1. Food Short Supply Chains and rural development: the case of Italy Brusseles 6 june 2013 Flaminia Ventura University of Perugia - NRN Italy

2. 195019852005 The market context for farmer : agricultural products prize squeeze and increasing volatility

3. Farmers try to protect those assets on which they have property rights : labour, knowledge, land Reinventing farming practices Creating new nested markets New and multiple use of farm resources (land, labour, knowledge) Shortening the food chains

6. Italian Regulation define and discipline Direct Food Sales from producers to consumers DECRETO LGS. N.228/2001 allows farmers to sell their products exempting them from having a specific licence They only have to inform the Municipality and the local Health Agency of the start-up of the activity. Fiscal advantages for farmer LOW N.114/1998 allows the farmer to open a shop of 150 m2 in Municipality of 10.000 max inhabitants and of 250 m2 in towns with more than 10.000 inhabitants.

7. Italian norms DECRETO Ministry of Agriculture 20/11/2007 to promote the direct sale in town of agricultural products in specific and dedicated markets (farmers’ market) Single farmer, cooperatives and farmers associations Farm requirement to sale in a Farmers’ Market Registration in the Farm Register of the Local Chamber of Commerce Localized in the Regional of Municipality area (the area is defined by the local Administration regulating the Farmers’ Market) Sale of products raw or transformed produced mainly in the farm/ cooperative (more than 51% of the total sale revenue) Regional Laws Regional laws that regulate and promote the organisation of regional short supply chain

8. FSSCs evolution in Italy 2009 The data demonstrates that in Italy, 63.600 farms are active in the direct sales. Between 2001 and 2009 direct sales increased around 64%

10. FSSCs market quotas No reliable national-level estimates of SSC market quotas currently exist for Italy. A survey commissioned by one of the national Farmers’ Unions in 2010 estimated that over 63.000 producers were involved in some type of direct sale to consumers in 2009, up 4,7% from the previous year. The corresponding value of direct sales was estimated in 3 billion Euros, (10% Agric GVA) with an increase of 11% from the previous year; 40% of such sales were attributed to the wine sector (in line with consolidated consumer habits regarding buying wine directly from producers) and another 20% to the fruit and vegetable sector ( Souce Agri2000 )

12. Forms of Food Short Supply Chains in Italy (Classification suggested by National Rural Network France 2012)

13. Direct sale by the producer or by producer-owned organizations Private: Direct farm sales: direct sale from the agricultural entrepreneur, both on the farm and at retail points located outside the farm but managed by the producer; Vending Machines. Milk was the first product, but others are on the way. The farm directly provides a small chain of distributors which are convenient and always open for consumers. Direct farm pick-up or pick-up your own. The consumer buys directly from the farm (picking the produce himself) Home delivery, box scheme (or CSA community supported agriculture). The producer takes the time to home deliver to the consumer a pre-determined quantity of product agreed upon together with the client o Internet: single producers’ websites which provide for delivery to consumers of the produce selected (similar to box schemes) E-commerce : producer owned website promoting and selling farmer products

14. 14 Farm Butchery and the survival of the local breed: the Chianina case

15. 15 Starting products

16. 16 New livestocks activities

17. 17

18. 18 New activities: agritourism

19. 19 Development of new on fram activities: Agritourism

20. 20 The new products

21. Innovative model to reduce investment costs: the mobile Butchery Realized by the IItalian Beef Producres Consortium (CCBI) financed by the Rural Development Programme Measure 124.Cooperation for innovation

22. Raw milk vending machine http://www.milk maps.com/index.php

23. Farmer shop in Rome

24. Direct sale by the producer or by producer-owned organizations Collective: producers/producer-owned organizations and buyers Buying Groups: Organizations of consumers which buy products together directly from farms. Collective: association Farmers' markets: markets where the producers sell their products directly Collective selling outlets: Places where several farms (or cooperatives of producers) work together and organize the selling of their products together Home delivery, box scheme (or CSA community supported agriculture). The producers take the time to home deliver to the consumer a pre-determined quantity of product agreed upon together with the client Local festivals: Public events where producers from the area can exhibit their products,hold taste testings and sell their products Internet: producers-owned websites for the marketing of their produce

25. Farmers’ market are mainly organised and regulated by Farmers organization that control the origin (farmers own production) of the products offered in the market There are different tipology of Framers’ Market depending mainly from the frequency (weekly, monthly) and seasonality and the managment of the market When FM are organized y Farmers organizations, the Farmer pays a fee to the organizer for the place and services. When the farmer sale in a Municipality market place pays only for the services (waste, water etc). Farmers’ markets

26. Self –managed FM FM managed by the Municipality Weekly Farmers’ markets

27. Seasonal Farmers’ market

28. Farm women market: combining sale and cooking tarditions

29. Sales with at least one intermediary: Collective: Collective catering: producer-owned organizations supply their produce directly to the caterer (in this case the caterer counts as intermediary) Supermarket “corners”: producer-owned organizations supply their produce directly to the supermarket and are clearly identified as the suppliers of the produce Agritourism/ producer associations/producer-owned organizations supply their produce to local agritourism wine routes

30. Wine routes

31. The wheat route in Sardinia

32. Critical issues for FSSCs in the Italian situation: Increasing complexity in the farm management: lack of finalized training, knowledge and advisory system Limited access to capital, in particular for investments (both fixed and intangible) regarding logistics; Understanding the regulatory and fiscal framework; Lack of awareness of activity and best practice examples across the EU; Lack of producer networks and local governance support.

