IstItuto NazIoNale dI ecoNomIa agrarIa
LOMBARD AGRICULTURE IN FIGURES - 2010
ISTITUTO NAZIONALE DI ECONOMIA AGRARIA
Editing staff
Sabrina Giuca, INEA (supervisor); Maria Silvia Giannini (coordination for DGA, Lombardy Region); Guido Gay, IRER; Francesca Marras, INEA; Alessandro Nebuloni, Lombardy DGA Region; Renato Pieri, SMEA; Roberto Pretolani, DEPAAA Topical consultants
Daniele Bellomo, Danilo Bertoni, Lucia Briamonte, Maurizio Castelli, Stefano Dell’Acqua, Sabrina Giuca, Claudio Liberati, Renato Pieri, Roberto Pretolani, Maria Rosaria Pupo d’Andrea, Serena Tarangioli
Editing revision
Sabrina Giuca, Maria Silvia Giannini and Francesca Marras Processing
Marco Amato, Alessia Fantini and Fabio Iacobini Editorial coordination
Benedetto Venuto
Layout plan and realization Fabio Lapiana Photography Carlo Silva Internet edition Massimo Perinotto Secretarial staff
Paola Franzelli, Barbara Grisafi and Roberta Ioiò
We would like to thank the following people for their collaboration: Maria Teresa Besana, Davide Bortolozzo, Valentina Cardinale, Gloria Corti, Augusta D’Andrassi, Gabriella De Filippo, Simonetta De Leo, Federica Loffredo, Luca Mancini, Andrea Massari, Donatella Parma, Andrea Povellato, Roberto Tonetti
This first edition of “Lombard agricul-ture in figures” is an informative book-let realized by the Lombardy Region in collaboration with the National Insti-tute of Agricultural Economics (Istituto Nazionale di Economia Agraria, INEA) with the contributions of researchers and experts in the academic world. In many ways the publication model resembles the layout of the traditional annual periodical edited by INEA about the Italian agri-food system. We refer to it because it is widely recognized and highly appreciated; however addi-tional contributions can be developed through the specific analysis method-ologies adopted by INEA and the inte-gration with more innovative analysis instruments.
This new editorial product can be con-sulted in addition to the annual region-al anregion-alysis report titled “Il sistema agroalimentare della Lombardia” (“The agri-food system in Lombardy”), through which the Region provides indications to the operators operating in the sector and gives a reference out-line to institutions. This publication is easier to read than the report and its
purpose is to complete the information-al instruments available for learning about the characteristics of the Lom-bard regional agri-food system: it is easy to read, gives an immediate pic-ture of the domestic and European text; moreover its format is more con-venient for certain types of users and in particular types of situations. The organization and updating of the content regarding the components of the regional agri-food system also make it possible to go back to the regional report to trace more informa-tion on the dynamics pertaining to the various production sectors.
The structural and economic informa-tion illustrated here reveal that the Lombard agri-food system is the largest in Italy and also one of the most signif-icant in Europe. The value of the agri-food system, including the value contri-bution of the districontri-bution and catering, is estimated at € 37.5 billion, about 16% of the national value and 11.5% of the regional gross domestic product (GDP). However the added value of the farming sector and food industry makes up 11.5% and 19% of the
nation-al vnation-alue respectively. Farm production and the agri-food transformation sec-tor have played a significant role in determining the regional GDP – essen-tially due to the sectors of industry and services – even though their contribu-tion is lower than the nacontribu-tional and EU average, as occurs in most advanced economies.
Though the relative incidence of Lom-bard farms is small as well as the agri-cultural area, the contribution of Lom-bardy to EU farm income (approxi-mately 2%) shows a professional farm-ing system with medium structural characteristics and production prof-itability that are much greater than the Italian nationwide and EU average and with characteristics that are more stable.
The contribution of the various produc-tion sectors in the makeup of the regional farming production value has not varied substantially in the course of the years, while more signifi-cant changes can be seen within each sector. The regional production is more grain-livestock-oriented. Livestock products (meat pork and beef
as well as milk) make up over 60% of the farm production value, covering about 26% of national livestock pro-duction and as much as 32% of milk production. The value of Lombard farming production, amounting to
€ 6.3 billion, dropped 9.3% from 2008
to 2009. The drop in prices and the lower production yields due to an unfavourable climate trend were par-tially the cause. The year 2009 will be remembered for the international crisis that affected the economic-production sectors, among which the agri-food sys-tem, which considerably penalized the farming sector on all levels and in par-ticular the production of grain crops and livestock. However during the cri-sis period the system of Lombard enter-prises overall, though progressively decreasing, showed greater stability than the nationwide system.
The uncertain prospects for improve-ment of profitability make it vital for institutions to adopt actions to sustain the investment capacity of Lombard farms and to foster growth of competi-tiveness. In the years 2009 and 2010
the Lombardy Region provided finan-cial aid, through regional early dis-bursement of the contribution from the EU agricultural policy funds to provide ready cash (€ 280 million to more than 30,000 farms); it confirmed its action plan to support farms having difficul-ties with access to credit by providing them with a financial measure of € 4 million through the system of securi-ties. Additional resources are planned for reinforcing competitiveness: € 39 million was made available for invest-ments in the modernization and reno-vation of milk cow livestock farms through Measure No. 121 of the Rural Development Plan; € 8 million was provided by measures and actions designed for small enterprises in underprivileged areas. It is important that the enterprise system becomes ori-ented towards adopting new competi-tive strategies that aim at production differentiation and diversification through investments in technologies and to carry out synergic agreements within the agri-food supply chains. Precisely regarding these issues and in
completion of the aspects regarding the competitiveness of the system, we also give plenty of attention to illustrating the subjects of multi-functionality and production diversification. Though this orientation is well-established among Lombard farms, the number of those converting their business or adopting innovative solutions to respond to the growing demand for services is contin-uously growing.
Councillor for Agriculture in the Lombardy Region
ECONOMY AND AGRICULTURE
Land and population pg. 10
Gross domestic product pg. 13
Value added pg. 15
Employment pg. 17
AGRI-INDUSTRIAL SUPPLY CHAIN
System components pg. 20 Food industry pg. 21 Distribution pg. 24 Foreign trade pg. 26 Food consumption pg. 28
AGRICULTURE
Production results in agriculture pg. 32
Intermediate consumption pg. 36
Investments pg. 38
Prices pg. 40
Farm structures pg. 42
Economic results of farms pg. 47
Credit for agriculture pg. 55
MULTIFUNCTIONALITY AND AGRICULTURE
Water resource management pg. 60
Soil management pg. 62
Forests pg. 64
Agri-energy pg. 67
Products of designated origin
and traditional products pg. 69
Organic farming pg. 74 Agri-tourism pg. 78 Direct sale pg. 81 Educational farms pg. 84
AGRICULTURAL POLICY
Regional legislation pg. 86 Regional spending pg. 88Sole payment system (CAP –Pillar 1) pg. 90
Rural development programme
(CAP – Pillar 2) pg. 93
GLOSSARY
Glossary pg. 96
The regional territory makes up approximately 7.9% of the national land area and is characterized by a co-presence of flatland (47%), hills (12.4%) and mountainous areas
(40.5%). In terms of population, Lom-bardy is the most populated region of Italy with nearly 10,000,000 inhabi-tants (over 16% of the national popula-tion), for the most part concentrated
on flatlands and foothills where the density of population is over 600 inha-bitants/km2against the regional
avera-ge of little more than 400 inhabi-tants/km2, the latter being double the
LAND AND POPULATION
Surface area, resident population and population density in Lombardy, 2009
Territorial surface area % Breakdown of territorial Resident population % Breakdown of Density (sq km) surface area as of 31/12/2009 resident population (inhabitants/sq km)
Lombardy 23.862,80 100,0 9.826.141 100,0 411,78 Mountains 9.672,81 40,5 1.050.595 10,7 108,61 Hills 2.963,62 12,4 2.034.115 20,7 686,36 Plains 11.226,37 47,0 6.741.431 68,6 600,50 Bergamo 2.722,86 11,4 1.087.204 11,1 399,29 Brescia 4.784,36 20,0 1.242.923 12,6 259,79 Como 1.288,07 5,4 590.050 6,0 458,09 Cremona 1.770,57 7,4 362.061 3,7 204,49 Lecco 816,17 3,4 337.912 3,4 414,02 Lodi 782,36 3,3 225.825 2,3 288,65 Mantova 2.338,84 9,8 412.606 4,2 176,41 Milano 1.576,59 6,6 3.123.205 31,8 1.980,99
Monza and Brianza 405,49 1,7 840.711 8,6 2.073,32
Pavia 2.964,70 12,4 544.230 5,5 183,57
Sondrio 3.211,90 13,5 182.709 1,9 56,89
Varese 1.198,71 5,0 876.705 8,9 731,37
11
national population density.The land is covered predominantly by agricultural areas (43.7%), followed by wooded areas (24.5%) and built areas (14.1%). The anthropization rate on the territory is very high in the pro-vinces of Monza and Milano. Cremona is the province with the highest
inci-dence of farming territory (85.5%) while Lecco has the highest percenta-ge of territory covered by woods. The utilized agricultural area (UAA) is a little under 1,000,000 ha which amounts to 41.7% of the regional sur-face area, and therefore is in line with the EU and national average.
