1,229,561 Average total agricultural area (ha) 24,8 10,0 26,6 22,6 Average UAA (ha) 13,8 8,0 24,4 18,4 Total breeding (n,) 7,597 34.8 3,910 17.9 10,353 47.4 21,860 % breeding/farms 59,5 33,8 34,5 40,2 Cattle (heads) 77,820 5.2 107,722 7.3 1,299,449 87.5 1,484,991 - of whom dairy cows 38,467 7.0 36,649 6.7 471,204 86.3 546,320 cattle/breeding 16 45 176 101 Goats (heads) 59,134 55.9 14,014 13.3 32,611 30.8 105,759 goats/breeding 49 53 163 64 Sheep (heads) 37,624 65.2 6,725 11.7 13,356 23.1 57,705 sheep/breeding 25 19 41 26 Pork (heads) 6,789 0.1 113,032 2.4 4,639,142 97.5 4,758,963 pork/breeding 11 283 2,813 1,801 Poultry (heads) 1,365,813 5.2 5,158,916 19.5 19,988,194 75.4 26,512,923 poultry/breeding 1,756 8,941 19,201 11,065 Standard output (million euro) 331,1 4.5 768,9 10.4 6,288,1 85.1 7,388,1 Standard output/farm (euro) 25,931 66,512 209,576 135,979 Source: ISTAT - 6° General Agricultural Census. 77 Crop investments and livestock holdings In terms of soil use, the arable crops are the most widespread type of cultivation, covering 58.2% of the agricultural land, compared to 41.1% at the national level. On the contrary, the contribution of the wood crops on the total of the surface is quite modest and clearly below the average. The permanent fodder covers 19.1% of the TAA, in line with the national datum (20.1%), whereas the wood has an incidence of 11.5%. The incidence of the UAA on the TAA is of 80.3% (75.3% in Italy). In terms of breeding, 70% raises cattle, with an average size, expressed in % breakdown of the total agricultural area in Lombardy and in Italy, 2010 LOMBARDY ITALY 3.8% 3.4% 2.9% 3.8% 11.5% Arable crops 17.0% 1.5% 41.1% 0.6% Woods 58.2% Non-used area 20.1% Source: ISTAT - 6° General Agricultural Census. 78 Permanent meadows and pastures Trees for wood 19.1% 3.0% Woody crops Other area 14.0% Structural features of the livestock farms in Lombardy and Italy, 2010 Cattle - of whom dairy cattle Buffalo Goats Sheep Horse Pork Poultry Rabbit Ostrich Total breeding % breeding/tot. Farms Lombardy breedingheads 14,718 1,484,991 8,463 546,320 86 10,209 1,659 105,759 2,210 57,705 5,664 30,196 2,642 4,758,963 2,396 26,512,923 1,060 415,452 31 980 22,064 40.6 Italy breedingheads Average size LombardyItaly % Lombardy/Italy breeding heads 124,210 5,592,700 101 45 11.8 50,337 1,599,442 65 32 16.8 2,435 360,291 119 148 3.5 51,096 6,782,179 64 133 3.2 22,759 861,942 26 38 9.7 45,363 219,159 5 5 12.5 26,197 9,331,314 1,801 356 10.1 23,953 167,512,019 11,065 6,993 10.0 9,346 7,194,099 392 770 11.3 244 5,246 32 22 12.7 217,449 10.1 13.4 26.6 34.2 2.8 1.6 6.7 13.8 51 15.8 5.8 18.7 Source: ISTAT - 6° General Agricultural Census. number of heads, which is as much as twice the national one (101 vs 45). The dairy breedings amount to 8,463, or 16.8% of the Italian ones, with a number of heads corresponding to a little more than one third of those raised in Italy. The pig breeding involves 2,642 firms, amounting to 10.1% of the national total, which control by themselves over 51% of the heads raised in Italy. Conversely, the incidence of the goat and sheep sectors is lower, while the regional poultry farming represents a share of 15.8% of the total heads raised in Italy. It is interesting notice how, despite the widespread decrease of the farms over 2000, the heads raised are increased in the sectors of pigs (+24%), goats (+17%) and sheep (+16.8%). The cattle raised show, instead, a contraction of 7.6% over ten years, nonetheless inferior to the decrease of farms. 79 economic results of the fadn farms The economic-structural data concerning the farms detected by the Farm Accountancy Data Network1 have pointed out the regional differences existing compared to the na- tional level (2012 data). In particular, the classification by class of economic size has highlighted the incidence of the big-sized farms in Lombardy: only 6.4% of the total but with a contribu- tion of 58% to the total Standard Output (SO) compared, in Italy, to respectively 1.2% of the total and 31% of the standard production. Furthermore, they have been noticed the highest Farm results by type of economc size in Lombardy and Italy, 2012 Economic size % farm % SO SO/farm UAA/farm WU /farm LSU/farm Kw/Ha GSP/farm GSP/WU VC/GSP FC/GSP (€) (ha) (€)(€) (%)(%) Italy Small 62.1 12.9 12,342 6.93 0.82 0.85 9.5 18,261 22,333 45.1 19.7 Medium-small 16.2 9.9 36,312 14.95 1.21 4.28 7.1 42,229 34,802 42.9 17.3 Medium 11.1 13.3 71,341 25.20 1.64 10.21 5.8 73,832 44,935 46.7 15.4 Medium-large 9.4 32.9 207,453 50.44 2.72 34.47 4.8 210,584 77,456 49.5 11.7 Large 1.2 31.0 1.503,038 88.34 5.39 347.95 4.8 841,276 156,008 57.7 10.3 Total 100.0 100.0 59,399 15.35 1.21 9.86 8.5 56,505 46,759 48.9 14.3 LOMBARDY Small 41.8 3.7 14,662 6.461.011.9320.2 22,259 22,00545.622.5 Medium-small 17.0 3.8 36,816 13.661.375.7111.2 53,534 38,94841.819.1 Medium 13.1 5.4 68,476 24.56 1.45 10.04 8.4 84,150 57,846 39.2 18.4 Medium-large 21.6 28.7 218,007 44.96 2.06 58.77 7.1 249,239 120,988 43.3 11.2 Large 6.4 58.3 1,495,415 78.52 4.17 562.13 6.8 898,815 215,393 50.2 12.0 Total 100.0 100 164,390 23.00 1.56 51.85 11.2 140,968 90,320 45.8 13.3 Source: Italian FADN, average figures. 1 For further information about the FADN survey please visit the website ww.rica.inea.it. 80 average extension and economic size of the regional farms (164,390 euro per farm compared to 59,399), the highest number of animals (52 compared to 10 LSU per farm), and the highest degree of mechanization and of work productivity (GSP/AWU). In terms of variation, the agricultural sector in Lombardy has registered, between 2011 and 2012, positive signals, by facing well the economic challenge and by increasing the productivity of farms and work; these increases are also detectable at the national level, but mainly as consequence of a decrease in employment. It has been also detected a tendency in containing the variable costs (% incidence VC/GSP) and, wherever it’s possible, the fixed costs, in order to cope with the market volatility. The business competitiveness of the agricultural system in Lombardy, registered in the 2009-2011 period, pro- Average farm results of Lombardy and of the main EU countries (2009-2011) % farm % SO % LSU SO/farm (€) GP/farm (€) GP/WU (€) % Subsidies/GP NI/ha (€) NI/FWU (€) Romania 21.53 3.43 5.81 11,120 12,297 8,579 18.56470 3,830 Greece 6.64 1.95 1.69 20,47922,77718,468 11.37 1.516 12,264 Poland 15.00 6.14 7.58 28,60025,86715,216 26.08492 6,164 Spain 10.72 10.19 9.83 66,36146,34333,188 23.16579 20,593 Austria 1.88 1.87 1.84 69,42763,90444,511 26.30806 18,928 Italy 16.06 16.42 7.73 71,41851,70840,084 10.15 1.418 23,790 France 6.11 16.41 17.07 187,520173,977 85,144 19.46415 24,636 Lombardy 0.77 2.40 2.00 217,796 140,339 93,375 23.102.725 52,033 UK 1.90 6.17 9.50 226,395220,002103,295 27.83328 40,834 Germany 4.28 14.20 13.42 231,756199,414 92,895 24.03376 23,211 Belgium 0.63 2.57 3.09 283,348222,141104,785 36.36 1.110 32,399 Denmark 0.59 2.94 3.50 349,871379,419218,585 31.95 -17 -1,924 Netherlands1.06 6.73 5.34 442,112426,159153,848 17.33 1.181 28,528 EU FADN100.00100.00 100.00 69,84061,42838,396 20.79516 13,870 Source: FADN, average figures. 81 vides a summary indicator of different components (structural characteristics, factors’ conditions, relationships with the markets, economic and institutional environment), albeit with a slightly negative value, ranks the region at a significant level compared to the average of Italy and of other European countries, such as Poland and Spain. Conversely, the EU countries with an agriculture of “continental” type and linked to the livestock sector, show an overall indicator higher than the Lombardy one. By paying the attention on the single contributions, it can be noticed that the Lombardy agriculture enjoys of a good position within the community framework for what concerns the structural aspects, the market and the factors’ conditions; on the contrary, it shows weaker elements in the economic and institutional context. In particular, the countries resulting more competitive show better rankings than the Lombardy, in structural terms and in terms of approach to the markets; and even in terms of economic and institutional context, except for Netherlands and Denmark, where the burden of Specialised cereal farming, average farm results for Lombardy and the main EU production regions (2009-2011) Country/Region % SO/farm GP/ha GP/WU NI/ha NI/FWU farm(€)(€)(€)(€)(€) Lombardy 2.25 58,9132,02743,791 Romania/Bucuresti-Ilfov 0.04 88,572 51440,808 Italy 19.88 30,7891,29234,159 Hungary/Йszak-Alfцld 1.73 36,602 58648,111 Spain/Andalucia 1.86 40,080 66938,393 Poland/Pomorze and Mazury 2.84 46,265 720 28,514 EU FADN 100.00 58,558 871 49,539 France/Centre 1.77 158,040 1,172122,167 UK/England-East 1.61 216,160 1,244147,287 Source: FADN, average figures. 82 794 244 524 207 507 292 268 340 431 18,156 58,049 15,249 33,276 41,718 15,190 21,589 42,323 86,354 Subsidies /GP 29.8 25.9 33.8 39.5 59.8 38.2 31.0 26.4 24.1 % ha cereals UAA/farm % cereals % to GP (ha) to GP EU cereal 89.4 69.0 74.4 58.9 55.1 70.0 65.0 62.2 54.7 27.48 201.93 23.34 59.70 58.16 69.58 73.77 149.39 189.89 88.8 2.85 69.3 0.08 75.6 11.56 62.6 0.97 73.7 1.36 62.6 2.28 61.0 100.00 61.5 4.87 54.65.29 taxation is particularly relevant. But if the operators of the Lombardy system can be active in terms of the variables relating to the structures, factors and markets (of a slight positive value), for what concerns the institutional aspects these are out of their reach; except for, at least partially, for the rural development, which places Lombardy just a little below the community benchmark. This last one should be, therefore, considered much more as a threat than as a weak point. By shifting the attention to a European comparison, as regards the variation of some indicators of firm’s performance (three-year average 2008-10 and 2009-11), it could be noticed how the improvement of the farm GSP has been supported also by highest public subsidies; nonetheless, this has not managed to offset in Lombardy the strong increase in the variable costs, thus leading to a remarkable contraction of the farm net income (NI), and of the profitability per hectare. This phenomenon has been accompanied Arable crops specialised not only in cereals*, average farm result for Lombardy and the main EU production regions (2009-2011) Country/Region % SO/farm GP/ha GP/WU NI/ha NI/FWU farm(€)(€)(€)(€)(€) Subsidies /GP % ha cereals UAA/farm % cereals % to GP (ha) to GP EU cereals Lombardy 0.98 123,961 3,124 53,124 1,401 31,005 16.341.922.73 Romania/Centru 2.17 20,098 985 18,560443 12,369 29.543.520.85 Italy 24.6071,868 2,183 36,239 1,046 23,501 19.3 33.3 20.75 Germany/Bayern 2.13 113,447 2,091 75,617528 25,558 22.950.154.31 Spain/Castilla-Leon 1.88 73,599 618 39,673260 17,870 38.054.176.14 Poland/Mazowsze and Podlasie 7.08 16,867 1,160 9,969 592 5,897 33.1 57.5 14.75 EU FADN 100.00 76,460 1,735 45,055 570 20,955 22.8 45.4 40.06 France/Nord-Pas-de-Calais0.95 211,680 2,500 109,487539 39,512 13.148.290.64 Greece/Makedonia-Thraki7.57 22,720 1,376 18,047750 11,757 68.642.013.37 21.20.84 23.10.59 16.4 10.46 28.03.89 39.62.01 27.6 1.92 25.1 100.00 26.43.25 22.91.83 * Cereals mixed with other arable crops (industrial plants, aromatic plants, vegetable gardens at the open air), other specialised arable crops. Source: FADN, average figures. 83 by an increase in the use of workforce; this has triggered a contraction of the work productivity, conversely to what happened in the other European countries. In terms of tendency of the main crops, the cereal-growing in Lombardy, represented by farms highly dedicated to the growing of cereals (90% of the UAA), boasts of a remark- able Gross Production/hectare, over 2,000 €/hectare, and a sizeable Net Income/hectare (about 800 €/hectare). The big-sized farms in Lombardy, although registering the best performances compared to some European regions, which enjoy of the same generous subsidies, didn’t reach the same levels as the regions located in the centre of France or in the eastern UK, where have been detected farms with sizeable lands cultivated at cereals, well equipped, with an high work productivity and which generate high NI per family work unit. The grape growing in Lombardy, aimed at producing wine, represents an evolving sector trying to improve its image mainly abroad, even though it is not so important in terms of land Specialised viticulture, average farm results for Lombardy and the main EU production regions (2009-2011) Country/Region % SO/farm GP/ha GP/WU NI/ha NI/FWU Subsidies % ha UAA/farm % GP % to GP farm(€)(€)(€)(€)(€) /GP grapevine (ha) grape-wine EU grape-wine Lombardy 0.85 85,320 8,271 42,065 3,686 25,0316.069.06.99 85.0 0.71 Hungary/Dйl-Alfцld 0.59 13,847 3,28119,266 711 7,760 13.4 78.7 10.54 93.1 0.32 Spain/La Rioja 1.17 42,920 2,528 25,816 1,137 15,628 3.2 75.0 13.24 94.8 0.63 Italy 47.73 67,577 5,092 33,224 2,046 18,1695.649.57.87 81.0 26.37 EU FADN 100.00 85,712 4,966 40,244 1,607 20,422 4.7 59.9 13.43 88.2 100.00 Germany/Rheinland-Pfalz 2.22149,040 10,96655,728 3,336 23,291 1.9 69.9 13.64 90.4 5.10 France/Champagne-Ardenne 2.78 334,920 40,353 104,728 13,888 79,0760.548.86.95 95.7 12.70 Czeck Republic 0.32 86,789 5,199 26.122 1,244 12,498 11.0 68.3 12.87 86.0 0.32 Austria 2.87101,205 3,87141,076 1,314 17,141 15.5 31.8 15.93 69.4 2.09 Source: FADN, average figures. 84 extension and not being comparable with the rich grape growing of the French regions such as Champagne and Ardenne (in terms of standard output/farm and productivity per work unit), and with the German ones, such as Rheinland-Pfalz, which are vocated to this type of cultivation (highest productivity per hectare). Despite the particular attention by the region, the Lombardy wine has not yet reached the notoriety that its quality is worth having; mainly the prices of the southern Lombardy are very cheap. In terms of profitability per family worker, the situation has worsened due to the long-lasting crisis; only the rich French region seems to have overcome it. As far as the livestock sector is concerned, the dairy cows represent a leading sector for the region (covering about 40% of the Italian production); the farms enjoy of an excellent rank- Specialised dairy cattle, average farm results for Lombardy and the main EU production regions (2009-2011) Country/Region % SO/farm GP/ha GP/WU NI/ha NI/FWU LSU/ha farm % ha UAA/ % milk % to GP farm(€)(€)(€)(€)(€) cows fodder farm and milk milk and (ha) products milk products on GP (EU) Poland/Mazowsze and Podlasie 12.14 32,258 1,381 14,985 624 6,862 1.10 14.18 58.2 19.38 66.3 3.24 Hungary/Dйl-Alfцld 0.20109,2151,64334,140 31418,6200.9232.5856.159.0749.7 0.15 Spain/Galicia 1.94104,2724,43549,7071,95422,6752.4230.6797.217.3877.7 1.75 EU FADN 100.00103,5372,50951,978 65316,0621.3531.1175.937.9969.7 100.00 Ireland 2.72135,2002,37784,257 86135,3711.8963.7997.758.5069.9 3.98 Italy 5.82164,5376,12789,7372,69950,0252.5446.5580.928.6171.8 11.04 France/Pays de la Loire 1.04 182,344 1,957 90,293 496 24,636 1.09 53.57 73.3 91.34 67.2 1.89 Germany/Niedersachsen 1.45285,1333,226 131,767 75438,5341.7473.5183.976.7976.4 4.12 Romania/Nord-Est 0.35 297,025 3,449134,354 831 43,114 2.24 113.15 97.0 83.49 78.0 1.17 UK/England-West 0.70458,640 3,414137,587 735 54,1521.78135.52 87.6119.84 73.8 3.17 Lombardy 1.04329,8628,888 145,8914,29589,5403.5176.4376.036.2574.4 3.74 Source: FADN, average figures. 85 ing in Europe in terms of productivity and revenue per worker (respectively 145,000 euro gross production/work unit and 90,000 euro net income/family work unit). The Lombardy farms have a breeding of intensive type(high number of cows per farm and a high number of LSU per hectare) and this could represent a critical point for the environment. The dairy farms, in Lombardy, whose average size in terms of area is of 36 hectares compared to the 120 of the western UK, are practicing also fodder crops besides the intensive breeding, thus producing in the farm a part of the animal food requirement; but other European regions are more equipped with fodder products, such as Germany (Niedersacht) and the North-East Romania, which have a more extensive farming and more meadows and pastures. In Lombardy, the livestock farms with a mixed tendency (milk and meat) Combined dairy cows, breeding and fattening cattle*, average farm results of the main EU countries (2009-2011) Country/Region Portugal/Açores Czeck Republic Ireland Greece/Makedonia-Thraki EU FADN Spain/Extremadura Italy France/Bourgogne Germany/Nordrhein-Westfalen Lombardy Belgium/Vlaanderen % SO/farm GP/ha GP/WU NI/ha NI/FWU LSU/ha % ha UAA/farm % meat % milk % to GP - meat farm(€)(€)(€)(€)(€) fodder (ha) to GP to GP and milk (EU) 0.7631,7605188,974598 10,6031.0699.316.74 68.6 7.9 0.15 0.70 86,28445123,036 18523,1750.46 91.0167.60 33.3 13.3 0.64 16.42 22,200 647 23,750 31811,947 1.07 98.3 36.96 74.0 5.6 9.07 0.84 44,4943,733 30,420 2,155 24,604 4.53 53.3 11.86 44.7 38.3 0.89 100.00 58,978 1,001 36,198 312 12,587 1.06 87.7 49.56 55.9 13.6 100.00 1.18 60,36339436,391 24024,1770.47 92.9129.29 84.9 0.5 1.49 8.17 84,4511,933 48,599 885 24,681 1.32 84.8 33.91 52.1 15.4 16.21 1.13106,92167259,229 15915,2431.07 90.2131.37 84.7 1.6 2.49 0.85 137,1862,021 76,737 370 15,121 1.51 79.7 49.80 54.7 15.7 1.75 0.76 110,5986,837 77,218 3,456 39,743 5.05 61.9 12.41 70.3 8.2 1.47 0.79 198,0802,936 77,797 782 20,716 2.61 79.7 39.31 59.2 15.4 1.99 * Specialised combined granivorous excluded. Source: FADN, average figures. 86 are small sized in terms of surface, however with great results in terms of NI/FWU and GP/worker, because of a structure in the animal husbandry which is confirmed to be intensive. In the other EU regions the results are very different, due to the greater extension of the animal husbandry. The specialized breeding of granivo- rous (pigs and poultry, also mixed) represents an important activity in Lombardy, mainly for the results achieved by the pig sector. It’s a long time that the sector is suffering a market crisis, due to the low prices and the growing costs, therefore the farms have tried to integrate production, processing and distribution, even through a restructuring of the pig sector. The farms enjoy of a sizeable area but with a high number of animals. The intensive animal breeding is accompanied by a NI/hectare not comparable with the other competitive European regions. Specialised granivorous (porks and poultry), average farm results for Lombardy and the main EU production regions (2009-2011) Country/Region % SO/farm GP/ha GP/WU NI/ha NI/FWU LSU/ha UAA/farm % pork % poultry % to GP farm(€)(€)(€)(€)(€) (ha) meat meat and EU to GP eggs to GP granivorous Romania/Sud-Muntenia 4.7433,94813,29824,9843,058 8,73711.93 2.89 Poland/Wielkopolska and Slask 8.4480,4803,55545,024 91513,761 3.0522.20 EU FADN 100.00348,685 7,439112,466 1,036 24,073 7.61 31.12 Spain/Aragyn 1.86673,503 6,635148,762 1,408 51,036 11.20 47.23 Italy 4.531,321,242 16,210 158,955 6,376 92,331 23.33 23.30 Germany/Nordrhein-Westfalen 3.39336,880 5,478178,634 716 28,364 4.30 53.48 France/Pays de la Loire 1.81 492,528 5,736 210,210 568 24,922 6.01 67.68 Belgium/Vlaanderen 2.15563,89818,636270,061 2,418 36,615 18.27 23.53 Lombardy 0.97 2,180,55117,826290,294 7,590167,972 22.55 39.80 20.0 51.5 54.0 62.0 51.8 70.0 26.5 64.6 68.8 70.3 0.29 26.9 2.74 24.7 100.00 12.8 2.89 20.8 7.08 4.7 5.57 45.5 1.48 20.8 4.87 12.5 3.79 Source: FADN, average figures. 