33. The Fsscs and the increasing complexity in farm management: collective actions 1.Control of farm resources and outputs 2.Economies of scope and portfolio strategies 3.Joint management of different governance structure of transactions (differentiated market forms for different activities and products) 4.Dynamic adaptation to qualitative and quantitative demand change and of the governance structure of the transaction

34. Efficient logistics The share of the total retail price of food products absorbed by logistics in the broad sense (from conditioning and packaging of the produce to the delivery of the produce to the point of sale) is increasingly significant, to the detriment of the share going to farmers The economic, social and environmental sustainability of SSCs depends on being able to reduce these costs, through a radically different model of supply chain management

35. Efficient logistics Through a combination of: more efficient/less obtrusive packaging fewer food miles, less wastage of product: producers should be directly involved both in optimizing the range of products on sale taking into account local supply possibilities and in optimizing the transport of such products, where possible using producers’ own logistic capabilities.

36. farm shop other farms additional delivery mutual delivery Ordering through internet Box scheme Dairy products Fruits and vegetables Meat products bread eggs chutneys Wine import Urban farmers’ market INFRASTRUCTURE

37. The Case of Riverford Organic Vegetables (UK) More than 60.000 families served every week Network of producers with one big leader of a network of small farms Home deliveries made by networks of small franchisee logistic firms – ecommerce Innovative logistic models

38. Institutional support (things to do) ·Designing replicable governance models suited to different contexts. Such models should cover both organizational and contractual aspects; ·Improving the competencies of farmers involved in short supply-chain projects, in particular as regards marketing, business planning and logistics; ·Drawing up guidelines for local quality marks linked to short supply chains, in order to ensure that minimum standards regarding quality, origin and characteristics of the supply chain are met, thus protecting consumers and clarifying the position of different distribution channels;

39. Institutional support (things to do) · Communicating to both producers and consumers the potential benefits of short supply chains; · Improving the monitoring of short supply chain initiatives and of the farmers involved · Creating models for efficient local logistic systems · Developing SSCs which target alternative channels to domestic consumption: a. Collective public catering (schools, hospitals, public administration) b. Quality private catering: creating the opportunity for quality restaurants to differentiate themselves through the use of local, high-quality produce and through the presence of “corners” allowing clients to buy and take home the food products on the restaurant’s menu; · Creating networking opportunities for operators involved in all the phases of SSCs (including final users) to meet and exchange information and services (e.g. launch of a specialized SSC trade fair). http://www.ismeaservizi.it/flex/cm/pages/ServeBLOB.php/L/IT/IDPagina/236

40. Main actors and their role in FSSCs In the FSSCs models farmers have –New Market power – New Political power –Strategic behaviour of farmers New social role of farming in the society New markets differentiation networks New alliance Promising solution to the new social needs Quality of life in rural areas New relationships urban-rural Farmers New networks The main actors Institutions PROMOTION OF VOLUNTARY SHARED RULES NEW NORMS AND ARRANGMENTS

41. Advantages for farmers Combines a number of objectives: Fair prices for farmers Reasonable incomes for farmers Valid tool to face price volatility Geographical and social relations between producers and consumers Increase farmers’ knowledge on consumers preferences Create synergies with other on farm activities (agriturism etc) Recreate strong links with other actors in rural area (suppling restaurants, hotels, local schools etc)

42. Advantages for society Combines a number of objectives: Safe, high quality food for consumers Production and Sale of Traditional productions Providing consumers with better access to local and seasonal produce Improvement of the rural area Ethical and environmental perspective Reduced transport, limited packaging, waste and energy savings: promoting a sustainable rural economy.

43. The financial support from FEASR to FSSCs in the RDP the actual regulation Measure 121 Farm Modernization Measure 311 On Farm diversification Leader approach

44. The financial support from FEASR to FSSCs in the RDP 2014-2020 Measure Investment in physical assets Measure “cooperation” : Supports collective actions, also pilot projects Logistic investment Introductions and diffusions of innovations (EIP OG) Thematic Sub-programme Short Food Chain (increase of 10% of financial support) Community Led Local Development Instrument

45. Thank you for your attention http://www.reterurale.it http://www.ismeaservizi.it ventura@unipg.it flavent@tin.it