As for the population density, the ratio between resident population and agri-cultural area is also very high, much higher than the corresponding ratio in the northern Italian regions, nationwi-de and in the European Union.
Land use in Lombardy, 2007
Anthropized areas Agricultural Areas - of which arable - of which permanent - of which permanent Wooded areas Other
(%) (%) crop (%) crops (%) meadows (%) (%) %
Bergamo 13,9 28,4 17,4 0,7 10,3 39,4 18,4 Brescia 11,3 35,0 27,3 2,0 5,7 31,9 21,9 Como 16,0 15,2 6,4 0,2 8,5 48,1 20,8 Cremona 10,6 85,5 80,7 3,5 1,2 1,6 2,4 Lecco 15,0 15,9 5,3 0,2 10,4 48,6 20,5 Lodi 12,5 80,2 75,8 3,8 0,6 3,2 4,1 Mantova 12,4 82,0 75,2 5,7 1,1 1,1 4,5 Milano 39,8 51,9 48,7 1,6 1,7 6,2 2,0
Monza and Brianza 53,4 36,2 34,2 0,3 1,7 9,2 1,1
Pavia 9,0 74,0 61,3 11,4 1,3 12,0 5,0
Sondrio 2,4 7,7 0,5 1,0 6,2 34,8 55,1
Varese 28,9 15,2 11,1 0,2 3,9 45,0 10,9
Lombardy 14,1 43,7 35,9 3,1 4,7 24,5 17,7
Farm land figures (000 ha), 2007
UAA Total area UAA/Total area
Lombardy 995 2.386 41,7 Nothern Italy 4.653 11.993 38,8 Italy 12.744 30.132 42,3 EU-27 172.485 432.526 39,9 % Lombardy/Nothern Italy 21,4 19,9 % Lombardy/Italia 7,8 7,9 % Lombardy/EU-27 0,6 0,6 Source: EUROSTAT. Lombardy Nothern Italy Italy EU-27 969 583 468 289
Ratio of population/agricultural area (inhabitants/100 ha of UAA), 2007
In 2008 the regional GDP at current prices amounted to approximately € 326 billion, in other words 20.7% of the Italian GDP and 2.6% of the EU GDP. This number is remarkable when compared to the population which makes up 16.3% of the national popu-lation and 1.9% of the EU popupopu-lation. As a result, in 2008 the GDP per inhabitant of Lombardy was 28% high-er than the corresponding Italian fig-ure and 34% higher than the EU-27 GDP in current terms. When we look at GDP per work unit we get a mirror image which in the same year was a little less than € 71,000 in current terms; it was 13% higher than the Ital-ian GDP per work unit and 26% higher than the EU GDP per work unit. Observing the GDP figure with chained prices reveals the growth dynamics in Lombardy with an aver-age annual increase of 0.65% which is in line with the national figure.
13
GROSS DOMESTIC PRODUCT
(
GDP
)
GDP / Inhabitant
Year Current Chain
prices indexes 2002 29.837 28.067 2003 30.449 27.779 2004 31.058 27.667 2005 31.544 27.554 2006 32.356 27.836 2007 33.419 28.035 2008 33.648 27.471 Lombardy/Italy (2008) 1,28 1,29 Lombardy/Nothern Italy (2008) 1,07 1,07 Lombardy/EU-27 (2008) 1,34 1,27
Source: ISTAT, Regional Economic Accounts.
Trend in GDP per inhabitant in Lombardy (Euro), from 2002 to 2008
GDP / Work unit
Year Current Chain
prices indexes 2002 61.575 57.923 2003 62.570 57.085 2004 64.433 57.398 2005 66.197 57.824 2006 67.328 57.923 2007 69.718 58.486 2008 70.983 57.953 Lombardy/Italy (2008) 1,13 1,13 Lombardy/Nothern Italy (2008) 1,07 1,08 Lombardy/UE-27 (2008) 1,26 1,20
Source: ISTAT, Regional Economic Accounts.
Table Trend in GDP per work unit in Lombardy (Euro), from 2002 to 2008
According to ISTAT estimates in 2009, because of the economic crisis, the variation in regional GDP from the previous year is negative (-6%).
Trend in GDP in Lombardy (million Euro), from 2002 to 2008* Current prices Chain indexes 0 50.000 100.000 150.000 200.000 250.000 300.000 350.000 2006 2002 2003 2004 2005 2007 2008 326.131 266.265
*Chain indexes – reference year 2000 Source: ISTAT, Regional Economic Accounts.
VA
Lombardy 1,1
Italy 2,0
Nothern Italy 1,6
Central Italy 1,5
Southern Italy and Islands 3,4
EU-27 1,8 France 2,0 Germany 0,9 The Netherlands 1,8 Polond 3,7 United Kingdom 0,9 Romania 7,5 Spain 2,6
1 Agriculture, fishing and hunting.
Source: ISTAT, Regional Economic Accounts; EUROSTAT.
33,14%
65,80%
1,06%
Agriculture, forestry, fishing Industry, including building Services, including the public sector Total
3.143 98.290 195.177 296.610
VA at basic prices1by sector in
Lombardy (million Euro), 2008
1 Values at basic prices.
Source: processing of ISTAT data.
the growth dynamics appears to be slightly less accentuated compared to the nationwide picture.
% Incidence of agriculture VA1
on GDP, 2008
15
In 2009, value added at basic pricesin the primary sector in Lombardy, measured at current prices, drastical-ly decreased by 13.4% with respect to the previous year. However at chained indexes it increased by 2%, reaching its historical peak, and made up 11.5% of national value added to farming.
Regarding 2008, the primary sector contributed very little to regional val-ue added, amounting to about 1%, compared to 65.8% of services and 33.1% of industry.
The incidence of value added to farm-ing in Lombardy against the total GDP is lower than the national and EU average and that of the northern Italian regions, and is comparable on a European level to countries like Germany and the United Kingdom. The trend of the past decade confirms a progressive loss of importance in the sector in economic terms, though
VA at basic agriculture prices1on total VA2(%), from 1999 to 2008 Italy Nothern Italy Lombardy 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 2006 1999 2000 2001 2002 2003 2004 2005 2007 2008
1 Agriculture, fishing and hunting. 2 Values at current prices.
34,2%
63,1%
2,7%
Agriculture, forestry, fishing Industry, including building Services, including the public sector Total
124 1.570 2.890 4.594
WU per sector in Lombardy (000 units), 2008
Source: ISTAT, Regional Economic Accounts.
% Incidence of farm workers1on
total workers in the economy, 2008 % workers
Lombardy 1,8
Italy 3,8
Nothern Italy 2,9
Central Italy 2,4
Southern Italy and Islands 6,7
EU-27 5,6 France 3,2 Germany 2,1 The Netherlands 2,9 Poland 14,0 United Kingdom 1,4 Romania 29,8 Spain 4,3
1 Agriculture, hunting and fishing.
Source: ISTAT, Measuring the workforce - average 2008; EUROSTAT.
In 2009 the number of farm workers in Lombardy decreased 1.2% from the previous year.
17
For the year 2008 the breakdown ofemployees per sector expressed in work units (WU) indicates predomi-nance in the service sector, followed by industry and agriculture, which represents 2.7% of the total WU: this figure is greater than the incidence of agricultural value added which is around 1%. As a result, the productivi-ty of labour of the farm work units is definitely lower than that of the other sectors which makes up 56% of indus-try and 53% of services.
The incidence of farm workers on the total of workers in Lombardy is lower than the Italian and EU incidence. The rate of feminization of Lombard agri-culture is 21.4%, definitely lower than the total of the economy, also when compared with the Italian northern regions and Italy as a whole. In any case the number of female farm work-ers has dropped less annually than the number of male farm workers (-6.1%).
Total workers and farm workers by gender and geographical area, 2009
Workers Farm workers
000 units % women 000 units % women
Lombardy 4.299,7 41,8 73,3 21,4
Nothern Italy 11.904,9 42,3 336,4 27,6
Italy 23.025,0 40,1 874,5 28,3
Source: ISTAT, Measuring the workforce - average 2009.
Value added at basic prices per WU and by sector in Lombardy (Euro)*, 2002-2008
Agriculture Services Industry 0 10.000 20.000 30.000 40.000 50.000 60.000 2006 2001 2002 2000 2003 2004 2005 2007 2008
* Chain indexes - reference year 2000. Source: ISTAT, Regional Economic Accounts.
In 2008 the economic dimension of the Lombard agri-food system was estimated to be €37.5 billion, amount-ing to 16.5% of the value of the nation-al agri-food system. The weight of the system on the regional GDP at market prices was 11.5% as opposed to the nationwide figure of 14.5%.