87 Aggregated indices of competitiveness of Lombardy and the main EU countries (2009-2011) Total Structural Conditions of Relationships Economic and competitiveness features the factors with the markets institutional environment Romania -0.39 -0.84 -0.08 -0.56 -0.07 Greece -0.33 -0.83 -0.03 -0.45 0.00 Poland -0.31 -0.73 0.06 -0.54 -0.02 Italy -0.24 -0.63 0.10 -0.27 -0.16 Spain -0.11 -0.50 0.06 -0.00 -0.01 Austria -0.08 -0.50 -0.03 -0.12 0.33 France -0.04 0.30 -0.50 0.02 0.02 Lombardy -0.03 0.14 0.13 0.17 -0.57 Germany 0.18 0.46 -0.11 0.32 0.05 Belgium 0.19 0.78 -0.34 0.27 0.05 Denmark 0.48 1.30 0.08 0.98 -0.43 UK 0.53 1.01 0.33 0.33 0.45 Netherlands 0.58 1.17 0.35 1.15 -0.34 Source: FADN, average figures. 88 Total competitiveness of Lombardy and the main EU countries (2009-2011) 0.6 0.5 0.4 Netherlands UK Belgium Denmark -0.2 Germany -0.1 France Austria Spain Italy Poland 0.0 Greece 0.1 Romania 0.2 Lombardy 0.3 -0.3 -0.4 Source: FADN, average figures. 89 mechanization The automation indices related to the agriculture in Lombardy are higher than the national average; in particular, the degree of mechanization, expressing the availability of power per hectare of cultivated land, amounts to 11.2 Kw/ha compared to the 8.5 kw/ha of the national average (+31.6%). At the same way as in the national pared to 10 kw/ha), thus resulting be almost double. The polyculture and the poly-breeding rank themselves among the regional average with a power/ha amounting to about 16-17 Kw/ha, whereas the remaining sectors, among whom that one specialized in arable crops, amount to about 8 Kw/ha. level, the highest degree of mechanization characterizes the horticulture and the permanent crops; but, while the horticulture sector, more than double than the regional average (26.2 kw/ha compared to 11.2 kw/ha), shows a level quite similar to the national corresponding, the permanent crops differ considerably (19.3 com- Indicators of mechanization by type of farming in Lombardy and Italy, 2012 Degree of mechanization of lands (Kw/UAA) Specialised in granivorous Specialised in arable crops Specialised in herbivorous Crops and breeding mixed Average in Lombardy Mixed with poly-breeding Mixed with poly-culture Specialised in permanent crops Specialised in fruit and vegetables Average in Italy Source: Italian FADN, average figures. 90 8.0 8.3 8.4 8.6 11.2 15.8 16.8 19.3 26.2 8.5 Motive power (Kw/farm) Intensity of mechanization (Kw/TWU) 326.0 211.0 228.0 233.0 203.0 178.0 137.0 115.0 174.0 101.0 111.5 154.2 135.1 181.2 134.1 143.4 107.8 90.6 81.2 86.4 Incidence of sub-contracting (% hours/total hours) 2.3 3.4 1.8 3.7 2.4 3.0 0.9 1.8 0.2 1.1 Referring to the power of the farm’s machinery, the regional average, equal to 203 Kw, seems to be twice the national one (101 Kw); the productive sectors with the levels exceeding the regional average are detectable in the breeding of granivorous (326 Kw), in the mixed orientation of crops and animal husbandry (233 Kw), in the breeding of herbivorous (228 Kw) and in the arablke crops (211 Kw). The degree of regional intensity, equal to the power per total work unit (TWU), is instead 1.5 times the national one (134 Kw/total work unit compared to 86.4 Kw/total work unit); in particular, the average of this index at the national level is quite equal to the minimum level of the Lombardy scale. Also in this case, the sectors over the average, as it occurs at the Indicators of the mechanization by economic size in Lombardy and Italy, 2012 Degree of mechanization of lands (Kw/UAA) Motive power (Kw/farm) Intensity of mechanization (Kw/TWU) Incidence of sub-contracting (% hours/total hours) Small 20.2 121.0 118.4 Medium-small 11.2 152.0 110.7 Medium 8.4 207.0 142.1 Medium-large 7.1 319.0 155.0 Large 6.8 531.0128.7 Average in Lombardy 11.2 203.0 134.1 Small 9.5 64.0 78.8 Medium-small 7.1 105.0 87.9 Medium 5.8 147.0 90.7 Medium-large 4.8 240.0 89.4 Large 4.8428.0 75.7 Average in Italy 8.5 101.0 86.4 1.0 1.9 2.3 3.4 3.1 2.4 1.0 0.8 0.9 1.1 1.6 1.1 Source: Italian FADN, average figures. 91 national level, appear to be the same (mix of cultivations and breeding, specialized in arable crops, mixed with poly-breeding and specialized in the breeding of herbivorous), even though with a different positioning compared to the regional scale. On the whole, these indicators highlight, on one side, the link between the use of automation and the produc- 92 tive systems adopted and, on the other side, the territorial differentiation as a consequence of the productive specialization and of the structural connotation of farms (average farm size and use of work). Another information on the use of the mechanization concerns the use of subcontracting; even in this case, the regional index expressing the share of time covered by the subcontracting, that is the hours of subcontracting compared to the total, appears to be double than the national one (2.4% compared to 1.1%); in particular, at the regional level, the sectors using most the subcontracting are the productive mixed orientations in cultivations and breeding (3.7%), as well as the specialized in arable crops (3.4%). credit for agriculture The value of the agricultural credit allocated in Lombardy, in 2013, has amounted to 8.8 billion euro, compared to an amount of 44.1 billion euro in the national context. In the region and in the national framework, it amounts respectively to 1.9% and 2.4% of the total allocated credit. The size of the agricultural credit per hectare of UAA, which for Italy amounts to 3,422 euro, in Lombardy reaches about 8,944 euro, thus showing a strong variability: from 1,665 euro of the farms in the province of Sondrio, to 13,461 euro of the farms of Cremona. In the last three-year period, the variation of the amount of the agricultural credit, on annual basis, despite remaining of positive sign, falls dows: it decreases from +8.2% in 2011, to +3% of the following year and then to 1.1% of 2013 in Lombardy, and from +7.1% to +1.0% and to -0.3% in Italy. The ag- ricultural credit amounts to 742 million euro, and it is equal to 8.4% of the regional agricultural credit, a strong growth rate on annual basis, but very lower than that detected at the national level, where its incidence on the total agricultural credit reaches 11.1%. The component of the agricultural credit, lasting over 5 years, is clearly prevailing on the other two types (the one lasting less than one year, and Consistency of credit in Lombardy and Italy (million euro), 2013 Bergamo Brescia Como Cremona Lecco Lodi Mantua Milan Monza e Brianza Pavia Sondrio Varese Lombardy Italy Lombardy/Italy (%) Total credit Total non-performing loan credit for agriculture non-performing loan for agriculture 38,5423,311 815 70 58,5174,383 2,067 274 15,5021,114 130 10 10,853 9701,837139 9,196787 52 2 5,898384 602 14 14,6131,238 1,417 62 248,36913,185 762 70 23,800 1,764 87 6 11,8001,269 829 86 4,337172 124 1 20,7701,753 87 7 462,197 30,330 8,809 742 1,845,336 148,890 44,096 4,884 25.0 20.4 20.0 15.2 Source: SMEA processing on Bank of Italy figures. 93 the one lasting between one year and five years), and on annual basis it is on the growth both at the national level (from 65.6% to 66.1%) and in Lombardy (from 70.5% to 70.8%). Its distribution in the region varies at the provincial level, exceeding 75% in Cremona and Bergamo, and remaining below 65% in the provinces of Lecco, Milan and Pavia. Credit for agriculture per hectare of UAA in Lombardy and Italy (euro), 2013 Sondrio 1,665 Pavia 4,670 Lecco 4,938 Como 5,453 Varese 6,573 Mantua 8,420 Monza e Brianza 8,850 Lombardy 8,944 Lodi 10,810 Bergamo 11,508 Brescia 11,518 Milan 11,770 13,461 Cremona 3,422 Italy 0 3,000 Source: SMEA processing on Bank of Italy figures. 94 6,000 9,000 12,000 15,000 % distribution by type of credit for agriculture in Lombardy and Italy, 2013 Bergamo 15.5 7.3 Brescia 18.5 Como 21 Cremona 77.1 9.1 10 16.9 8.7 20.9 71.7 25 9.1 Milan 23.7 11.4 19.5 Pavia 26.8 Sondrio 26.5 Varese 73.6 10.8 62.3 67.7 11.8 72.3 8.6 22.8 0 64.9 5.9 20.6 Italy 65.9 6.9 15.9 Lombardy 56.6 7.4 Mantua Monza e Brianza More than five years 76.5 34.7 Lodi Between one and five years 69 6.6 Lecco Less than one year 72.4 70.8 11.1 20 66.1 40 60 80 100 Source: SMEA processing on Bank of Italy figures. 95 land market In 2013, the land market, in Lombardy, has experienced a quite flat trend as in the previous year. The buying and selling activity have involved almost exclusively the areas in the lowlands and on the richest hills. In the Po valley the demand has been expressed by the medium and big-sized firms with specialized orientations, mainly fruit and vegetables, addressed also to the European and world markets; conversely, on the hills, the demand has involved mainly the firms with multifunctional orientations, of small or medium size. The region continues in suffering the deadlock of the market and the consequent difficulty in evaluating the agricultural lands; in fact, for the mountain and the hill, there is more a “perception of the market”, rather than real values. In the lowland, on the contrary, the land market shows the most remarkable mobility with a 96 decrease in the land values, although more contained over the previous year. Worthy of note is the case of the horticulture of 4th range, in the area of Bergamo, where it is in place the delocalization of the primary production in favour of the central re- gions and of the southern Italy, since in these regions the cost of the soil use is cheaper. In the irrigated plain of Brescia it has been detected a decrease of about 5% of the land values compared to 2012. The spin-off of the business activities Average land values in Lombardy (thousands euro ha/UAA), 2013 Mountains Altitude Hills Total Lowlands Varese 15.5 26.740.3 Como 5.5 31.427.3 Sondrio 7.0 -- Milan - 26.339.4 Bergamo 13.5 35.368.9 Brescia 8.5 54.443.4 Pavia 7.0 23.532.4 Cremona - -35.5 Mantua - 64.345.8 Lecco 8.731.4 - Lodi - -42.0 Lombardy 8.4 39.840.9 Italy 11.6 15.332.3 Source: INEA, land values data bank. % change 2013/2012 28.4 16.4 7.0 39.0 45.8 35.6 30.4 35.5 47.3 22.1 42.0 35.1 20.1 0.0 0.0 0.0 0.0 -0.8 -3.5 0.5 0.0 -0.2 0.0 0.0 -0.7 -0.4 and the selling of lands due to financial difficulties, or for the generational change, are quite widespread. The region also experiences increases in the values of lands, as it occurs for the vineyards in the areas of production of Lugana (Brescia) and for the olive trees in the agricultural region of the hills of Chiese (Bergamo). During the year are essentially finished also the transactions related to the expropriations resulting from the fulfilment of the great works, since it is close to the conclusion the highway Bre.Be.Mi. According to the data released by the 6th general Agricultural Census, despite the decrease of the firms that has occurred in the last ten-year period, the rented UAA in Lombardy (amounting to 487,180 a) has exceeded the owned UAA (about 447,000 ha), and a share also concerns the use for free (47,422 ha). To this regard, it should be noticed how, in the latest years, the farmers, mainly the dairy farmers, who want to maintain and strengthen the big size of farm, rent the lands, rather than buying new agricultural lands. Furthermore, in terms of the rental market, the 2013 data have registered a slight increase Trend in the land prices in Lombardy and Italy* 40,000 Lombardy 35,000 30,000 25,000 Italy 20,000 15,000 10,000 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 * Euro ha/UAA, current prices. Source: INEA, land values data bank. 97 also in the renewals of contracts, as a consequence of a more widespread regularization of contracts. Although these values are double than the ordinary ones, it has been registered a decrease of the rental of the lands allocated to the production of biomasses for the plants of energy production from renewable sources, mainly in the province of Cremona which is leader for the use of soils to such destination. Rental contracts rates in Lombardy (euro/ha), 2013 Contracts for the management of woods and afforestation (VA) 100 Derogation contracts for arable crops and grasslands (VA) 140 Soils/grounds for flora nursery (CO) 350 Verbal contracts for grasslands and arable crops (CO e LC) 190 Derogation contracts for fruit gardens in Valtellina (SO) 320 Contracts for mountain pastures in Sondrio 42 Seasonal contracts for vegetables on the hills of Bergamo 2,100 Derogation contracts for the irrigated arable crops in the low plains of Bergamo 785 Contracts for mountain pastures on the mountains of Bergamo 65 Derogation contracts for the arable crops in the plains of Brescia 820 Derogation contracts for the vinmeyards on the hills of Brescia 1,500 Derogation contracts for rice paddies (PV) 550 Derogation contracts for DOC vineyards (oltrepo of Pavia) 500 Derogation contracts for arable crops (PV) 550 Outside-contractors for irrigated arable crops (MI) 570 Derogation contracts for irrigated arable crops (MI) 570 Derogation contracts for irrigated arable crops (LO) 500 Contracts to supply biomass to RES plants (CR) 1,170 Seasonal contracts for tomatoes and vegetables (Casalasco,CR) 700 Derogation contracts for irrigated arable crops (CR) 670 Derogation contracts for nurseries (MN) 1,450 Seasonal contracts for vegetables and melon (Viadananese, Oltrepo Dx Secchia, Medio Mantovano) 850 Outside-contractors for arable crops (MN) 580 Source: INEA, Survey on the Land Market. 98 MinMax 150 200 600 420 430 73 2,300 1,140 160 1,000 1,800 1,100 750 1,100 890 890 1,200 1,260 1,000 850 1,900 1,800 730 Sustainability and multi-functionality water resource management In Lombardy, the irrigated area amounts to about 582,000 hectares, equal to 57.8% of the utilized agricultural area (UAA), a figure which exceeds the National average (18.7%) and that of the southern Italian regions (34.5%) (ISTAT data, 2010). The potentially irrigable surface area reaches almost 694,000 ha, or 69% of the UAA, while such incidence at the national level drops down to 28.9%. The regional incidence on the national irrigable UAA amounts to 18.5%, a figure which increases to 24% if considering just the irrigated UAA. The share of the area effectively irrigated compared to the irrigable one is of about 84%, whereas at the national level it amounts to 64%. Only 3.8% out of the 31,000 irrigable farms, uses irrigation advice services, for an area equal to 5.5% of the irrigable area. Regarding the different irrigation systems, in Lombardy there is a prevalent use of surface flow and lateral infiltration (57.6% of the irrigated area compared to the national 30.9%), followed by sprinkling (25.8%, value below the national average which is 39.6%), and by the submersion (14.6%), value which exceeds the national average for its close relation with the rice-growing. Conversely, it seems to be sharply Farms and irrigated surface area - Share to total farms and cultivated surface area, 2010 Farms with irrigated Irrigated surface surface area area (ha) Lombardy Italy Italy-North Italy-Centre Italy-South and Islands 27,039 398,979 158,172 33,002 207,805 1 The total of farms and land includes UAA and arboriculture. Source: ISTAT, 6th General Agriculture Census. 100 581,714 2,418,921 1,591,746 145,102 682,072 Irrigable surface area (ha) 693,718 3,749,514 2,311,899 328,177 1,109,437 % farms with rrigated surface to total farms1 50.4 24.7 40.1 13.1 21.4 % irrigated % irrigable surface area surface area to UAA1 to UAA1 57.8 18.7 34.5 6.6 11.1 69.0 28.9 50.1 14.8 18.1 contained the percentage incidence of the drip irrigation (1.4%), which is typically spread in the Centre-South. 76.8% of the regional irrigated area makes use of aqueducts, land reclamation and irrigation consortia or other irrigation firms, all representing sources of supply which characterize the North of the country; three quarters of these surfaces are supplied with delivery in shifts, the remaining part with Irrigated land by irrigation system, 2010 Irrigation systems (%) Surface flow and Submersion Sprinkler Micro-irrigation lateral furrow irrigation Lombardy 57.6 Italy 30.9 Italy-North 40.8 Italy-Centre 10.1 Italy-South and Islands 12.4 Other system 14.625.8 1.4 0.6 9.139.617.5 2.8 13.436.4 7.7 1.7 0.561.822.0 5.5 1.1 42.5 39.3 4.8 Source: ISTAT, 6th General Agriculture Census. Irrigated land by source of irrigation water supply, 2010 Source of supply Groundwater on Surface water Surface water Aqueduct, irrigation and Aqueduct, irrigation and Other or near the farm on the farm off the farm reclamation consortium or reclamation consortium or source (natural or artificial (lakes, rivers other irrigation authorithy other irrigation authorithy basins) or streams) with delivery on turn with delivery on demand Lombardy7.4 2.3 11.3 59.1 17.7 2.3 Italy 25.5 5.1 10.0 33.2 22.53.7 Italy-North15.6 3.7 11.9 42.9 23.1 2.8 Italy-Centre47.2 14.1 15.5 6.6 12.0 4.6 Italy-South and Islands 44.0 6.4 4.3 16.2 23.5 5.7 Source: ISTAT, 6th General Agriculture Census. 101 delivery on request. 