1. Czech Technology Platform meeting Prague, 25th May 2007 Italian Food for Life Dr. Daniele Rossi Chairman of the CIAA Research Group – Brussels Co-chairman of the European Technology Platform “Food for Life” Chairman of the national Technology Platform “Italian Food for Life” Director General of Federalimentare - Italy Administrator of the SPES GEIE - Rome

2. THE ITALIAN FOOD & DRINK INDUSTRY Second manufactoring sector central element Along with agriculture, induced activity and distribution, the Food and Drink Industry is the central element of the first economic sector of the Country. 70% of the national agricultural raw materials Industry buys and processes 70% of the national agricultural raw materials ambassador of Made in Italy in the world Industry is generally recognized as the ambassador of Made in Italy in the world considering that almost 80% of the Italian agro-food export is represented by high quality industry brands. A pillar of the national economy Prague, 25 May 2007

3. Source: data processing and estimates Federalimentare on ISTAT data 2006 THE ITALIAN FOOD & DRINK INDUSTRY: BASIC FIGURES (CURRENT VALUES) 2006 (estimates) 2005 Prague, 25 May 2007

4. TOTAL TURNOVER BY PRODUCT (2006) Source: Data processing and estimates and Federalimentare 26% Prague, 25 May 2007

5. TOTAL DIRECT EMPLOYMENT OF THE ITALIAN FOOD & DRINK INDUSTRY Source: Data processing and estimates and Federalimentare Prague, 25 May 2007

6. For Federalimentare and for the other Food & Drink Industry National Federations adhering to CIAA, competitiveness of the Food & Drink Industry sector is expressed in terms of its ability to achieve sustained growth and market share on both EU and third country markets. Prague, 25 May 2007

7. COMPETITIVENESS IS AT RISK In spite of the positive figures reached in 2006, the food & drink industry is penalized by some structural gaps that hold down its growth and its capacity to compete. The main factors that penalizes the growth of the food & drink industry are: 1.extreme fragmentation of production (only 20% of the companies above the threshold of 9 units – 6500 - and the remaining 30.000 firms tied to such a small dimension – 3/9 units). 2.structural lacks and logistics 3.exaggerated costs of production like energy and services 4.low quality offer of infrastructures Prague, 25 May 2007

8. INNOVATION IS A MAJOR KEY TO SUCCESS One key asset of the food & drink Industry is its cultural diversity and its longstanding food traditions. Innovation is essential when responding to consumer needs with respect to quality, health, diversity, and convenience at the best possible price. The recipe, the manufacturing process, the packaging or the services provided to consumers, can determine the innovative character of a product. Obstacles to higher research and development activities must be overcome. Better performances in innovation require concerted action from both the food & drink industry and public authorities. Prague, 25 May 2007

9. ITALIAN FOOD INDUSTRY: THE RESEARCH CHALLENGE 2,6% of yearly turnover (around 2.860 mil. Euro) is devoted to quality, control, food safety and applied research Prague, 25 May 2007

10. INNOVATION IN THE ITALIAN FOOD & DRINK INDUSTRY NO large innovations Process innovations 20% Product innovations: 23% Both: 12% NO INNOVATION : IMPROVEMENTS YES INNOVATION Prague, 25 May 2007

11. One of the answers is Food for Life Italian Food for Life brings together national key stakeholders of the agro-food sector (the food industry, farmers’ representatives, agrochemical and breeding companies, retailers, researchers, processors, consumer organisations, regulatory bodies, policymakers and governments) to enhance investment in research and development and stimulate innovation in this area. Prague, 25 May 2007

12. Will stimulate research and technological innovation in the agro-food sector at a national level. Will strengthen the scientific and technological basis of our food and drink industry. Will encourage the development and international competition, especially to help the Small and Medium Enterprises. ITALIAN FOOD FOR LIFE The technology Platform “Italian Food for life” is a unique opportunity not only to promote the coordination of the research activity of primary products and nutrition, assuring whether the direction, whether enough critical mass, but also to guarantee transfer of know-how to the companies. Prague, 25 May 2007

13. THE KEY DATES Launch of the National Technology Platform of the Italian Food & Drink Industry (Rome, July 5 th 2006). Final presentation of the Italian Food for Life Technology Platform (Bologna, November 27th 2006). 1st Meeting of the Food for Life National Technology Platforms (Rome, April 14th 2007). Prague, 25 May 2007