The farming value added (including forestry and fishing) consisted of 8.5% of that figure (12.4% on a national lev-el), while the food industry weighed 13.5% (11.6% on a national basis). The intermediate farm consumption levels contributed little more than 10% of the overall value.
Most of the final value of the Lombard agri-food system is provided by the value added of distribution and cater-ing (45% and 17.2% of the total respec-tively). In fact it is interesting to note how the ratio between the value of the system and the value of the agri-indus-trial production (including
intermedi-ate consumption levels, value-added in agriculture and industry) is 3 to 1. ISTAT estimates for 2009 showed a slight drop in the value of the regional
agri-food system and a further reduc-tion in the weight of the farming value added. 3.816 3.200 5.059 6.444 16.910 2.142 37.570 Intermediate agriculture consumption
Agriculture, forestry and fishing VA The food industry VA The catering industry VA Marketing and distribution Indirect taxes in the agri-industrial sector Total 13,5% 45,0% 5,7% 10,2% 8,5% 17,2%
Main components of the agri-industrial system at basic prices in Lombardy (million Euro), 2008
Source: ISTAT.
Provincial distribution of food enterprises and manufacturers in Lombardy1, 2009
Food enterprises Artisan food enterprises Manufacturers
Tot. Inc. % Tot. Inc. % Tot. Inc. %
Bergamo 676 11,4 524 13,4 11.964 10,9 Brescia 847 14,3 619 15,8 16.168 14,8 Como 324 5,5 246 6,3 7.276 6,6 Cremona 365 6,2 248 6,3 3.361 3,1 Lecco 218 3,7 151 3,9 4.355 4,0 Lodi 131 2,2 79 2,0 1.810 1,7 Monza 292 4,9 189 4,8 9.529 8,7 Milano 1.573 26,5 827 21,1 33.230 30,4 Mantova 455 7,7 312 8,0 4.764 4,4 Pavia 407 6,9 259 6,6 5.024 4,6 Sondrio 219 3,7 143 3,7 1.482 1,4 Varese 423 7,1 316 8,1 10.507 9,6 Total 5.930 100,0 3.913 100,0 109.470 100,0 1Active enterprises. Source: Infocamere.
21
The value added of the regional foodindustry in 2008 is estimated at over € 5 billion, corresponding to 19.1% of the value added of the Italian food industry and 13.5% of the value of the regional agri-food system. The food industry is taking on a primary role on
the regional level to the point that it represents 158% of the value added by agriculture as opposed to nationwide in which the corresponding percent-age is 93%.
According to Infocamere, the number of companies in the food industry in
2009 was 6,761, of which 5,930 were active, amounting to 5.4% of the man-ufacturing companies operating in the Region. Over 95% of the companies is involved in food production while the remaining 5% works in the beverages sector. The artisan enterprises make
0% 20% 40% 60% 80% 100%
Food Beverages Food Beverages TOTAL FOOD ENTERPRISES Total enterprises ARTISAN FOOD ENTERPRISES MANUFACTURING ENTERPRISES Artisan enterprises 21,8% 51,2% 31,7% 12,5% 4,5% 45,5% 49,9% 3,0% 60,6% 36,4% 6,5% 35,1% 58,4% 35,3% 26,7% 37,3% 37,8% 37,1% Individual companies Joint stock companies
Other Partnerships Incidence of legal status typologies in food enterprises and manufacturers in Lombardy1, 2009 1 Active enterprises. Source: Infocamere. 0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 Active enterprises Registered
enterprises enterprisesRegistered enterprisesActive
ARTISAN ENTERPRISES TOTAL ENTERPRISES 346 281 66 66 6.415 5.649 3.886 3.847 Food Beverages
Food enterprises located in Lombardy, 2009
up a significant percentage of the food industry, 58.5% of the registered com-panies and 66% of those active, with the sole exception of beverages manu-facturing, where the artisan enterpris-es reprenterpris-esent only 23.5% of active com-panies.
As regards the legal status of the food enterprises, the prevalent type is part-nerships (37.8%) followed by single-owner enterprises (37.1%).
According to INAIL data, as much as the employment rate in the sector is concerned, in 2008 approximately 50% of the total food industry employ-ees in the Region was concentrated in the area of Milano where the larger companies are located.
Provincial distribution of food enterprises employees in Lombardy, 2008 Food enterprises Artisan food companies
Tot. Inc. % Tot. Inc. %
Bergamo 7.242 7,0 2.644 13,3 Brescia 9.423 9,1 3.239 16,2 Como 4.014 3,9 1.385 6,9 Cremona 8.170 7,8 1.006 5,0 Lecco 2.826 2,7 759 3,8 Lodi 2.100 2,0 391 2,0 Mantova 7.676 7,4 1.527 7,7
Milano and Monza 49.248 47,3 5.335 26,8
Pavia 5.132 4,9 1.202 6,0 Sondrio 2.983 2,9 702 3,5 Varese 5.291 5,1 1.752 8,8 Lombardy 104.105 100,0 19.942 100,0 Italy 498.796 169.064 Lombardy/Italy (%) 20,9 11,8
Source: Estimate on INAIL data
Sales points of modern distribution in Lombardy (no. and surface area), 2009
No. of sales points Surface area mq % var. 2009/08 Mini-markets 667 185.923 -0,80% Supermarkets 1126 1.055.421 3,80% Hyper markets 212 1.145.968 6,60% Discount stores 511 300.014 6,60% Total 2.516 2.687.326 5,00%
Source: SMEA processing of Nielsen data and Commerce Monitoring Centre – Lombardy Region.
Sales area per 1000 inhabitants in Lombardy (sqm), 2009
Mini-markets Supermarkets Iper markets Discount store Total Super+Iper Total
Bergamo 17,9 106,1 83 45,3 189 252,2 Brescia 21,1 154,1 131,8 45,7 285,9 352,8 Como 20 88,1 131,7 24,1 219,7 263,8 Cremona 11,8 105,3 108,9 39,7 214,2 265,6 Lecco 17 82 130,3 36,1 212,3 265,4 Lodi 24,2 88,9 224,6 35 313,5 372,7 Mantova 20,5 163,9 110,5 60,3 274,4 355,1 Milano 18,4 90,5 113,9 21,1 204,4 243,9 Monza-Brianza 17,4 87,8 115,1 17,5 203 237,9 Pavia 21,3 112,1 148,6 33,8 260,7 315,8 Sondrio 57,4 111 157,2 35,6 268,2 361,3 Varese 15,8 143,9 107,5 23,9 251,4 291,1 Total 19,3 109,5 118,8 31,1 228,3 278,7
Source: SMEA processing of Nielsen data and Commerce Monitoring Centre – Lombardy Region.
Lombardy is one of the leading regions in modern Italian distribution with a modern sales points’ density (hyper-markets, super(hyper-markets, mini-markets and discount stores) of 280 m² per 1000 inhabitants in 2009; this figure is similar to that of the most densely pop-ulated European areas.
The sales points have reached number 2,516 with an overall surface area of nearly 2.7 million m², showing a rapid increase since 2008 (+5%). The surface area used for sales is growing at a high-er rate than the national avhigh-erage (+3.6%) in all provinces except Lodi. The development of distribution is mainly due to hypermarkets, with eight new openings in 2009 (+6.6%), and dis-count stores which grew 6.6% after reaching two digit growth rates in the past few years.
The private chains of large distribution predominate. The winding up of group purchasing organizations including the
Esd Italia (Esselunga e Selex) Centrale Italiana (Coop, Despar, Sigma e Il Gigante) Auchan Sicon (Conad, Interdis e Standa-Rewe) Carrefour Bennet Finiper Others
17%
13%
10%
10%
9%
11%
8%
21%
Breakdown of sale surface area of modern distribution in Lombardy, 2009
Source: SMEA processing of Nielsen data and Commerce Monitoring Centre – Lombardy Region.
25
French giants Carrefour and Auchan,significantly shook up the regional
competitive picture. The leadership of the Esd Italia organization has come
out remarkably stronger, occupying more than 17% of sales surface area.
Throughout 2009, for the first time in the last decade, there was a drop in the value of imports and exports of agri-food products, both in the region and nationwide. The values of exchanges of agri-food products between this region and foreign coun-tries dropped sharply (-8.2%) for imports and exports; nationwide, the imports and exports showed negative variations in terms of trade balance, with imports being down 10.1% and exports being down 7.3%.
The drop in value of imports in Lom-bardy is due to a decrease in quanti-ties (-3.5%) and implicit prices (-4.8%); on the contrary, the value of exports practically collapsed in terms of quan-tity (-16.8%) compensated by a con-siderable increase in implicit prices (+10.3%).
The contribution of the agri-food sec-tor to overall Lombard trade with the rest of the world was 8.2% for imports
12,31% 3,42% 36,84% 20,8% France Germany The Netherlands Spain Belgium Ireland Others 14,39% 8,5% 4,26%
IMPORT
Main countries of origin and destination of Lombard agri-food imports and exports, 2009
Source: SMEA processing of ISTAT data in the SH6 classification.