13.6% of the irrigated surface makes use of the surface water, while 7.4% by underground water resources, mainly supplied in the South of the country (47.2% and 44%). According to the data of the information system for the management of water resources in agriculture on a national level (SIGRIAN), the total extension of the network managed by the Lombardy irrigation firms amounts to about 4,500 km, by just considering the main irrigation network, and excluding the private one. Taking into account the features of the irrigation Surface of irrigation authorities in Lombardy, 2012 Reclamation areas Reclamation consortia Lomellina-Oltrepo Associazione Irrigazione Est Sesia Est Ticino Villoresi Est Ticino Villoresi Muzza Muzza - Bassa Lodigiana Media Pianura Bergamasca Media Pianura Bergamasca Adda - Oglio Dugali, Naviglio, Adda Serio Oglio - Mella Oglio - Mella Mella e Chiese Mella e Chiese Destra Mincio Garda - Chiese Laghi di Mantova Territorio del Mincio Navarolo Navarolo Terre dei Gonzaga in Destra Po Terre dei Gonzaga in Destra Po Burana Consorzio della bonifica Burana Total Lombardy Data refer exclusively to Lombardy. Figures at 2010. 3 UAA in the area, 2010 figures. Source: DG for the area, town planning and defence of the Lombardy Region ground. 1 2 102 areas1 (ha)Farms2 2010UAA3 2010 (ha) 165,959 278,258 72,690 76,000 167,740 99,074 94,043 75,565 75,455 47,792 41,219 17,830 1,211,625 3,048 4,451 1,200 3,198 3,899 4,681 4,289 3,335 2,228 1,983 1,688 606 34,606 111,996 116,044 51,774 37,326 128,315 69,842 60,260 57,599 51,994 33,676 28,518 12,333 759,677 network, it can be noted that 58% of it has a double function of both land reclamation and irrigation. Almost all of the ducts are at the open air (89.6%), while intake devices are characterized by uptake from groundwater for 35% , or collection from the river (30%), from the source of water (16.7%), and from the canal (14.3%). Lombardy has recently adopted in its regulation the contents of the agreement between State-Regions of 18th September 2008 which, besides other measures, establishes the redefining of the land reclamation sites, thus introducing the principle according to which in each of them can act just one reclamation consortium. The legislation has led to the melting of different realities, and to the settlement of 12 new land reclamation areas and irrigation, 4 of which at an interregional level. Boundaries of the territory classified as reclamation and irrigation areas Source: water resources and agriculture in Lombardy, Dept. for the agricultural and environmental sciences - Production, Territory, Agro-energy - University of Milan, Feb 2014. 103 agricultural practices The data of the 6th Agricultural Census have allowed to point out some of the aspects of the complicated system of relation between agriculture and environment. Among the surveyed phenomena of agro-environmental interest, there is the management of the system soil-cultivation in relation to the crop rotations, to the tillage and to the ways with which it is covered. In terms of crop rotation, in Lombardy, the mono-alternation of the Soil conservation practices for the arable crops Bergamo Brescia Como Cremona Lecco Lodi Mantua Milan Monza e Brianza Pavia Sondrio Varese Lombardy Italy % monoculture 36.6 42.2 10.0 28.3 7.9 28.9 9.0 44.2 10.6 39.6 46.0 16.9 30.5 13.9 Crop rotation* Winter coverage* % free crop % plan of crop % winter % coverage % crop % rotation rotation crops crops residualsno-one 44.2 19.2 35.26.832.625.3 36.6 21.2 28.48.036.127.5 26.1 63.9 24.75.131.338.9 50.0 21.7 19.05.430.844.9 66.2 26.0 21.11.660.916.4 47.1 24.0 23.52.844.529.2 53.6 37.4 36.43.912.147.6 33.6 22.2 26.74.153.016.2 62.7 26.7 34.5 2.7 47.1 15.7 33.4 27.0 11.13.363.622.0 19.5 34.4 21.85.310.462.4 60.2 22.9 50.63.527.918.0 42.5 26.9 24.64.837.633.1 45.2 40.9 50.13.014.332.7 * Percentages calculated on the arable crops of people answering the survey, year 2010. Source: ISTAT - 6th General Agricultural Census. 104 crops involves 30.5% of the arable UAA, a percentage which exceeds the Italian average figure (13.9%); conversely, the percentage of freerotation, where the alternation of the crops is decided annually, is not far from the regional average data, and equal to 42.5% (compared to the 45.2% at the national level), the adoption of a rotation plan (cyclical alter- Tillage on the arable crops Tillage* % conventional % preservation % no-one Bergamo 94.92.52.6 Brescia 96.51.91.6 Como 90.66.62.8 Cremona 94.24.21.6 Lecco 95.72.81.4 Lodi 92.46.11.5 Mantua 88.73.18.2 Milan 92.75.81.5 Monza e Brianza 90.6 7.0 2.4 Pavia 93.43.63.0 Sondrio 96.22.31.5 Varese 96.20.92.9 Lombardy 93.03.63.4 Italy 89.95.24.9 * Percentages calculated on the arable crops of people answering the survey, year 2010. Source: ISTAT - 6th General Agricultural Census. nation of crops) suffers a decisively more contained diffusion compared to the national context (26.9% compared to 40.9%). In order to safeguard the land and improve its fertility, can be adopted some practices of land conservation which expect the winter coverage of the soil. The use of crop residuals, such as stubble and straw, involving 37.6% of the arable lands (compared to 14.3%), represents the prevailing modality of coverage; it is followed by the use of winter crops (whose incidence amounts to the half of the national one), with 24.6% of the surface, which are harvested and used as grazing, while the use of coverage crops, of no-economic interest (with the burial before the main cultivation), involves only 4.8%. The remaining 33.1% of the arable lands does not undergo any form of winter coverage of the soil, which remains, therefore, uncov- 105 ered until the next tillage during the spring, a percentage in line with the national data. In terms of ways for the processing of the soil, the conventional way appears to be the most widespread practice, adopted in Lombardy in 93% of the arable lands (89.9% at the national level). The processing of the minimum conservation is practiced only in 3.6% of the arable surfaces (5.2% at the national level), whereas in the 3.4% is practiced no type of processing (4.9% at the national level). In order to foster the adoption of techniques of the processing of lands with low environmental impact, the Lombardy region has activated, within the agro-environmental measures of the RDP 2007-2013, a specific measure for applying conservative agricultural techniques in the arable lands (minimum processing and seeding). According to the 2012 data, the measure 106 214.M “Introduction of techniques for a conservative agriculture” seems to have been applied in about 23,000 ha, of which 97.2% is handled with minimum processing, whereas 2.8% (641 ha) with seeding. The crops with a more widespread application of the measure for a conservative agriculture are represented by the maize and rice, with respectively about 40% of the surface, followed at a long distance by the soft wheat, triticum (an hybrid cereal) and soya. In relative terms, the implementation of the Measure 214.M concerns about 9% of the regional area cultivated with rice, and 3% of that one cultivated with maize. Admitted surface, measure 214, action M (preservative agriculture) of the RDP of the Lombardy Region, 2012 Action M.01 - Seeding without intermediate winter crop and direct injection M.02 - Seeding with intermediate winter crop M.03 - Seeding with direct injection M.04 - Seeding with intermediate winter crop and direct injection Total seeding M.05 - Minimum tillage without intermediate winter crop and no landfill of effluents M.06 - Minimum tillage with intermediate winter crop M.07 - Minimum tillage with landfill of effluents M.08 - Minimum tillage with intermediate winter crop and landfill of effluents Total minimum tillage Source: DG Lombardy Region Agriculture. Admitted surface (ha) 170.6 279.6 67.9 122.9 641.0 8,207.7 7,763.2 3,133.8 3,406.4 22,511.0 Breakdown by crop of the required surface area, Measure 214 action M (preservative agriculture), 2012 4.2% 3.5% 5.3% 4.6% 39.0% 14.1% Rice 9,041 Grain maize 6,825 Waxy maize 3,263 Soft wheat 1,072 Triticale 963 Soya 815 Other 1,226 Total 23,206 29.4% Source: DG Lombardy Region Agriculture. 107 The regional forest area amounts to 621,381 hectares, corresponding to 26% of the regional surface, that is 635 sqm per inhabitant. The forestry area is mostly concentrated in the mountainous areas (about 80%), and to a lesser extent in the plains and on the hills. At the provincial level, 27.3% of the forests is located in Brescia, followed by Sondrio (18.5%) and Bergamo (18.4%). The incidence of wood on the territorial surface is higher in the mountainous areas (51%), whereas it is very limited in the plains (4.1%). Among the provinces, the rate of forestry extension on the territory places Lecco at the first place (52.8%), followed by Como (49.6%), Varese (45.4%) and Bergamo (42%). Conversely, it stands out Mantua with just 1.3% of the wooded land, followed by Cremona (2%) and Lodi (3.4%). The wooded areas highlight, com- 108 pared to 2012, an increase of 616 hectares (+0.10%), ascribable to the establishment of 265 hectares of ar- tificial wood, mainly in the plains, and of 495 hectares of natural afforestation, mostly in the mountainous Breakdown of wooded surface area by province in Lombardy, 2012 Bergamo 8.9% Brescia 18.4% Como Cremona 18.5% Lecco Lodi 6.1% 0.5% 1.7% 0.5% 0.4% Mantua Milan 27.3% 6.9% Monza e Brianza Pavia 0.6% 10.2% Sondrio Varese Source: ERSAF, Report on the state of forests in Lombardy. areas. The forest areas are on the increase in all the provinces, except for the province of Varese. In 2013, the requests for the wood cutting and the surfaces for the cutting are increased, respectively by 15.4% and 13%, over the previous year. The increase of the masses for cutting is lower, limited to just +4.7% over 2012. On about 600,000 cube meters required for the cutting, about 73% is represented by the woods, the remaining part by trunks whose masses are decreasing by 9.1% over the previous year. 81.5% of the cut wood is used for energy. To the overall wood production, arising from forestry cuts, it should also be added the extraforest productions of riparian poplar and grove poplar, estimated in 2013 at 598,000 cube meters. In 2013, the authorizations for changing the use of the wooded areas (526) have involved 82 hectares, according to still provisional data; over 76% of the permissions has been required by private people. Over 81% of the transformed surface has involved cutting woods, 13% trunks, the remaining is represented Share of wooded land to territorial surface in Lombardy, 2012 Territorial surface (ha) of which wooded (ha) % wooded/territorial surface Provinces Bergamo 272,286 114,489 Brescia 478,436 169,783 Como 128,807 63,432 Cremona 177,057 3,549 Lecco 81,617 42,847 Lodi 78,236 2,678 Mantua 233,884 3,119 Milan 157,659 10,868 Monza e Brianza 40,549 3,392 Pavia 296,470 37,742 Sondrio 321,190 114,873 Varese 119,871 54,608 Altitude zone Lowlands 1,122,637 46,405 Hills 296,362 81,724 Mountains 967,281 493,252 Lombardy 2,386,280 621,381 42.0 35.5 49.2 2.0 52.5 3.4 1.3 6.9 8.4 12.7 35.8 45.6 4.1 27.6 51.0 26.0 Source: ERSAF, Report on the state of forests in Lombardy. 109 “Composition of forest surface by type in Lombardy, 2011” Registered felling and production in Lombardy Forest type % breakdown Oaked-hornbeam and hornbeams 1.1 Oak forests 7.3 Chestnut forests 13.4 Fraxinus ornus and Ostria carpinifolia forests 11.0 Flowering ash and hop hornbeam forests 3.9 Birch and hazelnut forests 3.2 Beech forests 15.0 Lily-of-the-valley1.0 Mountain pine forests 2.3 Scotch pine forests 1.6 Fir forests 2.6 Spruce forests 12.8 Larch and stone pine forests 6.8 Black alder forests 2.5 particular formations 1.0 Anthropogenic formations 8.4 Pre-forestry formations 2.9 Non-classified forest areas 3.2 Cutting requests (n.) 20,676 23,870 15.4 - of which high trees 2,392 2,235 -6.6 - of which copse or mixed 18,284 21,635 18.3 - of which lowland 2,053 2,432 18.5 - of which hills 5,122 5,881 14.8 - of which mountains 13,501 15,557 15.2 Surface area for felling (ha) 8,712 9,847 13.0 - of which high trees 2,600 2,654 2.1 - of which copse or mixed 6,112 7,194 17.7 - of which lowland 1,025 1,285 25.4 - of which hills 1,683 1,984 17.9 - of which mountains 6,004 6,578 9.6 557,700 584,022 4.7 Mass requested for felling (m3) - of which high trees 170,082 154,542 -9.1 - of which copse or mixed 387,618 429,480 10.8 - of which lowland 44,092 45,691 3.6 - of which hills 119,031 130,045 9.3 - of which mountains 394,577 408,285 3.5 - of which lumber 122,761 108,161 -11.9 - of which for heating 454,488 475,861 4.7 Poplars-culture Surface area for felling 2,872 2,708 -5.7 Mass requested for felling 633,765 597,947 -5.7 - of which lumber 519,285 489,647 -5.7 - of which for heating 114,480 108,300 -5.4 Total100.0 Source: ERSAF, Report on the state of forests in Lombardy. Source: DG Lombardy Region Agriculture. 110 2012 2013 % change 2012/13 by mixed woods or shrubs. In terms of share of the surface, the destination of use of the deforested lands has concerned: quarries or landfills (2.4% of the practices, 21.9% of the processed woods, 38.4% of the compensation costs); agricultural use (12.4% of the practices, 17.5% of the processed land, 1.2% of the compensations costs), residential or commercial use (16.7% of the practices, 13.7% of the processed woods, 1.2% of the compensation costs); agricultural-forestry-pastoral road system (17.1% of the practices, 10.9% of the processed woods, 2.4% of the compensation costs); ordinary road system (10.6% of the practices, 10% of the processed woods, 12.9% of the compensation costs). The permissions without duty of compensation have been 324. According to the INEMA (air emissions inventory) estimates, the forestry tank of CO2 would account for 87.9 million tons, with annual increases of 4.4 million tons. In terms of forestry planning, in the Lombardy region, there are 27 plans of forestry orientation adopted or in force, and 152 plans of forestry adjustment in force which involve, respectively, 29% and 23.7% of the regional wooded area. The management and the economic exploitation of the forestry resources, in the Lombardy region, is performed by 25 forestry consortia, and by 268 forestry firms enrolled in the regional register, to which it should be added ERSAF (regional entity for the services to agriculture and forests) and the forestry entities (Provinces, mountainous communities, Parks and Reserves). The forestry consortia manage 103,000 hectares of land, of which 64,500 are wooded lands, supported by 270 employees; it has been estimated that the number of the em- ployees and collaborators in the forestry firms amounts to about 1,000 units. In 2013, the production value of the forestry sector, in the Lombardy region, has amounted to 76.5 million euro, with an added value of 58.7 million euro. The regional policies in the forestry sector envisage the joined action of many measures of the rural development Programming. Among these measures there is the measure 221, which expects the financing of permanent wood installations, with a medium-long cycle for the high quality wood, with a short cycle for biomass and poplar woods (885 hectares of new installations admitted for financing in 2012). 111 fishing and aquaculture Although the Lombardy territory is not lapped by the sea, the sector of fishing and aquaculture is quite important within the regional primary sector. The sector has a turnover of about 31.6 million euro, with a value added of 17.6 million euro (ISTAT, 2013). The regional incidence of the fishing and aquaculture on the national total is of 1.7% in terms of the production value. The professional fishing is practiced in about ten lakes in Lombardy , thus involving about twenty commercial species. In 2011, the number of the professional fishermen, which has sharply reduced over time, has amounted to about 200 units, mainly concentrated in the provinces of Brescia, Como and Varese. The greatest number of fishermen in Lombardy is located in the Como Lake (71), followed by the Garda Lake (48) and the Iseo Lake (38). In 2010, the amount 112 of the captured fish amounted to about 400-500 tons. According to the 2010 data, released by the API (Association of Italian fish farmers), the aquaculture sector employs in the region over 600 workers, Number of professional fishermen by province, 2011 100 87 80 60 55 40 29 18 20 0 5 2 Brescia Bergamo Como Cremona 1 Lecco Source: Program for fishing and aquaculture of the Lombardy Region 2012-2014. Lodi 6 Mantua Varese spin-off included. In the same year, the productive sites surveyed amount to 69, mainly dedicated to the troutculture, for an annual production of over 5,800 tons of fish and a gross saleable production of about 30 million euro, characterized by 50% of the trout-breeding, 30% of sturgeons (for which it has not been calculated the value of the caviar), and for 18% of eels. Professional fishermen and quantity of fish in Lombardy N. fishermen (2011) Annual catch (2010) - tonn* Garda Lake (Lombardy) 48 82.6 Maggiore Lake (Lombardy) 15 134.8 Como Lake 71 206.7 Iseo Lake 38 23.1 Lugano Lake (Lombardy) 7 23.7 Varese Lake 7 33 Idro Lake 3 4.9 Comabbio and Monate Lake 2 8.4 Mantua Lakes 6 n.d. River network 6 n.d. Total203 * The data of the fishes trapped in the Maggiore and Lugano Lakes refer to the entire Lake; Varese Lake (2007 figures). Source: Program for fishing and aquaculture of the Lombardy Region 2012-2014. Sites, production and value of the Lombardy aquaculture, 2010 Productive sites (n.) Production (t) Trout Sturgeon Eel Other Total 42 17 4 6 69 4,050 880 600 300 5,830 GSP* (million euro) 14.7 9.0 5.6 1.0 30.3 * Excluding the value of the caviar. Source: Association of the Italian fishermen. 