14. Challenge 1. Food & consumer Ensuring that consumers make the healthy choice the easy choice Goal 1. Measuring consumer behaviour in relation to food. Goal 2. Developing comprehensive models of consumer food choice processes. Goal 3. Developing strategies to induce behavioural change to improve consumer health and social responsibility. Goal 4. Promoting effective interaction with consumer groups and consumers directly through communication and public participation. Goal 5. Understanding consumer behaviour in relation to health and nutrition. Goal 6. Understanding consumer behaviour in relation to food quality and manufacturing. Goal 7. Understanding and addressing consumer concerns with food safety. Goal 8. Understanding consumers and their behaviour. Goal 9. Interaction with consumers to assess their willingness to pay for innovative products and for food chains which take into account sustainable consideration of environment, ethics and fair trade. Goal 10. Designing and testing new ways to communicate nutritional/other values to target populations, with some attention devoted to changes in “kitchen logic”. Prague, 25 May 2007

15. Challenge 2. Food & health Delivering a healthy diet Goal 1. Understanding brain function in relation to diet. Goal 2. Understanding dietary effects on immune and intestinal function. Goal 3. Understanding the link between diet and metabolic function. Goal 4. Understanding the relationship between the quality of animal products and the quality of animal breeding. Goal 5. Valorisation of healthy properties of traditional and innovative foods by using mild technologies and characterization of nutraceutical properties/components in raw materials and foods (bioactive compounds). Prague, 25 May 2007

16. Challenge 3. Food quality & manufacturing Developing value-added food products with superior quality, convenience, availability and affordability Goal 1. Producing tailor-made food products. Goal 2. Improving process- and packaging design and process control. Goal 3. Improving understanding of process-structure-property relationships. Prague, 25 May 2007

17. Challenge 4. Food safety Assuring safe foods that consumers can trust Goal 1. Predicting and monitoring the behaviour and fate of relevant known and emerging biological hazards. Goal 2. Predicting and monitoring the behaviour and fate of relevant known and emerging chemical hazards including toxins of biological origin. Goal 3. Improving risk assessment and risk-benefit evaluation in the food chain. Goal 4. Developing tools and addressing measures to ensure safety of the food chain. Prague, 25 May 2007

18. Challenge 5. Sustainable food production Achieving sustainable food production Goal 1. Understanding the sustainability of food production and supply in Italy. Goal 2. Research on scenarios of future Italian food production and supply. Goal 3. Developing sustainable processing, packaging and distribution. Goal 4. Developing and implementing sustainable primary food production. Goal 5. Recycling and valorisation of food industry surplus, by-products and wastes. Prague, 25 May 2007

19. Challenge 6. Food chain management Managing the food chain Goal 1. Identification of possible scenarios. Goal 2. Stabilising markets and supporting food chain dynamics through the generation and preservation of trust. Goal 3. Improving the innovation potential of the food chain. Goal 4. Supporting competitiveness through integration. Goal 5. Participation of small producers in complex food chain operations. Prague, 25 May 2007

20. Challenge 7. Communication, training and technology transfer Goal 1. Communication. Goal 2. Training. Goal 3. Improved Technology Transfer. Prague, 25 May 2007

22. Public funds for agrofood research in Italy COMPETITIVENESS FUND (ART. 104 LEGGE FINANZIARIA 2007): ENERGY EFFECTIVENESS SUSTAINABLE MOBILITY LIFE SCIENCES TECHNOLOGIES FOR MADE IN ITALY (FOOD, CLOTHES, FURNISHING) TECHNOLOGY FOR ARTISTIC LEGACY 1.100 MILLION EURO IN 2007-2008-2009: TECHNOLOGIES FOR “MADE IN ITALY” = 220 MILLION EURO (100 MILLION EURO FOR FOOD). FUNDS FOR INVESTMENTS IN SCIENTIFIC AND TECHNOLOGY RESEARCH (FIRST) (ART. 106 LEGGE FINANZIARIA 2007): 960 MILLION EURO IN 2007, 2008, 2009: 69 MILLION EURO TO THE FOOD PRIORITY. INDUSTRIAL INNOVATION PROJECTS (PII) (ART. 104 LEGGE FIANANZIARIA 2007): 286 MILLION EURO EX RESIDUAL 488/98 AND 289/92: 41 MILLION EURO TO THE FOOD PRIORITY. TOTAL: 210 MILLION EURO FOR THE FOOD PRIORITY IN 2007-2008- 2009! Prague, 25 May 2007

23. Thanks for the attention!