8,68% 4,22% 41,88% 15,79% France Germany Switzerland United States of America United Kingdom Spain Others 14,27% 7,74% 7,42%
EXPORT
FOREIGN TRADE
and 5.1% for exports.
The principle foreign supply markets are France (20.3%), Germany (14.4%), the Netherlands (12.3%) and Spain (8.5%). As regards exports, the top positions are occupied by France (15.8%) and Germany (14.3%) fol-lowed by two non-EU markets, Switzerland (8.7%) and the USA (7.7%).
Import Export Balance
1999 5.690 2.425 -3.265 2000 6.120 2.608 -3.512 2001 6.273 2.811 -3.462 2002 6.283 3.025 -3.258 2003 6.542 3.152 -3.390 2004 6.844 3.278 -3.566 2005 7.119 3.559 -3.560 2006 7.902 3.742 -4.160 2007 8.309 4.122 -4.187 2008 8.559 4.571 -3.988 2009 7.861 4.196 -3.665 % var. 2009/2008 -8,15 -8,2 % var. 2009/1999 38,15 73,01
Source: SMEA processing of ISTAT data in the SH6 classification.
Lombard foreign trade of agri-food products at current prices (million Euro) Import Export 1999 7,17 3,84 2000 6,36 3,55 2001 6,36 3,59 2002 6,51 4 2003 6,66 4,15 2004 6,47 4,14 2005 6,4 4,17 2006 6,63 4,01 2007 6,24 4,07 2008 7,06 4,41 2009 8,16 5,11
Source: SMEA processing of ISTAT data in the SH6 classification.
Contribution (%) of agri-food products to the Lombard trade balance
According to ISTAT, in 2009 the aver-age monthly household expenditure in Italy amounted to € 2,442, down 1.7% in comparison with the previous year at current prices and with diver-sified regional situations. Lombardy spends the most with a monthly expenditure of € 2,918 per family, slightly lower than the previous year (-0.4%), followed by Veneto and Emil-ia-Romagna.
The trend of household foods and bev-erages expenditure has become much more dynamic in the past three years. On a national level, the expenditure at current prices remained stable in 2007, then rose by 1.9% the following year and then dropped by 2.9% in 2009; in Lombardy the figures for the same period decreased by 4.7% then rose by 4.3% and then finally dropped again by -2.7%.
In 2009 the amount spent monthly by families for foods and beverages
2.000 2.500 3.000 2.900 2.800 2.700 2.600 2.400 2.300 2.200 2.100 2.872 2.689 2.398 2.886 2.786 2.461 2.896 2.796 2.480 2.930 2.810 2.485 2.918 2.768 2.442 2005 2006 2007 2008 2009
Lombardy Italy Nothern Italy
Average monthly expenditure per household at current prices (Euro), 2005-09
Source: SMEA processing of ISTAT data, Household consumption expenditure survey.
reached €470 in Lombardy as opposed to € 445 in northern Italy and € 461 nationwide. Only 16.1% of family expenditure in Lombardy was destined to the purchase of food in contrast to the national average of 18.9% and the average of 24.3% in the southern Ital-ian regions. 2005 2006 2007 2008 2009 486 456 454 486 467 461 483 475 464 466 463 449 470 461 455
Lombardy Italy Nothern Italy 400 500 490 480 470 460 450 440 430 420 410
Average monthly household expenditure at current prices for food products (Euro), 2005-09
Source: SMEA processing of ISTAT data, Household consumption expenditure survey.
0 500 1000 1500 2000 2500 3000
Food and beverages Non food
Piemont Valle d'AostaLombardy
Liguria Trentino-A
lto Adige Veneto Friuli-V
enezia Giulia Emilia-Romagna
Toscany Umbria Marche Lazio Abruzzo MoliseCampania PugliaBasilicata Calabria Sicily Sardinia Italy
Average monthly household expenditure per region in Italy (Euro), 2009
In 2009 regional agricultural produc-tion calculated at basic prices (BPP), excluding forestry and fishing and including related services and second-ary activities, amounted to € 6.3 bil-lion, down 9.3% with respect to the previous year and therefore in line with the national trend. This decrease can be attributed to the drop in prices while the production volumes remained constant overall.
The livestock sector represented as much a 60.8% of Lombard farm BPP in 2009 as opposed to the corresponding national figure of 33%; on the contrary, the plant crops made up less than 30% of BPP against the national figure of 53.8%. The decrease in BPP on an annual basis affected in particular the latter which dropped by 15.2% from 2008 while the livestock sector under-went a less sharp decrease (-7.6%). The related services and secondary activities amounted to 8.3% and 3.2%
of production value respectively. The regional farming added value decreased by 14% since 2008 and con-sequently the incidence of the added value to the production value
decreased in current terms as well, dropping from 45.6% to 42.9%. Lombardy makes up 1.7% of BPP of the EU-27 agricultural branch, 13.6% of Italy and 26.7% of the northern
Ital-PRODUCTION RESULTS IN AGRICULTURE
Agricultural production at basic prices, intermediate consumption and value added in Lombardy (million Euro), 2009
Lombardy Italy Lombardy/Italy million Euro % million Euro % %
Farm crops 1.834 29,2 24.213 53,8 7,6 Herbaceous crops 1.095 17,5 12.713 28,2 8,6 Fodder crops 430 6,9 1.600 3,6 26,9 Arboreal 309 4,9 9.899 22,0 3,1 Livestock farms 3.811 60,8 14.860 33,0 25,6 Meats 2.140 34,1 9.081 20,2 23,6 Milk 1.473 23,5 4.598 10,2 32,0 Other livestock 198 3,2 1.181 2,6 16,8 Related services 522 8,3 5.303 11,8 9,8
Total BPP agricultural goods and services 6.167 98,3 44.375 98,5 13,9 + secondary activities (agri-tourism, transformation) 202 3,2 1.481 3,3 13,7 - secondary activities (commercial enterprises) -98 -1,6 -821 -1,8 11,9
Total BPP agriculture branch 6.271 100,0 45.035 100,0 13,9
Intermediate consumption 3.583 57,1 21.580 47,9 16,6
Value added at basic prices 2.689 42,9 23.455 52,1 11,5
ian regions; as regards solely livestock BPP, the figures are respectively 2.62%, 26.08% and 38.16% (EURO-STAT figures, 2008). Regarding each individual sector, meat dominates in terms of weight on the BPP (beef and pork) and milk, but decreases in value on an annual basis by 6.4% and 10.8% respectively. Among crops only the herbaceous ones exceed 10% of BPP, in spite of a 19.3% decrease in value from 2008.
In the sector of herbaceous crops, grains dropped 27.7% in terms of value in 2009, with even sharper drops for autumn-winter grain and maize, and a slight drop for rice (-5%).
As regards quantities, in 2009 the fall-winter grain decreased by about one fourth of production and maize pro-duction decreased by a little less than 10%. However rice, which concen-trates 43% of national production in Lombardy, showed a countertrend
33
Cereal grains and dried legumes Vegetables Industrial crops Flower farming Vineyards Fruit Other woody plants Fodder crops Beef Pork Other meats Milk Eggs and other Related services
11,1%
3,2%
8,5%
4,4%
0,6%
1,6%
2,3%
2,1%
15,2%
7,5%
12,0%
23,9%
0,7%
7,0%
Agricultural production value at basic prices for main sectors in Lombardy (% composition), 2009
Main plant production in Lombardy, 2009
Quantity Value1
000 t % var. 2009/08 % Lombardy/Italy million Euro 2009/08 var. % Lombardy/Italy
Soft wheat 369,4 -24,1 13,0 57,0 -43,5 13,0 Hard wheat 97,4 -22,7 2,7 22,0 -41,8 2,6 Barley 114,1 -25,1 11,2 14,8 -43,3 11,2 Rice 682,5 15,7 43,4 229,6 -4,9 43,4 Hybrid maize 2.683,2 -8,9 32,2 324,3 -35,3 32,2 Soy 82,7 91,4 17,0 20,4 55,1 17,0 Sugar beets 380,9 -4,2 10,6 15,3 -10,7 10,6 Potatoes 37,8 8,9 2,2 15,4 10,4 2,2 Tomatoes 545,1 16,9 8,0 69,3 15,4 6,4 Melons 80,7 3,5 12,6 34,5 -13,7 19,1
Wine grapes sold 78,0 1,7 2,1 15,0 -17,1 2,3
Wine (000 hl) 726,0 0,5 3,7 125,5 -5,1 6,8 Oil 0,7 0,0 0,2 1,5 -11,6 0,1 Peaches 9,7 -5,8 0,9 3,0 -30,0 0,9 Apples 49,9 -6,7 2,3 16,8 -16,5 2,3 Pears 18,3 -2,7 2,2 10,2 -17,7 2,2 1 At basic prices.
Source: ISTAT, Value added at basic prices of agriculture per region.
increase of 15.7%. The production of soybeans (17% of the national total) practically doubled too.