113 agri-energy The vocation in the livestock sector of the Lombardy agriculture and the need of disposing of the animal waste, along with the economic subsidising to the agro-energy supply chain, have led in these latest years to an increase of the biogas plants. According to the ISTAT data, in the Lombardy region, there are over 40% of the biogas plants. In July 2014, the number of the active plants in the Region amounted to 380, mostly concentrated in the provinces of Cremona (144), Brescia (65), Lodi (53), Mantua (50) and Pavia (38). The plants located in the Region have an installed electric power of about 300 MWe, for an average power per plant of 763 KWe. Cremona, Lodi, Brescia and Mantua detain over 80% of the electric energy from biogas produced in the Lombardy region. The province with the highest average size of the plants is Milan, whereas that 114 one with the plants which are, on the average, small-sized is Bergamo. According to the estimates of the project “Eco-Biogas”, the most widespread type of plants is the one between 0.75 MWe and 1 MWe, which concerns about 57% of the installations; this size allows the businessmen to draw maximum advantage from the all-inclusive rate, valid for plants up to 1MW, a limit that in the past rep- resented the maximum threshold for obtaining a public co-financing for the investment. Only 4.4% of the plants exceeds this size, although in this category is concentrated 16.7% of the electric energy produced. The biogas plants in Lombardy burn annually 2.5 million tons of corn silage, 0.8 million tons of autumn-winter cereal silage and about 5 million tons of livestock animal waste, as well as mi- Bio-gas plants in Lombardy, 2014 Plants (n.) Bergamo 16 Brescia65 Cremona144 Lodi53 Mantua50 Milan11 Pavia38 Sondrio 3 Lombardy 380 1 Electrical energy power. Source: DG Lombardy Region Agriculture. Installed electrical energy (MWe)1 7.8 43.7 104.9 47.4 40.5 10.5 33.5 1.8 290.08 Average power (kWe)1 487.5 672.8 728.2 894.3 810.6 950.9 881.6 600.0 763.4 nor quantities of grass, flour products, glycerine, vegetable oils and urban waste of organic nature. The bio-energy production is not relegated only to the livestock areas, but it has also found a new development path in the mountainous areas through the start-up of a wood-energy supply chain, which allows to value the forestry resources aimed at producing heat and electric energy. In particular, in 2011, there are in Lombardy 12 heating networks for public use, fueled or co-fueled with wood biomasses, mainly located in the provinces of Brescia and Sondrio, and a series of installations for private use currently under census. The sector relating to the production of bio-fuels (bio-ethanol and bio-diesel) enjoys, in the Region, of 5 processing plants, whose productive capacity is, nonetheless, free from the use of local raw materials. According to the census data, there are 4,600 hectares devoted to energetic crops under cultivation contract, out of a total of 17,000 registered hectares at the national level. Distribution of biogas plants in Lombardy, 2013* Bio-mass plants by power class in Lombardy, 2013* 60% 57.3% 50% 40% 30% 20% 12.7% 10% 15.5% 10.0% 4.4% 0 0-250 * The survey refers to the provinces of BG, BS, CR, LO, MN, MI and PV. Source: processing on the figures of the research project Eco-Biogas, financed by the Lombardy Region. 251-500 501-750 751-1000 Oltre 1 MW *The survey refers to the provinces of BG, BS, CR, LO, MN, MI and PV. Source: processing on the figures of the research project Eco-Biogas, financed by the Lombardy Region. 115 In terms of solar panelling, according to the 2013 data released by the GSE (Energy Services Management), the surface occupied by the installations in Lombardy, whose majority is located in the agricultural areas, amounts to about 400 hectares, for an electric production of 238 MWe, equal to 13.1% of the regional total. Tele-heating plants using agri-forestry bio-mass in Lombardy Location of the plant TypeBeginning year Sedrina (BG) Brescia (BS) Edolo (BS) Sellero (BS) Collio (BS) Temù - Ponte di Legno (BS) Villaguardia (CO) Tirano (SO) Sondalo (SO) Madesimo (SO) Valfurva (SO) Marchirolo (VA) Co-generation of electricity and heat Multi-fuel system, co-generation of electricity and heat Heat production Co-generation of electricity and heat Co-generation of electricity and heat Heat production Co-generation of electricity and heat Co-generation of electricity and heat Heat production Heat production Heat production Heat production Source: processing on SIRENA figures - Lombardy Region, 2011. 116 2009 2005 2004 2004 2007 2005 2010 2000 2000 2006 2007 2008 products of designated origin and traditional products Lombardy offers a wide range of products of designated origin, recognized under the (EU) Regulation n. 1151/2012, of which Italy is Leader at the European level. Out of 264 PDO and PGI products present in our country, 31 are produced in Lombardy, a figure which places the region among the first places at the national level. The livestock vocation of the regional agriculture leads to a sharp prevalence of cheese and cold cuts among the PDO and PGI products, with respectively 13 and 10 recognitions, although there are products of designated origin also in the olive oil sector, fruit and vegetable sector, honey and aquaculture. Furthermore, in the regional territory there are 15 consortia for the guardianship of the PDO and PGI products. During the last year, the Lombardy region has obtained the recognition of as much as 4 products of desig- Number of PDO and PGI products in Lombardy and Italy* 264 250 200 150 103 100 50 0 47 43 3 2 Fruit & vegetables Olive oil and cereals 13 Cheese 38 10 Prepared meats 33 31 3 Other Italy Lombardy TOTAL *Situation as of September 15th, 2014. Source: MIPAAF. 117 List of PDO and PGI products in Lombardy* CategoryProduct Cheese Prepared meats Olive oil Bitto Formaggella del Luinese DOP Formai de Mut dell’Alta Valle Brembana Gorgonzola Grana Padano Nostrano Valle Trompia Parmigiano Reggiano Provolone Valpadana Quartirolo Lombardo Taleggio Salva cremasco Strachitunt Valtellina Casera Bresaola della Valtellina Coppa di Parma Cotechino Modena Mortadella Bologna Salame Brianza Salame Cremona Salame d’oca di Mortara Salame di Varzi Salamini italiani alla cacciatora Zampone Modena Olio extravergine d’oliva Garda Olio extravergine d’oliva Laghi Lombardi Denomination PDO PDO PDO PDO PDO PDO PDO PDO PDO PDO PDO PDO PDO PGI PGI PGI PGI PDO PGI PGI PDO PDO PGI PDO PDO Territory SO, municipalities in the province of BG municipalities in the province of VA municipalities in the province of BG BG, BS, CO, CR, LC, LO, MI, PV, VA BG, BS, CO, CR, LC, LO, MN(sinistra Po), MI, PV, SO, VA municipalities in the province of BS MN(destra Po) CR, BS, municipalities of the provinces of BG, MN, LO BG, BS, CO, CR, LC, LO, MI, PV, VA BG, BS, CO, CR, LC, LO, MI, PV BG, BS, CR, LC, LO, MI municipalities of the province of BG SO SO MN, PV, municipalities in the provinces of CR, LO, MI BG, BS, CO, CR, LC, LO, MN, MI, PV, VA Entire regional territory municipalities of the provinces of CO, LC, MI Entire regional territory municipalities in the province of PV municipalities in the province of PV Entire regional territory BG, BS, CO, CR, LC, LO, MN, MI, PV, VA municipalities in the province of BS municipalities in the provinces of BG, BS, CO, LC >>>>> continued 118 List of PDO and PGI products in Lombardy* >>>>> continued CategoryProduct Fruit and vegetables Mela di Valtellina Melone Mantovano Pera Mantovana Other Miele Varesino Salmerino del Trentino Trota del Trentino * Situation as of 15 September 2014. Source: DG Lombardy Region Agriculture. nated origin: the PDO “formaggio Strachitunt”, the PDO “Miele Varesino d’acacia”, the PGI “Melone Mantovano” and the PGI “Trota del Trentino”. There are, furthermore, many other products which have started the procedure for obtaining the PDO designation, among which the cheeses Silter and Bagoss, “Salame Bergamasco”, “Salame Mantovano” and “Miele di Valtellina”; the “Asparago di Cantello” and the “Pizzoccheri della Valtellina” have, instead, started the Denomination PGI PGI PGI PDO PGI PGI procedures for obtaining the PGI designation. According to the 2012 ISMEA data, the turnover of the PDO and PGI productions amounts to 1.78 billion euro, or one fourth of the national turnover; a figure which places the region at the second place in Italy after Emilia-Romagna. According to the 2013 ISTAT data, the farms involved in the production of PDO cheeses are 4,201, corresponding to over 5,000 breeding Territory municipalities in the province of SO MN,CR municipalities in the province of MN VA BS BS farms (17.5% of the national total). The incidence of the cattle raised for the production of PDO cheeses is of 45% on the national total (2011 datum). Furthermore, there are 370 active processing activities, of which 292 are dairy activities, representing a share of little more than 20% of the national total. The number of the farms producing milk for the PDO cheeses in Lombardy is experiencing a strong decrease over 2012 (-14.3%). Worthy of note is also the contribu- 119 tion of the Lombardy region to the sector involved in the prepared products with PDO and PGI meats, with as much as 1,453 producers and 1,947 farms, mostly pig breedings, for a share of 42% of the national total. Important is also the presence of the cold cuts processors, equal to 15.8% of the Italian total, which reaches up to 28% if considering only the butchers. Also in the case of the breeding farms devoted to the production of PDO and PGI meat-based food, the decrease on annual basis is very remarkable (-19.1%). Less relevance, in the comparison with the Italian context, play the fruit and vegetable productions PDO and PGI, the PGI meats, and the extra virgin olive oils PDO and PGI. In the wine sector, the Lombardy region boasts of a range of 5 DOCG, 22 DOC and 15 IGT. It should be pointed out that the EU regulation envisages 120 Turnover of the PDO and PGI production by region (million euro), 2010-2012 Region 2010 2011 2012 % change % incidence 2012/11 2012 Emilia-Romagna2,615.92,897.0 2,894.9 -0.1 42.2 Lombardy 1,586.21,827.3 1,775.8 -2.8 25.9 Trentino-Alto Adige 423.7 455.4 528.8 16.1 7.7 Veneto 361.2417.4 454.3 8.8 6.6 Friuli-Venezia Giulia 335.0 331.6 312.6 -5.7 4.6 Campania 283.3287.3 286.8-0.2 4.2 Piedmont 181.1199.9 201.1 0.6 2.9 Sardinia 162.0 110.4 137.024.0 2.0 Tuscany 92.9 98.1 94.8-3.4 1.4 Lazio 45.3 41.7 51.122.5 0.7 Puglia 22.1 33.8 34.52.2 0.5 Umbria 35.0 13.9 20.245.1 0.3 Sicily 24.2 17.5 16.8-3.6 0.2 Calabria 11.2 9.1 13.649.6 0.2 Marche 15.8 11.4 11.95.0 0.2 Liguria 5.2 5.2 4.6-11.5 0.1 Valle d’Aosta 26.7 25.4 24.0 -5.4 0.3 Basilicata 1.6 1.8 2.117.9 0.0 Abruzzo 3.0 2.6 1.9-29.5 0.0 Molise 1.41.1 0.8-27.8 0.0 Source: ISMEA processing on figures released by Control Authorities and consortia of safeguarding. the designation of PDO to the wines DOC and DOCG, and the designation of PGI to the wines IGT, although, at the moment, it is expected the coexistence with the traditional Italian designations. On the basis of the assessments concerning the 2013 grape-harvesting, the surface of the vineyards with designation, in Lombardy, amounts to about 17,930 hectares compared to a regional vineyard area of 23,600 ha, in increase of 2.5% over the previous year. In particular, the vineyard area registered in the records of the DOC and DOCG vineyards, according to the 2013 data released by the DG Agriculture of the Region, amounts to 12,222 ha, in increase of 1.3% over 2012, while the IGT reach 5,709, thus marking a +5.1% over the previous year. The production of wine grape DOCG, DOC and IGT reaches almost 2 million quintals (+17.2% over 2012), to which it corresponds a wine production of 148,000 hl of wine DOCG, 576,000 hl of wine DOC and 586,000 hl of wine IGT. About 40% of the wine grapes cultivated in Lombardy is turned into wine at the Operators1 in the sector of the PDO and PGI products in Lombardy and Italy, 2013 PDO cheese Lombardy Producers - farms 4,201 Producers - cattle farms 5,124 Head of cattle n.d. Processors 370 Processors - of which cheese makers 292 Italy % Lombardy/Italy 27,190 29,357 n.d. 1,691 1,383 15.5 17.5 n.d. 21.9 21.1 1,453 1,947 117 55 3,562 4,614 741 197 40.8 42.2 15.8 27.9 PDO and PGI fruit and vegetables Producers - farms Processors 466 16 17,076 1,165 2.7 1.4 PDO and PGI extra-virgin olive oil Producers - farms Processors Processors - of which millers 172 53 19 19,083 1,863 1,038 0.9 2.8 1.8 15 873 1.7 Preparation of PDO and PGI meat Producers - farms Producers - cattle farms Processors Processors - of which slaughterers PGI meat Processors Figures for processors refer to businesses and not to plants. Source: ISTAT. 1 121 firm itself, whereas 20% is processed by cooperatives; the share of cooperation reaches up to 27% for the PGI wines. Among the main designations in terms of surface, the Pavia area besides the Po river is decreased by 2.7% over 2012, as it occurred in Bonarda (-0.8%). Conversely, on the increase is Lugana, whose registered areas have registered an annual increase of 8.7%, and Franciacorta (+3.2%). The value of the wine export, which amounts to 285 million euro and represents 5.5% of the national total, is increasing by 11.9% over 2012, while in quantitative terms by 1.9%. The quality wine (DOP and IGP) represents 75% of the regional export, produced for 95% in packaged way. The second regional export item is represented by the sparkling wines (13.4%), while the value of the exports for the wines with no designation covers 5.3% (also in this case they are 122 PDO and PGI wines in Lombardy and Italy* 350 332 300 250 200 150 118 100 73 Italy 50 0 22 5 DOCG * as of 10 July 2014. Source: MIPAAF. Lombardy 15 DOC IGT Area enrolled in DOC/DOCG vineyard registries and lists of IGT vineyards for the 2013 harvest Name of DOC/DOCG registry DOC - Oltrepo’ Pavese DOC - Bonarda Dell’oltrepo’ Pavese DOCG - Franciacorta DOC - Lugana DOC - Garda DOC - Lambrusco Mantovano DOCG - Valtellina Superiore DOC - Sangue Di Giuda Dell’oltrepo’ Pavese DOC - Curtefranca DOC - Valcalepio DOCG - Oltrepo’ Pavese Metodo Classico DOC - Pinot Nero dell’Oltrepo’ Pavese DOC - Valtenesi DOCG - Sforzato di Valtellina o Sfursat DOC - Valtellina Rosso o Rosso di Valtellina DOC - Riviera del Garda Bresciano DOC - Oltrepo’ Pavese Pinot Grigio DOC - Buttafuoco dell’Oltrepo Pavese DOC - San Colombano al Lambro DOC - Capriano del Colle DOC - Garda Colli Mantovani DOC - Botticino DOCG - Scanzo o Moscato di Scanzo DOC - Colleoni o Terre del Colleoni DOC - San Martino della Battaglia DOC - Cellatica DOC - Casteggio Land enrolled Grapes production (ha)(q) 2,929 276,215 2,697 280,960 2,537 215,259 997 120,025 626 52,917 367 51,546 344 22,598 255 24,361 254 21,451 175 11,982 169 12,168 126 10,006 119 9,058 99 6,402 87 5,738 78 6,689 69 8,440 64 5,483 63 4,266 58 5,394 35 3,796 24 1,312 13 698 13 1,275 8 600 7 544 7 473 Name of IGT list Land enrolled Grapes production (ha)(q) IGT - Provincia di Pavia o Pavia 4,814 704,237 IGT - Provincia di Mantova o Mantova 317 62,492 IGT - Bergamasca 127 11,916 IGT - Collina Del Milanese 90 8,385 IGT - Alto Mincio 75 11,392 IGT - Terrazze Retiche di Sondrio 69 4,128 IGT - Benaco Bresciano 51 4,802 IGT - Quistello 46 9,557 IGT - Terre Lariane 30 1,804 IGT - Valcamonica 25 1,184 IGT - Montenetto di Brescia 24 1,779 IGT - Sebino 19 4,273 IGT - Ronchi di Brescia 12 748 IGT - Ronchi Varesini 5 399 IGT - Sabbioneta 3 141 TOTAL DOC and DOCG 12,222 1,159,655 TOTAL IGT 5,709 827,235 Total land enrolled in DOC/DOCG registries and IGT lists 17,930 1,986,890 Source: DG Lombardy Region Agriculture. 123 mainly packaged), in the same way as the value of the aromatised wines covers 5.2%. In terms of import, 75% is represented by the sparkling wines and the remaining 25% by the wines with designation. To complete the framework of the products with designation, there are the traditional agro-food products, whose list is updated to June 2014. The Lombardy region stands at the 9th place among the Italian regions, with a basket of 246 products (equal to 5.1% of the national total). Among the regional specialties, are prevailing, for their numbers, the bakery products (71), the meat derivatives (68) and the milk derivatives (67). Quite remarkable is also the share of the fruit and vegetables, with 30 traditional products recognized. Production and positioning of the table grapes by channel of processing, 2013 Total grape % wine produced % production % production production at the farm to cooperatives to other (q)farms PDO PGI Wine with no designation TOTAL 1,160,835 828,996 192,301 2,182,132 17.5 27.5 11.6 20.8 39.0 43.6 29.1 39.9 Source: DG Lombardy Region Agriculture. Foreign exchanges of wine products, Lombardy 2013 Wines with no designation Wines with designation Sparkling wines Aromatised wines Must Total wines Import (million euro) 3.0 25.1 75.0 0.2 1.4 104.7 Source: DG Agriculture processing of ISMEA figures. 124 43.6 29.0 59.3 39.3 Export (million euro) % import % export 15.0 214.4 38.1 14.8 2.6 284.9 2.9 24.0 71.6 0.2 1.3 100.0 5.3 75.3 13.4 5.2 0.9 100.0 Traditional agri-food products by sector in Lombardy 80 70 68 71 64 60 50 40 30 30 20 10 3 0 Fresh and Cheese processed meats Fresh milk and ricotta 2 1 Honey Fruit and vegetables Fats Fresh pasta, (butter and baked goods oils) and pastries 4 Fish products 1 2 Beverage Gastronomy Source: MIPAAF national list of traditional agri-food products, 14th revision (June 2014). 125 organic farming In the Lombardy region, the organic farming is not so widespread as in the other regional realities of the national territory. In 2013, the organic workers amounted to 3.3% of the national total, in the specific 2.2% in terms of producers, whereas the percentage increases up to 8.2% for the processors, including both the producers and the transformers, and to 16.5% for the importers. Very scarce is also the share of surface devoted to the or- Operators1 in the organic sector in Lombardy, 2013 Farms ProducersPreparers number% number % number% Bergamo 16710.9 9410.5 9911.8 Brescia 27217.8 18921.2 13415.9 Como 573.7 364.0 283.3 Cremona 694.5 384.3 445.2 Lecco 503.3 242.7 384.5 Lodi 241.6 70.8 202.4 Mantua 16110.5 101 11.3 77 9.2 Milan 26417.3 56 6.3 217 25.8 Monza e Brianza 38 2.5 8 0.9 33 3.9 Pavia 31620.7 27530.8 8610.2 Sondrio 513.3 343.8 303.6 Varese 603.9 313.5 354.2 Lombardy 1,529100.0 893100.0 841100.0 The figure relates to the province of the registered office and it does not refer to importers. Source: DG Lombardy Region Agriculture. Share of regional organic category to national total, 2013 10% 9% 8.0% 8% 7% 6% 5% 4% 3% 3.0% 2.0% 2% 1% 0% Operators 1 126 1.6% Source: SINAB. Producers Processors UAA who perform production activity, whereas those who perform an activity of preparation, including also the producers involved, amount to 55% ganic farming which amounts on the whole to 1.6% (SINAB data, 2014) on the national total. In the Lombardy region, in 2013, ac- cording to the data released by the DG Agriculture, the active organic operators amounted to 1,529; of these ones 58.4% are the operators Organic producers in Lombardy, 2013 Breakdown of regional organic UAA by crop*, 2013 Vegetable Animal products*husbandry* number% number% Bergamo 9110.5 15 9.7 Brescia 18421.3 25 16.2 Como 313.6 11 7.1 Cremona 414.7 15 9.7 Lecco 222.5 15 9.7 Lodi 70.8 1 0.6 Mantua 10011.6 17 11.0 Milan 515.9 9 5.8 Monza e Brianza 8 0.9 2 1.3 Pavia 27031.3 30 19.5 Sondrio 303.5 9 5.8 Varese 293.4 5 3.2 Lombardy 864100.0 154 100.0 * Exclusive and not exclusive producers. Source: DG Lombardy Region Agriculture. 