Lombardy agricolture in figures. 2012, (3th ed.)

isbn978-88-8145-302-3

LOMBARDY AGRICULTURE IN FIGURES - 2012

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, Lombar-dy Region; Roberto Pretolani, DEMM; Renato Pieri, SMEA; Francesca Marras, INEA; Guido Gay, ÉUPOLIS Lombardia

Topical consultants

Daniele Bellomo, Danilo Bertoni, Lucia Briamonte, Maurizio Castelli, Stefano Dell’Acqua, Maria Silvia Giannini, Sabrina Giuca, Teresa Lettieri, Claudio Liberati, Pietro Manzoni di Chiosca e Poggiolo, Sonia Marongiu, Renato Pieri, Roberto Pretolani, Maria Rosaria Pupo d’Andrea, Serena Tarangioli

Editing revision

Sabrina Giuca, Maria Silvia Giannini, Francesca Marras Processing

Marco Amato, Alessia Fantini, Fabio Iacobini Editorial coordination

Benedetto Venuto Editorial Secretary Roberta Capretti

Layout plan and realisation

Carlo Silva and staff INEA (Jacopo Barone, Piero Cesarini, Fabio Lapiana, Sofia Mannozzi) Photography Carlo Silva Internet edition Massimo Perinotto English translation James Varah Secretarial staff

Lara Abbondanza and Debora Pagani

We would like to thank for their collaboration: Maria Teresa Besana, Gabriele Boccasile, Isabella Brandi, Valentina Cardinale, Gloria Corti, Simonetta De Leo, Cristian Della Torre, Rita Iacono, Andrea Massari, Giovanna Nicastro, Donatella Parma, Antonio Pepe, Andrea Povellato, Marina Ragni, Roberto Tonetti

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In this third edition of the booklet “Lom-bardy Agriculture in Figures 2012”, the research institutes INEA, DEMM and SMEA, with which the Agriculture DG collaborates for its preparation, provide an updated structural and economic framework for the agri-food system in Lombardy, based on the most recent administrative and statistic data, including the final results of the ISTAT 6th General Agricultural Census. The publication this year is also supple-mented by information regarding agri-food processing cooperatives, made available by the Observatory of Italian Agricultural Cooperation.

In 2011, despite the economic crisis, ag-riculture and the food industry showed positive trends. The value of agri-in-dustrial production in Lombardy ex-ceeded 12 billion euro, up 7.3% com-pared to 2010, accounting for as much as 16.1% of the national total and about 3.7% of the region’s GDP. The value of the regional agricultural component,

amounting to 7.2 billion euro, shows an increase of 11.5%, with a significantly increased share of 14.5% of the national total, while value added from the food industry in Lombardy, estimated at +2.4% compared to 2010, has more fa-vourable elements compared to the na-tional level and other economic sectors. In 2011 there was, therefore, a strength-ening of the share of the regional sys-tem with respect to the national, an expression of the overall responsive-ness of Lombardy’s busiresponsive-nesses, whose dynamics are better than the national economy’s as a whole, though there was a further decline in the number of busi-nesses (-1.6%).

While the recovery of agricultural pro-duction, largely due to the increase in prices (+11.2%), brings value to higher levels than before the crisis, the recov-ery of value added seems not yet com-pleted and critical elements for profit-ability were already glimpsed in the first half of 2012.

Improving the efficiency of produc-tion processes and farms’ profitability remains a priority for strengthening the competitive capacity of the Lom-bardy system, which should be pursued through development strategies that can affect individual farms or groups of farms, also involving specific sectors at different territorial levels.

Structural adjustment, product inno-vation and adoption of new organiza-tional models are some of the measures the Lombardy Region supports through the Measures of the 2007-2013 Rural De-velopment Programme, with spending progress of 86.4% of available resourc-es and liquidation of more than 50% of resources. Attention to agriculture also involves promotion of quality agri-food, representation of wine, organic and PDO and PGI, with actions designed to consolidate and establish new trade links on international markets and to increase the presence and recognition of the specificity of these productions in

a positive phase for exports.

In the face of a problematic economic situation, the Lombardy Region has guaranteed, for the third consecutive year, greater liquidity to businesses, by disbursing 50% of the 2012 single

appli-cation premium and directing the first flows earlier than in previous years, to farmers in the Mantua area affected by the earthquake; this measure, alongside initiatives in favour of operating credit, provides less costly financing

condi-tions for farms than the ordinary credit market.

For more details remember that this edi-tion of the brochure is accompanied by the annual reports of regional analysis, “The agri-food system in Lombardy”.

Councillor for Agriculture of the Lombardy Region

ECONOMY AND AGRICULTURE

Land and population pg. 10

Protected Areas pg. 15

Gross domestic product pg. 20

Value added pg. 22

Employment pg. 24

AGRI-INDUSTRIAL SYSTEM

Components of the system pg. 28

Food industry and cooperation pg. 29

Distribution pg. 33

Foreign trade pg. 35

Food consumption pg. 38

AGRICULTURE

Production levels in agriculture pg. 42

Agri-meteorological trend pg. 46

Intermediate consumption pg. 47

Investments pg. 49

Prices pg. 52

Structures in agriculture pg. 55

Economic results of farms pg. 65

Credit for agriculture pg. 72

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MULTI-FUNCTIONALITY AND AGRICULTURE

Water management pg. 78

Forests pg. 82

Agri-energy pg. 86

Products of designated origin

and traditional products pg. 89

Organic farming pg. 95

Agri-tourism (Farm stays) pg. 99

Direct sales pg. 102 Educational farms pg. 108

AGRICULTURAL POLICY

Rural Development Programme

(CAP - Pillar 2) pg. 117

GLOSSARY

The region, totalling 23,862 square kilometres, or about 7.9% of national area, is characterised by lowlands

(47%), hills (12.4%) and mountains (40.5%). In terms of population, Lom-bardy is the top Italian region with

nearly 10 million residents (16.4% of the national population), mostly con-centrated in lowlands and foothills. In

land

and

population

Land, resident population and inhabitant density in Lombardy, 2011

Total land % Breakdown Resident population % Breakdown of Density

(sq.km.) of land as of 1/1/2011 resident population (inhabitants/sq.m.)

Lombardy 23,862.80 100.0% 9,917.714 100.0% 415.6 Mountains 9,672.81 40.5% 1,054,835 10.6% 109.1 Hills 2,963.62 12.4% 2,052,259 20.7% 692.5 Lowlands 11,226.37 47.0% 6,810,620 68.7% 606.7 Bergamo 2,722.86 11.4% 1,098,740 11.1% 403.5 Brescia 4,784.36 20.0% 1,256,025 12.7% 262.5 Como 1,288.07 5.4% 594,988 6.0% 461.9 Cremona 1,770.57 7.4% 363,606 3.7% 205.4 Lecco 816.17 3.4% 340,167 3.4% 416.8 Lodi 782.36 3.3% 227,655 2.3% 291.0 Mantua 2,338.84 9.8% 415,442 4.2% 177.6 Milan 1,576.59 6.6% 3,156,694 31.8% 2,002.2

Monza and Brianza 405.49 1.7% 849,636 8.6% 2,095.3

Pavia 2,964.70 12.4% 548,307 5.5% 184.9

Sondrio 3,211.90 13.5% 183,169 1.8% 57.0

Varese 1,198.71 5.0% 883,285 8.9% 736.9

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exceeds 600 inhab./km², compared to the regional average of 415 inhab./ km² and the national average of 201 inhab./km². The population shows

some dispersion in the area so that only 25.5% of the population lives in municipalities with more than 50,000 inhabitants, compared to 34.7% na-tionally.