In 2009 vegetable crops increased in
value by 2.1%, driven by tomatoes with an annual BPP increase of 15.4%. On the contrary, fruit production remained the same in terms of
quanti-ty but dropped 13.5% in relation to the BPP. Among transformed products, wine made up 3.7% of national produc-tion in quantity and 6.8% in value.
Main livestock production in Lombardy, 2009
Quantity Value1
000 t % var. 2009/08 % Lombardy/Italy million Euro 2009/08 var. % Lombardy/Italy
Beef meat 371,1 -2,3 25,9 738,5 -5,0 23,1
Pork meat 825,8 1,5 40,0 937,1 -7,6 38,9
Ovicaprine meat 1,1 10,0 1,5 3,3 7,9 1,5
Poultry 294,0 2,4 18,9 371,3 -7,1 17,1
Eggs (millions of pieces) 2.349,0 2,2 17,7 195,1 4,6 17,1
Cow’s milk (000 hl) 42.461,0 2,5 37,1 1.469,9 -10,9 36,3
Sheep and goat milk (000 hl) 30,0 0,0 0,5 2,8 -2,4 0,5
Honey 1,2 20,0 11,1 3,2 14,1 11,2
1 At basic prices.
Source: ISTAT, Value added at basic prices of agriculture per region.
35
However it lost 5.1% of the BPP at2008 current prices. As regards live-stock, Lombardy boasts several national records, producing 40% of the nation’s pork, 25.9% of beef, and 37.1%
of cow's milk, 18.9% of poultry, 17.7% of eggs and 11.1% of honey. The effects of the economic downturn caused an annual decrease in BPP in terms of value, for the most part of sectors,
between 5% of beef and 10.9% of cow’s milk. A countertrend was witnessed in the production of honey (+20% in quantity and +14% in value) and eggs (+4.6% in value).
The incidence of regional intermedi-ate consumption on the total value of the agricultural branch referring to 2008 reaches the value of approxi-mately 10 percentage points higher than the Italian levels, while it is nonetheless lower than the EU context and the major European countries. In 2009 the expenditure for agricultur-al intermediate consumables in Lom-bardy decreased by 5.5% with respect to the previous year, reaching a value
of nearly € 3.6 billion, making up 16.6% of the national total. This decrease was due to a drop in prices (-4.1%) and in quantities (-1.4%). The incidence of intermediate con-sumption on the production value rose by three percentage points, reaching 57% and playing out a dynamics that had been established for over a decade, consisting of a continuous decrease in the terms of trade between the prices of farm products and those
of intermediate consumables; in 2009 the implicit prices of farm products in particular dropped by 9.4% on an annual basis.
Intermediate consumption of agriculture in Lombardy, 2008-2009
Values at % % on % value % quantity % price current prices breakdown Italy var. var. var. (million Euro) 2009/08 2009/08 2009/08
Fertilizers 257,2 7,2 16,3 -9,6 -4,1 -5,7
Pesticides 52,2 1,5 6,5 0,9 -3,5 4,5
Seeds 164,8 4,6 11,9 1,5 1,2 0,3
Feed and expenditure for livestock 1.298,8 36,3 25,1 -8,0 -0,3 -7,7 Other intermediate consumption 1.809,6 50,5 14,3 -3,7 -2,1 -1,6
Intermediate consumption 3.582,6 100,0 16,6 -5,5 -1,4 -4,1 Source: ISTAT. % Incidence of intermediate consumption on agricultural production value, 2008 % Lombardy 54,8 Italy 45,9 Nothern Italy 51,7 Central Italy 40,9
Southern Italy and Islands 39,6
EU-27 59,8 France 60,6 Germany 68,8 The Netherlands 66,7 Poland 63,6 United Kingdom 63,0 Romania 54,0 Spain 44,5
Source: ISTAT, Value added at basic prices of agriculture per region; EUROSTAT.
37
With reference to the principalcate-gories of technical equipment, in 2009 the expenditure for fertilizers and feed decreased, while pesticides and seeds
remained stable. Price dynamics was the main cause of the decrease, though in terms of quantity fertilizers and pes-ticides showed a slight drop of 4.1%
and 3.5% respectively. In particular there was a noteworthy countertrend consisting of a 4.5% rise in the prices of pesticides on an annual basis.
Trend in gross fixed investments in agriculture* in Lombardy
Current values Chain indexes % of total investments % of total investments % of agriculture VA % of agriculture VA (million Euro) (million Euro) Lombardy1 in agriculture in Italy1 in Lombardy1 in Lombardy2
2000 1.224,5 1.224,5 2,6 12,7 34,7 34,7 2001 1.537,5 1.496,9 3,1 15,9 41,4 41,9 2002 1.531,1 1.443,5 2,9 14,5 42,6 41,1 2003 1.600,8 1.486,9 3,1 14,4 45,5 44,8 2004 1.862,1 1.681,5 3,4 15,2 52,7 47,6 2005 1.896,8 1.666,7 3,2 15,6 62,9 49,1 2006 2.132,1 1.819,8 3,4 17,3 67,8 53,3 2007 2.017,1 1.671,8 3,0 16,7 64,7 47,8
* Agriculture, forestry and fishing.
1 Values at current prices. 2 Chain indexes - reference year 2000.
Source: ISTAT, Regional Economic Accounts.
According to the latest available ISTAT data, the volume of regional gross fixed investments in agriculture in 2007 amounted to a little over € 2 bil-lion in current terms, and € 1.67 bil-lion at chain indexes, representing 16.7% of national investments in agri-culture. The incidence of investments
in agriculture on total investments in Lombardy was 3%. The incidence of investments on the regional farming value added was 64.7% at current prices and 47.8% at chain indexes, both values having dropped with respect to the previous year.
In Lombardy the amount of
invest-ments per farm work unit (WU) was 75% higher than the national index. Moreover, unlike the rest of the coun-try, it was comparable with the invest-ments per inhabitant calculated for the industrial sector.
0 3.000 6.000 9.000 12.000 15.000
Lombardy Italy Lombardy Italy Lombardy Italy
13.396 7.633 13.333 11.718 11.583 10.994 Agriculture Industry Services Gross fixed investments1per WU and by sector in Lombardy and Italy, 2007
1 Chain indexes - reference year.
Source: ISTAT, Regional Economic Accounts.
In 2009 the prices of farm products in Lombardy dropped 9.5% against a national decrease of 6.6%. This decrease was sharper for crops (-13.9%) than for livestock (-8.7%). Among crops the drop was sharper for herbaceous crops (-17.6%) and less sharp for arboreal crops (-5.5%). As regards plant productions, the sector that most felt the drop in prices was grains (-23.8%), followed by industrial crops (-15.6%). The drop in vegetables was less evident (-4%). Also fruit pro-duction underwent a notable repro-duction in prices, in particular wine grapes (-18.5%) and wine (-5.6%). Among the livestock products, milk showed the sharpest price drop on an annual basis (-13%) followed by meats (-6.4%) and honey (-5%). In a countertrend the quotation of eggs rose slightly (+2.4%). On the whole the intermediate con-sumption showed a reduction in prices on an annual basis of 4.1%, as opposed to the national reduction of 2.9%
PRICES
Variation on implicit prices of farm products in Lombardy and Italy, 2009 Sector % var. 2009/08 Lombardy % var. 2009/08 Italy
Farm crops -13,9 -8,1
Herbaceous crops -17,6 -6,7
Grains -23,8 -23,3
Dried legumes -14,6 -15,9
Potatoes and vegetables -4,0 2,7
Industrial plants -15,6 -8,9
Flowers and ornamentals -1,5 -1,9
Fodder crops -9,0 -9,0
Woody plant crops -5,5 -9,7
Winemaking products -7,2 -12,7
Olive trees -11,4 -10,6
Fruit -13,9 -15,3
Other woody plants -0,3 -0,8
Livestock -8,7 -6,9
Meats -6,4 -5,2
Milk -13,0 -11,9
Eggs 2,4 2,4
Honey -5,0 -5,0
Non-food livestock products -3,0 -1,5
Related services 1,6 2,0
Total production of agricultural goods and services -9,5 -6,6 + secondary activities (agri-tourism, transformation) -6,1 -2,1
- secondary activities (commercial enterprises) -11,2 -9,5
Total agricultural production at basic prices -9,4 -6,4
Intermediate consumption -4,1 -2,9
41
According to the estimates of thelat-est ISTAT survey on the facilities and productions of farms (SPA, 2007) there are a few more than 57,000 agri-cultural holdings, in another words 3.42% of the national total.
The utilized agricultural area (UAA) covers nearly 1,000,000 ha and 7.8% of the Italian UAA, with an average holding size of 17.3 ha of UAA, way over the national and the EU 27 aver-age. About 39% of the holdings are livestock farms, and in fact these weigh over 10% on the total of nation-al livestock farms, a figure that rises to 14% if we consider only milk cows. The importance of livestock in Lom-bard agriculture also becomes clear in terms of the number of adult bovine units (ABU) which make up 28% of Italian cattle and 2% of EU cattle and the ABU/UAA ratio shows a density of livestock that is 3.5 times higher than the relative national figure.