46.5% Cereal grain Industrial plants and dried legumes Vegetables 32.7% Grapevine Olive tree 1.7% 0.4% 0.6% 6.1% Other arable Other agricultural woody crops (fruit, small fruit) 2.4% 8.1% Fodder (rotated fodder crops and permanent meadows and pasture) * Including surface under conversion. Source: DG Lombardy Region Agriculture. 127 of the total. During the last year, the trend of the operators highlights an increase of 5.7%, with an increase of 13% mainly of the transformers and of 6.4% of the producers. By observing the provincial distribution of the farms, it can be detected the record of the province of Pavia (20.7%), followed by Brescia (17.8%), Milan (17.3%), Bergamo (11%) and Mantua (10.5%). By taking into account only the producers, the province of Pavia reaches 30.8%, followed by Brescia (21.2%) and Mantua (11.3%). Milan, instead, holds the record of the organic preparators with 25.8% of the total, followed by Brescia with 15.9%. 96.7% of the organic producers, in Lombardy, has obtained the certification for the vegetable productions (among them also producers of the livestock sector); the organic livestock sector involves, instead, 17.2% 128 of the producers. Both in terms of vegetable productions and in terms of livestock sector, Pavia confirms its role as a leader province, with 31.2% of the vegetable producers and 19.5% of the livestock producers. In the Lombardy region, the agricultural surface with crops cultivated with organic method represents about 2% of the regional UAA. 67.5% of the overall organic surface, equal to 20,634 hectares, concerns the Land used for organic farming in Lombardy (ha)* Bergamo Brescia Como Cremona Lecco Lodi Mantua Milan Monza e Brianza Pavia Sondrio Varese Lombardy Organic Area under Total % areaconversionareabreakdown 429 80 509 2.5 1,032 358 1,390 6.7 225 - 225 1.1 467 22 489 2.4 83 11 95 0.5 793 71 864 4.2 1,324 26 1,350 6.5 1,144 44 1,189 5.8 231 29 260 1.3 12,910 1,021 13,931 67.5 80 19 98 0.5 222 14 236 1.1 18,939 1,695 20,634 100.0 *Main uses of the land used: arable, agricultural woody crops, permanent meadow and pasture. Source: DG Lombardy Region Agriculture, gifures updated at July 2014. province of Pavia; it is followed then by Brescia (6.7%), Mantua (6.5%) and Milan (5.8%). About 1,700 hectares, or 8.2% of the total, are under conversion; in 2013, the highest share of surface in conversion is detectable in the provinces of Brescia, Sondrio and Bergamo. The repartition of the organic surface points out that as much as 46.5% of the organic surface is cultivated with cereals, where rice (58.9%) and maize (24.6%) hold the prevailing share; they are then followed by the fodder Number of head raised using organic methods in Lombardy, 2012 Bergamo Brescia Como Cremona Lecco Lodi Mantua Milan Monza e Brianza Pavia Sondrio Varese Lombardy Cattle 232 305 254 733 4 1,242 112 1,110 207 5,610 126 79 10,014 Pigs 93 203 - 37 3 1,930 2,158 100 - 41 - - 4,565 Goats and Sheep 68 172 107 759 208 - 77 5 27 70 - 205 1,698 Poultry 16 1,736 6,299 10,100 87,256 1,400 706 107,513 crops, both alternated and permanent, with 32.7%, the industrial crops (dried legumes included) with 8.1%, the grapevine with 6.1%, the vegetables with 2.4%, and the other agricultural cultivations represented by fruit, with 1.7% (which includes the small fruits). Despite the remarkable incidence of the livestock sector in the Lombardy agriculture, the share of the organic within the sector is decisively contained and inferior compared to the vegetable productions. In particular, in 2012, the cattle, increasing by 3.3% on annual basis, places itself just a little above 10,000 units, whereas the pigs and the goats and sheep have amounted, respectively, to 4,565 and 1,698 units. Just a little above 107,000 units is, instead, the poultry which suffers a decrease of 33% over 2011. Source: DG Lombardy Region Agriculture. 129 integrated production In order to quantify the spread of the methods of the integrated production, in absence of statistical data, have been considered the data relating to the adhesion to the action 214.B “integrated agricultural productions”, within the measure 214 “agro-environmental measures” of the RDP 2007-2013 of the Lombardy region. This action aims at fostering the productions with a low environmental impact, through the use of specific guidelines of integrated production, approved at the regional level, for the vegetable and fruit cultivations, the wine growing, for rice and maize. According to the 2012 data, the surface admitted for financing within the action 214:B, amounts to about 30,000 hectares, of which 54% is represented by the wood crops and 45.6% by arable crops. In terms of the single crops, about 47% of the surface concerns the grape growing, 24.5% 130 the maize, mainly in combination with the action 214.A “Balanced fertilization and rotation”, and 15.7% the rice. Among the integrated vegetable productions, it prevails the melon. In relative terms, the cultivation most involved in the practice of the inte- grated production is the grapevine, with about 70% of the total regional surface involved in the implementation of the action. High values are also detectable for the apple-tree, pear-tree and melon, whereas the incidence of the integrated production Breakdown by crop of the area under Measure 214.B (integrated agricultural productions), 2012 1.5% 2.7% 1.2% 1.7% 2.6% 3.2% Maize 24.5% Rice Grapevine Apple tree Pear tree Olive tree 46.9% 15.7% Other fruit trees Melon Other vegetables Source: DG Lombardy Region Agriculture. within the arable crops is modest. At the surfaces involved in the implementation of the action B of the measure 214, should be added the surfaces interested in the implementation of the action for the integrated Area admitted to payment - measure 214.B (Integrated agricultural productions) of the RDP in the Lombardy Region, 2012 Action Admitted area % (ha) B.01 - Vegetable crops 1,684.8 5.6 B.02 - Small fruits 7.4 0.0 B.03 - Tree crops 16,377.6 54.3 B.05 - Maize without adhesion 214.A* 895.8 3.0 B.06 - Mais with adhesion 214.A* 6,412.1 21.3 B.07 - Rice without adhesion 214.A* 4,100.3 13.6 B.08 - Rice with adhesion 214.A* 656.7 2.2 Total Integrated Agricultural Productions 30,134.8 100.0 * 214.A Balanced fertilization and rotation crop. Source: DG Lombardy Region Agriculture. production, within the CMO for fruit and vegetable, which in Lombardy involves about 3,000 hectares of indus- trial tomatoes, equal to over 50% of the overall surface of the cultivation in the Region. Share of the surface area for the main crops under Measure 214.B (Integrated Agricultural Productions), 2012 100 80 69.9% 58.0% 60 44.0% 40 33.0% 20 Total production 15.8% 2.0% 0 % integrated production Maize 4.9% Rice Grapevine Apple tree Pear tree Olive tree Melon Source: DEMM estimates on DG Lombardy Region Agriculture figures and ISTAT. maize rice grapevine 131 agritourism (farm stays) The Lombardy region is the third Italian region in terms of farm stays, with 6.9% of the national facilities, thus ranking only after Tuscany and Trentino Alto-Adige. By considering only the farm stays authorised for catering, the Region ranks second place, with an incidence on the national total of 10%, a percentage which reaches 22.6% if considering the farms authorised exclusively for catering. Despite being less suited than other regions for providing accomodations, the Lombardy agri-tourism sector provides, in any case, 4.4% of the facilities and 5.2% of the national beds (ISTAT, 2012). Despite the presence of many operators and the period of economic crisis, the upward trend of the agri-tourism phenomenon, in the Lombardy region, doesn’t seem to undergo a deadlock; on the contrary, in 2013, it experiences a sharp net annual increase 132 of 7.5%, with a peak of 11.9% in the mountainous areas. Changes higher than 10% have been detected in half of the Lombardy provinces, with Sondrio leading the ranking (+13.8%). Conversely, Mantua and Pavia have Farm stays active in Lombardy 2012* 2013** % change % breakdown 2013/12 per surface area (2013) Provinces Bergamo 139145 4.39.5 Brescia 297 328 10.421.6 Como 104116 11.57.6 Cremona 71 75 5.64.9 Lecco 70 78 11.45.1 Lodi 30 33 10.02.2 Mantua 218 223 2.314.7 Milan 97108 11.37.1 Monza e Brianza 11 12 9.1 0.8 Pavia 212 217 2.414.3 Sondrio 94107 13.87.0 Varese 72 79 9.75.2 Altitude zone Mountains 404 452 11.929.7 Hills 453 478 5.531.4 Lowlands 558 591 5.938.9 Total Lombardy 1,415 1,521 7.5 100.0 Total Italy 20,474 n.d n.d Lombardy/Italy (%) 6.91% n.d n.d Source: *ISTAT and **DG Lombardy Region Agriculture (provisional data). shown increases slightly higher than 2%. Even in the urban areas the number of the farm stays is increasing by 8.4% over 2012. The areas most suited for the farm stay are represented by the Garda Lake, by the Morainic hills of Mantua and the area over Po in the nearby of Pavia, along with the pre-Alpine belt and the foothill areas in general. In absolute terms, most of the 1,521 farm stays is located in the provinces of Brescia (21.6%), Mantua (14.7%) and Pavia (14.3%), with a rather balanced distribution by altitude areas. 52.1% of the farm stays provides 12,194 beds (+7.2% over 2012). 76% of the residential farm stays provides inhouse accommodations, while 37.9% in independent residences. There are also 442 areas for outdoor stays. Full board is offered by 52% of the facilities with accommodation, whereas 29.6% provides only housing. The accom- modation activity is mainly practiced on the mountains and the hills; the most representative province is Mantua (66.4% of the facilities), whereas on the opposite side there is Varese (34.2%). Catering is the most widespread activity, so that 69.5% of the farm stays are Distribution of farm stay sites in Lombardy, 2013 Source: DG Lombardy Region Agriculture. 133 authorised in providing meals, with peaks of over 80% in the provinces of Bergamo and Varese. Conversely, the catering service is provided by only the half of the farm stays of Pavia and Milan, and by about 40% of the facili- ties of Lodi. On the whole, the catering service seems to be performed mainly in the mountainous areas (roughly in Type of farm stay sites in Lombardy, 2013 Provinces Bergamo Brescia Como Cremona Lecco Lodi Mantua Milan Monza e Brianza Pavia Sondrio Varese Altitude zone Mountains Hills Lowlands Total Lombardy % farms N. beds N. outdoor % farms N. seating % farms % farms licensed for rest stops licensed for capacity licensed for licensed for lodgingscateringtastings other activities 39.3 58.5 48.3 62.7 39.7 42.4 66.4 34.3 41.7 59.0 57.9 34.2 753 4,001 624 705 370 253 1,977 665 134 1,625 782 305 17 100 27 7 34 0 121 30 0 26 67 13 87.6 75.9 72.4 76.0 76.9 39.4 65.0 50.9 75.0 50.2 77.6 83.5 8,724 17,963 4,442 4,283 3,510 750 6,633 5,386 902 5,859 5,536 4,646 3.4 10.4 11.2 17.3 7.7 12.1 9.0 2.8 0.0 8.3 13.1 17.7 37.9 42.4 34.5 74.7 32.1 63.6 62.3 63.9 58.3 37.8 31.8 69.6 55.3 60.7 44.7 52.9 3.176 5.243 3.775 12,194 218 104 120 442 75.4 69.0 65.3 69.5 19,515 23,737 25,382 68,634 8.4 13.0 7.4 9.5 34.5 40.8 62.8 47.5 Source: DG Lombardy Region Agriculture (provisional data). 134 75% of the farm stays). The daily meals, authorized in 2013, almost reach 70,000 units, roughly 65 meals per farm authorised in providing catering service. 9.5% of the farm stays performs tasting at the farm, an activity that is particularly remarkable in the hilly areas (13% of the farms). The range of services offered by the farm stays in the Lombardy region involves also sports, recreational and cultural activities, which are mainly offered by the farms located in the cities and in the plain areas. Among these activities, a great importance is represented by the horseback riding and by the courses (performed respectively by 13% and 12% of the farms), the sport activities (6.2%) and the hiking (3.5%). About 37% of the farms stays is run by a woman, a figure which exceeds by 1% the national average. Incidences over 40% have been detected in the provinces of Varese, Lecco, Como and Monza. 135 direct sales According to the 6th Agricultural Census data, the direct sales, in the Lombardy region, are practiced by over 12,000 farms, equal to 27.8% of the regional total, compared to 26.1% of the national datum. In the provinces of Como, Lecce and Varese, the direct sales are performed by over 70% of the farms, whereas Lodi, Cremona and Mantua reach levels of just 10%. The population density and, therefore, the size of the market, represent an important factor in the spread of the direct selling; in the municipalities nearby the cities such activity is practiced by 50% of the farms, except for the province of Milan (27.2%). A development similar to that of the city areas is detectable on the hilly and mountainous areas, mostly interested by tourism. Direct sales, performed out of the farm, involve 31% of the farms, with peaks of over 40% in the provinces of 136 Cremona, Pavia and Monza, and an highest incidence in the plains and in the cities. In terms of types of products offered to the consumer, the most remarkable farms are those selling vegetable products (42.2%), followed by those selling processed products (35.4%) and products of animal origin. Farms with direct sales to consumers in Lombardy, 2010 Provinces Bergamo Brescia Como Cremona Lecco Lodi Mantua Milan Monza e Brianza Pavia Sondrio Varese Altitude zone Mountains Hills Lowlands Total Lombardy Total Italy Source: ISTAT - 6th General Agricultural Census. Farms with direct sales % farms with direct sales to total farms with sales 1,847 2,896 1,173 369 782 129 894 558 316 1,399 952 871 44.5 28.4 72.6 8.8 75.6 10.0 10.7 27.2 49.0 21.8 35.7 74.7 4,240 3,988 3,958 12,186 270,579 59.9 45.4 14.2 27.8 26.1 The e-commerce of the products involves 4.4% of the farms with direct sales to the consumer; an incidence which is in line with that of the shares in the North and in the Centre of Italy, but superior to the national average (2.4%), which suffers of its scarce use in the South (0.9%) and on the Islands (1.6%). In the plains with an intensive farm- ing, and in the cities, the direct sales involve mainly the vegetable products, whereas in the mountainous areas it prevails the direct marketing of the processed products and of the Type of farms with direct sales to consumers in Lombardy, 2010 % with direct sales % with direct sales % with direct sales % with direct sales % with direct sales on the farm off the farm of vegetable products of animal products of processed products Provinces Bergamo 86.226.7 31.8 46.2 36.1 Brescia 88.323.4 35.0 31.0 48.0 Como 82.034.5 41.9 48.4 23.2 Cremona 72.146.9 67.5 22.5 15.2 Lecco 88.224.3 38.7 53.1 24.7 Lodi 78.331.0 46.5 30.2 29.5 Mantua 78.936.2 70.4 18.2 19.5 Milan 80.538.0 56.6 34.4 19.9 Monza e Brianza 75.0 45.3 70.9 23.4 13.0 Pavia 84.243.4 41.7 9.9 54.2 Sondrio 88.923.3 25.9 41.6 46.3 Varese 86.232.3 50.2 41.6 19.3 Altitude zone Mountains 90.521.2 23.8 49.8 44.6 Hills 85.034.8 44.1 23.4 42.0 Lowlands 78.437.5 60.1 28.8 18.7 Lombardy 84.830.9 42.2 34.3 35.4 Source: ISTAT - 6th General Agricultural Census. 137 products of animal origin. Pavia is the province with the highest incidence of marketing of the processed products, boosted by the wine sector, whereas in the provinces of Monza and Mantua there is a prevalence of vegetable products, provided by over 70% of the farms. The Census data allow to get a quantification of the regional operators who practice direct sales; the most numerous are the flower-sellers, about 2,000, followed by the wine cellars (1,511), by the producers of the milk derivatives and by the producers of the derivatives of meats and cold cuts. The direct sales of vegetable plants are performed by over 1,000 farms. On the Lombardy territory, besides the official register of the farmers’ markets based on the communications of the Municipalities to the Region, there are many similar initiatives mainly coordinated by the ag- 138 Farms with direct sales to final consumers and use of e-commerce, 2010 Italy North-West Lombardy North-East Centre South Islands Farms with direct sales to final consumers n.% 270,579 31,924 12,186 28,220 45,539 120,767 44,129 100.0 11.8 4.5 10.4 16.8 44.6 16.3 E-Commerce for product sales and farm services (%) E-Commerce/ direct sales (%) 100.0 19.8 8.0 21.1 31.1 17.1 10.9 2.4 4.1 4.4 5.0 4.5 0.9 1.6 Source: ISTAT - 6th General Agricultural Census. ricultural professional organizations. According to an estimate obtained by matching the municipality’s authorizations with the list of the markets of “Campagna Amica Coldiretti” and with those organized by the farm stay Consortium of Mantua, there are 142 farmers’ markets in the region, mainly concentrated in the provinces of Milan and Mantua. By considering the Lombardy’s emphasis in the livestock sector, the distribution of raw milk to the final consumers through automatic suppliers, represents an important type of short supply chain, although in the latest years there has been a decrease of the facilities, mainly in the less populated areas. In 2014, the number of the vending machines authorised in Lombardy is decreased by 14.7% over the previous year, mainly on the hilly and mountainous areas; nonetheless, it has been the hill that has suffered the most, decreasing from 36.8% to 35.3%. Very much widespread, but hardly quantifiable in the region, is the presence of the ethical purchasing N. of farms with direct product sales to final consumers in Lombardy, 2010 groups, for whom it has been estimated an incidence on the national total of about 25%. Distribution of farmers’ markets in Lombardy 1,949 2,000 1,511 1,500 1,329 1,146 1,046 1,000 572 500 430 427 0 Cereals Horticulture Source: ISTAT - 6th General Agricultural Census. Nursery products Milk Wine Olive oil Milk der. Meat and prepared meats Source: DG Lombardy Region Agriculture and Coldiretti - Campagna Amica, July 2012. 139 Raw milk distributors in Lombardy* Raw milk distributors in Lombardy Raw milk % breakdown by % change distributors geographical area 2014/2013 Provinces Bergamo 7119.1 -7.8 Brescia 39 10.5-27.8 Como 38 10.2-15.6 Cremona 1 0.3-50.0 Lecco 40 10.8-13.0 Lodi 4 1.133.3 Mantua 12 3.2-20.0 Milan 6918.6 -6.8 Monza e Brianza 27 7.3 -10.0 Pavia 6 1.6-14.3 Sondrio 9 2.4-43.8 Varese 55 14.8-16.7 Altitude zone Mountains 55 14.8-14.1 Hills 131 35.3-18.1 Lowlands 185 49.9-12.3 Total Lombardy 371 100.0 -14.7 Source: DG Lombardy Region Health, July 2014. * Situation as of July 2014. Source: DG Lombardy Region Health. 