With an average annual increase in the decade 2001-2010 of 1.3% versus 0.6%, calculated on a national basis, the dynamic of the population is rath-er lively, partly because of the recent % Land cover in Lombardy, 2007

Inhabited Agricultural areas Wooded Mountains

areas Total arable permanent permanent change % absolute average areas and bodies of agricultural area crops crops pastures 1999-07 annual change water

Bergamo 13.9 28.4 17.4 0.7 10.3 -5.4 -557 39.4 18.4 Brescia 11.3 35.0 27.3 2.0 5.7 -7.1 -1,611 31.9 21.9 Como 16.0 15.2 6.4 0.2 8.5 -4.3 -109 48.1 20.8 Cremona 10.6 85.5 80.7 3.5 1.2 -1.6 -300 1.6 2.4 Lecco 15.0 15.9 5.3 0.2 10.4 -9.9 -179 48.6 20.5 Lodi 12.5 80.2 75.8 3.8 0.6 -2.6 -211 3.2 4.1 Mantua 12.4 82.0 75.2 5.7 1.1 -2.8 -693 1.1 4.5 Milan 39.8 51.9 48.7 1.6 1.7 -6.3 -692 6.2 2.0

Monza and Brianza 53.4 36.2 34.2 0.3 1.7 -8.3 -166 9.2 1.1

Pavia 9.0 74.0 61.3 11.4 1.3 -2.4 -682 12.0 5.0

Sondrio 2.4 7.7 0.5 1.0 6.2 -2.9 -94 34.8 55.1

Varese 28.9 15.2 11.1 0.2 3.9 -4.8 -117 45.0 10.9

Lombardy 14.1 43.7 35.9 3.1 4.7 -3.9 -5,410 24.5 17.7

massive migrant flows; about 10% of the population is foreign, compared to the national average of 7%.

In 2010 there were about 12.3 million tourist arrivals, 12.4% of the national total, of which 47.4% were from for-eign countries, above the Italian aver-age. For presences, the region’s share of the national total dropped to 8.3%, a sign of a limited average length of stay, typical of business tourism, which is more common in Lombardy than elsewhere. 46.3% of tourist arriv-als are concentrated in the province of Milan, followed by Brescia with 16.4%. 91% of arrivals were in hotels, with the remaining 9% to complemen-tary businesses. Arrivals in farm stays are approximately 1% of the regional total.

Land cover, according to DUSAF (2007) figures, shows a prevalence of agricultural areas (43.7%), followed by woodland (24.5%) and populated

Amount of agricultural land (000 ha), 2010

UAA Land UAA/land %

Bergamo 71.0 272.3 26.1 Brescia 181.8 478.4 38.0 Como 23.7 128.8 18.4 Cremona 135.5 177.1 76.5 Lecco 10.5 81.6 12.8 Lodi 55.6 78.2 71.1 Mantua 168.7 233.9 72.1 Milan 64.9 157.7 41.1

Monza and Brianza 9.7 40.5 23.9

Pavia 176.9 296.5 59.7 Sondrio 75.1 321.2 23.4 Varese 13.4 119.9 11.2 Lombardy 986.8 2,386.1 41.4 Italy - North 4,568.8 11,993.0 38.1 Italy 12,856.0 30,132.0 42.7 Lombardy/Italy - North (%) 21.6 19.9 Lombardy/Italy (%) 7.7 7.9 Source: ISTAT.

areas (14.1%), although these propor-tions vary widely at the provincial

level. The rate of human settlement is very high in the provinces of Monza

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respec-tively). Cremona is the province with the greatest share of agricultural land (85.5%), while that of Lecco has the highest percentage of forests.

Utilised agricultural area (UAA) is nearly 1 million hectares, correspond-ing to 41.4% of the regional area, in line with the national average; in par-ticular, regional UAA represents 7.7% of the Italian total. The province with greatest share of UAA to total surface is Cremona (76.5%); at the opposite extreme is Varese (11.2%). The data of the 6th General Agricultural Cen-sus show a decrease of 5.1% of region-al UAA over ten years, and a much steeper drop in the provinces of Ber-gamo (-23.6%), Sondrio and Lecco. As with population density, the ratio of resident population to agricultural area is very high, much higher than the corresponding figure for Italy and the European Community.

Ratio of population/agricultural land (inhabitants/100 ha UAA), 2010

Lombardy Italy - North Italy EU-27* 1,005 608 472 289 Source: ISTAT. *EUROSTAT, 2007

Tourist arrivals in Lombardy and Italy by type of enterprise, 2010

Total % of arrivals Arrivals Arrivals in Agri-tourism Total

arrivals from abroad in hotels complementary businesses (farm stays)

Bergamo 833,709 37.2 737,771 95,938 3,068 1,799,351 Brescia 2,016,536 51.3 1,500,796 515,740 28,070 8,464,905 Como 952,286 63.6 824,333 127,953 7,135 2,540,319 Cremona 189,698 26.5 169,521 20,177 6,419 361,672 Lecco 168,289 45.4 118,503 49,786 1,790 473,634 Lodi 128,374 24.7 127,280 1,094 242 211,038 Mantua 192,128 26.2 141,634 50,494 25,853 439,140 Milan 5,692,914 50.7 5,608,525 84,389 n,d, 11,589,857

Monza and Brianza 428,780 22.4 425,054 3,726 n,d, 701,235

Pavia 163,414 21.1 141,375 22,039 10,900 408,911 Sondrio 635,553 32.7 545,559 89,994 8,868 2,495,026 Varese 897,259 50.2 845,646 51,613 2,019 1,641,776 Lombardy 12,298,940 47.4 11,185,997 1,112,943 94,364 31,126,864 Italy 98,813,845 44.3 79,374,146 19,439,699 2,110,100 375,542,550 Source: ISTAT.

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protected

areas

The official list of protected natural areas in Lombardy indicates a surface of approximately 134,000 hectares, or 4.5% of the protected area at the national level and 5.5% of the regional land area. The 105 natural areas in the region include: the Stelvio National Park, two state nature reserves (Fon-tana Woodland and Siro Negri Wood-land), 13 regional parks, 62 regional nature reserves and 27 other protect-ed areas, representprotect-ed by natural monuments, oases and natural areas of local interest. In addition to these natural protected areas, the system of protected areas in Lombardy includes other types, such as multi-municipal parks of local interest, whereas there are a total of 24 regional parks, which are divided into river, mountain, ur-ban belt, agricultural and forestry. Within the confines of the regional parks, however classified, we can identify agri-forests or uncultivated

areas in regional parks, characterized by higher levels of naturalness and mainly aimed at conservation and restoration of natural characteristics. The set of regional parks, therefore, covers more than 460,000 hectares of Lombardy, of which 14% is protected natural area; generally speaking of park areas, inclusion should be made of the Stelvio National Park, bringing the total to 524,000 ha.

The regional protected area also in-cludes other types of protected areas: wetlands and areas belonging to the Natura 2000 network, whose surfaces cannot be summed directly because there may be some overlap. These represent 15.6% of the regional sur-face (compared to 21% covered na-tionally). In particular, there are 193 Sites of Community Importance (SCI) affecting 224,203 hectares of the sur-face, or 9.4% of regional area, and 67 Special Protection Areas (SPAs) for

a total of 297,425 hectares, 12.5% of regional area. However, if we exclude 19 overlapping SCIs and SPAs, the Natura 2000 network in Lombardy includes 241 sites spread over a total of 372,154 hectares. In the provin-cial distribution of the Natura 2000 area, the province of Sondrio is in first place (41.3%), followed by Ber-gamo (22.3%) and Pavia (15.6%). 36% of Natura 2000 sites in the region are included in protected areas and play an important role in the conservation and protection of the most impor-tant habitats and species. The sites, in fact, are home to 61 species listed in Annex II of the Habitats Directive (47 animal species) and 87 species of birds included in Annex I of the Birds Directive.