The incidence of farm labour in Lom-bardy on the Italian total is 3.74%, if expressed in number of workers and 5.83% if expressed in work units (WU), which shows a greater reliance on
open-ended contracts than in other Italian regions. The number of WU per holding is greater than the national average (1.3 WU against 0.8). WU belonging to the household of the
FARM STRUCTURES
Structural characteristics of Lombard, Italian and EU agriculture, 2007 Lombardy Italy EU-27 Lombardy/ Lombardy/
Italy (%) EU 27 (%) Agricultural holdings (no.) 57.490 1.679.440 13.700.400 3,42 0,42
Livestock farms (no.) 22.370 309.170 8.570.670 7,24 0,26
Cattle livestock (no.) 15.560 146.990 3.334.210 10,59 0,47
- of which dairy cows 8.760 62.790 2.486.670 13,95 0,35
Total agricultural area (ha) 1.258.470 17.841.540 215.396.450 7,05 0,58 Utilized agricultural area (UAA) (ha) 995.320 12.744.200 172.485.050 7,81 0,58 Livestock Units (LU) 2.772.270 9.900.670 135.282.290 28,00 2,05 Workers on agricultural holdings (no.) 118.870 3.174.150 26.669.390 3,74 0,45
- of whom family members 105.570 3.056.540 24.827.070 3,45 0,43
Total work units (WU) 75.860 1.302.180 11.693.120 5,83 0,65
- of whom family members 62.620 1.091.460 9.366.480 5,74 0,67
UAA per holding (ha) 17,31 7,59 12,59 228,15 137,52
ABU/UAA 2,79 0,78 0,78 358,53 355,13
Workers per holding (no.) 2,07 1,89 1,95 109,40 106,22
WU per holding 1,32 0,78 0,85 170,18 154,60
UAA/WU (ha) 13,12 9,79 14,75 134,06 88,95
Family member work units (%) 82,5 83,8 80,1 98,48 103,05
Farms per UAA class in Lombardy and Italy, 2007
UAA class Lombardiy Italy % Lombardy % Lombardy/Italy
Farms UAA (ha) Farms UAA (ha) Farms UAA Farms UAA
< 5 ha 28.560 53.250 1.230.700 2.020.650 49,7 5,4 2,3 2,6 5-10 ha 10.660 77.290 202.560 1.407.880 18,5 7,8 5,3 5,5 10-20 ha 6.690 95.920 122.750 1.701.080 11,6 9,6 5,5 5,6 20-30 ha 3.310 80.910 42.430 1.029.160 5,8 8,1 7,8 7,9 30-50 ha 3.360 128.820 40.990 1.569.580 5,8 12,9 8,2 8,2 > 50 ha 4.900 559.130 40.010 5.015.850 8,5 56,2 12,2 11,1 Total 57.490 995.320 1.679.440 12.744.200 100,0 100,0 3,4 7,8
Source: ISTAT - Survey on the structure and productions of farms.
Farms, Utilized Agricultural Area, and Total in Lombardy and Italy, 2007
Lombardy Italy Average surface areas (ha) % Lombardy/Italy
farms* ha farms* ha Lombardy Italy farms* surface area
Seed crops 41.900 694.863 1.111.204 6.969.257 16,6 6,3 3,8 10,0
Farm woody plant crops 15.717 35.304 1.178.228 2.323.184 2,2 2,0 1,3 1,5
Permanent meadows and pastureland 22.288 265.156 351.677 3.451.756 11,9 9,8 6,3 7,7
Total UAA 57.342 995.323 1.677.765 12.744.196 17,4 7,6 3,4 7,8
Tree farms for timber 2.520 15.692 34.781 121.420 6,2 3,5 7,2 12,9
Woods 17.313 160.395 371.427 3.692.223 9,3 9,9 4,7 4,3
Non-utilized surface area 8.690 36.893 337.107 592.153 4,2 1,8 2,6 6,2
Other surface area 41.278 50.168 1.105.850 691.552 1,2 0,6 3,7 7,3
Total agricultural area 57.474 1.258.471 1.678.756 17.841.544 21,9 10,6 3,4 7,1
* Each farm can have different crop specialties. Source: ISTAT - Survey on structure and productions of farms.
Surface areas and productions of major crops in Lombardy and Italy, 2009
Lombardy Italy Lombardy/Italy
Crops Total surface Yield Earned Total surface Yield Earned % %
area (ha) (t/ha) production (000 t) area (ha) (t/ha) production (000 t) surface production
Cereal grains 457.687 8,2 3.768 3.480.601 5,1 17.662 13,1 21,3 - Soft wheat 65.715 5,6 367 568.273 5,2 2.929 11,6 12,5 - Barley 24.960 4,5 112 306.782 3,4 1.049 8,1 10,7 - Rice 101.676 6,7 683 238.458 6,6 1.571 42,6 43,4 - Kernel corn 238.304 10,6 2.528 916.158 8,6 7.884 26,0 32,1 Oilseeds 28.932 3,7 108 283.657 2,6 727 10,2 14,8 - Rape 4.591 2,9 13 24.545 2,1 52 18,7 25,3 - Soybeans 22.857 3,9 89 134.704 3,5 470 17,0 18,9 Dried legumes 2.206 3,6 8 72.797 1,8 134 3,0 5,9 Root vegetables 1.327 30,4 40 71.033 26,1 1.851 1,9 2,2
Open air vegetables 13.976 51,3 717 425.179 29,3 12.442 3,3 5,8
- industry tomatoes 7.870 69,1 544 96.771 61,2 5.920 8,1 9,2
- melon 1.991 28,7 57 20.095 25,1 504 9,9 11,3
Greenhouse vegetables 2.331 40,6 95 29.275 48,2 1.412 8,0 6,7
Temporary forage plants or crops 166.134 45,6 7.572 921.927 26,2 24.175 18,0 31,3
- Waxy corn 119.916 51,5 6.177 286.231 49,4 14.132 41,9 43,7
Temporary forage plants and meadows 81.873 60,1 4.923 1.093.542 26,1 28.534 7,5 17,3
- Alfalfa meal 59.716 65,6 3.920 728.911 30,2 22.014 8,2 17,8
Permanent forage plants 250.203 17,7 4.430 4.422.573 5,1 22.492 5,7 19,7
- Permanent pasture 134.934 30,4 4.099 802.323 17,4 13.960 16,8 29,4
- Meadows 115.569 2,9 331 3.620.250 2,4 8.532 3,2 3,9
Fresh fruit and dried fruit 4.178 22,1 92 423.673 14,5 6.138 1,0 1,5
- Apple trees 1.916 26,3 50 58.469 40,1 2.345 3,3 2,1
- Pear trees 890 21,4 19 36.925 23,0 847 2,4 2,2
Wine grapes 21.684 8,3 180 702.390 8,9 6.237 3,1 2,9
Olive trees 2.352 1,6 4 1.156.289 2,8 3.287 0,2 0,1
Source: ISTAT and National Rice Organization (2009).
farmer make up 82.5% of total WU. The holding surface area seems much less fragmented than in the national context; in fact, holdings with < 5 hectares of UAA only make up half of the total and cultivate 5.4% of the
regional agricultural area. 8.5% of holdings with more than 50 ha make up over 56% of the regional UAA.