140 educational farms The educational farms are farms engaged in educating the consumers and, in particular, in receiving school groups and young people within the school activities and extra-school activities. This type of diversification has had great success in the Lombardy region where, since 2002, it has been established a register of the educational farms and a Paper of the quality requirements, which has undergone a first revision in 2014, thus declaring the necessary requirements for the farms for being recognized. In 2013, have been detected 203 educational farms on the regional territory, mainly located in the plain (58%), where there is the highest number of potential users, mainly represented by the schools. The educational farms are increased by 10% over 2012; it is mainly the mountainous area that has experienced the highest percentage change (+17%). The phenomenon of the educational farms is particularly developed in the province of Bergamo, that gathers one fourth of the facilities, followed by the provinces of Brescia and Pavia. Distribution od educational farms in Lombardy, 2013 Educational farms in Lombardy, 2013 Educational % change Provinces farms2013/2012 Bergamo 5312.8 Brescia 2926.1 Como 912.5 Cremona 130.0 Lecco 814.3 Lodi 110.0 Mantua 1812.5 Milan 166.7 Monza e Brianza 6 50.0 Pavia 230.0 Sondrio 60.0 Varese 110.0 Altitude zone Mountains 4117.1 Hills 571.8 Lowlands 10512.9 Total Lombardy 203 10.3 Source: DG Lombardy Region Agriculture. Source: DG Lombardy Region Agriculture. 141 AGRICULTURAL POLICY regional legislation on agriculture The regulatory regional text regulating the agricultural sector is represented by the regional law n. 31, 5th December 2008, the consolidated regional laws relating to agriculture, forestry, fishing and rural development (BURL n. 50, 1st ordinary additional, 10th December 2008), consisting of the following titles: TITLE I - Subject of the consolidated act. TITLE II - Measures in the rural sector, in the forestry and pastoral sectors, in the agro-food sector and fishing. TITLE III - Partition of the competences. TITLE IV - Provisions on the forestry surfaces and economy. TITLE V - Regional agency providing services to agriculture and forestry (ERSAF). TITLE VI - Phyto-sanitary supervisory. TITLE VII - Provisions for land recla- 144 mation and irrigation. TITLE VIII - Provisions on the harvesting, cultivation and marketing of truffles. TITLE VIII bis - Penalty provisions under Community regulations for the CMO, mainly for the wine sector. TITOLO VIII ter - Provisions relating to the monitoring of the wine production’s potential. TITLE VIII quater - Provisions on the agronomic use of the nitrogen-based fertilizers, including animal effluents, water from olive mills and waste water from farms and small agro-food businesses. TITLE IX - Provisions for expanding and safeguarding the fish heritage, and provisions on fishing activities in the waters of the Region. TITLE X - Regional regulation on farm stays. TITLE XI - Provisions on the civic uses. TITLE XII - Final provisions. The recent amendments to the consolidated act are the following: •Regional law n. 19, 8th July 2014 – Provisions for containing the regional interventions in the institutional field and in economy, health and territory; • Regional law n. 14, 3rd April 2014 – Amendments to the regional law n. 17, 21st November 2011 (Participation of the Lombardy region to the development and implementation of the EU rights). Regional EU law 2014 – Provisions for the fulfilment of the duties by the Lombardy region arising from the membership of Italy in the EU: fulfilment of the Directive 2005/36/EC, Directive 2006/123/EC, Directive 2011/92/ EU, Directive 2009/147/EC, Directive 2011/36/EU and Directive 2011/93/EU; • Regional law n. 13, 25th February 2014 – Amendment to the regional law n. 31, 5th December 2008 (consolidated act of the regional laws on agriculture, forestry, fishing and rural development), for the agricultural cooperation; • Regional law n. 19, 24th December 2013 – Provisions for the implementation of the regional economic-financial programming, under art. 9-ter of the regional law n. 34, 31st March 1978 (rules on the procedures of the programming, financial statement and accounting of the Region) – 2014; • Regional law n. 14 – 18th November 2013 – Amendments to the regional law n. 31, 5th December 2008, related to the rural markets and the promotion of the local products (consolidated act of the regional laws for agriculture, forestry, fishing and rural development). RECENT REGULATORY ACTS • Regional regulation n. 5, 9th December 2013 – Safeguarding of the fish fauna and regulation of the fishing activity in the Garda lake; • Regional regulation n. 1, 8th June 2012 – Regulation of the electoral process for the land reclamation’s consortia, under art. 82 of the reg. law 31/2008 and art. 2 of the reg. law 25/2011; • Regional regulation n. 1, 14th February 2011 – Amendments to the regional regulation n. 5, 20th July 2007, “Regional forestry rules, in the implementation of the art. 50, clause 4, of the regional law n. 31, 5th December 2008 (consolidated act of the regional laws for agriculture, forestry, fishing and rural development)”; • Regional regulation n. 7, 19th December 2011 – Amendments to the regional regulation n. 4, 6th May 2008 “Rules for the implementation of the title X of the regional law n. 31, 5th December 2008 (consolidated act of the regional laws for agriculture, forestry, fishing and rural development)”; • Regional regulation n. 1, 19th January 2010 – Amendments to the regional regulation n. 5, 20th July 2007 “Forestry rules, in the implementation of the art. 11 of the regional law n. 27, 28th October 2004, (safeguarding and enhancement of the areas, landscape and forestry economy)”; • Regional regulation n. 3, 8th February 2010 – Regulation of the hydraulic police under art. 85, clause 5, of the regional law n. 31, 5th December 2008, “Consolidated act of the regional laws for agriculture, forestry, fishing and development”; • Regional regulation n. 4, 8th February 2010 – Amendments to the 145 regional regulation n. 9, 22nd May 2013, “Implementation of the reg. law n. 12, 30th July 2001 “Rules for the increase and the safeguarding of the fish heritage and the practice of the fishing activity in the waters of the Lombardy region”; • Regional regulation n.8, 27th September 2010 – Regulation for the recognition, in the implementation of the art. 54, clause 9, of the reg. law n. 31, 5th December 2008 (consolidated act of the regional laws for agriculture, forestry, fishing and rural development) of the works for the forestry maintenance which, avoiding changes in the natural landscape, can not be considered as installations or building works, in its narrow sense, since they refer to the fulfilment of the regulation about the public works, and fixing of the related amount limits; • Regional regulation n. 7, 28th December 2009 – Amendments to the regional regulation n. 4, 6th May 2008, “Implementation of the regional law n. 10, 8th June 2007 (regional guideline for the farm stays)”; • Regional regulation n. 4, 6th May 2008 – Rules for the fulfilment of the title X of the regional law n. 31, 5th December 2008 (consolidated act of the regional laws for agriculture, forestry, fishing and rural development). The texts mentioned are available at the following link: http://normelombardia.consiglio.regione.lombardia.it/NormeLombardia/Accessibile/main.aspx. 146 regional agricultural spending In the period 2008-2011, the total amount of the public subsidies to the agricultural sector, at the regional level, is amounted roughly to 1,447 million euro, 74.5% of which (equal to 1,077 million euro) is made up of money transfers of agricultural policy, and the remaining 25.5% by the tax relief granted (370 million euro). The main stakeholders implementing the sectorial regional policy are, besides the Region which with its own budget has an incidence of about 20%, AGEA (OPR – regional paying agency of the Lombardy region) (50.4%) and the Ministry for Agriculture, Food and Forestry Policies (3.7%). The subsidies, in slightly decrease over the pre- Consolidation of the support to the agricultural sector in Lombardy (million euro) 2008%2009%2010%2011%Average% 2008-11 Agea/OPR Lombardia 56035.6 84663.2 61739.5 786 50.4 702 48.5 Mipaaf 694.4 715.3 634.0 58 3.7 65 4.5 Ministry for the Productive Activties 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Sviluppo Italia - ISMEA 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Lombardy Region 28518.1 31623.6 33021.2 310 19.9 310 21.4 Total Transfers 91369.4 1,23378.4 1,01075.4 1,154 74.0 1,077 74.5 Tax credit 00.0 00.0 00.0 0 0.0 0 0.0 VAT 342.2 382.8 432.8 53 3.4 42 2.9 Fuel subsidies 1419.0 144 10.7 1378.8 1549.9 1449.9 Reductions on income tax 73 4.7 41 3.0 39 2.5 68 4.4 55 3.8 Reductions on the local property tax (ICI) 9 0.6 9 0.6 9 0.6 9 0.6 9 0.6 Benefits on regional business tax (IRAP) 28 1.8 24 1.8 25 1.6 28 1.8 26 1.8 Benefits on social and security contributions 116 7.4 85 6.4 77 4.9 94 6.0 93 6.4 Total Benefits 40230.6 34121.6 32924.6 406 26.0 370 25.5 Overall Total 1,315100.0 1,573100.0 1,340100.0 1,560 100.0 1,447 100.0 Source: INEA, data bank on public spending in agriculture. 147 vious years, have amounted to 74% in 2011. The adhesion to the Pact for the Euro, signed in March 2011 by some EU countries, has asked the regions some adaptation requirements, and many financial and spending restraints. In such a context, the Lombardy region, as all of the regional administrations, has experienced a decrease of the re- sources for the agricultural sector. In the Lombardy region, the agricultural spending is decreasing with a percentage incidence on the value added down from 11.9% in 2010, to 10.3% in 2011, a reduction that has been detected also at the national level although to a lesser extent. In particular, in 2011, the total amount to the regional agricultural sector Agriculture budget in Lombardy, by type of resources, 2011 1.2% 69.5% 29.3% Payments to the agricultural sector, and % incidence on the regional agricultural value added (million euro) 2008%2009%2010%2011% Lombardy 284.8 8.8 317.911.2 339.511.9 322.410.3 North-West 537.79.6579.0 11.7528.5 10.7501.79.4 North-East 515.97.3 543.48.4 534.58.2 560.67.9 Centre 290.56.1 251.55.8 251.05.8 188.64.2 South 1,161.815.71,057.615.6 813.111.9 762.110.4 Islands 1,032.926.0 657.417.4 971.226.01,286.134.1 Italy 3,538.812.33,089.011.73,098.311.83,299.111.7 Source: INEA, data bank on public spending in agriculture. 148 EU funds 5,532.2 Statal funds 309,858.5 Regional funds 130,664.6 Total 446,055.4 (thousands of euro) Source: INEA, data bank on public spending in agriculture. has triggered interventions for a total amount of little more than 322 million euro, compared to about 340 million euro in 2010. With the 2007-2013 programming, the shares related to the co-financing, by the State and the EU, of the measures relating to the RDP are no longer earmarked to the regional financial statements, as it occurred in the past programming periods, but they are now paid directly through the AGEA’s budget or by the regional paying Agency; in terms of repartition of the funds available to the primary sector, in the financial statement of the Lombardy region the 69.5% is endowed by the State, 29.3% comes from regional Breakdown of total payments by type of functional economic allocation, 2010-2011 Functional economic allocation Enterprise management Technical assistance and reserach Forestry activities Firm investments Other Infrastructures Promotion and marketing Hydrogeological safeguarding 2010 2011 Total % Total % payments payments 201.19 59.3 101.84 31.6 46.81 13.8 99.07 30.7 31.68 9.3 47.11 14.6 12.83 3.8 33.38 10.4 24.587.2 31.95 9.9 16.134.8 7.63 2.4 6.23 1.8 1.37 0.4 0.02 0.0 0.04 0.0 339.47100.0 322.39 100.0 Source: INEA, data bank on public spending in agriculture. funds and 1.2% from EU funds. In 2011, the most remarkable amount of the regional spending (total payments) for the measures of agricultural policy, refers to the item “business management” (31.6%), concerning the aid to the management of farms/ aid to the income, followed by the payments for the items “Technical assistance and research” (30.7%), “Investments in forestry activities” (14.6%) and “business investments” (10.4%). Compared to the year 2010, it can be detected that the repartition of the subsidies remain quite unchanged, except for the firm investments that in 2011 exceed the investments for the infrastructures. Conversely, what is changed is the percentage incidence of some expenditure items; there is, in fact, a decrease of the share to be allocated to the “business management” (from 59.3% in 2010, to 31.6% 149 in 2011, about 99 million euro less), while the payments for the technical assistance and research are increased more than double, with about 99 million euro compared to about 47 million euro in 2010, with a percentage incidence equal to 30.7% in 2011 and to 13.8% in 2010. At last, in terms of indices of the spending efficiency, it can be detected a good efficiency of the administration, in 2011, mainly relating to the capability of the Region to cope with the allocations and the commitments expected by the financial statement. Indicators of efficiency in the Lombardy spending (%) 120 106.9 96.9 100 80 74.1 67.3 60 97.5 72.3 71.9 55.3 53.6 Commitment capacity Spending capacity 40 20 0 2009 Source: INEA, data bank on public spending in agriculture. 150 2010 Payment capacity 2011 cap In 2013, the Lombardy region has earmarked 492.2 million euro of direct payments, net of modulation, within the First Pillar of the CAP. It is an mount which is slightly lower than that in 2012 (-2.3%), thus explaining the lower incidence of the Region on the national price ceiling (11.9% compared to 12.3% in 2012). 34,543 firms have enjoyed of the direct payments, 25.7% of which are located in the province of Brescia, and 21% in the province of Mantua, followed by the provinces of Pavia, with 12.3%, and Cremona, with 10.8%. 0.7% of the beneficiaries and 1.2% of the payments relate, instead, to the firms located out of the Region. The territorial repartition of the direct payments has shown at the first place the province of Pavia, with 20.2% of the amount earmarked in the Region, followed, to a short distance, by the provinces of Mantua (19.2%) and - first pillar Brescia (18.9%). If considering also Cremona, it emerges a quite polarized framework, with 4 provinces absorbing 75% of what spent for the direct payments in the Lombardy region, and the other eight provinces sharing the remaining 15%. Nonetheless, if considering the average aid per farm, the situation changes; in fact, the farms of Pavia receive, on the average, 22,300 euro yearly, and those located in Cremona slightly exceed 20,000 euro, whereas the farms of Brescia do not reach 10,000 euro and those of Mantua reach little less than 12,000 euro. Nonetheless, the province with the highest unitary aid is Lodi, where the farms perceive an average of little more than 25,000 euro per year. The province of Sondrio, instead, is bringing up the rear with about 2,500 euro per farm. Almost 460 million euros, of the amounts allocated in 2013, equal to 93,3% of the total, are represented by the value of the securities of the single payment. The remaining sum is related to the specific support envisaged by the article 68 of the regulation (EC) n. 73/2009. All the provinces depict the same situation, with a figure which is in line with the regional average distribution, except for Sondrio, where the support to the art. 68 highlights an incidence considerably higher than the average (18.3% compared to the regional 6.8%). The difference between the total of the direct payments earmarked and the amounts allocated for the single payment and the art. 68 is essentially ascribable to the recovery of the sums for the unaccomplished respect of the clauses. Concerning the payments for the measures of the art. 68, the most remarkable are those fostering the milk quality, which have totalised 48.5% of the spending for the regional arti- 151 cle 68, equal to 16.2 million euro. 3.7 million tons of milk have been admitted to the subsidies, little less than the half of the quantities admitted to the aid at the national level (46.2%). The provinces with the highest allocations are Brescia and Cremona (each with 26.4% of the sums earmarked to this measure in the Lombardy region), Subsidies in Lombardy, in 2013 (to the net of modulation) - euro N. RPU Art. 68 reg. (EC) n. 73/2009 farms titles Total of which of which of which Art. 68 Contribution Aid to the Aid to the to the milk quality beef quality insurances* Bergamo Brescia Como Cremona Lecco Lodi Mantua Milan Monza e Brianza Pavia Sondrio Varese Out of the Region Total 3,09724,936,324 2,122,583367,0181,260,999372,565 8,869 86,527,1196,519,160 885,343 4,276,725 1,303,566 9244,249,728 267,57940,957133,01764,579 3,726 77,182,8736,045,992 1,558,820 4,278,422 108,807 4902,012,499 167,59215,284 88,47646,977 1,12028,248,093 2,197,870476,5931,560,967120,026 7,240 86,562,6287,885,2923,076,427 2,868,0061,316,473 2,150 38,770,3592,417,754 1,198,016 1,018,147 161,458 431 3,622,266 136,353 63,460 53,421 18,855 4,257 95,154,3744,230,136 3,571,251 292,467 282,427 1,457 3,612,794807,204 574,905 187,861 6,010 5402,743,251 184,39119,629141,71119,706 242 5,559,178 450,957 351,011 41,818 34,209 34,543 459,181,48733,432,863 12,198,714 16,202,037 3,855,659 * Including the national funds and the share of the national co-financing . Source: processing of DG Lombardy Region Agriculture figures. 152 Total direct payments 27,026,198 92,871,287 4,517,853 83,187,291 2,178,182 30,411,060 94,388,881 41,186,615 3,756,178 99,323,678 4,422,739 2,926,923 6,009,348 492,206,234 followed by the province of Mantua (17.7%). There is, then, the aid for the insurance premiums which have totalised a spending of 12.2 million euro, thus including both the national co-financing and the integrative sums of the national funds (36.5% of the regional total). 29.3% of these funds is for the province of Pavia, followed, with 25.2%, by Mantua. At a long distance, with 11% of the funds of the art. 68, equal to 3.8 million euro, there are the payments for the quality in the beef sector. On the whole, have been admitted to the premium 101,300 heads of cattle, little less than 12% of the national total. Within this payment, the most important measure is concerning the slaughtering of livestock raised in compliance with the a facultative labelling guideline approved by the Ministry of Agriculture, Food and Forestry policies, which has involved over 97,000 heads of cattle (96% of the regional total), thanks to which there has been 88% of the funds for this payment to the regional level (15% at the national level). 