In 2011, 84.4% of the surface of SCIs was classified as belonging to the Al-pine bio-geographical region, while the remaining 15.6% was classed as

Surface and number of land areas by class and region (hectares)

Region National State Regional Regional Other Total % to % to

Park Nature Nature Nature regional national territorial

Reserve Park Reserve protected areas total surface

Molise 4,059 1,190 0 50 2,291 7,590 0.2 1.4 Liguria 3,860 16 21,592 23 1,781 27,272 0.9 4.7 Valle d’Aosta 37,007 0 5,747 512 0 43,266 1.5 13.2 Friuli-Venezia Giulia 0 399 46,352 7,043 0 53,794 1.8 6.8 Umbria 17,978 0 40,629 0 4,535 63,142 2.2 7.5 Marche 61,099 6,085 22,800 493 0 90,477 3.1 9.2 Sardinia 84,205 0 6,779 0 0 90,984 3.2 3.8 Emilia-Romagna 30,729 8,246 51,578 2,627 142 93,322 3.1 4.0 Veneto 15,030 19,483 56,734 2,120 0 93,367 3.2 5.1 Lombardy 59,766 244 63,756 9,492 702 133,960 4.5 5.5 Tuscany 39,958 11,039 51,471 32,539 6,040 141,047 5.4 6.9 Piedmont 45,377 3,383 95,425 15,181 19,747 179,113 5.7 6.6 Basilicata 157,346 965 33,655 2,197 0 194,163 4.1 12.0 Lazio 26,629 25,864 114,632 43,563 6,576 217,264 7.3 12.4 Calabria 220,630 16,158 17,687 750 10 255,235 8.7 16.9 Puglia 186,177 9,906 66,024 5,870 0 267,977 4.4 6.6 Sicily 0 0 185,551 85,164 3,026 273,741 9.3 10.5 Trentino-Alto Adige 70,968 0 207,651 2,211 1,790 282,620 9.7 20.8 Abruzzo 219,432 17,783 56,450 10,329 1,057 305,051 10.4 28.1 Campania 185,431 2,014 150,143 10,076 2,541 350,205 11.2 23.9 Italy 1,465,681 122,775 1,294,656 230,240 50,238 3,163,590 100 9.7

Protected land areas (n.) 22 146 105 335 144 752

- of which: Lombardy 1 2 13 62 27 105

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Lom-bardy, some are “priority” for which the EU has required special attention: acidophilus grasslands of Nardus

Stricta, alluvial forests of Alnus

glu-Distribution of protected natural areas in Lombardy

44.6% 0.2% 0.5% 47.6% 7.1% National Park State Nature Reserve Regional Nature Park Regional Nature Reserve Other regional protected areas

Source: MATTM - Nature Conservation Board, EUAP, 2005; Official list of protected natural areas, 6th updating of 27 April 2010.

tinosa and Fraxinus excelsior, woods of Pinus mugo and Rhododendron

hirsutum and peat bogs.

In Lombardy, 75.5% of SPAs fall in the Alpine bio-geographical region while

24.5% are continental. Unlike SCIs, whose extension has remained the same for the five years of 2006-2011, the surface of SPAs in the Alpine bio-geographical region has increased

considerably compared to 2006 (+66.9%), signifying the region’s im-portance to this type of environment, which includes 40% of European flora. The variety of environments and the coexistence of agriculture, forestry and grazing make the Natura 2000 network in Lombardy relevant within the framework of the National Strat-egy on biodiversity.

The special “Agriculture” project supported by the region aims to pro-mote sustainable agriculture within protected areas and regional parks. On one hand, this allows the best de-velopment of agri-food products and, on the other, the restoration and con-servation of natural elements of agri-cultural land (wetlands, hedgerows, woodlands, meadows), which are very important for the growth and mainte-nance of biodiversity.

Regional parks in Lombardy

Park (ha) Natural area to park (%)

Parco Adamello 50,935 43

Parco Adda Nord 6,900 28

Parco Adda Sud 24,343 0

Parco Agricolo Sud Milano 47,055 0

Parco Alto Garda Bresciano 37,452 15

Parco Campo dei Fiori 6,337 24

Parco Colli di Bergamo 4,683 21

Parco Grigna Settentrionale 5,541 0

Parco Groane 3,696 35

Parco Lombardo della Valle del Ticino 91,618 22

Parco Mincio 15,859 0

Parco Monte Barro 645 64

Parco Monte Netto 1,470 0

Parco Montevecchia e Valle del Curone 2,746 74

Parco Nord Milano 641 13

Parco Oglio Nord 15,173 0

Parco Oglio Sud 12,745 0

Parco Orobie Bergamasche 69,860 0

Parco Orobie Valtellinesi 44,094 0

Parco Pineta di Appiano Gentile e Tradate 4,833 76

Parco Serio 7,514 0

Parco Spina Verde 967 88

Parco Bosco delle Querce 44 100

Parco Valle del Lambro 8,179 52

TOTAL 463,329 14

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Piedmont Valle d'Aosta Lombardy

Liguria Trento Bolzano Veneto Friuli-V enezia Giulia Emilia-Romagna

Tuscany Umbria Marche Lazio Abruz zo

Molise

Campania Puglia Basilicata Calabria Sicily Sardinia

0 100,000 200,000 300,000 400,000 500,000 600,000 396,837 98,933 372,067 149,819 173,411 414,679 149,733 147,354 256,863 362,725 120,200 146,213 441,630 387,076 118,724 395,537 474,597 164,774 319,392 568,736 529,838

* The number and extension of Natura 2000 sites by region is calculated excluding overlapping of SCIs and SPAs. Source: MATTM, 2010.

gross

domestic

product

20.7% of the national GDP and 2.6% of the EU’s, is the highest among the Ital-ian regions. The last available regional data at current prices (for 2009 updat-ed in February 2012) is approximately 317 billion euro, followed by Lazio (with 165 billion, equivalent to 10.8%), the Veneto (with 141 billion, equal to 9.2%) and Emilia-Romagna (135 bil-lion, equal to 8.8%). This figure is in-teresting when compared to that of the regional population, which represents 16.3% of the national and 1.96% of the EU-27 totals. It follows that the GDP per capita in Lombardy, amounting to 32,400 euro, follows the per capita val-ues of Valle d’Aosta and Trentino-Alto Adige and is 27.7% higher than the na-tional level and 37.7% higher than the Community’s.

GDP per unit of labour (AWU), in cur-rent terms, is approximately 71,300 euro, 13% and 35.4% higher than

simi-Trend in GDP per inhabitant in Lombardy (euro), 2003-2009

GDP/Inhabitant

Year Current Chain

prices indexes 2003 30,449 27,779 2004 31,058 27,667 2005 31,544 27,554 2006 32,356 27,836 2007 33,442 27,994 2008 33,425 27,233 2009 31,780 25,281 Lombardy/Italy (2009) 1.26 1.26 Lombardy/North-Italy (2009) 1.06 1.06 Lombardy/EU-27 (2009) 1.35 1.23 Source: ISTAT, Regional economic accounts.

Trend in GDP per work unit in Lombardy (euro), 2003-2009

GDP/Work unit

Year Current Chain

prices indexes 2003 62,570 57,085 2004 64,433 57,398 2005 66,197 57,824 2006 67,328 57,923 2007 69,796 58,424 2008 70,715 57,616 2009 70,039 55,715 Lombardy/Italy (2009) 1.12 1.12 Lombardy/North-Italy (2009) 1.07 1.07 Lombardy/EU-27 (2009) 1.33 1.21 Source: ISTAT, Regional economic accounts.

lar parameters at the national and EU levels. 2009 was a difficult year for the Italian economy and in particu-lar for the region. Lombardy’s GDP, measured in chain indexes (pre-Feb-ruary 2012), shows a significant

de-crease from the previous year (-6.3%), worse than the national average, -5% between 2008 and 2009. On an an-nual basis, productivity of labour also dropped, by 3.3% compared to -2.5% at the national level.

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Current prices Chain indexes 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2007 2003 2004 2005 2006 2008 2009 310,952 247,359 263,961 323,973

* Chain indexes - year of reference 2000. Source: ISTAT, Regional economic accounts.