Cultivation investments and heads of livestock
55.2% of the Lombard agricultural area is occupied by arable crops; the aver-age dimension of regional farms with arable crops is almost 3 times greater
1,2% 12,7% 55,2 2,9% 4,0% 2,8% 21,1%
LOMBARDY
0,7% 20,7% 39,1% 3,3% 3,9% 13,0% 19,3%ITALY
Seed crops Farm woody plant crops Permanent meadows and pastures Tree farms for timber Woods Non-utilised surface area Other surface areaBreakdown of total agricultural area in Lombardy and Italy, 2007
45
than the corresponding Italian figure.The regional incidence of the UAA on the total agricultural area is 79.1% as opposed to the national UAA figure of 71.4%. There are 22,370 livestock farms in Lombardy, of which nearly 70% raise cattle (39% of the livestock are milk cows), with an average size (expressed in number of heads) over
double the average national size. The region makes up 10.7% of the Italian cattle farms and 14.4% of its dairy farms. The role of pig farms is also noteworthy, amounting to 4,341 farms (or 19.4% of all livestock farms in Lom-bardy), an average holding size over 10 times greater than the Italian average holding size, producing approximately
half the heads raised nationwide. A similar dynamics is also found on poul-try farms, having an average regional holding size that is 5.6 times larger than the Italian average size of hold-ings. According to ISTAT statistics on crop trends in 2009, the regional sur-face area dedicated to grains is about 457,000 hectares (-5.9% down with Structural characteristics of Lombard and Italian livestock farms, 2007
Lombardy Italy Average size per farm (heads) % Lombardy/Italy
farms heads farms heads Lombardy Italy farms heads
Beef cattle 15.480 1.590.219 145.282 6.080.762 103 42 10,7 26,2 - dairy cows 8.728 550.432 60.627 1.702.657 63 28 14,4 32,3 Buffalos 102 6.847 2.685 283.593 67 106 3,8 2,4 Sheeps 2.571 96.509 75.383 6.790.053 38 90 3,4 1,4 Goats 3.175 63.225 33.420 936.843 20 28 9,5 6,7 Horses 3.647 15.745 34.146 156.610 4 5 10,7 10,1 Swines 4.341 4.354.064 100.952 9.040.247 1.003 90 4,3 48,2
Livestock Poultry Farms 3.177 37.412.509 75.280 157.227.881 11.776 2.089 4,2 23,8
- Broilers 1.466 22.445.267 52.515 93.255.182 15.311 1.776 2,8 24,1
- Laying Hens 2.533 10.212.132 69.153 37.031.173 4.032 535 3,7 27,6
Rabbits 1.191 306.536 30.209 9.155.889 257 303 3,9 3,3
Ostriches 66 527 871 12.071 8 14 7,6 4,4
respect to 2008) for an overall produc-tion of 3.77 million tons (-10.5%) or 13.1% of the surface area and 21.3% of national production. However, oilseeds have doubled their surface area with respect to 2008 and increased production by 70%. It is interesting to see the recovery of rape. Among vegetables we would like to mention the importance of industry tomatoes (9.2% of national production) for which the cultivated surface
increased by as much as 20% in 2009. As regards temporary fodder crops, the role of waxy corn should be evidenced (43.7% of national production) and alfalfa meal. We have seen an increase in surface area for both these crops since 2008 (+6% and +2.5% respective-ly) and a drop in production (-3.7% and -3.3%). Among the permanent crops, the surface areas dedicated to vineyards has dropped by 1.6% against a production increase of 0.7%.
Con-cerning livestock farms, in reference to the numbers provided by ISTAT as of December 2009, in Lombardy there are approximately 1,660,000 head of cattle (-0.9%), 4,076,000 head of swine (-0.9%) and 145,000 sheep and goats (-2.2%). On the contrary, dairy cows have shown an annual increase of 1.9% in the number of heads raised with a 5.2% increase in milk production.
Sizes and productions of livestock farms in Lombardy, 2009
Lombardy Italy Lombardy/Italy
Livestock farms Number Production Number Production % %
of heads 2009 (t) of heads 2009 (t) of heads of production
Cattle - beef meat 1.661.591 371.100 6.102.817 1.435.200 27,2 25,9
Swine - pig meat 4.076.174 825.800 9.157.080 2.064.700 44,5 40,0
Ovicaprine - sheep and goat meat 145.009 1.100 8.973.601 71.300 1,6 1,5
Poultry n.d. 294.000 n.d. 1.558.900 n.d. 18,9
Cows and Buffalo - buffalo and cow’s milk (000 hl) 588.510 42.461 1.878.421 114.471 31,3 37,1
Sheep and Goats - sheep and goat’s milk (000 hl) 119.978 30 7.905.011 5.782 1,5 0,5
Eggs (millions of pieces) n.d. 2.349 n.d. 13.279 n.d. 17,7
Honey n.d. 1.200 n.d. 10.800 n.d. 11,1
Production and income
The accounting surveys of FADN-INEA1 for the year 2007 show that
livestock is the prevalent orientation
in Lombardy, on farms larger than 50 ha of UAA, especially on flat lands. The average UAA per farm is greater than the national figure. On the other
hand, for farms of greater economic value, mainly livestock, the utilized agricultural area is less than the national average.
47
ECONOMIC RESULTS OF FARMS
Farm results per ESU class in Italy and Lombardy, 2007
ESU class % co. % SGI Average UAA WU/co. ABU/co. SGP/ha SGP/WU RI/ VC% FC% RI%
weight* (ha) (€) (€) FWU (€)
ITALY from 4 to 16 ESU 60,43 19,98 87,54 6,09 0,88 1,28 2.941 20.348 8.368 33,52 30,05 36,44 from 16 to 40 ESU 25,70 23,64 43,22 14,75 1,53 6,21 3058 29497 13813 37,00 25,44 37,56 from 40 to 100 ESU 9,86 22,09 21,56 31,36 2,38 20,70 3781 49892 30445 39,47 20,52 40,02 from 100 to 250 ESU 2,97 16,66 15,28 58,17 4,40 74,30 5152 68163 53920 45,30 19,50 35,20 over 250 ESU 1,03 17,63 11,85 115,63 8,16 394,54 7587 107564 147797 47,16 16,82 36,02 Total 100 100 49,41 13,49 1,37 10,70 3862 37898 19184 40,09 22,71 37,20 LOMBARDY from 4 to 16 ESU 42,19 5,86 90,40 7,38 0,78 2,91 2536 24018 7383 29,91 41,56 28,53 from 16 to 40 ESU 25,82 10,70 51,56 15,37 1,17 8,80 3063 40319 15226 36,09 29,71 34,20 from 40 to 100 ESU 17,68 18,79 37,88 38,27 1,70 44,35 3702 83473 41203 38,09 20,87 41,04 from 100 to 250 ESU 9,40 24,89 29,64 56,97 3,13 147,36 5740 104492 65037 42,60 19,24 38,16 over 250 4,90 39,77 17,47 76,03 6,58 715,91 12317 142307 165674 44,47 13,96 41,57 Total 100,00 100,00 49,21 22,93 1,55 60,29 5309 78693 43079 40,98 19,96 39,06
* It expresses the average number of farms in the universe represented by one farm of the sample taken. Source: FADN INEA statistics extended to the universe.
As regards the WU, it should be point-ed out that on hills and flatlands, live-stock farms in Lombardy generally use more workers than the national aver-age, UAA class being equal. If we look at the economic indicator SGP/ha, it is clear that Lombardy differs from the Italian average only on farms above 100 ESU, especially on hills and flat lands and on holdings with specialized livestock farms or mixed with granivo-rous. On the other hand the SGP/WU ratio indicates a better performance of Lombard agriculture directly propor-tionate to the increase in economic size, altimetry and an amount of UAA. The most efficient and productive ori-entations are livestock. Due to high fixed costs (FC), farms specialized in seed crops (grain and rice) are making a change in favour of specialized mixed grain crops, where we are see-ing an emergence of hoed, energy-rich and oily protein crops.
% % SGI SGI GP/ha GP/AWU NI/ha NI/FWU % subsidies
farm no. UE per farm /GP
Austria 1,64 1,68 32,29 65.792 41.118 868 19.669 31,23 Belgium 0,74 2,37 101,74 187.465 97.814 1.295 35.966 11,04 Denmark 0,78 2,59 105,15 253.047 166.787 169 15.172 11,78 France 7,96 19,40 77,23 133.961 69.295 431 23.177 20,64 Germany 4,28 12,34 91,42 191.102 84.104 458 26.562 17,30 Greece 11,90 4,00 10,64 18.600 15.385 1.778 11.576 29,18 Ireland 2,45 1,69 21,83 38.315 33.803 440 17.889 48,95 Italy 16,61 16,61 31,69 54.217 39.857 1.537 23.782 10,76 Lombardy 0,80 2,34 92,81 164.358 93.866 3.051 60.679 11,01 The Netherlands 1,36 6,31 147,03 345.938 131.712 1.420 31.770 4,55 Poland 17,10 5,33 9,87 23.906 13.635 465 5.195 13,52 United Kingdom 2,05 6,78 104,97 211.756 89.727 277 33.462 22,42 Spain 16,65 12,94 24,62 38.516 28.740 723 19.165 15,21 Hungary 1,84 1,24 21,40 58.571 30.931 171 12.363 19,99 FADN 100 100 31,68 61.078 36.876 577 15.051 17,58
* The farms of the sample make up 0.88% of the EC universe, the Italian ones 2.0% of the Italian EC universe, Lombardy 1.7% of the Regional EC universe.
Source: FADN.
Average farm results in Euro represented by the main EU countries of the FADN (three-year average 2005 - 2007), ranked according to the weight of country SGI*
49
* The farms of the sample make up 0.88% of the EC universe, the Italian ones 2.0% of the EC universe Italy, Lombardy 1.7% of the Regional EC universe. Source: FADN.
Intermediate consumptio Depreciation rates External factors NI FAM/GP
Austria Belgium Denmark France Germany Greece Ireland ITALY LOMBARDY NetherlandsTheThe Poland United Kingdom Spain Hungary
-10 0 10 20 30 40 50 60 70 80
Farms specializing in cereals, average farm results in Euro represented by the main EU countries of the FADN (three-year average 2005 - 2007)*
Countries % farm SNI per GP/ha GP/AWU NI/ha NI/FWU subsidies % ha ha % ha % ha parcels
no. farm /GP % grains energy fodder of unused land
France 14,39 72,50 932 72.014 299 26.140 39,0 59,70 6,25 7,50 8,30 Greece 10,41 8,88 831 19.547 431 10.853 57,2 83,67 0,00 1,49 9,54 Italy 17,16 19,44 1.383 35.389 682 19.469 31,6 75,72 0,33 5,66 6,89 Poland 8,56 11,86 660 21.012 226 8.772 26,4 74,32 0,11 3,28 1,09 Spain 18,67 20,38 426 31.001 276 21.610 42,6 64,81 0,04 2,77 20,76 FADN 100 32,66 795 44.951 260 19.630 36,1 63,80 2,68 7,03 9,34 Lombardy 2,30 34,81 1.749 44.478 931 25.973 35,0 81,14 0,00 5,62 7,66
* in the EU the countries represent over 65% of the total EC number, in Lombardy farms which represent 31% of total farms and 12% of the regional SGI. Source: FADN.