75% of the financial resources allocated to the Region for the payment of the beef is relating exclusively to these two provinces: Mantua, with 34.1%, and Brescia, with 33.8%. The other payments of the art. 68, in the Region, concern the quality of the olive oil, sugar, sheep and goats and the measure for the alternation which, on the whole, totalise a spending of little less than 1.2 million euro. In terms of management of the markets, within the regime of the milk quotas, also in the 2013/14 campaign, the national production has remained below the national reference quantity. The Lombardy region confirms to be the most important producer with 4,479,880 tons of milk, equal to 41.6% of the national total. For the other great productive sector, the wine sector, the Lombardy region has received, in 2013, a financial endowment of 11 million euro, 4% of the resources distributed among the regions (272 million euro). 47% of these sums has been earmarked to the measure for the restructuring and reconversion of the vineyards, followed by that one fostering the promotion on the third markets (27%), and by that one for the investments (25%). 153 rural development program (cap The total financial endowment of the public spending for the implementation of the rural development program (RDP) 2007-2013 amounts to 1,026,027,304 euro; 46%, equal to 471,110,000 euro, represents the - second pillar) EAFRD quota, whereas the remaining share is the national quota of the state and regional resources. The advancement of the public spending at 31st December 2013 has amounted to over 800 million euro, which corre- spond to about 78% of what has been programmed. The Lombardy region exceeds the average of the regions (67.9%) which belong to the competitiveness area, thus ranking at third place in the development ranking, Financial fulfilment of RDPs in the Lombardy Region (euro) Axis/measure Axis 1 Meas. 111 - Training, information and raising awareness Meas. 112 - Setting up of young farmers Meas. 113 - Early pensions Meas. 114 - Advisory services Meas. 115 - Setting up management, aid and consulting services Meas. 121 - Modernising on farms Meas. 122 - Making best economic use of forests Meas. 123 - Increasing value added of farm products Meas. 124 - Cooperation Meas. 125 - Improvement and development of infrastructures Meas. 126 - Restoring potential of farm output Meas. 132 - Support for farmers participating in quality systems Meas. 133 - Information and promotion of quality products TOTAL AXIS 1 Payments 2013 Public spending of which EAFRD 1,191,743.76 532,709.48 2,926,018.72 1,300,962.20 - 0.00 - -20.00 - 0.00 21,311,176.13 14,770,683.05 1,090,888.02 487,626.96 6,572,237.99 2,937,790.38 470,368.66 210,254.78 8,890,029.80 6,116,324.26 - 0.00 12,096.97 540,732.00 - -0.01 42,464,560.05 26,897,063.10 Spending progress as of 31 Dec 2013 % progress Public spending of which EAFRD 31/12/13 (EAFRD) 4,098,576.16 25,680,326.98 32,762.09 13,699.96 187,593.26 181,483,458.60 6,591,607.77 40,700,982.09 1,585,111.08 37,918,509.32 13,221.00 1,121,453.18 2,186,639.37 301,613,940.86 1,819,545.57 11,392,188.33 14,022.14 6,123.88 82,240.70 86,176,962.09 2,949,404.19 18,127,135.78 708,606.94 18,457,467.99 5,658.77 500,543.41 978,166.51 141,218,066.30 48.02 98.42 100.11 100.00 100.00 84.01 76.41 66.45 29.84 55.36 99.99 50.93 100.00 75.60 >>>>> continued 154 Financial fulfilment of RDPs in the Lombardy Region (euro) >>>>> continued Axis/measure Payments 2013 Spending progress as of 31 Dec 2013 % progress Public spending of which EAFRD Public spending of which EAFRD 31/12/13 (EAFRD) Axis 2 Meas. 211 - Indemnity favouring farmers in mountain areas 6,800,903.67 2,992,395.50 68,580,618.72 30,175,473.58 96.41 Meas. 214 - Agri-environmental payments 25,296,843.38 17,558,182.90 229,638,755.70 104,931,138.56 83.70 Meas. 216 - Non-productive investments 6,525,600.21 2,871,264.00 16,765,916.96 7,377,003.44 75.72 Meas. 221 - Forestation of farm land 4,387,168.57 1,930,311.90 66,446,819.13 29,232,944.26 90.92 Meas. 223 - Forestation of non-agricultural land 46,018.57 20,248.10 301,383.44 132,608.71 48.83 Meas. 226 - Reconstitution of forest potential 6,342,689.82 2,790,783.40 16,432,031.48 7,230,093.80 65.06 TOTAL AXIS 2 49,399,224.22 28,163,185.80 398,165,525.43 179,079,262.35 85.34 Axis 3 Meas. 311 - Diversification into non-agricultural activities Meas. 312 - Support to set up and develop micro-businesses Meas. 313 - Incentives for tourist activities Meas. 323 - Protection and requalification of rural heritage Meas. 331 - Training and information TOTAL AXIS 3 12,914,126.31 356,215.87 2,022,147.09 4,655,132.72 315,584.19 21,040,921.61 5,771,581.60 159,299.70 907,208.70 2,081,775.10 141,129.20 11,799,788.60 TOTAL AXIS 4 10,196,636.23 Technical Assistance TOTAL 43,121,574.18 19,279,691.72 2,317,250.97 1,036,295.73 4,127,040.29 1,845,752.10 16,164,319.89 7,229,073.01 755,659.26 337,930.84 76,414,456.16 34,775,959.01 75.84 96.64 69.98 70.64 46.98 74.12 4,486,519.90 19,651,782.46 8,646,784 42.27 2,379,676.48 1,047,057.60 6,864,317.70 3,007,161.05 60.04 125,481,018.59 72,393,615.00 802,710,022.59 366,727,232.96 78.19 Source: processing of DG Lombardy Region Agriculture figures. 155 156 Spending progress of RDPs in Italian regions (euro) Competitiveness Area Programme RDP* Payments RDP payments programmed 2007-2013 Abruzzo 252,999,447.93 426,327,617.00 Bolzano 294,706,665.22 330,192,224.00 Emilia-Romagna 764,880,073.37 1,157,893,833.00 Friuli-Venezia Giulia 178,684,480.21 265,683,479.00 Lazio 452,827,110.29 700,434,557.00 Liguria 187,980,514.02 290,140,047.00 Lombardy 802,784,657.07 1,026,027,304.00 Marche 313,802,332.00 482,282,568.00 Molise 135,227,564.83 206,582,326.00 Piedmont 646,065,048.99 974,087,993.00 Sardinia 835,836,373.96 1,284,746,987.00 Tuscany 561,486,136.91 870,527,329.00 Trento 218,587,441.20 278,764,791.00 Umbria 529,816,294.63 785,813,348.00 Valle d’Aosta 89,202,544.38 123,649,759.00 Veneto 701,016,686.81 1,042,158,575.00 Total 6,965,903,371.82 10,245,312,737.00 Basilicata 423,329,249.82 667,928,664.00 Calabria 717,546,352.96 1,087,508,918.00 Campania 1,077,550,737.72 1,809,983,083.00 Puglia 1,030,782,463.90 1,595,085,914.00 Sicily 1,389,532,517.06 2,172,958,855.00 Total 4,638,741,321.46 7,333,465,434.00 National Rural Network 54,189,587.08 82,919,766.00 TOTAL ITALY 11,658,834,280.36 17,661,697,937.00 Convergence after the autonomous provinces of Bolzano and Trento, and before Valle d’Aosta. The Axis 2 has a financial execution exceeding 85%, followed by the interventions of the Axis 1 with 75.6%; it aims at fostering a sustainable agricultural and forestry development, in hatmony with the safeguard of the bio-diversity, the enhancement of the landscape and the development of renewable energy resources. The actions of the other two axes have experienced a remarkable increase of the spending in 2013, reaching 74.1% compared to 48.6% of the previous year for the Axis 3, and 42.3% compared to 17.9% for the Axis 4. In 2013, the public spending has amounted to about 125 million euro, and the highest allocation of resources has concerned the measure 214 “agro-environmental payments” (over 25 million euro), followed by the * as of 31 December 2013. Source: processing of National Rural Network figures. Spending progress (%)* 59.34 89.25 66.06 67.25 64.65 64.79 78.24 65.07 65.46 66.33 65.06 64.50 78.41 67.42 72.14 67.27 67.99 63.38 65.98 59.53 64.62 63.95 63.25 65.35 66.01 - measure 121 “Modernization of the farms” (about 21 million euro). As in the previous three years, also in 2013 the Axis 3 has registered a sharp recovery for the public spending, thus reaching over 21 million euro. The certified expenditures during 2013 are referred mainly to the ordinary measures, since the engagements of the previous programming period have been met, except for the twenty-year engagements of the measure 221, and some other engagements of the measure 214. The situation of the payments doesn’t Percentage distribution of public spending of RDPs disbursed by measure, 2007-2013 5.4% 3.2% Agri-environmental 5.1% Forestation 28.6% Compensatory indemnity Modernisation Increase in VA 22.6% Diversification 8.3% Young farmers 8.5% Source: processing of DG Lombardy Region Agriculture figures. 157 jeopardize the Region, thus avoiding any risk of disengagement according to the rule n+2. As from 1st January 2015, it will be operative the new rural development Program, for the next seven-year period 2014-2020, which will earmark on the whole 1.157 billion euro, with 133 million euro more than the previous programming. Percentage distribution of public spending of RDPs disbursed by measure, 2012 2.3% Agri-environmental 10.3% 20.2% Forestation Compensatory indemnity Modernisation 5.2% Increase in VA Diversification 3.5% 17.0% Source: processing of DG Lombardy Region Agriculture figures. 158 5.4% Young farmers glossary glossary Aggregated index of competitiveness It is an index involving many different aspects of the firm competitiveness, due to groups of factors. The first group of factors includes the structural features, as the economic size, the physical size or the firm’s herd; the second group takes into account the conditions of the productive factors, such as the availability of work, land and capital; in the third group are included the factors of relationship with the market, both in terms of hesitation of the firm’s products (output), and in terms of finding the factors of production (input); in the last group it is included the public aid earmarked to the farms and the level of taxation. In order to establish an aggregated index of competitiveness, the various variables have undergone a standardization procedure, that is, they have been led back to common field of variation, and then aggregated 160 by groups, these latest connected to the final index. Agritourism (farm stays) The most common multifunctional activity for Italian farms. In addition to lodgings and hospitality services, agritourism includes, in accordance with Law 96/06, recreational, cultural and educational activities, sports, hiking, horseback riding, and the tasting of farm products, including wine. Meals and drinks are to consist mainly of farms’ own products and products of farms in the area, with preference for typical, quality (PDO and PGI) and traditional products. All-inclusive tariff Disbursement of a monetary benefit, differentiated by source, paid per net kWh of electricity fed into the network. Unlike the tariff for photovoltaic energy and Green Certificates, which provide incentives for all energy produced (including own-consumption), the tariff is only paid for electricity actually sold to the grid, net of internal consumption. The producer who benefits from the all-inclusive tariff does not have the right to sell the energy produced, and thus waives any further economic consideration, as opposed to the economic benefit of Green Certificates, which is added to the proceeds from the sale of electricity. AWU – Annual Work Unit The AWU is equivalent to the contribution of at least 2,200 hours/year for a family worker and 1,800 hours/year for a wage-earner. Bio-geographical regions The European Union is divided into the following nine bio-geographical regions, or geographical areas with homogeneous ecological character- istics: Atlantic, Continental, Alpine, Mediterranean, Boreal, Macaronesian, Pannonian, Steppic and the Black Sea region. Italian territory is affected by Alpine, Continental and Mediterranean regions. The effectiveness of the Natura 2000 network for the conservation of habitats and species is ossesse at the bio-geographical level, independently from political and administrative borders. CAP – first PILLAR Is the part of the CAP that funds via the EAGF the payments for farmers and the management measures of farmers’ markets implemented within the COM. CAP – Common Agricultural Policy Constitutes one of the most important policies of the European Union and aims to increase the productivity of agriculture, ensure a fair standard of living for the agricultural community, stabilise markets, guarantee the safety of supplies and ensure reasonable prices for consumers. Includes measures of market support, direct aid to producers and support measures for the development of rural areas. Capacity for commitment Index ex pressing the ratio between commitments and allocations. CAP – SECOND PILLAR Is the part of the CAP that funds the rural development measures via the EAFRD. Capacity for payment Index expressing the ratio between payments and commitments. Chain indexes The chain index is the system of evaluating production and prices in real terms. The chain index consid- ers changes in price or volume, not only in the values of the variables in the current and base years, but also with respect to the overall trend in the whole time interval examined. CMO - Common Market Organisation Designed to achieve the objectives of the CAP, a set of measures to manage the market of a given agricultural product (production and trade), based on respect for principles of uniqueness of agricultural markets, financial solidarity and Community preference. Reg (EC) No. 1234/2007 on organising the so-called Single CMO has integrated the twenty-one previous CMOs. Degree of mechanization of fields (KW/SA) It indicates the degree of firm’s mechanization in terms of power, expressed in KW, which is available per hectare of used agricultural area. A relatively 161 high value of this index compared to the average datum of similar firms can highlight, in many cases, an excessive mechanization. Department store Retail business that has a sales area of over 400 sq. m. and a minimum of 5 distinct departments (as well as any adjoining food department), each for the sale of items belonging to different product sectors and mostly for broad consumption. Depreciation and amortisation Through amortisation, the long-term cost of assets and breeding are spread over several years in terms of their economic lifetime. Calculated according to the criterion of replacement value for plantations (including forestry plantations), buildings, fixed plants, land improvements, machines and tools. 162 Direct sales Sale to the final consumer on the farm, with stands – or allowing the gathering of produce from trees and gardens (“pick your own”) – and at outside points or through innovative forms, such as: mail order (by catalogue); e-commerce (selling via Internet); delivery to individuals or organised groups of consumers, such as collective buyer groups; sale through public spaces provided by local government, so-called farmers’ markets; vending machines in urban areas selling raw milk, fresh orange juice, portions of fresh fruits and vegetables. Discount Point of sale that contains a limited assortment of foodstuffs and household items at very affordable prices. Size varies between 300 and 1,000 square metres and the basic layout offers minimum service. DOC – Controlled Designation of Origin Awarded to wines produced in limited areas (small and medium-size), which carry their geographical name. DOCG – Controlled and Guaranteed Designation of Origin Awarded to wines of special quality, nationally and internationally known, produced in areas of limited size (few municipalities). EAFRD – European Agricultural Fund for Rural Development Replaced the EAGGF along with FEAGA; it supports European policy on rural development, by funding programs of the Member States and regions of the European Union. EAGF – European Agricultural Guarantee Fund. Operating since 2007, it replaced the “guarantee” section of the former European Agricultural Fund (EAGGF), and co-finances, among other things, measures to regularise agricultural markets and direct payments to farmers. farmers and the territory. EBITDA – Earnings before interest, taxes, depreciation and amortisation Indicator of profitability of a farm based on its type of management, ie before interest (financial management), taxes (fiscal management), depreciation of assets and amortisation. Engine power (KW) The power of the firm’s machineries, no matter what the possession title, is expressed in terms of KW, and it is referred to the agricultural movers, to the self-propelled machines and to the vehicles used for the internal and external firm’s activities (active subcontracting). The vehicles for the services of the passive subcontracting are not included in the calculation of the engine power. Educational farms Farms with an agritourism certificate, dedicated to educating consumers and in particularly young children about aware consumption and respect the environment, offering opportunities to learn about farming activities and food cycle, animal and plant life, trades and also about the social role of ES – Economic size From 2010 with the new type system for classifying the farms, the ESU (Economic size unit) was replaced by a new distribution of economic size in euro; the FADN Italia adopts 8 types of economic size in order to classify its farms, using the classes proposed by the FADN EC. In the brochure the data are represented in the following economic size types in order to make reading easier: Small (from 4,000 to under 25,000 euro) Small Medium (from 25,000 to under 50,000 euro); Medium (From 50,000 to under 100,000 euro); Medium large (from 100,000 to under 500,000 euro); Large (equal to or above 500,000 euro). External and State factors This item represents the costs incurred by the farm for salaries and social security, rents, passive interest expense and taxes and VAT (both on current operations and on investments). FADN (Farm Accountancy Data Network) A tool for evaluating the income of the European farms, and the impacts of the common agricultural policy (“RICA” in Italy). 