% Share of VA from agriculture1 _to GDP, 2010 VA Lombardy 1.0 Italy 1.8 Italy-North 1.4 Italy-Centre 1.4 Italy-South and Islands 3.2 EU-27 1.7 Belgium 0.7 Bulgaria 4.9 Denmark 1.3 France 1.8 Germany 0.8 Greece 3.1 Netherlands 1.8 Poland 3.7 Portugal 2.2 United Kingdom 0.6 Romania 6.7 Spain 2.6 Sweden 1.7 Hungary 3.8 1_{Agriculture, forestry and fishing.}

Source: ISTAT, Regional economic accounting; EUROSTAT.

value

added

68.3% of value added (VA) In Lom-bardy comes from the service sector and 30.7% from industry, while the contribution of the primary sector is only about 1%. This share is lower than the averages for Italy, the Com-munity and the regions of northern Italy, but is comparable with Germany and the United Kingdom. The trend of the last decade confirms, as in the rest of Italy, a gradual loss of importance in the primary sector in relative terms. Despite the low percentage from the agricultural sector, Lombardy, with a share of 11.4%, contributes more than the other regions to value added in the nation’s agriculture and forestry. The regional VA, after dropping below the 1% threshold in 2009, partly be-cause of the large losses in value add-ed from agriculture (-13%), reversadd-ed its path, with an increase of 1.7% in 2010 (whereas industry declined sharply) and 11.7% in 2011.

VA at basic prices1 _{by sector in}

Lombardy (million euro), 2009

30.7%

68.3%

1.0%

Agriculture, forestry and fishing Industry, including building Services, including the public sector Total

2,771 86,817 192,940 282,528

1 _{Values at current prices.}

23

VA from agriculture1 _{to total}2 _(%)

Italy Italy - North Lombardy

0.0 0.5 1.0 1.5 2.0 2.5 3.0 2006 2000 2001 2002 2003 2004 2005 2007 2008 2009

1_{Agriculture, hunting and fishing.} 2_{Values at current prices.}

employment

Lom-bardy, equal to 4.27 million, repre-sented 18.6% of the national work-force; some 57,500 workers were employed in agriculture, correspond-ing to 1.3% of total employment In Lombardy and 6.8% of the agricultural labour force in Italy. The percentage of the agricultural labour force to to-tal in Lombardy is below the national average, equal to 3.7%, and that of the EU, which is 5%.

Between 2010 and 2011, employment in agriculture fell by 11% (-7,000 units), while the service sector (64%) dropped by 0.2% (-5,000 units). The employed in industry (34%) increased by 1%, compared with a total regional balance of zero; the balance is sub-stantially stable nationally as well (+0.4%), where the drop in agricultur-al and industriagricultur-al workers was attenu-ated by services.

In the region, dependent workers in

agriculture, who accounted for 35% of total employed (compared with 48% nationally) are the component that has dropped the most in recent years; although independent workers, after a stable period, have shown a downturn.

The share of female workers in agri-culture in Lombardy was 18.8% in 2011, lower than for the economy as a whole, for the northern regions (26.1%) and for Italy (29.2%).

In Lombardy, according to the census, foreign workers in agriculture (more than 16,000 units) have a significant presence, representing 42% of non-family labour and 12% of the total, al-most twice the Italian average. Mostly, they come from non-EU countries. In Lombardy, employment in agricul-ture, expressed in terms of work units (AWU) and based on 2009 ISTAT data, represents a share of 2.7% of the re-gional total, compared to 33.5% for

33.5%

63.8%

2.7%

Agriculture, forestry and fishing Industry, including building Services, including the public sector Total

121 1,486 2,833 4,440

Source: ISTAT, Regional economic accounting.

Work units by sector in Lombardy (‘000 units), 2009

25

% Share of workers in agriculture1 _to

total of the economy, 2011

%

Lombardy 1.3 Italy 3.7

Italy- North 2.6

Italy - Centre 2.4

Italy - South and Islands 6.8 EU-27 5.0 Austria 5.3 Belgium 1.3 Bulgaria 6.8 Denmark 2.4 France 2.9 Germany 1.6 Greece 12.4 Netherlands 2.5 Poland 12.7 Portugal 9.9 United Kingdom 1.2 Romania 28.6 Spain 4.2 Sweden 2.0 Hungary 4.8 1 _{Agriculture, forestry and fishing.}

Source: ISTAT, workforce survey - 2011 average, EUROSTAT. Total and agricultural workers by gender and geographical area, 2011

Workers Agricultural workers

‘000 units % women ‘000 units % women

Lombardy 4,273.0 41.9 57.5 18.8

Italy-North 11,925.2 42.8 310.4 26.1

Italy 22,967.2 49.7 850.4 29.2

Source: ISTAT, workforce survey - 2011 average.

industry and 68.3% for services. If we take into account that the value added from agriculture accounts for only 1% of regional VA, we see a strong differ-ence in productivity between those employed in agriculture and in other sectors. The average productivity of an agricultural work unit at constant prices is 58% of an average work unit in services and 63% of the figure for in-dustry. However, in recent years there

has been a trend to an increase in value added per AWU and per agricul-tural worker, with a certain shrinkage of the productivity gap per employee compared to other economic sectors. In 2011, the changes in VA and em-ployment have brought about a strong increase in the profitability of agri-cultural labour compared to the same framework nationally, which is basi-cally stable.

VA at basic prices per AWU and by sector (euro)*, 2003-2009

Agriculture

Services

Industry

*Chain indexes - year of reference 2000. Source: ISTAT, Regional economic accounts.

components

of

the

system

agri-food system in Lombardy was estimat-ed at 37 billion euro, or 16.2% of the value of the national agri-food system and 11.2% of the regional GDP. Much of the final value of the region’s agri-food system comes from distribution and catering, with value added shares,

Main components of the agri-industrial system at basic prices in Lombardy (million Euro, 2011) respectively, of 40.3% and 21.1%. The

ratio between the value of agri-food production, approximately 12.3 bil-lion euro, and the value of the system as a whole is one to three. In particular, 8.5% of the value of the regional agri-food system comes from value added (VA) from agriculture (compared to

12.1% at the national level, including forestry and fishing). The food indus-try, whose VA is about 20% of the na-tional total, accounts for 13.5% of the value of the system (11% on a national basis), while intermediate consump-tion in agricultural represents 11% of the total value of the system.

4,091 3,158 5,015 7,822 14,929 2,018 37,032 Intermediate consumption in agriculture Value added from agriculture, forestry and fishing Value added from the food industry Value added from catering Trade and distribution Indirect taxation on agri-industry Value of AES 13.5% 40.3% 5.4% 11.0% 8.5% 21.1%

29

in-dustry in Lombardy in 2011 was es-timated at about 5 billion euro. This value corresponds to 20% of value added from the national food industry and 13.5% of the value of the regional agri-food system. The relative impor-tance of the sector at the regional lev-el is clear from the fact that VA from the food industry exceeds VA from agriculture by roughly 60%, whereas nationally these values are basically equal. The share of VA from the re-gional food industry to value of agri-cultural production is 41%, compared to 33% nationally.

There are 5,973 active businesses in the sector, or 5.6% of regional manu-facturers, an increased share over 2010. There has been an annual in-crease of 0.7% of food businesses, as against a drop of 1.4% in total manu-facturers. 96.1% of active businesses are involved in food production, while

food

industry

and

cooperation

Provincial distribution of food and manufacturing businesses in

Lombardy1_{, 2011}

Food Artisan food Manufacturing

Tot. % share Tot. % share Tot. % share

Bergamo 677 11.3 527 13.3 11,750 11.1 Brescia 878 14.7 642 16.2 15,768 14.8 Como 320 5.4 245 6.2 7,045 6.6 Cremona 368 6.2 242 6.1 3,267 3.1 Lecco 216 3.6 147 3.7 4,257 4.0 Lodi 132 2.2 82 2.1 1,709 1.6 Monza 323 5.4 206 5.2 9,961 9.4 Milan 1,584 26.5 864 21.8 31,497 29.6 Mantua 458 7.7 304 7.7 4,695 4.4 Pavia 402 6.7 262 6.6 4,844 4.6 Sondrio 210 3.5 136 3.4 1,430 1.3 Varese 405 6.8 308 7.8 10,098 9.5 Total 5,973 100.0 3,965 100.0 106,321 100.0 1_{Active businesses.} Source: Infocamere.

4.6% produce drinks. Artisan busi-nesses make up an important share, 66.4% of active businesses, with the exception of the drinks sector, where

only a quarter are artisan businesses, with a growth of 1% in the 2011-2010 two-year period.

busi-Food businesses in Lombardy, 2011 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Active businesses Registered

businesses Registeredbusinesses businessesActive ARTISAN BUSINESSES TOTAL BUSINESSES 321 271 72 72 6,415 5,702 3,929 3,893 Food Drinks Source: Infocamere.