2 INEA processing of European Commission data FADN EU (http://ec.europa.eu/agriculture/rica).
Production orientations2and type of
activity
In terms of average size, Lombardy is in line with the major agricultural holdings of France, Germany, Great Britain, Denmark and Belgium. In terms of GP/AWU the comparison with other European countries is even larg-er, only Holland and Denmark achieve
better results. One characteristic of the regional agriculture is, in all of the typologies, the high NI/ha ratio and the high NI/FAMWU ratio, partially due to the lower use of wage-earning labour and the high level of mecha-nization of the holdings.
If we look at the production orienta-tions, we see that for the specialized
grain cultivation and Lombardy shows a high GP/ha, on holdings twice the size of the Italian average. Rice grow-ing is widespread in Lombardy, espe-cially in the provinces of Pavia, Milano and Lodi.
As regards cultivating fodder and oth-er crops, Lombardy achieves good lev-els of NI/FWU, and it's GP/ha is three
Farms specializing in winegrowing, average farm results in Euro represented by the main EU countries of the FADN (three-year average 2005 - 2007)*
Countries % farm SNI per GP/ha GP/AWU NI/ha NI/FWU Subsidies % ha % wine
no. farm /GP vineyards grapes/GP
France 20,61 102,97 7.896 64.534 2.082 32.774 2,2 70,56 93,82 Greece 5,67 10,73 4.659 14.667 3.449 13.123 24,7 69,38 83,87 Italy 33,91 23,51 6.295 37.056 2.901 23.530 2,3 69,72 90,77 Portugal 6,27 9,44 1.864 9.863 601 4.795 10,5 59,39 86,75 Spain 23,17 18,67 1.712 21.753 847 13.622 3,2 68,23 73,43 FADN 100 38,57 5.161 38.869 1.813 21.188 3,4 67,57 89,38 Lombardy 1,20 39,74 5.614 41.269 3.869 34.890 4,7 60,4 82,5
* In the EU countries it makes up over 90% of the total EC number, in Lombardy farms which represent 3% of total farms and 3.6% of the regional SGI. Source: FADN.
Farms specialising in dairy cattle, average farm results in Euro represented by the main EU countries of the FADN (three-year average 2005 - 2007)*
Countries % farm SNI per GP/ha GP/AWU NI/ABU NI/FWU Subsidies ABU/ha Cows % dairy % meat
no. farm /GP /farm products/GP /GP
Austria 6,17 25,53 1.859 34.220 1.018 17.446 33,2 0,91 16,28 53,18 15,50 France 12,49 63,09 1.662 69.489 376 19.132 21,1 1,15 44,01 69,56 18,88 Germany 14,90 69,57 2.571 83.833 523 29.729 18,7 1,45 46,28 69,10 14,08 Ital y 5,76 68,23 5.623 80.655 996 40.548 10,0 2,42 48,18 71,36 8,77 Poland 14,55 11,67 1.330 14.416 604 6.949 14,8 1,03 14,36 68,29 11,51 Romania 10,09 2,40 1.863 5.222 654 2.841 15,9 1,44 5,00 65,59 5,56 FADN 100 48,67 2.400 55.640 530 20.268 17,8 1,42 36,41 71,44 12,53 Lombardy 1,34 125,71 6.926 122.047 1.182 74.695 12,8 2,88 77,77 71,41 9,39
* In the EU countries it makes up over 60% of the total EC number, in Lombardy farms which represent 16% of total farms and 22% of the regional SGI. Source: FADN.
Dairy livestock, combined raising and fattening, average farm results in Euro represented by the main EU countries of the FADN (three-year average 2005 - 2007)*
Countries % farm SGI per GP/ha GP/AWU NI/ABU NI/FWU Subsidies ABU/ha Cows % dairy % meat
no. farm /GP /farm products/GP /GP
France 16,13 45,56 834 53.770 228 17.633 48,5 1,12 5,88 14,22 70,65 Ireland 19,87 12,40 484 18.057 278 11.985 97,4 1,12 0,46 3,10 79,23 Italy 10,10 52,86 2.997 63.043 687 30.497 14,2 1,86 13,88 32,51 40,60 Poland 13,08 12,37 1.192 13.446 499 6.092 15,5 1,03 11,27 58,42 15,61 Spain 16,87 10,71 857 27.361 525 16.308 30,8 0,93 1,17 7,01 73,92 FADN 100 28,05 1.031 36.540 346 15.640 40,1 1,17 5,62 19,99 54,57 Lombardy 0,75 92,75 6.994 96.328 665 42.761 14,7 4,17 16,80 32,38 44,28
* In the EU countries it makes up over 75% of the total EC number, in Lombardy farms which represent 6% of total farms and 6.4% of the regional SGI. Source: FADN.
Farms specializing in granivorous, average farm results in euro represented by the main EU countries of the FADN EU (three-year average 2005 - 2007)*
Countries % farms SGI per GP/ha GP/AWU NI/ha NI/FWU Subsidies ABU/ha % pig % poultry % eggs
no. farm /GP meat/GP meat/GP /GP
France 6,09 103,97 11.231 160.417 1.239 23.575 3,6 15,60 63,70 14,68 5,33 Germany 7,18 113,85 5.414 143.218 421 15.048 6,3 4,88 68,60 4,70 5,19 Italy 5,56 384,56 19.963 168.372 8.034 136.393 2,6 19,93 67,21 4,68 11,91 Poland 40,47 18,04 4.077 34.125 902 8.749 4,9 3,28 33,10 45,11 7,20 Romania 6,20 10,00 9.077 16.503 1.779 5.084 12,4 6,99 30,94 31,87 25,49 Spain 12,71 136,05 9.494 118.316 2.576 40.796 2,4 15,79 64,45 12,25 2,58 FADN 100 85,22 9.474 96.842 1.715 25.472 3,6 10,19 59,12 15,63 9,66 Lombardy 1,46 734,56 20.148 235.560 10.673 303.614 3,6 18,25 82,60 0,68 3,22
* In the EU countries it makes up over 75% of the total CE number, in Lombardy farms which represent 5% of total farms and 41% of the regional SGI. Source: FADN.
REA results extended to the universe – % composition of the economic variables of the farms (a) per type of activity, 2006
Lombardy - Significant Significant Significant Dominant Only economic variables self self sustenance multi- farm farm
sustenance and functionality product products multi-functionality market market % Self sustenance > 10% > 5% e > 10% < 5% < 5%
% Multi-functionality < 5% > 5% e < 10% > 10% < 10%
% Farm product market < 85% < 85% < 85% 90% - 95% > 95% Percentage Composition
Farms 12,3 9,7 4,5 0,5 71,5
- with turnover equal to or greater than 10,000 € 0,0 2,6 5,4 0,8 91,2
AWU (b) 3,2 4,9 2,7 0,7 88,3 AWU employees (b) 0,0 0,7 1,3 0,0 98,0 Production (c) 0,2 1,9 1,5 0,7 95,7 - of which turnover 0,2 1,8 1,5 0,6 95,8 Intermediate costs 0,2 1,5 0,8 0,6 96,8 Value added (c) 0,3 2,2 2,0 0,7 94,8 Labour costs 0,0 0,5 0,9 0,0 98,6
Gross operating margin (GOM) 0,3 2,4 2,0 0,8 94,5
Other net profits 0,3 1,7 1,4 0,4 96,1
Social contributions charged to farmer
and family members 0,2 3,5 4,0 0,9 91,4
Gross operating result (GOR) 0,3 2,2 1,8 0,7 95,0
(a) Individual and corporate farms. (b) No. of full-time work units. (c) Values at basic prices.
53
times greater than the Europeanaver-age.
Specialized winegrowing is rather lim-ited, but presents holdings that are larger than the Italian average, with high NI/FWU and GP/ha ratios. As regards specialized dairy cow farms, in this region the livestock load is higher than the European average, and in this case too it shows excellent performance in terms of the NI/FWU and NI/ABU ratios.
Also for mixed livestock farms, pro-ducing meat and milk, Lombardy pres-ents a high ABU/ha ratio.
Lastly regarding the specialized granivorous farms we observe a pre-dominance of enormous specialized holdings, especially swine livestock farms, distinguished by high ratios of NI/FWU and GP/ABU and ABU/ha, the last mentioned ratio being double the European average.