163 FADN-REA Survey conducted jointly by ISTAT and INEA in collaboration with the Regions and Autonomous Provinces. It surveys, at the level of each individual farm, the economic results for the year of reference: costs, stocks and surpluses, purchases and sales of fixed capital, redeployments, revenues, own consumption, farm subsidies, labour costs and incomes of farm households. FC – Fixed costs Includes costs incurred for the use of inputs (depreciation, salaries, social security contributions, quotas for severance allowances - TFR, land rents, interest on capital loans, tariffs and taxes, other overheads and land expenses, withheld VAT taxes) that are used for more than one year in the production process, as well as windfall losses (arising from loans, portfolio, debt). of the producer factors, economic-institutional environment, relationships between the firms and the markets. To this purpose it has been used an overall proxy variable of these features, by resorting to the available information of the FADN database, and by taking into account the EU average as reference point; in some cases have been directly used the FADN variables, in some other cases it has been decided to create specific indices. Family labour Persons aged 15 and over, members of the holder’s family who perform agricultural work on the farm. Firm’s overall competitiveness It is the result of numerous combined factors: the physical capital and the human one, the economic and organizational structure of the firm, the overall factors of the so-called environment external to the firm. In general, for measuring the firm’s competitiveness it is mainly used a ranking of factors related to some sizes: structural features of the firms, conditions FS – Farm size Since 2010, with the new system of farm classification, the ESU (European Size Unit) acquired a new distribution of economic size in euro; FADN (RICA) Italy adopts 8 economic size classes to identify farms, adding to the classes proposed by FADN EC. Farmers’ markets Public spaces provided by regions and municipalities to provide farmers with direct sales of local and organic produce, in accordance with Ministerial Decree of 20 November 2007. 164 FT – Farm type The classification of farms by FT is based on the determination of the economic importance of different productions on the farm and combinations thereof. To this end, using the SGM of the area where the farm is located, the number of hectares or animals raised is multiplied by the corresponding SGM. The combination obtained is compared with a typological scheme that is used to identify the FT according to criteria established at the Community level and valid for all official statistics. A farm is called specialised when the SGM of one or more productive activities exceeds 2/3 of the farm’s total SGM. Since 2001, the typology used comes from reg. (EC) n.1555/01. FWU – Family Work Unit Persons working on the farm who do not receive wages or salary but are paid through the income remaining in the household derived from agricultural activity. GD – Large-scale retail The total of companies with stores operating in the form of supermarkets, hypermarkets, discounts, department stores, and other large-size specialised companies. GDP – Gross Domestic Product The GDP is the total value of goods and services produced within a country during a given period of time (usually a calendar year). Does not include the value of intermediate goods and services. GP – Gross Production Production value of crops and livestock and other farm products. Includes: sales, redeployments, own consumption, changes in stocks and storage, and farm products. To this value is added the amount of public subsidies received by each farm; the variable thus obtained therefore measures the actual amount received by the farmer for his products according to the criterion of “basic price” indicated in the ESA95 methodology. Health Check of the CAP Assessment by the European Commission of the implementation of the CAP reform of 2007, which focussed on new challenges for European agricolture (climate change, renewable energy, water resource management, biodiversity, restructuring of the dairy sector, broadband for rural areas). This has led, among other things, to the inclusion in the RDP of specific support for innovative operations for agriculture in rural areas related to the new challenges. Holder Legal and economic director of the farm. This can be a physical person, company or public body. In the event 165 of a share-cropping (metayage), the holder of a farm is considered the share farmer. In the case of agistment, the farm holder is considered the agister. Hypermarket Retail business with area of over 2,500 square meters, divided into sections (food and non-food), each of which has the characteristics of a supermarket and a department store. IGT - Typical Geographical Indication Assigned to wines whose production areas are generally large, accompanied by mentions (vine, oenological type, etc.). Implicit prices (price indexes) The ratio between the value of an economic aggregate at current prices and the corresponding aggregate at constant prices. 166 INEA database on public spending in agriculture Examines public spending in agricolture on the basis of budgets and final accounts of the regions through a methodology that explores the trend and amount of regional spending, quantifying and qualifying the items that directly or indirectly make up public support in the sector. Through the construction of “consolidated public expenditure for agriculture”, the database provides an estimate of total public support to the primary sector, which benefits regional and central governments. Intermediate consumption Aggregate of current expenses of farms (seeds, fertilisers, pesticides, feed, energy, irrigation water and various services). Redeployments are included. LSU – Live Stock Unit Unit of measure of the size of a herd which, as the ratio to UAA, is used to determine herd density. Mechanization’s intensity (KW/TWU) This index measures the level of mechanization’s intensity in terms of power, expressed in KW, available for TWU. A relatively high value of this index, compared to the average datum of similar firms, can express, in many cases, an excessive mechanization. Multi-functionality The term multi-functionality is used to indicate a new role of agricolture – partly supported by the CAP – which is no longer limited to producing food, but which performs other important functions such as the protection of the environment, land conservation, maintenance of rural areas, safeguarding of typical products and the preservation of customs and traditions of rural life. Natura 2000 network A network of sites that covers all 27 Member States of the EU with the aim of halting the decline of biodiversità through the long-term protection of the most threatened species and habitats, consistent with the needs of human activities in the territory. Natura 2000 network includes Sites of Community Importance (SCI), set up by Directive 92/43/EC (“Habitats Directive”) for the conservation of natural habitats and of wild flora and fauna, selected for each bio-geographical region, and Special Protection Areas (SPAs) established through Directive 79/409/EEC (“Birds Directive”) on the conservation of wild birds. NB – Normalized Balance The ratio between the simple balance (exports - imports) and the volume of trade (exports + imports); varies between -100 (no exports) and +100 (no imports) and is used to compare the trade performance of aggregates of different products and with different absolute value. NI - Net family income Calculated as GP - (intermediate consumption + depreciation + external and State factors). Represents the remuneration of fixed factors of production made by the entrepreneur and his family (land, family labour and capital) and business risk. Non-family labour Long-term workers, special categories, employees, managers, workers on temporary contracts and sharecroppers. OBP – Output at basic prices With ESA 95, production includes redeployment and exchanges between farms, as well as services related to agriculture. The valorisation of production is made at basic prices, meaning the price received by the producer per unit of product, minus taxes on the product and including all payments linked to the product. Does not include contributions not commensurate with the products. Organic Farming Sustainable management system of agriculture to obtain high-quality products and food, with respect for the environment and human, plant and animal health, under Reg. (EC) no. 834/2007. It does not involve the use of plant protection products and synthetic fertilisers, herbicides, phytoregulators, genetically modified organisms, or the use of livestock anti- 167 biotics for prophylaxis and hormones. PDO – Protected Designation of Origin Assigned to an agricultural product or a foodstuff originating in a region, a specific place or, in exceptional cases, a country, in accordance with Regulation (EC) n. 1151/2012, when “quality or properties are significantly or exclusively determined by the geographical environment, including natural and human factors, and whose production, processing and preparation take place within the determined geographical area”. PGI – Protected Geographical Indication Assigned to an agricultural product or a foodstuff originating in a region, a specific place or, in exceptional cases, a country, in accordance with Regulation (EC) n. 1151/2012, when 168 “a given quality, reputation or other characteristics can be attributed to that geographical origin and whose production, processing and preparation take place within the determined geographical area”. Production subsidies With the CAP reform of 2005 and the introduction of the single farm payment, the classification was recise for aid that previously flowed into the base price. Aid is now classified as: product subsidies, other subsidies on production, and subsidies to other economic activities. Only the first category, product subsidies, is part of the valuation of the base price. Range IV Fruits and vegetables (fresh), washed, dried, cut, packed in trays or in plastic sacks ready for consumption. The service involves value added that trans- forms the agricultural product into an industrial product in all respects, with a higher price than that of a vegetable sold as such. RDP – Rural development programme Programme to be implemented on a regional level for each member state. This is the main planning instrument of the rural sector and it defines the strategies, objectives and interventions for the agricultural, agri-industrial and forestry sectors for rural development. Redeployments ESA 95 distinguishes between those reused within the same farm and those exchanged between farms with economic compensation. The new evaluation excludes from the calculation the following productions: grapes for the production of wine by the farm, because the relative value is included in the transformation of the wine; olives for oil production directly by farms; the milk to feed calves on the same farm; permanent fodder crops not bought and sold between farms; by-products without economic value; and seed re-used on the same farm. Included in the calculation of redeployments: seeds which have economic value and are sold to other farms; products also used for animal feed; directly marketable fodder output (hay, corn silage, etc.). Related services Exercise for third parties and rental of vehicles and agricultural machinery with operators; preparation (excluding processing), preservation of agricultural products and other service activities related to agriculture on behalf of third parties; maintenance of parks, gardens and flower beds; service activities associated with livestock, except veterinary services. RES – Renewable energy sources Sources of which the speed of use is below the speed of regeneration. The traditional RES are hydroelectric Energy and solid biomass energy (remnants of biological origin coming from agriculture including vegetable and animal substances, forestry and from connected industries including fishing and acquaculture), from industrial and urban waste and biogas (produced by the bacterial fermentation of organic and animal and vegetable leftovers, livestock manure, sewage sludge, agro-industry scraps). While the most innovative RES are wind power, solar panel energy, geothermic energy and sea energy (tidal and wave energy). Secondary activities Activities carried out in the agricul- tural sector (farm stays, processing of milk, fruit and meat, aquaculture, direct sales) and those performed by other branches of production (trade and processing) but on agricultural goods and products. SFP – Single Farm Payment Payment that farms receive under the SPS. SGM – Standard gross margin A parameter determined for defined production activities as the difference between saleable production and the amount of certain specific costs (seeds, fertilisers, pesticides, feed, fodder, etc.) not including labour and machinery. Gross income thus determined is defined as “standard”, in that saleable output and costs are calculated on a three-year average and with reference to specific geographical areas (the regions and autonomous prov- 169 inces). The SGMs are espresse in euro and updated by INEA during structural surveys and censuses conducted by ISTAT. The amount of SGM corresponding to farm production divided by 1,200 equals the farm’s economic size and is expressed in ESU. SO – Standard Output Standard Output of each agricultural production activity is determined by multiplying its farm size by the standard production unit typical for the territory (region or autonomous province) where the farm is located. The sum of standard outputs of all activities carried out by the same farm in a given accounting period (or crop year) is the Standard Output for the farm. Spending power Index expressing the ratio between payments and allocations. 170 SPS – Single Payment Scheme Introduced by the Fischler reform, it includes and disciplines most of the direct sector aid provided through CMOs of the CAP. Each farmer who accesses the SPS is the owner of a payment entitlement per hectare in accordance with the rules on crosscompliance (criteria of obligatory management and good agronomic and environmental conditions). Subcontracting Supply of machinery from compagnie and/or firms specialising in farm production activities (ploughing, sowing, harvesting, etc.). Subsidies Meaning subsidies on current operations related to production (not to investments). Payments for cessation of agricultural activities, therefore, are not included. Subsidies are considered on the basis of ownership and not on the actual receipt of a payment, in order to obtain consistent results (production/costs/subsidies) for a given fiscal year. Supermarket Retail business with self-service and payment at the exit, with a surface area greater than 400 square meters and a vast assortment of consumer food goods, mostly pre-packaged, as well as non-food items for everyday household use. TAA – Total Agricultural Area The total area of land on a farm intended for growing herbaceous and/or tree crops, including forests and nonused agricultural area, as well as area occupied by parks and ornamental gardens, buildings, ponds and canals, located within the perimeter of the land constituting the farm. Taxes Mandatory charges levied by government. They are of two kinds: direct taxes, which are levied periodically on income and capital; indirect taxes, which operate on production and imports of goods and services, labour force, ownership and use of land, buildings or other assets used in production. TO – Total output Value of farm products sold, those intended for own consumption, compensation of employees, and docking up of capital; takes into account the changes of stocks of warehoused product. For livestock farms, total output, as well as sales and purchases, takes into account the increase in value of animals intended for fattening and breeding as they change category. Total output also includes contingent assets (arising from loans, portfolio, debt) and other farm revenues including those resulting from agritourism, rental income and the rental of farm machinery (if occasional), as well as government grants received by the farm for disasters, charges, rented land and VAT payments. Traditional products Food products whose methods of processing, preservation and ageing have been inextricably linked to the customs and traditions of the territory for at least 25 years. They are identified by the regions and listed on the national register established by the Ministry of Agriculture, Forestry and Food Policies (MIPAAF), updated by annual decrees. Turnover The amount of all invoices issued during the reference period for sales on domestic and foreign markets. The value of turnover is net of VAT invoiced to customers, rebates and discounts, and gross of expenses (transport, packaging, etc.) and expenses charged to customers (eg. processing tax). Turnover also includes the selling of products not processed by the business and invoices for services and work performed for third parties on raw materials supplied by them; it excludes sales of fixed capital. UAA – Utilised Agricultural Area Surface of all arable crops, permanent grassland and pastures, tree crops, family garden plots and chestnut stands. VA – Value added The balance between output and intermediate consumption, in which output is valued at basic prices, net of taxes on products and inclusive of subsidies on products. Output valued 171 at basic prices differs from that measured at factor cost: the latter is net of all taxes (both on products and other taxes on production) and gross of all contributions (both the contributions commensurate with the value of the goods produced, and other subsidies on production). VC – Variable costs Includes all expenses incurred, in- 172 cluding the redeployment of farm products, inputs used up in the course of the year (seeds, fertilisers, feed, energy, etc.), as well as for the use of occasional labour. Workforce Including employed persons and those job hunting (unemployment, searching for their first job and other persons in search of employment). WU – Work unit The unit of analysis that uniformly quantifies the volume of work performer by persons who work in a farm and do not receive a salary or wage but are remunerated through the income remaining in the family household that is derived from agricultural activities. “Lombardy agriculture in figures - 2014” is also available in Italian. The publication can be consulted in Italian and English at the website of the Lombardy Region (http://www.agricoltura.regione.lombardia.it) and at the website of INEA (www.inea.it).