Share of business categories in food and manufacturing businesses in

Lombardy1_{, 2011} 0 20% 40% 60% 80% 100%

Food Drinks Food Drinks TOTAL FOOD BUSINESS Total manufacturing business ARTISAN FOOD BUSINESS Artisan manufacturing business 23.5% 54.6% 29.5% 11.8% 5.2% 45.4% 49.3% 11.1% 55.6% 33.3% 7.5% 33.9% 58.5% 36.9% 25.0% 37.4% 36.4% 36.7% Individual businesses Capital companies Other Partner companies 1_{Active businesses.} Source: Infocamere.

31

fol-lowed by Brescia (14.7%) and Ber-gamo (11.3%). The classification is similar for artisan food businesses, but with a lower share for Milan and higher shares for the other provinces. The annual trend shows growth in active businesses in Brescia (+4.2%) and Milan (+1.7%) and a significant decrease in Varese (-4.7%).

With regard to the legal form of food businesses, the main types are sole proprietorships and partnerships. There is a fair share of joint-stock companies (23.5%), which are rather prevalent in the production of bever-ages (56.6%). According to INAIL fig-ures, in 2010 alone the food industry provided employment in Lombardy for 100,000 workers (-1.8% compared to 2009), or 20.6% of the national total. Employment in this sector is largely concentrated in the metropolitan area of Milan, with a density of larger

busi-Provincial distribution of workers in food businesses in Lombardy, 2010

Food Artisan food

Tot. % share Tot. % share

Bergamo 6,791 6.8 2,581 13.3 Brescia 9,704 9.8 3,294 17.0 Como 3,741 3.8 1,183 6.1 Cremona 7,802 7.9 1,003 5.2 Lecco 2,842 2.9 755 3.9 Lodi 2,078 2.1 418 2.2 Mantua 7,224 7.3 1,435 7.4 Milan 42,425 42.7 4,095 21.1

Monza and Brianza 4,013 4.0 1,100 5.7

Pavia 4,741 4.8 1,174 6.0 Sondrio 3,030 3.1 702 3.6 Varese 4,887 4.9 1,676 8.6 Lombardy 99,278 100.0 19,416 100.0 Italy 482,234 166,446 Lombardy/Italy (%) 20.59 11.67 Source: INAIL.

nesses. Workers in artisan businesses are more geographically distributed and there are about 19,000.

Cooperation is an important

phenom-enon in agri-food processing. In 2008, according to the latest available fig-ures, there were 300 businesses and more than 4,000 employees, 5.1%

and 4.5% of national totals, respec-tively. The share of the national total is much higher for milk and dairy, which includes just under half of ag-ri-food co-ops in Lombardy and over 50% of workers in the sector. Agri-food co-ops in 2008 realised turnover

of roughly three billion euro, with an 8.2% share of the regional food indus-try turnover, a significant though not particularly strong “weight”. In Lom-bardy, the average revenue per busi-ness, amounting to 9.8 million euro, was higher than the national average

of 5.9 million euro per business. Agri-food cooperatives in Lombardy are strongly concentrated in the provinces of Mantua, Cremona and Brescia, with 87.2% of the turnover of the region’s agri-food cooperative system.

Distribution of agri-food co-ops by category in Italy and Lombardy, 2008

Lombardy Italy Lombardy/Italy

Businesses Workers Businesses Workers % Businesses % Workers

Milk and dairy 138 2,116 963 11,932 14.3 17.7

Services 76 626 1,547 14,802 4.9 4.2 Horticulture 26 722 1,321 30,448 2.0 2.4 Wine 18 164 611 8,619 2.9 1.9 Meat livestock 18 401 494 20,663 3.6 1.9 Other 24 145 898 7,322 2.7 2.0 Total 300 4,176 5,834 93,786 5.1 4.5

33

distribution

Lombardy has established itself as one of the leaders in Italy and Europe for modern distribution: the density of modern sales points (hyper-markets, supermarkets, superettes and dis-count stores), in 2011, exceeded 290 square metres per 1,000 inhabitants. This is a figure of absolute impor-tance, similar to or greater than that recorded in more densely populated European areas.

The region has 2,487 modern food distribution stores, with a total area of 2.8 million square metres, an increase compared to 2010 (+2.6%). The in-crease in selling space, at a markedly higher rate than the national average (+1.5%), affected most of the provinc-es, with the exception of Lecco, Lodi and Sondrio.

This phase of further development in modern retail mainly involves hyper-markets (+4.2%), with a net increase, between openings and closings, of 10

Modern distribution sales points in Lombardy, 2011

N. sales points Area

sq. m. % change 2011/10 Superettes 612 173,845 -4.0 Supermarkets 1,090 1,082,608 0.7 Hyper-markets 230 1,221,714 4.2 Discount 555 349,475 6.3 Total 2,487 2,827,642 2.6

Source: Processing of Nielsen figures.

Area per 1,000 inhabitants in modern distribution sales points in Lombardy (sq.m.), 2011

Superettes Supermarkets Hyper-markets Discount Super+Hyper Total

Bergamo 20.7 120.7 92.2 52.5 212.9 286.0 Brescia 20.3 157.6 150.6 53.6 308.2 382.1 Como 15.6 87.5 139.2 35.4 226.7 277.8 Cremona 8.0 117.4 121.4 40.5 238.8 287.3 Lecco 14.6 87.3 123.7 38.9 211.0 264.5 Lodi 15.6 82.0 230.9 35.8 312.9 364.3 Mantua 22.0 171.4 111.4 63.7 282.8 368.5 Milan 17.0 88.2 116.3 23.2 204.4 244.6

Monza and Brianza 15.8 87.0 148.8 22.2 235.8 273.7

Pavia 19.9 121.7 145.7 41.0 267.4 328.2

Sondrio 59.1 117.7 138.4 44.4 256.2 359.6

Varese 13.4 145.8 112.9 32.4 258.7 304.5

Regional total 18.0 112.3 126.7 36.2 239.0 293.3

sales points in 2011. Discount stores, which in recent years have had dou-ble-digit growth rates, increased by 6.3% between 2010 and 2011, with a net addition of 21 stores and an in-crease above the national average, due to fact that the region has historically

shown lower indices of density of low-cost shops than the rest of Italy. In Lombardy, large private retail chains predominate. The important rearrangement of outlets, which took place over the last two years, was led by the central Cieffea, which joins two

leading firms (Carrefour and Finiper). This purchasing centre accounts for slightly more than 18% of regional selling space, followed by Esd Italia (16.2%) and Centrale Italiana (14.7%).

Breakdown of modern distribution sales area in Lombardy, 2011

Centrale Cieffea (Carrefour, Finiper, Sisa, Coralis) Esd Italia (Selex, Agorà) Centrale Italiana (Coop, Despar, Sigma, Il Gigante) Centrale Auchan-Crai (Auchan, Crai) Sicon (Conad, Interdis and Standa-Rewe) Esselunga Bennet Other Total (sq. m.) 18.4% 16.2% 10.8% 9.6% 9.2% 14.7% 5.9% 15.3% _521,058 458,734 414,442 306,151 270,964 258,755 165,593 431,945 2,827,642 Source: Processing of Nielsen figures and Observatory of Commerce - Lombardy Region.

35

foreign

trade

In 2011, the deficit in foreign trade of agri-food products at current prices was the worst of all time, both in Lom-bardy, where it stood at 4,769 million euro, and nationally, where it reached 8,956 billion euro: the deficit rose 16% for the year and 23.2% in abso-lute value. This is the consequence of two phenomena common to both geo-graphical areas: on the one hand, the value of purchases on foreign markets exceeds that of exports and, in 2011, as in 2006 and 2010, exports grew less than imports.

In Lombardy, the increase in exports (+5.9%) depends on growth in terms of both volume (+1.9%) and price (+3.9%), while the growth in imports (+10.7%) is the result of a significant increase in average prices (+11.9%) and a slight decrease in volume (-1.1%).

Agri-food imports account for 7.8% of regional imports, whereas exports stalled at 4.7%; instead, the same

per-Lombardy’s foreign trade in agri-food products at current prices (million euro)

% Share of agri-food products in the make-up of Lombardy’s trade balance

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 7,929 4,214 -3,715 2010 8,691 4,579 -4,112 2011 9,619 4,850 -4,769 % Change 2011/2010 10.7 5.9 % Change 2011/1999 69.1 100.0 Source: Processing of ISTAT figures in SH6 classification.

Import Export 1999 7.2 3.8 2000 6.4 3.6 2001 6.4 3.6 2002 6.5 4.0 2003 6.7 4.2 2004 6.5 4.1 2005 6.4 4.2 2006 6.6 4.0 2007 6.2 4.1 2008 7.1 4.4 2009 8.2 5.1 2010 7.5 4.9 2011 7.8 4.7

centages calculated for Italy reach 9.7% and 8.1%, respectively.

The region’s main foreign market of supply is France, with a share of 21.3%, followed by Germany (13.3%), the Netherlands (11.3%) and Spain (9.5%). On the export side the top two countries are France (15.2%) and Ger-many (13.2%), followed by Switzerland (8.2%) and the USA (7.9%). The sourc-es of supply, therefore, are lsourc-ess concen-trated than export markets.

Milk and dairy is the main product cat-egory of trade both in terms of imports (14.9%), and exports (19.3%).

Main countries of origin and destination for Lombardy’s agri-food imports and exports, 2011

11.3% 2.8% 32.4% 21.3% France Germany Netherlands Spain Belgium Switzerland United Kingdom Austria Other 13.3% 9.5% 4.1%

IMPORT

EXPORT

37

8.2% 6.0% 4.0% 14.9% 12.3% 6.4% 6.3%

IMPORT

Milk and dairy products Fresh and frozen meat Processed and preserved fish Feedingstuffs Oils and fats Cereal derivatives Sugar and sweet products Other products 7.1% 5.6%

32.7%

19.3%

Milk and dairy products Cereal derivatives Oils and fats Sugar and sweet products Soft drinks Prepared meats Wine Other products 18.8% 6.0% 5.9%

EXPORT

Source: Processing of ISTAT figures in SH6 classification.

8.2% 6.0% 4.0% 14.9% 12.3% 6.4% 6.3%

IMPORT

Milk and dairy products Fresh and frozen meat Processed and preserved fish Feedingstuffs Oils and fats Cereal derivatives Sugar and sweet products Other products 7.1% 5.6%

32.7%

19.3%

Milk and dairy products Cereal derivatives Oils and fats Sugar and sweet products Soft drinks Prepared meats Wine Other products 18.8% 6.0% 5.9%

EXPORT

food

consumption

household in Italy, in 2011, was 2,488 euro in current values, a growth of 1.4% compared to 2010. Lombardy, with 3,033 euro per household (up 4.7% compared to 2010), is the region with the highest average monthly ex-penditure, followed by Veneto with 2,903 euro per household.

Average household expenditure for food and beverages has risen nation-ally, in current values, by 2.2% com-pared to 2010 (with a corresponding price increase of +2.4%), to 477 euro monthly. In particular, expenditure increased for “meat”, “milk, cheese and eggs” and “sugar, coffee and oth-er”. In Lombardy, average monthly expenditure for food and beverages was 491 euro, an increase of 3.3% compared to 2010; this figure puts the region in fourth place, behind Campa-nia, Umbria and Sicily, regions, how-ever, with larger families and a less

Average monthly household expenditure at current prices (euro), 2005-2011

Lombardy Italy Italy-North 2,000 2,500 3,000 3,500 2,872 2,886 2,896 2,930 2,918 2,896 3,033 2,398 2,461 2,480 2,485 _{2,442 2,453} 2,488 2,689 2,786 2,796 2,810 2,768 2,796 2,843 2005 2006 2007 2008 2009 2010 2011

39

The share of expenditure on food and beverages in Lombardy is 16.2% of the total expenditure, preceded only by Trentino-Alto Adige (14.1%) and Veneto (16.1%), while higher shares are spent in Campania (28.7%), Sicily (27.2%) and Calabria (25.7%).

Average monthly household expenditure at current prices for food and drinks (euro), 2005-2011

Lombardy Italy Italy-North 400 500 490 480 470 460 450 440 430 420 410 486 486 463 483 470 475 491 456 467 466 475 461 467 477 454 461 449 464 455 473 2005 2006 2007 2008 2009 2010 2011

Average monthly household expenditure (euro) and percentage share for food and drinks by region, 2011

Expenditure for food and drinks (euro)

% Share for food and drinks

Average monthly expenditure (=100%)

Piedmont Valle d'AostaLombardy Liguria Trentino-Alto Adige Veneto Friuli-V enezia Giulia Emilia-Romagna

Tuscany Umbria Marche Lazio _{Abruzzo Molise Campania} Puglia _{Basilicata Calabria} Sicily Sardinia Italy 0 500 1,000 1,500 2,000 2,500 3,000 3,500 0 5 10 15 20 25 30 35

% Share food and drinks

Average monthly expenditure per family

production

levels

in

agriculture

at basic prices (OBP), excluding for-estry and fishing, and including re-lated services and activities, reached a value of approximately 7.2 billion euro, strengthening the region’s share of national production value, which is already the highest in the country (up from 13.9% to 14.5%). The region, moreover, makes up 28.2% of OBP in Northern Italy and, according to 2010 EUROSTAT figures, contributes 1.8% of OBP in agriculture for the EU-27. For livestock alone, Lombardy con-tributes 26.2% of national produc-tion, 37.9% in Northern Italy and 2.7% within the EU.

The breakdown of OBP shows the re-gion’s strength in livestock: indeed, livestock production contributes 60% of OBP, whereas crop production makes up 31%, followed by related services and secondary activities. On the contrary, at the national

lev-Agricultural output at basic prices, intermediate consumption and value added in Lombardy, (million euro), 2011

Lombardy Italy Lombardy/Italy

million euro % million euro % %

Crops 2,213 30.9 26,235 53.3 8.4 Herbaceous 1,399 19.5 14,535 29.5 9.6 Fodder 488 6.8 1,800 3.7 27.1 Tree crops 326 4.6 9,900 20.1 3.3 Livestock 4,275 59.7 16,294 33.1 26.2 Meat 2,429 33.9 10,118 20.6 24.0 Milk 1,642 22.9 4,962 10.1 33.1 Other livestock 204 2.9 1,215 2.5 16.8 Connected services 531 7.4 6,144 12.5 8.6

Total OBP goods and agricultural services 7,019 98.1 48,674 98.9 14.4 (+) secondary activities* 208 2.9 1,528 3.1 13.6

(–) secondary activities* 69 1.0 981 2.0 7.1

Total OBP agriculture 7,158 100.0 49,222 100.0 14.5 Intermediate consumption 4,071 56.9 23,309 47.4 17.5 Value added at basic prices 3,087 43.1 25,913 52.6 11.9 * Secondary activities mean those performed in agriculture and not separable from it, such as farm stays, processing of milk, fruit and meat, shown with the sign (+), and those performed in other branches of the economy within the scope of crops and livestock (for example by commercial enterprises), shown with the sign (-).

Source: ISTAT, Value added at basic prices from agriculture by region. el, crops make up more of OBP than livestock, 53% compared to 33%. As

for individual categories, in terms of share of OBP, milk and pork

predomi-43

cereals (14.2%) and beef (11.3%). In terms of livestock at the national level, Lombardy holds several re-cords, producing 40% of pigmeat, 37.1% of cow’s milk and 25.9% of beef. It produces important shares of Italy’s poultry meat (18.9%), eggs (17.6%) and honey (14.7%). Compared to 2010, the value of agricultural pro-duction in the region rose by 11.5% (national production grew by 7.2%), almost entirely due to the increase in prices, while total volume remained unchanged. The increase in OBP was balanced between crops (+13.8%) and livestock (+11.4%), while it was more modest for related services (+4.4%) and secondary activities (+6.7%). Crop OBP in 2011 increased mainly due to the cereal sector (+31.1%) and industrial crops (+10.7%); for tree crops, there was a growth in value for vine products (+10.8%), while fruit

Value of agricultural output at basic prices by main category in Lombardy, 2011

Cereals and dried legumes Vegetables Industrial crops Nursery products Vines Fruit Other tree crops Fodder crops Beef Pigmeat Other meats Milk Eggs and other Connected services

14.2%

2.9%

7.6%

3.6%

0.7%

1.4%

2.3%

1.9%

15,6%

7.7%

11.3%

23.4%

0.5%

7.0%

Main crop production in Lombardy, 2011

Volume Value1

000 t % change 2011/10 % Lombardy/Italy million euro % change 2011/10 % Lombardy/Italy

Soft wheat 228.5 -32.6 8.1 56.9 -7.3 8.1 Durum wheat 45.2 -55.5 1.2 14.8 -33.2 1.1 Barley 83.6 -34.0 9.3 17.9 -7.2 9.3 Rice 648.5 -1.3 41.8 201.1 13.6 41.7 Hybrid maize 2,880.0 13.2 29.6 654.2 51.3 29.6 Soybeans 111.5 8.9 20.4 31.9 21.4 20.4 Sugar beets 389.0 -7.6 11.1 16.1 0.3 11.0 Potatoes 29.0 -2.7 1.9 11.8 3.4 1.7 Tomatoes 505.7 -11.3 8.3 60.1 11.4 6.0 Melons 88.0 -1.1 13.3 42.4 5.0 20.0

Sold wine grapes 75.9 35.5 2.3 17.1 53.7 2.5

Wine (000 hl) 80.3 -0.5 4.7 142.8 7.3 7.9 Olive oil 0.9 -10.0 0.2 2.0 -3.0 0.2 Peaches 6.6 -2.9 0.6 1.8 -24.0 0.6 Apples 51.0 1.0 2.3 15.4 -12.0 2.3 Pears 17.6 -0.6 1.9 8.9 -25.7 1.9 Kiwi 8.5 -6.6 2.0 5.3 9.8 1.9 1 _{At basic prices.}

Source: ISTAT, Value added at basic prices from agriculture by region. was down (-14.4%) and nursery pro-duction dropped (-4.3%).

Among cereals, which posted the larg-est increase in terms of percentages

compared to 2010, maize, which ac-counts for 29.6% of national produc-tion, showed an increase of 51% in value and 13.2% in volume. Positive

results were also reported for rice (41.8% of national production), whose value is on the rise (+13.7%) despite a modest decline in volume, and for

45

in value and 8.9% in volume com-pared to 2010. On the contrary, there were heavy losses, especially from the point of view of volume, for other cereals. For horticultural OBP, which recovered slightly compared to 2010, there was an increase in production value of tomatoes (+11.4%); for tree crops, however, peaches, apples and pears markedly declined. Among

pro-cessed products, wine stood out, at 4.7% of national production in volume and 7.9% in value, and OBP increased in value by 7.3%, while production volume remained stable from 2010. The increase in value of OBP of live-stock by individual product affected pigmeat (+14.6% in value and 1.3% in volume), poultry meat (+17.8% and 3.2%, respectively) and cow’s milk (+11.6% in value), the latter showing

a slight decrease in production over the previous year (-1.8%). Beef and eggs reported increases in value and volume, while sheep and goat produc-tion was down for the year.

In 2011, value added from the region’s agriculture, approximately 3.1 billion euro, increased in current terms by 11.7% compared to the previous year, while its share of production value, of 43.1%, remained stable.

Main livestock production in Lombardy, 2011

Volume Value1

000 t % change 2011/10 % Lombardy/Italy million euro % change 2011/10 % Lombardy/Italy

Beef 369.5 1.4 25.9 791.6 6.9 23.2

Pigmeat 833.8 1.3 40.0 1,096.6 14.6 39.0

Sheepmeat and goatmeat 0.9 -10.0 1.4 2.7 -9.3 1.4

Poultrymeat 320.2 3.2 18.9 447.7 17.8 17.1

Eggs (million) 2,317.0 1.2 17.6 198.2 2.8 17.0

Cow’s milk (000 hl) 4,217.7 -1.8 37.1 1,639.9 11.6 36.3

Sheep and goat milk (000 hl) 3.1 -3.2 0.5 2.5 -2.0 0.6

Honey 1.7 -5.6 14.7 5.7 4.8 14.8

1 _{At basic prices.}

Since the beginning of 2011, the weather trend, because of anomalies of extreme, difficult-to-control events such as downpours, hail, drought and high temperatures, was critical for the agricultural sector in the area. Around the middle of March storms occurred which required urgent measures to remove water from fields by consortium institutions in affected areas. Maize in the Lower Lodi area was one of the crops most affected by structural problems on the Cremona-Milan canal; and there were also situ-ations of a certain complexity caused by the flooding of the Chiese River. Between mid-April and the end of May, the complete absence of pre-cipitation triggered further problems for maize; with the land completely

dry and not always supported by ad-equate irrigation relief, disaster oc-curred in the Lower Brescia area. The spring drought called for a series of ir-rigation measures in the areas of the Terre dei Gonzaga Consortium on the right bank of the Po and the East Ti-cino Villoresi Consortium. In addition to maize, the main crops in difficulty were alfalfa, May hay and other fod-der crops, barley and wheat. At the end of May, new heavy rains, mixed with hail, created problems for the vineyards around Pavia and for gar-den vegetables, maize and soybeans in Mantua. The summer period was marked by the alternation of hail-storms and heat waves of varying in-tensity. Between Varese, Como and Lecco, along the foothills of the Alps,

the storms in mid-July caused dam-age to crops of maize, hay, soybeans, vegetables and berries, and to struc-tures, particularly greenhouses and sheds used for agriculture. The excess heat, which arrived in the second half of August, reduced the yields of cow’s milk to varying extent, depending on the area, and caused scorching in the horticultural sector, in particular pumpkins in the areas of Mantua and Cremona. There were also drops in cereal yields, due to changes in tem-perature and water supply.

The harvest in the Oltrepò Pavese was affected, on the other hand, by hail. In the autumn the continuing hot weath-er resulted in prolonged irrigation of fruit orchards.

47

intermediate

consumption

In the agricultural sector regional spending on intermediate consump-tion in 2011 stood at more than 4 bil-lion euro, or 17.5% of the national to-tal. The share of regional intermediate consumption to the total value of the agriculture industry, of 56.9%, is 10 points higher than it is for Italy, while slightly lower in comparison with the European Community.

The increase in spending of 11.2% over the previous year is solely due to the rise in prices (11.3%). The in-crease in value of intermediate con-sumption, the same as the increase in production at basic prices in agri-culture, maintains an almost constant share of intermediate consumption to value of production.

The trend in terms of trade between Intermediate consumption in agriculture in Lombardy

Values at % % to % Change % Change % Change current prices Category Italy value volume price

2011 2011/10 2011/10 2011/10

(million euro)

Fertilisers 252.7 6.2 17.2 19.0 -0.5 19.6

Plant protection products 55.4 1.4 6.9 5.8 -1.2 7.1

Seeds 178.6 4.4 13.4 12.1 -1.3 13.6

Feedingstuffs and expenses for livestock 1,495.5 36.7 25.1 11.5 -0.8 12.4 Other intermediate consumption 2,088.7 51.3 15.2 10.3 0.6 9.5 Intermediate consumption 4,070.9 100.0 17.5 11.2 0.0 11.3 Source: ISTAT. % Share of intermediate consumption to agricultural production value, 2010 % Lombardy 57.0 Italy 46.9 Italy-North 52.9 Italy-Centre 42.4 Italy-South and Islands 39.9 EU-27 59.5 France 59.2 Germany 69.7 Netherlands 64.7 Poland 60.8 United Kingdom 64.7 Romania 57.1 Spain 44.7 Source: ISTAT, Value added from agriculture at basic prices by region; EUROSTAT.

the prices of agricultural products and those for intermediate consumption has declined steadily in recent years,

and did so again in 2011.

With reference to the main catego-ries of inputs, ISTAT figures indicate a dramatic increase in spending for fertilisers (+19%), seeds (+12.1%) and

feedingstuffs (+11.5%), while the in-crease is smaller for plant protection products (+5.8%). For each category of inputs the increase in value of con-sumption is due solely to changes

in prices, although seeds and plant protection products show a negative change in the volumes used, albeit just over a percentage point.

49

ISTAT figures at the regional level, the volume of gross fixed investments in agriculture is about 1.6 billion euro, a decline of 16.8% over the previous year. Gross fixed investments in agri-culture in Lombardy are estimated at 15.9% of national agricultural in-vestments, and 2.7% of the total regio-nal gross fixed investments.

The share of investments in value ad-ded from agriculture in the region, at current prices, stood at 56.7%. The amount of investment per unit of agri-cultural labour (AWU) is 66% higher than the national index. Moreover, unlike the rest of the country, this indicator is comparable to per capita investment calculated for the services sector and is even 6.5% higher than the same figure for industry.

investments

Trend in gross fixed investments in agriculture* in Lombardy

Current values % of tot. % of tot. % of VA from (million euro) investments investments in agriculture in Lombardy1 _{agriculture in Italy}1 _{in Lombardy} 1

2000 1,224.5 2.6 12.7 34.7 2001 1,537.5 3.1 15.9 41.4 2002 1,531.1 2.9 14.5 42.6 2003 1,600.8 3.1 14.4 45.5 2004 1,862.1 3.4 15.2 52.7 2005 1,896.8 3.2 15.6 62.9 2006 2,132.1 3.4 17.3 67.8 2007 1,773.2 2.6 14.9 56.8 2008 1,924.3 2.8 16.3 59.7 2009 1,604.9 2.7 15.9 56.7

* Agriculture, forestry and fishing. 1 _{Values at current prices.}

Share of gross fixed investments in agriculture* in Lombardy to total regional investments and national

agricultural investments1

* Agriculture, forestry and fishing. 1 _{Values at current prices.}

Source: ISTAT, Regional economic accounts.

% to total investments in Lombardy % to total agricultural investments in Italy

0 5 10 15 20 2000 2001 2003 2002 2004 2005 2006 2007 2008 2009 2.6 3.1 2.9 3.1 3.4 3.2 3.4 2.6 2.8 2.7 12.7 15.9 14.5 _14.4 15.2 15.6 17.3 14.9 16.3 15.9

51

Gross fixed investments1 _{per AWU and by sector in Lombardy and Italy, 2009}

0 3,000 6,000 9,000 12,000 15,000 Agriculture Industry Services

Lombardy Italy Lombardy Italy Lombardy Italy 13,352 8,029 12,529 11,905 13,490 12,584

1 _{Values at current prices.}

In 2011 the prices of agricultural prod-ucts in Lombardy underwent a sharp increase (+11.2%) compared to the na-tional average (+6.8%), practically the sole reason for the region’s increase in the OBP for agriculture. Compared to 2010, in line with regional agricultural production, intermediate consump-tion registered a price increase of 11.3%.

The increase in prices of production affected both agricultural crops (+15%) and livestock (+11%) in the region. Among crops, cereals led the hike in prices, an increase of about 29% compared to 2010. Price increas-es were also substantial for fodder crops (+11.4%) and industrial plants (+10.6%), whereas they were more modest for vegetables (+3.8%). In con-trast, the prices of horticultural prod-ucts dropped by 4.2%.

In 2011, tree crops, whose prices re-covered slightly, reflected an uneven

prices

Change in implicit prices of agricultural products in Lombardy and Italy, 2011

Category % Change 2011/10 Lombardy % Change 2011/10 Italy

Crops 15.0 6.7

Herbaceous crops 19.9 12.1

Cereals 28.8 33.7

Dried legumes 13.5 14.7

Potatoes and vegetables 3.8 3.3

Industrial plants 10.6 7.7

Flowers and ornamentals -4.2 -4.4

Fodder crops 11.4 7.0

Tree crops 1.8 -0.3

Vine products 8.4 10.4

Olive products 7.6 8.1

Fruit -14.5 -13.3

Other tree crops -0.6 -1.1

Livestock 11.0 9.5 Meat 10.2 9.2 Milk 13.6 12.4 Eggs 1.6 1.6 Honey 11.0 11.0 Non-food livestock 6.3 4.4 Connected services 1.5 1.4

Total output of agricultural goods and services 11.4 6.9 (+) secondary activities (farm stays. processing)* 3.6 2.1 (-) secondary activities (commercial enterprises)* 9.6 8.1

Total agricultural output b.p. 11.2 6.8

Intermediate consumption 11.3 7.8

* Secondary activities mean those performed in agriculture and not separable from it, such as farm stays, processing of milk, fruit and meat, shown with the sign (+), and those performed in other branches of the economy within the scope of crops and livestock (for example by commercial enterprises), shown with the sign (-).

53

Price index trend in various phases of marketing (2000=100)150

145 140 135 130 125 120 115 110 105 100 95 90 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

ISTAT agricultural product price index

Domestic market price index Food, drinks and tobacco industry Consumer price index Food and non-alcoholic drinks Lombardy Consumer price index Food and non-alcoholic drinks Italy

trend among various productions: on one hand, wine products were up by 8.4%, while other fruit recorded falling prices (-14.5%).

Almost all livestock sectors registered price increases close to the average. The price of milk increased by 13.6% compared to 2010, while meat rose by 10.2%, mainly due to the price of pig-meat (+13.1%) and beef (+5.4%). There was also a slight increase in the price

of eggs, higher for honey and non-food livestock products.

The long term comparison among price indices of agricultural products, industrial production and consump-tion confirms the trend of a greater in-crease in prices for consumption than for production and origin, the latter showing high volatility. More recently, it can be observed that distribution has dampened the substantial changes

in agricultural prices, although in the second half of 2010 there was a recov-ery in consumer prices and, above all, in the industrial producer price index. It is interesting to note that in the last few years the price changes for food consumption in the Lombardy region have been less pronounced than for Italy as a whole, likely as the effect of the significant market share of large-scale retail.

55

General Agricultural Census, there were 54,333 farms in Lombardy in 2010, accounting for 3.3% of the na-tional total. The total agricultural area (TAA) stands at approximately 1,229,000 hectares, while the utilised agricultural area (UAA) is calculated at 986,826 hectares, or 7.7% of the national UAA. UAA managed by farms in Lombardy suffered a drop of 5.1% compared to 2000. This reduction, lower in absolute value than the drop in the number of farms (-23.5%), re-sulted in an increase in average UAA per farm from 14.6 to 18.2 hectares, double the national average.

Individual farms and direct mana-gement remain the prevalent legal form and operation method; certainly, compared to 2000, forms of part-nership have grown in importance, particularly in Lombardy, just as the item “other form of management”

structures

in

agriculture

Structural characteristics of agriculture in Lombardy and Italy, 2010

Lombardy Italy Lombardy/

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 cattle 8,463 50,337 16.81 Agricultural and forest area (AFA) (ha) 1,229,561 17,081,099 7.20 Utilised agricultural area (UAA) (ha) 986,826 12,856,048 7.68 Units of livestock (LSU) 2,739,158 9,957,399 27.51

Workers on farms (n.) 137,447 3,870,754 3.55

- of which family members 98,157 2,932,651 3.35 Total days worked (thousands) 19,261 250,806 7.68

- of which family workdays (thousands) 15,067 200,905 7.50

Average TAA per farm (ha) 22.63 10.54 214.74%

Average UAA per farm (ha) 18.16 7.93 229.0%

Livestock rearing/farms (%) 40.61 13.42 302.7%

LSU/UAA (n.) 2.78 0.77 358.4%

LSU/herd (n.) 124.15 45.79 271.1%

Workers per farm (n.) 2.53 2.39 105.9%

Workdays per farm (n.) 354.5 154.7 229.1%

Workdays/UAA (n.) 19.52 19.51 100.1%

Family workdays (%) 78.2% 80.1% 97.7%